1 / 30

Oregon Connections Hood River

Oregon Connections Hood River. October 24, 2013. Company Background. Clear Creek Communications Service Area 52 Sq. Miles Founded 1906 Statistics Dwindling Access Lines Stable DSL and Cable Modem Customers (20/80) Stable Number of Video Customers Growing Number of Security Customers

chaim
Download Presentation

Oregon Connections Hood River

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Oregon ConnectionsHood River October 24, 2013

  2. Company Background • Clear Creek Communications • Service Area • 52 Sq. Miles • Founded 1906 • Statistics • Dwindling Access Lines • Stable DSL and Cable Modem Customers (20/80) • Stable Number of Video Customers • Growing Number of Security Customers • We serve no place • Virtually no cities, towns or named communities

  3. The Network of the Future • May Not Be Your Own • External Forces Are Changing How Traditional Carriers View the Very Nature of Their Operations • Leveraging Any Available Network is Now Acceptable

  4. External Forces Change the Future • Three Drivers of Change • Reductions in Traditional Revenues • Financiers Tighten Credit • Active Regulatory Period • Opportunities Brought by Change • New Revenues and Markets

  5. 1.) Reduction in Traditional Revenues • ILEC’s Actions • Traditional Cost Cutting • Can Result In Returned Revenue • Customers Actions • Movement Toward Wireless • Can Result in Uncollected Revenues • Action Of Others • Events Beyond Your Control • Can Result in Lower Revenue

  6. ILEC’s Actions • Can’t Manage an ILEC Like a Normal Business • Cost Savings vs Cost Study • Complicated by Two Year Lag • Positive Impact Can Be Short Lived • Frustration and ?#*%&$! Cost Study

  7. Customer Action • Adoption of Broadband • Loss of Second Lines • Shift Toward Wireless • Loss of Primary Lines • Recession • Just Trying to Cut Back • Impact on All Services • Expanded Options • Some Customers May NotKnow You

  8. Customer Actions • Wireless Drift • Access Line Loss 36% 10% of Annual Revenue Lost

  9. Actions of Others • Local Impact Caused By Separation Rules • Returns That Are Driven By Averages • National Average Loop Cost • Local Rate Benchmarks • CAPS • Directly Impacted Our Operations • Heavy Investment In Some Areas Raised NALC • Our Investment Straight Lined • Impacts Our NALC Multiple • Significant Reduction in Support • 20% of Annual Revenue Lost

  10. Actions of Others • Exponential Growth • National Average Loop Cost • Increase 7.5%,14%, 10%, 12%, 1% • NACP Grew 3x Faster Than Company 1.7x 1.5x 1.6x 2.1x 1.9x 2.2x

  11. 2.) Financiers Tighten Credit • Concerns With Industry Segment • Telephone Business Performance • Regulatory Uncertainty • Result • Cautious Lending • Tighter Covenants • Bottom-Line • Less Capital Available • Loan Pre-Payments

  12. Concerns With Industry Segment • Industry Multiples – Jan 2013

  13. Credit Impacts Operation • Shifts Importance of Debt Service • 20% Movement in 5 Years • Options Still Exist For Funding • Leverage Must Be Moderate • Business Plan Must be Prudent • Heightened Due Diligence • Will Be Pricing to Risk • Bank Will Have a Greater Focus • Management • Diversification • Performance To Plan

  14. 3.) Active Regulatory Period • Pressure on Telco Operations • Limitations on USF Support • Phase Down of Switched Access Cost Recovery • Corporate Operations Expense Limitation • Rate of Return Re-Prescription • And More

  15. Pressure on Telco Operations • USF and ICC Reform is Our Reality • Industry Continues to Advocate • We Are Well Represented • Yet That May Not Solve Your Specific Challenge • Some of Us May Have Serious Issues • Regulators Continue to Regulate • They May Not Have Your Best Interest In Mind • Surprise!

  16. 4.) New Revenues and Markets • Positive Action Can Be Taken • Revenue Generation Possibilities • Actions We Pursued • Large Scale Project • Security and Home Automation • Leverage Available Networks • Both Wired and Wireless • Partnering

  17. Positive Action Can Be Taken • Additional Revenue May Be Generated By • New Services • New Customers • Low Capital Options • Funded Per Customer • Partnerships • Cost Savings • Expertise

  18. Revenue Generation Possibilities • Many Carriers Have Developed New Services • Regulated & Non‐Regulated • Monitoring/Security • Home Networking • Computer Literacy/Support • VoIP • Hosted PBX • Ethernet Transport to Wireless • Dark Fiber • Colocation

  19. Revenue Generation Possibilities • Or Attempted to Leverage Existing Assets • Assets Owned and Operated • Switching Services • Installation & Repair • Customer Service • Billing & Collection • Accounting/Regulatory/Management • Assets of Others • Wireless Networks • Interconnected Networks • Capital Investment • Labor and expertise

  20. Security & Home Automation • ClearView • Next Generation Security • Interactive Security • Energy Management • Home Automation • Video Monitoring • Leverages Wireless and IP Networks • Backhaul on Verizon, ATT, T-Mobile • Video and Secondary on Any IP Connection • Easily Offered Beyond Exchange

  21. Industry With Growth Spurt • Projected Annual Revenue Growth

  22. Interactive Security • Complete Web Control • A New Reality for Customers

  23. Energy Management • Measure Energy Usage • Multiple Measurement Levels • Set Energy Goals • Query Current Usage • emPower • Control Lights • Operate Appliances • Thermostats

  24. Home Automation • Intelligent Operations • Smart Schedules • Activity Patterns • Geo-Services • Home Control • Garage Doors • Window Blinds

  25. Video Monitoring • Video Is The Most Popular Feature • Live Streaming • Video Alerts • Cloud Storage • Network DVR

  26. Leverage Other Networks • Western Independent Networks • Expands Our Reach • Offers Transport Network Throughout Oregon And The Greater Northwest Region • Leverage The Networks Of 25 Shareholder Companies • Expands Our Opportunities • Oregon Broadband Partnership • Participation With Others • Integra • Century Link • Wave Broadband • LS Networks • INDATEL (National Coverage)

  27. Partnering • ClearView • Particularly Suited to Working Together • Current Have 7 Partners • Sharing • Common Brand • Knowledge • Marketing • Sales and Technical Staff • Facilitates Quick Entry

  28. Partnering • Oregon Cable Group • Created in 1999 • Recently Joined • Current Have 4 Members • Sharing • Headend Equipment • Capital Projects • Knowledge • Technical Staff

  29. Partnering • Western Independent Networks • Equity Partner • Network Partnership • Services Utilized • Point to Point Special Access • Ethernet Transport • Internet Backbone Access • IP Voice Aggregation • Peering • NOC and Maintenance Services

  30. Partnering • Possibilities Abound • Jointly Provided Services • Infrastructure Sharing • Wholesale Purchasing • Management/Labor Contracts • Look Around You • What’s Happening in Your Neighborhood? • Are You Part of The Discussion?

More Related