Fiber-to-the-Premises Market Research in Greeley, September 2019
Market research conducted in Greeley by Uptown Services, LLC, explored residential and business segments for Fiber-to-the-Premises services. The study utilized a quantitative research process involving various contractors with specialized expertise. A phone survey was conducted to eliminate voluntary response bias, resulting in a total sample size of 400 respondents. The survey included age quotas and excluded individuals with specific affiliations. Results were weighted by ward and demographic data from the 2010 Census of Greeley.
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Fiber-to-the-Premises Market Research Residential & Business Segments for The City of Greeley September 2019 Uptown Services, LLC Dave Stockton & Neil Shaw, Principals
The quantitative research process utilized both subject matter and functional expertise across multiple contractors by specialty: Uptown Services: Subject expertise and study data needs SDR Consulting (Rick Hunter): Research expert overseeing design and execution (23 years experience with 200k completed research projects) American Directions Research Group: Survey fielding and data collection (7 US-based call centers with capacity to complete 85k person-hours of call interviews per month) Prairie Research Group (James Wolken): Crosstab analysis and production of output banners (25 years experience) Survey Programming & Fielding Data File Processing & Crosstabs Client Report Survey Instrument Design Sample File Uptown, SDR & City Staff City Staff & SDR ADRG PRG Uptown 10/1/2024 Study conducted by Uptown Services, LLC 2
Phone survey to eliminate voluntary response bias Total sample size of 400 respondents ( 4.9 sample error at 95% confidence interval) Two cell design to test Comcast Gig offering at $110 (cell A n=204) and $70 (cell B n=206) List included wireline and wireless numbers English and Spanish language interviews Age quotas used to ensure robust sample across all age groups. Results weighted to reflect actual age distribution from 2010 Census data Respondents screened to ensure Decision-maker for telecommunications and entertainment services in the home Reside within city limits Respondents with immediate family members employed by any of the following were excluded: The City of Greeley Comcast CenturyLink Rise Broadband 10/1/2024 Study conducted by Uptown Services, LLC 4
Sample by Ward Survey results are weighted to reflect the actual age distribution (by age decile) per the 2010 Census of Greeley. Ward 1, 19% Ward 4, 29% 24% of survey participants are Hispanic/Latino households Ward 2, 23% Ward 3, 29% Household Income Head of Household Age (Unweighted Sample) Census Sample 34% Census Raw Sample Weighted 29% 24% 23% 23% 17% 13% 13% 10% 5% 4% 3% 3% < 25 25 - 34 35 - 44 45 - 54 55 - 64 65 - 74 75+ Up to $25k $25k - $50k $50k - $100k $100k - $150k $150k - $200k > $200k Refused 10/1/2024 Study conducted by Uptown Services, LLC 5
FTTP Residential Quantitative Survey Current Broadband Services Usage
Incidence of Internet Households 85% of Greeley households subscribe to a wired Internet connection at home Comcast has the majority of market share at 71% About 38% of households are in a term contract or a term discount period 6% 6%3% 85% Wired Connection Wireless Data Plan Internet Market Share (Households) Free WiFi Do Not Use Incidence of Term Contracts 3% 4% 1% 1% 12% 20% 18% 50% 71% 20% Comcast CenturyLink Rise Broadband No Contract 1 Year Contract Satellite Other Don't Know 2 Year Contract Don't Know 10/1/2024 Study conducted by Uptown Services, LLC 7
Stated Download Speed by Provider 45% About 40% of households do not know what speed they subscribe to 40% Comcast CenturyLink 35% About 25% of Greeley households state they subscribe to more than 100M 30% 25% Monthly spending averages: 20% Comcast: $57 15% CenturyLink: $48 10% Other Providers: $54 5% 0% Up to 15M Up to 25M Up to 100M Up to 500M Up to 1G Don't Know Monthly Internet Spending 40% 30% Comcast 20% CenturyLink 10% Other 0% <$25 $25-$50 $50-$75 $75-$100 $100-$150 >$150 Bundled Don't Know 10/1/2024 Study conducted by Uptown Services, LLC 8
Connected Devices by Age None 1-4 5-9 10+ Across all Greeley households, the number of connected devices is distributed as: No devices: 2.9% 1-4 devices: 40.1% 5-9 devices: 40.3% 10+ devices: 16.8% 80% 70% 60% 50% 40% 30% 20% 10% The number of connected devices increases with household income and decreases with age (55+) 0% 20 - 34 35 - 44 45 - 54 55 - 64 65 - 74 75+ Connected Devices by Income Influencing factors are likely discretionary buying power and presence of children None 1-4 5-9 10+ 80% 60% 40% 20% 0% Up to $50k $50k - $100k $100k - $150k >$150k 10/1/2024 Study conducted by Uptown Services, LLC 9
FTTP Residential Quantitative Survey Satisfaction & Attribute Importance
Satisfaction Rating by Service/Service Provider (Mean Rating on a 1-10 Scale) 10 8.7 8.7 8.6 8 7.5 8 7.2 7.0 6.9 6.9 6.8 6.6 6.6 6.6 6.2 5.9 5.3 6 4 DSL Cable Modem Greeley Satisfaction Rating by Service/Service Provider (Percent Rating a 9 or 10 ) Telephone Ft Collins Water/Electric CoGS Longmont 65% 64% 63% 70% 54% 60% 41% 50% 31% 30% 40% 25% 23% 23% 21% 30% 20% 19% 17% 15% 11% 20% 10% 0% DSL Cable Modem Study conducted by Uptown Services, LLC Telephone Water/Electric 10/1/2024 11
While reliability and price are always important, Internet speed has dramatically increased in importance over the last several years. Bundling and Brand are secondary in importance to other attributes Importance Rating of Select Broadband Service Attributes (Mean Rating on a 1-5 Scale) 4.7 5 4.4 4.3 4.3 4 3.1 2.5 3 2 1 0 Brand Service Bundle Customer Service Price Internet Speed Reliability 10/1/2024 Study conducted by Uptown Services, LLC 12
Satisfaction Rating by Internet Attribute (Mean Rating on a 1-10 Scale) Total Sample Definitely Subscribe 8 6.8 6.7 6.6 6.4 6.2 5.7 5.6 6 5.1 4 Price Service Reliability Speed Adequacy of Current Internet 1% 7% Completely Adequate 21% Mostly Adequate 25% Sometimes Adequate Rarely Adequate 45% Don't Know 10/1/2024 Study conducted by Uptown Services, LLC 13
By a factor of 2-to-1 when compared to Internet speed, Greeley households most want to see lower pricing. However, this gap narrows among households most likely to subscribe Q34: What would you like to see most improved from your current broadband services? 40% 39% Lower Prices 31% 43% 18% 27% Increased Internet Speed 27% 16% Total Sample 18% 21% Reliability/Reception 17% Definitely Subscribe 19% Current CenturyLink 5% 6% Customer Service 4% Current Comcast 6% 3% 4% Service Availability 5% 3% 12% 3% Nothing 14% 9% 10/1/2024 Study conducted by Uptown Services, LLC 14
Question 29: In your opinion, is the availability of low-cost, high-speed Internet important to the future local community? Importance of Having Low Cost High-Speed Internet Greeley Ft Collins Longmont CoGS 81% 80% 69% 68% 25% 17% 15% 14% 6% 4% 2% 2% 2% 2% 2% 2% 2% 1% 1% 1% Very Important Somewhat Important Neither Somewhat Unimportant Very Unimportant 10/1/2024 Study conducted by Uptown Services, LLC 15
FTTP Residential Quantitative Survey Fiber Broadband Market Potential
The majority of respondents, when given the choice, would prefer to receive high speed Internet from the City, but the margin of preference between the City and an incumbent provider is lower than other Colorado municipals Q28: Among the following list of potential providers, who would you prefer to receive high-speed Internet service from? Greeley Ft Collins Longmont 52% 45% 42% 38% 29% 23% 21% 19% 18% 8% 3% 2% Incumbent Provider The City A New Provider Don't Know 10/1/2024 Study conducted by Uptown Services, LLC 17
58% of respondents indicated they would definitely or probably switch their Internet service to a fiber system installed by the City Q24/Q27: Stated purchase intent for: - Internet at $70/mo. for 1Gbps - Voice at 10% Less than CenturyLink OtherDon't 100% Know 10% 32% More Capacity 19% Prefer the City 75% 'Definitely Would' 'Probably Would' Lower Price 18% 26% 'Might/Might Not' 50% 16% 'Probably Would Not' Primary reason to switch (pie chart) 'Definitely Would Not' 17% Don't Know 25% 31% 8% 13% 7% 5% 0% Internet Phone 10/1/2024 Study conducted by Uptown Services, LLC 18
Uptown uses a Likert Scale with Overstatement Adjustment Conservative research techniques from the Packaged Goods sector Clearly specify purchase intent vs. interest and removes overstatement bias Example: How likely would you be to subscribe? Definitely Would 21.5% Probably Would 35.6% Might/Might Not 20.0% Probably Would Not 10.4% Definitely Would Not 4.4% Don't Know 8.1% x 70% = 15.0% x 30% = 10.7% x 10% = 2.0% 27.7% = Penetration Estimate Residential Research (Terminal / Year 5 Eroded) Small Business (Terminal) Internet 32% @ $70 41% @ 10% Less Telephone 14% / 10% @ 10% Less 31% @ 10% Less 10/1/2024 Study conducted by Uptown Services, LLC 19
Q31/Q33: If both Comcast and the City of Greeley were to offer 1 gigabit Internet to your home and your service options were: Cell A: 1 gigabit Internet from Comcast for $110 per month Cell B: 1 gigabit Internet from Comcast for $70 per month Comcast at $110 Comcast at $70 60% 47% 27% 24% 16% 10% 10% 6% I Would Upgrade with Comcast I Would Switch to Greeley I Would Retain My Current Service Don't Know I Would Upgrade with Comcast I Would Switch to Greeley I Would Retain My Current Service Don't Know 10/1/2024 Study conducted by Uptown Services, LLC 20
FTTP Residential Quantitative Survey Ballot Initiatives
55% of Greeley households support the issuance of a revenue bond to help fund the new fiber network Q35: Without raising taxes, would you support the City of Greeley issuing a Revenue Bond to fund the construction of the fiber network, if the service subscription revenues were used to pay off the bond? 55% I would support 18% I am neutral 15% I would not support 11% Don't Know 10/1/2024 22
Level of Support by Age Decile 100% Support of a revenue bond to fund a City-constructed fiber system varies across household demographics: 7% 7% 11% 12% 15% 9% 29% 21% 19% 80% 15% 26% 21% 7% 18% 15% 60% Younger households are slightly more supportive 21% 13% 16% 40% Higher income households are slightly more supportive 64% 55% 54% 52% 49% 46% 20% Ward 4 is less supportive than Wards 1-3 0% 20 - 34 35 - 44 45 - 54 55 - 64 65 - 74 Undecided 75+ Support Neutral Not Support Level of Support by Income Level of Support by Ward 100% 100% 4% 5% 7% 9% 9% 5% 14% 11% 17% 10% 11% 17% 19% 20% 80% 80% 15% 10% 17% 24% 23% 10% 13% 18% 60% 60% 23% 24% 40% 40% 72% 64% 61% 60% 59% 54% 49% 45% 20% 20% 0% 0% 10/1/2024 Up to $50k 23 $50k - $100k $100k - $150k > $150k Ward 1 Ward 2 Ward 3 Ward 4
56% of Greeley households support extending the current Sales & Use Tax increase Q36: Effective January 1 2016, the City increased the Sales & Use Tax by .65% to 4.11% to fund the costs of street infrastructure improvements and repairs. Would you support extending the existing 0.65% tax increase (equivalent to just over half a penny per dollar) through December 31, 2027? Or would you oppose this extension, allowing the .65% tax increase to expire on December 31, 2022? 56% 59% 52% I would support 55% 58% 30% 28% 32% I would not support Total Sample Ward 1 Ward 2 Ward 3 Ward 4 27% 33% 14% 13% 15% Don't Know 18% 9% 10/1/2024 24
57% of Greeley households support extending the current Food Tax Q37: The City currently taxes food sales for the purpose of funding City capital projects such as construction and improvements to public buildings, recreational facilities and streets. Would you support extending the existing Food Tax through December 31, 2026? Or would you oppose this extension, allowing the Food tax to expire on December 31, 2021? 57% 54% 65% I would support 55% 55% 30% 33% 28% I would not support 25% Total Sample Ward 1 Ward 2 Ward 3 Ward 4 34% 13% 13% 7% Don't Know 20% 11% 10/1/2024 25
Small-Medium Business Segment Establishments with 0-19 employees Total sample size of 50 respondents Respondents screened to ensure Decision-maker for telecommunications services at the business Have Internet Located within city limits and not home-based Respondents with immediate family members employed by any of the following were excluded: The City of Greeley CenturyLink Comcast Rise Broadband 10/1/2024 Study conducted by Uptown Services, LLC 27
Sample by Industry Construction Manufacturing Trade, Transport, & Utilities Financial Professional Services Education & Health Restaurant & Food Retail Religious Sample by Annual Revenue 26% 22% 18% 18% 10% 4% 2% Up to $250k $250k - $500k $500k - $1M $1M - $5M $5M - $10M > $10M Refused/DK 10/1/2024 Study conducted by Uptown Services, LLC 28
Satisfaction Rating by Service/Service Provider (Mean Rating on a 1-10 Scale) 9.0 8.5 8.3 10.0 7.3 6.9 6.3 8.0 6.0 4.0 2.0 0.0 Internet Voice Utility Greeley Ft Collins Satisfaction Rating by Service/Service Provider (Percent Rating a 9 or 10 ) 78% 80% 58% 58% 60% 30% 28% 24% 40% 20% 0% Internet Voice Utility 10/1/2024 Study conducted by Uptown Services, LLC 29
Satisfaction Rating by Internet Attribute (Mean Rating on a 1-10 Scale) Business Residential 8 6.8 6.7 6.6 6.4 6.2 5.7 5.6 6 5.1 4 Price Service Reliability Speed 1%Adequacy of Current Internet Residential Adequacy of Current Internet Business 7% Completely Adequate 8% 16% 21% Mostly Adequate 20% 25% Sometimes Adequate Rarely Adequate 56% 45% Don't Know 10/1/2024 Study conducted by Uptown Services, LLC 30
Greeley businesses rate broadband attributes very similar to residents Importance Rating of Select Broadband Service Attributes (Mean Rating on a 1-5 Scale) 4.7 4.7 5.0 4.5 4.4 4.4 4.3 4.3 4.0 4.0 3.0 2.5 2.1 2.0 1.0 0.0 Brand Customer Service Internet Speed Price Reliability Small Business Residential 10/1/2024 Study conducted by Uptown Services, LLC 31
Question 26: To what extent would having high capacity fiber Internet service available to your business enhance your ability to grow or expand your business in the future? 64% 16% 16% 4% Significantly Improve Somewhat Improve It Would Not Improve Don't Know 10/1/2024 Study conducted by Uptown Services, LLC 32
Question 27: To what extent would NOT having high capacity fiber Internet service available to your business influence you to consider relocating your business to a location that does? 46% 32% 14% 8% Significantly Influence Somewhat Influence It Would Not Influence Don't Know 10/1/2024 Study conducted by Uptown Services, LLC 33
32% of Greeley businesses are potentially seeking speeds of at least 1Gbps Q24: What level of Internet download speed would you want if the following were available to your place of business? Greeley Ft Collins 36% 26% 20% 18% 18% 16% 14% 12% 8% 8% 8% 6% 4% 4% 2% Same As Have Now 10M 20M 50M 100M 500M 1G >1G Don't Know 10/1/2024 Study conducted by Uptown Services, LLC 34
78% of small businesses indicated they would definitely or probably switch to the FTTP system for Internet service Q21-22: How likely would you be to subscribe to [insert service] if it were 10% less than Comcast or CenturyLink charges? 100% Residential Research (Terminal / Year 5 Eroded) 24% 40% Small Business (Terminal) 75% 36% 50% 41% @ 10% Less Internet 32% @ $70 38% 25% 32% 18% 14% / 10% @ 10% Less 31% @ 10% Less Telephone 0% Internet Phone Don't Know Definitely Not Probably Not Might/Might Not Probably Definitely 10/1/2024 Study conducted by Uptown Services, LLC 35
34% of businesses, when given the choice, would prefer to receive high speed Internet from the City, while 38% are undecided Q23: Among the following list of potential providers, who would you prefer to receive high-speed Internet service from? Greeley Ft Collins 38% 36% 34% 24% 24% 18% 6% 6% 4% 2% 2% 0% CenturyLink Comcast The City Rise A new provider Don't Know Broadband 10/1/2024 Study conducted by Uptown Services, LLC 36
Internet service satisfaction levels benchmark below average, with only 21% of households and 16% of businesses stating their Internet service is completely adequate Take Rates: Residential Internet is 32% (1Gbps @ $70) and voice is 14% (@ 10% less) Commercial Internet is 41% and voice is 31% (both @ 10% less) Provider Preference: The city is the preferred provider in both residential (42%) and business (34%) segments, but 27% of households prefer Comcast Bond Support: A majority (55%) of households support the issuance of a revenue bond to fund construction October 24 37
