City of Residential Technology Checkup Highlights, comments and our future May 15, 2018
Thank You Dear Resident: In April of 2018, Communication Services invited all households, regardless of their broadband provider, to participate in research to help guide our decisions. The goal of the research is to take the temperature on how households are using and benefiting from internet connectivity. Given the fast pace at which the technology field changes, and our goal as public servants to provide the best more efficient resources for our citizens, we felt obliged to hear the needs of our community so we can focus on the efforts that YOU need and want. The research was conducted by Strategic Networks Group (SNG) on behalf of and HCS. SNG is a premier economy research firm who has data collected from over 15 years of experience across 9 states. On each graph, you ll see the comparative responses from SNG s Digital Economy Database () of around 19,000 respondents and then, responses from our respondents. You will not be surprised that, time and time again, exceeds the rest. We are delighted to share the results of more than 474 responses. While that number might seem slight, the average response for surveys like this is around 1. We have 2,100 HCS customers, so 474 represents about 22% of HCS customers. Before we get lost in the numbers, which I personally love to do, we want to express our thanks to SNG and all those who took the survey and will review the responses, and especially for SUPPORTING YOUR HOMETOWN PROVIDER!!! I ve taken the liberty of summarizing the highlights of the survey for your convenience, however, the complete results can be viewed here. -Angela F. Imming and the HCS team!
15. Households 85. HCS Customers Not HCS Customers HCS Services Used We Are We had a great response! While we would have loved more, SNG assured us that typical response is 1. Of the respondents, 85% are HCS customers and 15% are not. Because we are very interested in understanding our competition, we are happy those non-hcs provided feedback! While reading the results, keep in mind the responses are categorized based on: HCS customers Non-HCS Household and All households () 2 4 6 8 10 Data Video Voice 17.4% 48.4% 98. Of the HCS customers who responded, 98% take our data services. This is a trend we suspected but, data now confirms that data is king.
5 4 3 2 1 19.7% Respondent Age Profile Comparison 21.9% 41.6% 37.8% 18 to 34 years 35 to 54 years 55 to 64 years 65 years and over 22.5% The City of respondents are a little older, or should we say more mature than those in other communities 19. 15.6% 20.5% Household Education Attainment Comparison 5 14.5% 15.3% 4 3 2 1 12.7% 11.3% 28.9% 19.7% 28.9% 19.5% 36.5% 24.2% 25.8% 40.9% 43.4% 41.6% We Are Broadband would enable us to continue pursuing online education and will allow us the opportunity to work from home in the future. 19. 16.7% 5 Responder HCSH-20294 Household Income Comparison 4 we are slightly more educated and 3 2 we make a little more money than other respondents. 1 Less than $30,000 $30,000 to $49,999 $50,000 to $100,000 More than $100,000
mbps All HCS customers exceed the current FCC minimum The Federal Communication Commission defines Broadband or High Speed Internet Connection as 25 Mb/s download and 3 Mb/s upload. We Are Fast [The] highest possible internet connectivity enhances and distinguishes our community for personal and business. Responder HCSH-11460 Percent of Households Meeting FCC Recommended Speeds 10 Current FCC Standard New FCC Standard 8 92.6% 6 67.7% 4 43.1% 2 21.6% Better than 10 down / 1 up Better than 25 down / 3 up mbps We are much faster than most other communities, 50 45 40 35 30 25 20 15 10 5 0 23.6 Average Measured Speed Comparison 44.6 Download Speed 9.5 Upload Speed 40 35 30 25 20 15 10 5 0 32.3 36.3 6.3 7.8 Less than $30,000 across all income levels. Average Upload Speed Comparison by Household Income 28.3 $30,000 to $49,999 10.9 32.5 $50,000 to $100,000 Household Income Range 12.5 35.7 More than $100,000
10 8 6 4 High Priority Factors in Selecting Internet Service 86.9% 86.5% 77. 67.1% 66. 74.1% What We Want It just works. Responder HCSH-11102 2 Reliability of broadband service Speed of broadband service Affordability of services Speed Satisfaction Comparison 10 30.2% 8 6.1% 12.8% Frequent problems Occasional problems Very good most of the time Always excellent Reliability Satisfaction Comparison 10 8 6 4 2 18.9% 30.9% 37.9% 12.2% 5.4% 16.3% 47.7% 30.6% Not fast enough 6 18.9% Neutral 56.6% Fast Enough 4 Very fast 37.8% 2 24.5% 13. It makes everything more convenient. Responder HCSH-10502
Value Satisfaction Comparison 10 22.9% 13.4% 1.1% Satisfaction Poor value 8 Below expectation Acceptable for what I pay Worth every penny 6 4 2 36.6% 32.6% 8. 56.6% 28.9% Compared to other Communities our residents have a much higher satisfaction with the value for price of connection than most communities 29% say their connection is worth every penny versus only 8% for other communities Only 1% view their connection as poor value compared to 23% for other communities 10 8 6 4 2 Satisfaction with Value 9.1% 57.8% 32.3% HCS Customers 0.8% 2.9% 37.7% 49.3% 10.1% Non-HCS Customers HCS Data Customers Poor value Below expectation Acceptable for what I pay Worth every penny have very high satisfaction with value compared to households using other services Almost one third of HCS customer find their service worth every penny
Would you relocate for broadband? Likelihood of Relocation for Broadband This question seemed outlandish, however, the responses validated just how important high speed internet is for residents. 8.6% 8.9% 20.6% 26.6% 18.8% 16.4% Definitely Very Likely Somewhat Likely Not Likely Not at all Not sure For, this is a hypothetical question but it shows the importance of quality broadband, 3 25% 2 15% 1 5% 25.4% Likelihood of relocating to get broadband 20.6% 20. 18.8% 17.8% 16.4% 20.2% 26.6% 10.5% Gary Dunmore, Analyst SNG 8.9% 6.2% 8.6% One in five households would definitely consider relocating more than half express some likelihood of moving were broadband not available.
3 2 1 Households with Home Business - Comparison 7.5% 15.2% Formal Home Business 7.3% 11.8% Informal Home Business Quality broadband is essential for home businesses Two thirds would probably have no business without it Almost half would seriously consider relocating without it How do you use broadband? 19% of households have a home business The Top 5 home business industries are: Professional & Technical Services Retail Trade Other Services Construction Educational Services 43.1% Increased speed would allow my work from home to be able to download files faster and communicate more effectively. 74.5% HCSH-10680 Importance of Broadband for Home Businesses Essential for business Would have no business 2 4 6 8 10 23.5% 15.7% 13.7% 7.8% 13.7% Would need to relocate 35.3% 13.7% 25.5% 19.6% Strongly Agree Neither Agree nor Disagree Agree Disagree 5.9% Strongly Disagree
How do you use broadband? 10 8 6 4 2 Remote Working Comparison 37.6% 38.4% 24.3% 38.4% 7.1% 10.2% 30.2% 13.8% None Accessing workplace Informal Teleworking Formal Teleworking What households say 78% agree that teleworking helps meet their career goals 49% would not have their current job without teleworking 63% spend more locally by teleworking Career goals Teleworking Benefits 2 4 6 8 10 57.7% 20.5% 19.2% Spend more locally 29.5% 33.3% 20.5% 15.4% It keeps me here in, three days per week and I spend my money here instead of St. Louis. HCSH-10053 Current job Avoid relocating 16.7% 29.5% 10.3% 19.2% 23.1% 25.6% 39.7% 19.2% 6.4% 10.3% Strongly Agree Agree Neutral Disagree Strongly Disagree
Broadband positively impacts our finances It opens up another way for others to make extra money when needed. HCSH-20244 How has using the internet increased your annual household income? While residents do use HCS to increase income, we use it less than most other communities. 51.8% 4.3% 9.1% 5.9% 5.5% 5.5% 3.2% 14.6% Less than $1,000 $1,000 up to $5,000 $5,000 up to $10,000 $10,000 up to $20,000 $20,000 up to $50,000 $50,000 or more Not sure No increase in income Percent of Households 55% 5 45% 4 35% 3 25% 2 15% 1 5% Increase to annual household income comparison 4.5% 6.6% 7.1% 9.2% 12.9% 10.3% 3.2% 5.5% 5.5% 5.9% 9.1% 4.3% $50,000 or more $20,000 up to $50,000 $10,000 up to $20,000 $5,000 up to $10,000 $1,000 up to $5,000 Less than $1,000 On average, over 5 of households gain income from the internet
Did using the internet enable higher-skilled or higher-wage employment? How do you use broadband? 38. 62. Yes No 6 4 Household Internet Use - Productivity Education or training courses 45.2% 41.9% Employment and education 10 8 6 4 2 Use of Internet for Education and Training With and Without School Age Children 79.2% 78.9% 84.3% 86.5% 60.7% 37.5% Preschool Schoolage No Children 2 8 6 4 2 55.1% 34.5% 66.3% Education or training courses 47.1% Use of Internet for Education or Training Courses by Education Attainment Level 72.8% 75.8% 62. 60. According to our respondents, online education improves learning achievement. In fact, 71% agree that online education provides a richer overall learning experience. High school graduate/ged Some college/university College/university degree Post-graduate degree In my house, we currently use it to take online college courses and have also considered using it for homeschooling. Affordable internet in the community would mean more access to expanded education and certification. HCSH-20037
Number of TVs in Households 1.9% 12.5% 12.7% 15. 31.3% 26.6% 0 1 2 3 4 5 or more Video is changing The way we access entertainment is dynamic. In 100 years, we ve consumed Hollywood through silent movies, radio programs, big screen, cable TV and HBO. This part of our field is very dynamic and also very personal. We were very interested in really understanding if our community is on pace with trends indicating that streaming and subscription based entertainment is gaining in popularity while linear TV services are declining. 85% of households have two or more television sets Number of Regularly Viewed TV Programs 3.9% 3.7% 0 to 5 17.6% 29.4% 6 to 10 11 to 15 More than 15 13.7% Not sure Don't watch TV 31.7% 61% of households view up to 10 TV programs on a regular basis 31% are heavy TV viewers, watching more than 10 TV programs regularly is on track but not as aggressively as other communities, where cord cutting is reaching 6 of cable TV customers. Still, of the 250 programs HCS offers in the digital family lineup, most people watch fewer than 15 on a regular basis. Skinnier offerings are becoming common.
HCS Video Package Subscriptions 32. 7.3% 2.3% 7.9% 32.6% 45.5% 20.2% 26.2% Streamers' Dream Expanded Basic Digital Family Premium services (HBO, sports package, etc.) Not sure Streaming and Casting Households 26. Percent that Stream AND Cast Percent that Stream, but don't Cast Percent that Cast, but don't Stream Percent that neither Stream nor Cast Video is changing 41% of participating households subscribe to HCS video services 74% of households stream or cast video content to their TVs 72% stream content 29% cast content 26% do both 68% of HCS video subscribers also stream video content Those who don t stream or cast Just not interested (3) Don t know how (3) Never thought about it (26%) Prefer TV services (23%)
Netflix Amazon Hulu Other Vudu 2 4 6 8 10 10.4% Types of Streaming Content Used 42.4% 34. 68. 87.4% 4 Video is changing Would you be interested in streaming or casting if it was as easy as watching regular TV? Interest in streaming or casting if easy as TV None 3.2% 3 33.9% Types of Casting Content 2 24.1% 2 4 6 8 TV Shows / subscription based 68.3% YouTube 67.5% Music 52.8% Personal videos 30.1% 1 10.7% Very interested Interested Neutral or not sure 16.1% 15.2% Uninterested Not at all interested Sports Other 22.8% 16.3% The answer is: 35% would be interested which makes me wonder if HCS should help with the transition.
10 8 6 4 2 10.6% 11.1% 25.2% 34.4% 27.1% Health research and education Household Telehealth Uses 29. 47.2% 20.8% 39.2% 44.1% 30.9% 30.7% 16. 15.3% 36.6% 38.7% 11.6% 7.8% 7.3% 6.4% Emergency call systems Remote health monitoring Peer support Remote consultation Currently use Plan to use Willing to explore Not interested Not Applicable What does the future of HCS look like? We asked our respondents about Telehealth which is a collection of means or methods for enhancing health care, public health, and health education delivery and support using telecommunications technologies. Telehealth encompasses a broad variety of technologies and tactics to deliver virtual medical, health, and education services. Overall, interest in Telehealth is lower in than other communities however responses show an interest in learning. As this market matures and becomes more defined, we will be sure to grow with it allowing our residents the benefit of accessing outstanding health care with the conveniently and securely as possible.
What does the future of HCS look like? Through this survey, we asked for feedback not just responses to our questions. We ve sprinkled some responses that supported our graphs throughout this report, however, in full disclosure, we did receive constructive criticism for which we are also thankful. I would like to take some time to address the recurring themes I found in the responses. Comment: I would love to have HCS in our neighborhood. I currently have Frontier High Speed Internet and while they have made improvements the last several years it is not as fast or reliable as HCS. Our small subdivision of 8 homes love being so close to but there are three homes that have full time working from home residents and it is very frustrating not to have reliable high speed internet in 2018. - HCSH-20311 Response: In the spring of 2017, HCS temporarily halted construction in order to assess the market and to determine what services our residents need. In the Fall, we held a broadband impact symposium that was attended by many local businesses, non-profit organizations and residents. This survey is the result of the symposium and has given us a clear view into the public we serve. We are very confident that we ll begin constructing this summer and hope to complete facilities in the City limits as soon thereafter as possible. Comment: Ensure costs are affordable and held to the lowest possible price point. - HCSH-20274 Response: When Harvard published their unsolicited study on the savings of municipally owned broadband over privately held competitors, HCS was thrilled to have ranked 5 th in the nation. Braking those numbers down shows the full view and it is reflected in your comments. Our starter internet speeds are much cheaper than Charter, however our High High speed is priced too high. Look for changes in the very near future.
What does the future of HCS look like? Comment: An app specifically for the area for police, community activities, church announcements, etc. Having the option to turn on alerts would be fantastic. - HCSH-11419 Maybe with more internet hotspots throughout the community. -HCSH-10817 Response: We received several comments and inquiries around social media and generally providing more information about what is going on in town via alerts. I find this interesting and probably most telling that our city website/technology is dated, wasn t designed for the collaborative environment we are currently in and needs some attention. Clustered in this discussion are comments about citywide wireless which would be fundamental to a robust social media platform. These two topics span HCS and the IT arm of the city and they are topics we will consider for future growth. In closing, I say to those who commented problems with their connectivity to be sure and call our office to have a look. There is NO reason your speeds shouldn t be fast, reliable and steady. Thank you again and enjoy your summer!
Summary benefits from HCS in more ways than one: 1. residents have much higher satisfaction with speed, reliability and value. 2. Harvard University studied HCS v. Charter and found that our prices for Internet are about 43% cheaper than Charter. While it doesn t feel this way when opening the advertisements and watching the commercials, the hidden costs add up. 3. Competition forced Charter to upgrade their facilities and connection speeds far exceeding other communities. Quality broadband helps be more productive Teleworking allows our residents to be in, engaging, learning, volunteering and giving back to the community simply by eliminating the commute. One in five households has a home business One third of households earns additional income through using the internet One in five households gains higher-wage or higher-skilled employment Quality broadband provides lifestyle benefits to households More than half benefit from online education and training, especially with children More than half completed a degree or certification with online education and training One in ten use telehealth services, with four in ten are willing to explore telehealth Three quarters of residents stream or cast video content supplementing or replacing regular TV services but 25% don t Providing linear video (aka traditional cable TV) services is expensive for HCS. Would our community benefit if HCS made streaming easier? More than a third of those who don't stream would be interested in doing so if it is easy One in five households would seriously consider relocating if they could not get quality broadband!
About SNG Founded in 1998, Strategic Networks Group (SNG) brings together industry experts and specialists to help communities and regions address the economic, social, and connectivity challenges of enhanced essential services (smart city technologies) and digital infrastructure. Today SNG is globally recognized as the leader in helping clients understand and drive economic and community benefits from investing in digital infrastructure and smart city initiatives. We work with communities and regions across North America and internationally, as well as federal government agencies, utilities, and economic and regional development agencies. SNG is recognized as the world leader in the econometrics of digital infrastructure and maximizing the benefits from online applications (which include smart city, smart neighborhood services). Applying our proven methodologies (e.g. Digital Economy Benchmarking) across the globe, we help countries, states, counties, and municipalities maximize the impacts of digital infrastructure investments. Through this work with many state and regional clients SNG has amassed a one-of-a-kind Digital Economy Database () about broadband use by households and businesses containing over 75,000 records. We are pleased to bring our experience to the City of in support of our shared vision for the future!