THE CARMEL GROUP‘S 2016 COMPETITIVE BROADBAND PROVIDER REPORT

Introduction

This Report was inspired by the industry leaders and investors listed below. This “Short Version” of the Report is available through WISPA to participants of the 2016 WISPAPALOOZA conference in Las Vegas, NV.

• WISPer ISP                                                     • Huawei 

• Rise Broadband                                                • ZTE 

• WISPA                                                           • Amplex 

• WCA                                                               • SpeedConnect   

• Cambium Networks                                           • AtLink Services 

• Mimosa                                                          • All Points Broadband 

• RFElements                                                     • Safelink 

• Viasat

Executive Summary

A Competitive Broadband Provider (“CBP”) (also known as a Wireless Internet Services Provider (“WISP”), a Broadband Wireless Access Provider (“BWA”) or Fixed Wireless Access Provider (“FWA”)) is a fixed wireless provider of competitive broadband service, offered primarily to consumers, businesses and anchor institutions in rural and suburban areas. CBPs deliver competitive Internet broadband over a combination of licensed, shared access and unlicensed spectrum, comprised mostly of data but increasingly voice, video, security services, and related ancillary products and services are being offered.

This Report presents both an overall and a detailed view of today’s U.S. CBP industry. It further discusses the industry’s strengths, opportunities, challenges, and threats. An international CBP perspective is also offered.

Over 2,000 U.S.-based CBPs target their services toward existing, unserved and underserved consumers. It is estimated that CBPs serve more than four million users in the U.S. today and will achieve 2016 revenues of $2.3-$3 billion. More and more today CBPs are expanding beyond just rural residential to include suburban and urban residential, business, governmental and institutional users.

The Report makes the following findings: 

  • The fixed wireless broadband industry is experiencing a robust growth in subscribership. This improvement is expected to continue during the next five years. Growth drivers include low barriers to entry, development of better performing equipment (e.g., standards-based LTE equipment) at competitive prices led by fierce competition among manufacturers, new spectrum resources, and increasing awareness from the financial community.
  • Fixed wireless technology has been a first mover in rural areas. It can also compete effectively with wired technology solutions in suburban and urban areas where wireline networks historically have not been upgraded, are not locally owned, and/or are not cost-effective to maintain.
  • Large companies including AT&T and Google have recently announced plans to invest in and deploy fixed wireless technology as an extension of their wired services. These investments better serve rural areas, as they further help to validate the opportunity, the technology, and the business model. Long term, these companies could pose a competitive threat or present exit opportunities for smaller providers.
  • Regional consolidation will continue, but a national roll-up remains difficult given the highly fragmented nature of the U.S. CBP industry. Consolidation is challenged by the inherent small size of the operators that are profitable and growing, differences in network topology among operators, a lack of widespread strategic investment, and a shortage of consolidators.

 

For more information, contact The Carmel Group, P.O. Box 4225, Carmel, CA, 93921, tel: (831) 622 1111 and/or via email at This email address is being protected from spambots. You need JavaScript enabled to view it.

HUGE DISCREPANCY OF CEO COMPENSATION VS. MEDIA COMPANY PERFORMANCE, STUDY FINDS Carmel Group Analysis IDs Imbalances, Big Numbers, and Three Key Outliers

July 26, 2015, Carmel, CA

The sums received by CEOs at Dish Network, DirecTV, and Comcast (in order) reflect a more balanced ratio of compensation to corporate financial results than most other top-tier media barons, according to The Carmel Group's new "Media Executive and Company Ratings Report." (www.carmelgroup.com). The study shows that among ten of the largest publicly-traded media companies analyzed, CBS and Discovery Communications get the least CEO bang for the buck.

The Carmel Group's performance study also rates, alphabetically, Disney, Time Warner, Time Warner Cable, Viacom, and 21st Century Fox. It includes hundreds of data points, graphics, and additional analysis and projections.

"Two companies that had almost zero customers 20 years ago [Dish and DirecTV], are today among the TV industry's performance leaders," said Jimmy Schaeffler, The Carmel Group's chairman and chief service officer. "In this Chaotic New Age of Broadband and Over-the-Top (OTT) Competition, innovation and best business practices are the successful CEO's ultimate contribution to corporate and shareholder success."

Findings from the composite study and analysis for the years 2012 to 2014 identify the top performers and compound annual growth (CAGR) in the U.S. media sector. This group of ten companies accounts for $56 billion in average 2014 year-end equity. Financial metrics measured include average compensation, revenues, net income, earnings per share (EPS), market capitalization, and equity. Patents and other “innovation” benchmarks, as well as social and charitable contributions, were also considered.

Key Study Findings:

  • During the three years studied, overall revenues for the ten companies grew at 3.5%, while the annual CEO compensation grew at 13% compounded annually, which matches the net income and market capitalization growth for the period.
  • DISH's Ergen (age 62) averaged $1.7 million annual compensation, CBS' Leslie Moonves (65) averaged $62 million, and Discovery's David Zaslav (55) averaged $79 million during the three-year period. DirecTV’s White (62), with $17 million annually, received 10 times the compensation of Ergen. That said, Ergen’s shareholdings vastly increase his net worth.
  • The overall study outliers were Messieurs Ergen, Moonves, and Zaslav.
  • The average age of the ten CEOs is 62; the average number of years experience is nearly 17.
  • At over 150 patents, Disney more than doubled the average number of 2012-2014 patents achieved by its next closest U.S. media rival.

The Carmel Group's mid-year 2015 study, titled "Media Executive and Company Ratings Report" (See, www.carmelgroup.com), includes research, charts, and analysis by M. Ben Jebara, PhD candidate at the University of Toledo, Ohio. For a full report, contact The Carmel Group at This email address is being protected from spambots. You need JavaScript enabled to view it., or 831 622 1111. The study price is $299.

About The Carmel Group: The Carmel Group is a 20-year-old media and telecom consultancy and research organization, focused on the global and U.S. pay TV, broadcast, and broadband/Over-The-Top (OTT) video industries.

Jimmy Schaeffler, Chairman & CSO

The Carmel Group Tel: (831) 622 1111

Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Website: www.carmelgroup.com

Contact: This email address is being protected from spambots. You need JavaScript enabled to view it. 831 622 1111

The Carmel Group was asked to measure and compare the content and pricing of the two basic level pay TV packages, and the two mid-level packages, offered as of mid-February 2010, by DISH Network and DirecTV. 

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