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The future of TV is on fibre

Martin Sharrock Head of Network Technology

09 September 2019 First Half

My Rugby Network

Second Half

New Zealand’s Rugby Network

After Match Analysis

Rugby – Special Event

2 09 September 2019 The New Normal

23 Connected ‘things’ 18 + 14 Wireless ‘things’ - 1 x Chorus ONT - 4 x Phone - 3 x WiFi hotspot - 2 x iPad - 2 x TV - 2 x temperature sensor - 2 x VTV - 1 x heat pump - 1 x Apple TV - 1 x desktop computer - 1 x Xbox One - 2 x Chromebook - 1 x Desktop PC - 1 x MacBook - 1 x Cinema amplifier - 1 x printer - 1 x Philips lighting controller - 1 x Kindle - 4 x network switch - 1 x Kobo - 3 x security camera - 1 x smart scales - 1 x NVR - 1 x Skoda car - 1 x Cloud controller and - 1 x RGW/Security gateway - 14 x friend/family phones

Screenshots from Ubiquiti Unifi Application 3 09 September 2019 Our love of streaming video uses a whole lot of data

• On average we use 270GB of data in our homes each month, more if you’re on fibre

• Annual network traffic growth is 40 percent year on year

• More than 70 percent of broadband customers take up unlimited plans

• Typically HD uses 3GBs per hour, while 4K will use up to 7GBs an hour and more

09 September 2019 The New Normal

Last week = 235GB

One month is generally ~1TB of data

700GB is generally on Wires 300GB is generally on WiFi

This seems a lot, but:

- We watch mainly HD, not 4K UHD - We are not big TV binge watchers

Screenshots from Ubiquiti Unifi Application 5 09 September 2019 2nd Half

New Zealand’s TV Network

09 September 2019 Unlimited data and streaming are the norm

> Growing catalogue and quality of streaming content is Monthly average data usage driving broadband uptake and usage higher per connection on our network ▪ 2degrees bundle with Amazon Prime 356 ▪ Stuff launched news and content portal: play stuff 350 341 ▪ TV focused on streaming services: Sky Sport Now 300 276 ▪ new standalone Vodafone TV device to enable online content 265 ▪ Spark Sport showing English Premier League, Rugby World 250 Data Cup usage • Rugby World Cup expected to promote uptake of smart 200 (GB) 188 TV’s and introduce traditional TV viewers to streaming

150 • Chorus network capacity increased ~50% in FY19

100

Copper Fibre Average 50

0

Jun-15 Jun-16 Jun-17 Jun-18 Jun-19

Mar-15 Mar-16 Mar-17 Mar-18 Mar-19

Dec-14 Dec-15 Dec-16 Dec-17 Dec-18

Sep-15 Sep-16 Sep-17 Sep-18

7 09 September 2019 77% increase in network traffic at peak time since June 2017

Fixed line network delivering consistent performance at peak time

Average peak time throughput on Download speed: Chorus network Copper line vs fixed wireless 2.000 45 41.8 40.9 26% drop in 40 performance at Tbps Mbps 35 peak time 30 24.3 25 1.000 20 18 15 9.3 9.1 10 5 0 0.000 VDSL ADSL Fixed Wireless 24-7 Peak time

Source: Commerce Commission, June 2019 Peak time = busiest daily 15 minute period

8 09 September 2019 Online TV works best at speed Streaming video is “bursty” and needs a fast connection for best performance

Single 4K Stream Two Netflix 4K Streams with fast forward/rewind events

9 09 September 2019 Online TV with teenagers in the other room

Each new Fortnite season, usually available at 8pm NZ time, requires the gamer to download a massive file

It takes less than 10 minutes to download on a Gigabit fibre plan, even when people are also streaming

Two Netflix 4K Streams and Fortnite download

10 09 September 2019 • Everywhere

The New • Fast Normal for New Zealand • Unlimited

• Uncongested

09 September 2019 After Match Analysis

Rugby World Cup Special Event

09 September 2019 Why is RWC Rugby World Cup Special for us?

13 09 September 2019 Why is Rugby World Cup special for us?

14 09 September 2019 Why is RWC special for us?

• Spark and your Retail Service Provider know you need a good home network for a great experience

• Chorus, Spark and all the Retail Service Providers know the NZ network must perform really well

• Spark and the Retail Service Providers know they need efficient video content delivery

09 September 2019 The next one will be much more special

16 09 September 2019 • If it plugs in, plug it in

• Get WiFi Mesh Take Home Tips

• Get Unlimited

• Go Fast(er)

09 September 2019 The future of TV is on fibre

Martin Sharrock Head of Network Technology

09 September 2019