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Fiber to the Premises Dick Lynch EVP CTO Outline Bandwidth Demand Why Fiber? Bandwidth – with headroom Today (50/20 Mbps) Future (00s/00s Mbps) Leading competitive solution Quality Reliability Cost effective solution Lower operating cost than copper More immune to weather Less active equipment Cost curve improving Not enough wireless spectrum Fiber to the Premises Architecture VZ FTTP Program Status Future of Fiber Build costs declining Innovations Scale Operating costs declining Y/Y vs. copper Profitable field of use increasing MDUs Less dense areas Performance improvements Speeds Symmetry u