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Investor Presentaiton

LYRB SECTION VII: DATA USAGE STATISTICS CONTINUED EXPANSION IN DATA USE 89% of Americans use the internet daily. The table below shows Utah's population classifications and the percentage in those classes that have residential internet nationally. AGE RANGE STATE POPULATION HAVE RESIDENTIAL IN AGE RANGE INTERNET 18-29 23.40% 98.00% 30-49 25.90% 97.00% 50-64 14.60% 87.00% 65+ 10.00% 66.00% UIA TELECOMMUNICATIONS REVENUE BONDS, SERIES 2019 % of U.S. adults who use the internet, by income 100 75 50 25 As shown in the graph to the right, internet usage is also increasing among lower income brackets. 0 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 -Less than $30,000 $30,000-$49,999 $50,000-$74,999 $75,000+ Source: Surveys conducted 2000-2018 Data for each year based on a pooled analysis of all surveys conducted du- ring that year. PEW RESEARCH CENTER "As smartphones and other mobile devices have become more widespread, 26% of American adults now report that they go online "almost constantly," up from 21% in 2015, according to a Pew Research Center survey conducted in January 2018³. Customers are increasingly opting for | Gig connections. Approximately 4,700 residential and business customers (19%) have subscribed for I Gig or higher speeds. This represents a 231% increase from 2015. The graph below shows the increase in | Gig + connections since 2015. BARRIERS TO ENTRY REMAIN HIGH FOR OTHER FTTH ENTITIES Growth in I Gb+ Services (Business and Residential) 2,500 Startup of FTTH is very expensive and fraught with third-party caused delays including the following: 2,000 О O O O O O O Permitting for major crossings (l.e. railroads, canals, freeways). Fiber backbone construction is expensive and slow to deploy. Core electronics procurement, configuration, and testing. Core facilities procurement and construction. 1,500 1,000 Network Operations Center setup, training, staffing. 500 IT Systems and billing procurement, configuration. 0 Internet service startup costs (IP Address acquisition, data center co-location, upstream Internet transit). 2015 2016 2017 2018 2019 3 (Source: Morningstar Stock Analyst Notes 1-24-2018) "Comcast posted its third straight quarterly decline in television customers, losing 38,000 residential video subscribers in the fourth quarter of 2017" and "The traditional pay-TV ecosystem is at risk as viewership shifts from linear to digital." PAGE 28 WE PROVIDE SOLUTIONS
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