Are you aware of the profound shift in how technology is viewed by HOA & COA communities, as well as REIT communities?
High-speed internet has become a necessity instead of a luxury! The rapid growth of the number of residents using high-speed internet has doubled in the last 3 years. Communities which once had 40% penetration levels are now at 70-80% and higher. Residents utilize this technology for multiple devices including video, computers and even appliances. High-speed internet has become one of the most important services for your home.
Last year CCG negotiated for thousands of residential units and over 200+ new community contracts, including bulk, marketing partnerships, and right of easement agreements. The trend we are now seeing is that multiple communities which had never thought about a bulk high-speed data contract before, sign up for them at an average of 60% savings off the retail rate!
Communities are discovering that residents do not really have a preference for which high-speed data provider they use. Unlike video services, where residents and owners want viewing choice based on preference, high-speed internet just needs to be fast and reliable.
Some communities are now getting 100-150 megs of data with no limits, for half the price of a retail rate These contracts include upgrading the community with fiber optics and guarantees for types of services. This also creates a business partnership between the service provider that wins the deal and the community in which the provider is serving.
Internet Households in the US
As of the end of 2016 Wired Broadband subscribers were right at 69% in every household! 2017 numbers are not in but are expected to be around 73% of every household in the US will be a high-speed internet subscriber!
We only see this trend continuing to provide opportunities for the cable companies, telephone companies, and broadband companies as well as advantages to the HOA/COA and REIT communities.
Just recently a large 55+ community that had never had bulk video or internet service before, switched to a new service provider AND signed an internet bulk agreement. The winning provider included upgrades to the community, speeds of 150 Mbps of unlimited internet and a free gateway. We are seeing more and more of these types of deals with communities that never would have considered bulk service in the past!
Board members and real estate investment owners should be looking to secure their community services with technology contracts that are relevant for the future. Technology upgrades, future proofing, value, and revenue are the items that Board members who serve residential HOA’s/COA’s and real estate investment properties should be focused on today.
CCG has assisted thousands of communities as the leading expert in these types of contract negotiations and believes the high- speed internet bulk agreement will become a preference for many communities in the coming year.
From the President’s Desk-
Communications Consulting Group Inc. Formed in 2004 as a National Advocate Home Owners Associations and Real Estate Investment Associations. The CCG team is made of skilled Attorneys, Former Comcast, Hotwire, ATT and Charter Communications Executives working on behalf of the Communities They Service in over 48 states.