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03-21-2023 Zito Media UpdateZito Media Update GOALS Create stable broadband network Offer high quality internet, video, and voice products Transition video to state-of-the-art streaming platform Maintain local office presence Local technical staff employing industry standard maintenance procedures Trained call center staff achieving strong performance metrics CHALLENGES Hundreds of miles of plant Identifying problems Implementing solutions Staffing during Covid aftermath Particularly challenging in service industries Depth of training in pre-existing local workforce Mindset and practices Design Maintenance procedures PROGRESS TO DATE Improved signal leakage equipment to help identify system impairments and reduce noise in the system Preventative network monitoring system Uses data from cable modems to identify system problems Full time contractor to add maintenance resources and implement industry standard practices 30% additional call center staffing with significant increase in training System upgrade planned and initial phase equipment and circuits ordered COMPLETED MAINTENANCE JOBS 57 34 31 0 10 20 30 40 50 60 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Completed Maintenance Jobs COMPLETED SERVICE CALLS 291 338 167 0 50 100 150 200 250 300 350 400 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Completed Service Calls CALLS FROM PITTSYLVANIA COUNTY 2039 1633 1016 0 500 1000 1500 2000 2500 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Phone calls answered from Pittsylvania County CALL CENTER PERFORMANCE 58 198 29 0 50 100 150 200 250 Average Speed Answer (Seconds) Average Speed Answer (Seconds) 63 29 74 0 10 20 30 40 50 60 70 80 Service Level (% calls answered within 30 seconds) Service Level (% calls answered within 30 seconds) SYSTEM UPGRADE--NODES Upgrade Description Benefits Replacement of all nodes in system with remote phy cmts nodes New technology allows the separation of cmts intelligence from the physical interface. This change pushes the physical interface into individual neighborhoods. 1.Signal is perfect where it is originated and this pushes that point out to the neighborhood. Signal quality is maximized while signal distortions are minimized. 2.Link to neighborhood nodes are 10 Gbps Ethernet. Links are high capacity and more robust. 3.Visibility to neighborhood nodes is improved—better able to monitor and manage these links. SYSTEM UPGRADE--AMPLIFIERS Upgrade Description Benefits Upgrade of entire return path to 85 Mhz This will either replace or significantly modify each amplifier in the system to enable the upstream to use frequencies up to 85 Mhz. 1.Greater upstream speeds. 2.Greater upstream capacity. 3.Higher upstream frequencies are more robust because they are subject to lower noise levels and interfering signals 4.Allows room for more advanced upstream signal protocols which are more efficient and more robust SYSTEM UPGRADE--CIRCUIT CONNECTIONS Upgrade Description Benefits Upgrade of current internet circuit to multiple dedicated circuits to Atlanta This will replace current internet circuits with dedicated capacity to Atlanta where the Pittsylvania County network will be hooked into Zito’s 100 Gbps national backbone 1.Greater capacity. 2.Greater reliability due to redundant and diverse paths. 3.Direct access to Zito’s peering relationships with major content providers. 4.Access to Zito streaming video platform. 5.Better connectivity to Zito’s voice network. SYSTEM UPGRADE --VIDEO Upgrade Description Benefits Conversion of video to streaming technology Current equipment is based on a broadcast video technology which is more than 30 years old. This will convert video to Zito’s state-of-the-art streaming video. Channels and content will remain largely unchanged, but the underlying delivery technology will be upgraded. 1.More features such as network based DVR and replay TV. 2.Compatible with Roku and FireTV televisions and sticks. 3.No more wires required; operates through in home wifi network. 4.Also works on PC’s, phones, and tablets in the house. 5.More cost effective for customers. 6.Easier migration to 4K and other higher definition standards. 7.More reliable—fewer channel outages and quicker resolution. Caveat: With any video change or conversion, there will be some customer resistance or dissatisfaction, particularly among the older population. While this is clearly an improvement technologically, you can expect to hear some resistance to this change. SCHEDULE Circuit conversion now expected to occur in next 3-4 weeks Node conversion will begin immediately after circuits are converted Amplifier (return path) upgrades will proceed along with node conversions Project expected to be completed by the end of this calendar year