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PPC EX6XL F-Connector White Paper

For Satellite TV


Prepared by

An innovative business solutions consultancy

Tom French, President
51 Forrest Avenue Rumson, NJ 07760
516-903-4087 Fax: 732-212-8988
Table of Contents


1. Purpose Statement……………………………………………………………… 2

2. Executive Summary…………………………………………………………… 3

3. Discussion………………………………………………………………………. 5

4. PPC Solution……………………………………………………………………. 11

5. Case Study / Scenario Analytics………………………………………………… 12

6. Appendix………………………………………………………………………… 15

1. Purpose Statement

To remain competitive in the evolving telecommunications services delivery market, companies in this
space must update the way they view the value of their investment in Network-Critical Physical
Infrastructure (NCPI). No longer are simply availability and upfront cost sufficient to make adequate
business decisions. Low Total Cost of Ownership (TCO), network availability and the flexibility to
handle evolving information / entertainment needs have become equally important to companies that will
succeed in a changing global marketplace. Moreover, growing competition across a broadening array of
media delivery channels are putting ever increasing pressure on service providers ability to retain their
most valuable asset, the subscriber.

Much like the destiny of Sisyphus, who was condemned forever to roll a stone up a hill only to have it roll
down as it neared the top, so too it seems is the destiny of telecommunications service providers today.
Just as service calls related to the stability of the network reach an acceptable level, improvements in
modulation and enhanced services that call for higher network tolerances drive cost and service issues,
undoing the progress made propagating a perpetual cycle of investment in both infrastructure and service.

Perhaps equally frustrating to system operators, is the considerable investment made to attract customers
only to have them migrate from the fold, in many cases, long before reaching break-even on the cost of
their acquisition.

One significant element in the fundamentals of service delivery currently plaguing operators has to do
with the “last mile” infrastructure or in the case of satellite, the consumer premise network (CPN).
Exploration into the causes of customer dissatisfaction that leads to churn involves the most fundamental
element in the network – the connectors. Our investigation reveals that the leading cause (30-40%) of
service calls that lead to truck rolls is driven by improper installation of cable connections throughout
customer premises.

This white paper quantifies the issue and proposes a viable, cost effective remedy to this significant and
eminently addressable issue.

2. Executive Summary

As with all exercises in prescient investment, a balance must be struck between short-term incremental
investment and longer-term ROI. Historically this has been a challenge and the inability to accurately
assess and balance these two forces has caused analysis paralysis. A more comprehensive and appropriate
method of calculating investment as a function of return is in the calculation of the Total Cost of
Ownership (TCO). This approach incorporates a wider assortment of variables enabling management to
make well informed decisions about critical investments in their network infrastructure and overcoming
the short term approach driven predominantly by upfront costs.

Business decision makers are now seeing the value of including a wider array of variables and the long
term implications in business value assessment when making critical business choices. Clearly, good
business investment decision includes consideration of both upfront costs and on-going operational costs /

In the case of satellite or cable TV service providers, there is little dispute as to the leading cause of
service calls that lead to truck rolls. They are driven by connectors – either due to improper installation of
cable connections or loose connections throughout customer premises. Estimates range between 30-40%
of service calls are connector related.

The situation is compounded for satellite TV service providers who are faced with the challenges of using
predominantly subcontracted installers who’s agenda centers around their bottom line and not necessarily
that of the service provider. As such, enforcing mandated installation practices through compensation and
incentive plans becomes the only truly practical means of governing the third-party installer base.

Unfortunately, there are no “Silver Bullets” to solve this issue. However the good news is a viable remedy
is available. The path to diminishing unnecessary operational expenses involves a three-fold campaign:

1. Better Products – products that simplify installation and reduce potential for error
2. Regularized education and skills training – repetition & reinforcement
3. Aligned compensation and /or incentive programs – that rewards (or penalizes) efforts consistent
with business objectives

For 65 years, PPC has single-mindedly focused on the improvement of the connector / cable interface for
telecommunications service providers and has more patents as testimony to this commitment than any
other company in the world. Through the company’s evolution, driven by a philosophy of partnership
with its MSO and Satellite TV partners, PPC has expanded its suite of offerings to include all three of the
elements necessary to ensure their partners success.

In the category of better products:

PPC offers the EX6XL – an F-connector product that sets a standard of performance and durability while
simultaneously simplifying the installation by effectively accommodating the broadest range of cables
commonly found in the field. What’s more, due to its technical attributes when applied correctly with a
port seal, the EX6XL significantly limits moisture migration into the coax or device port there is no
longer the need to discard entire lengths of cable and equipment when performing a service call. This will
afford annual savings of additional thousands of dollars in unnecessary cable and equipment replacement.

In the category of training:

PPC has always provided the highest levels of expert training regarding the proper preparation and
installation of their products in our customers networks. Now, with the increasing emphasis on the need
for higher integrity networks, widespread recognition that training is a continuous process not a one-time
event and regular high rates of installer turn-over, PPC is meeting the demand by providing incremental
levels and frequency of on premise training.

In the category of compensation alignment:

PPC offers strategic advice and counsel on incentive plans for organizations with employee or contractor
installation forces. Through its many years in this category and through its unique partnerships with all of
the major service providers, PPC is in a position to provide a uniquely valuable perspective on the
alignment of compensation for performance.

PPC’s trinity of services are integrated and operate seamlessly as a whole, providing the most
comprehensive solution to their partners network conundrums available today.

And so, for a nominal premium for the most critical and highest volume single item in any network – the
connector, the PPC solution affords thousands of dollars in value driving the TCO down, while improving
network availability and giving you the flexibility to handle the maximum output of your Consumer
Premise Network (CPN).

Intuitively, a few cents invested to avert a $75 service call or reduce a percentage of controllable churn, is
a win. But even in the event that a multitude of variables obfuscate the direct impact of this investment on
the business, the indirect implications of simplified installation, higher integrity network and the long-
term benefits of reduced moisture migration can only have a lasting, positive impact to the bottom line.

Several scenarios supporting this proposition are available in Exhibit 5

Build your network right, Once. PPC will be there with you every step of the way.

For more information on the PPC EX6X or to request a real-world, in-market proof of performance,
contact your service representative or call Customer Service at 1-800-800-6652.

3. Discussion

Business value for an organization, in general terms, is based on three core objectives:
• Increasing revenue
• Reducing costs
• Better utilizing assets

Regardless of the line of business, these three objectives ultimately lead to improved earnings and cash
flow. Network Critical Physical Infrastructure (NCPI) investments are key to a service provider success
because they both directly and indirectly impact these three business objectives.

Satellite TV service companies review and approve a range of products their installers can purchase such
as coax, connectors, splitters and other “drop” related components to serve as an “insurance policy” that
the components used meet their standards for the ideal resultant network. The logic being, that pre-
selecting components reduces risks of downtime which precipitates churn. Therefore, the greater integrity
in the network the less downtime from any cause and the more value it adds to the business in meeting all
three business objectives.

Historically, assessment of NCPI business value was based on two core criteria: Availability (the degree
to which a system or component is operational and accessible when required for use [IEEE 90] or more
specifically, network uptime that allows a business to continue to bring in revenues or the converse, fewer
customer service costs) and upfront cost.

While upfront cost is still a very relevant factor, it simply does not tell enough of the story. It leaves the
decision maker in the dark about long term costs of a solution, including operating and maintenance costs.
Upfront cost was often used as the criterion because of a traditional project approach to purchasing capital
items. Capital costs, for tax and depreciation reasons, were often separated from on-going expense costs
in the accounting justification for a project. Even though upfront cost is only a fraction of the Total Cost
of Ownership (TCO), it was enough to get a project approved and purchased - it allowed the project to
commence. Things like, less material waste, maintenance or reduced service calls over time were
generally not part of the decision making process. Those types of expenses were often viewed as “fact of
life” costs or were not considered because they eluded effective calculation. The upfront costs simply
came along with the project and were paid for not with project money, but with operational funding.

Availability is a chronic challenge, especially for TV service providers. In the case of satellite TV, it
ranges from complete loss of service to varying degrees of acceptable transmission and may be caused by
uncontrollable variables such as natural phenomena (i.e. rain fade), dish misalignment (caused by poor
installation or environmental factors) and the eminently controllable “human variable” of the other
aspects of the consumer premise installation through regular training and proper incentives (industry
experts estimate that human factors cause unplanned downtime 40-60% of the time). The physical
infrastructure of a satellite TV “network” is comprised of many components. For the system as a whole to
be reliable, the individual pieces of equipment must be reliable. Service providers do not want to be
inconvenienced by component failures, regardless of how fast they can be repaired. Every failure is costly
in terms of man hours and dollars, and the more reliable the components, the less likely that
inconvenience is to occur.

Finally, network flexibility is a critical component in the TCO. In the case of Cable and Satellite TV
service providers, network flexibility can be defined as the ability of a system to adapt to change (new
modulation, compression, etc). Is every link in your network robust enough to handle maximum capacity

and future technology in the form of modulation techniques or bandwidth manipulation? What is the
weakest link and when will it interrupt a service offering?

In a recent survey of major TV service providers one of, if not the most, significant issue currently
plaguing service delivery has to do with the “last mile” infrastructure or in the case of satellite, the
consumer premise network (CPN). Exploration into the causes of customer dissatisfaction that leads to
churn involves the most fundamental element in the network – the connectors. This survey showed that
the leading cause (30-40%) of service calls that lead to truck rolls is driven by connectors – either due to
improper installation of cable connections or loose connections throughout customer premises.

Perhaps most distressing to operators is that this is not a new phenomenon. In fact, this issue is so chronic
and with no apparent or viable resolution that operators have come to accept it as a cost of doing business.

What follows is a discussion on several topics that converge to challenge today’s satellite operators and
service providers.

Misaligned Objectives

In over simplified terms, the largest variable in the integrity of the resulting satellite TV consumer
premise network is due to a misalignment between the business objectives of the installer and those of the
service provider. They are evidenced through:

• Compensation / incentive practices - a subcontracted installer receives compensation following an

installation, provided that the customer remains an active subscriber for 60 days. As an example, if
an issue regarding the installation presents itself before the 60-day mark, the installer must remedy
the problem at their expense. If the problem arises after the 60 days, the installer is compensated
anew for a visit to the customer premises. The incentive for the contractor then is to build a CPN
good enough to last at least 60 days whereas the service provider objective is to have a robust,
trouble-free CPN that will last for years.

• Subcontractor business model – the installers are in the business of installing systems. As such
they have no particular vested interest in the long term stability of the installation. A contractor
revenue is driven by the volume of installs they can accomplish in a given time frame at the lowest
cost and has little or nothing to do with the service provider (i.e. they might just as well install a
DirecTV dish as one from Dish Network). Their margins are dictated by the degree to which they
can drive their costs down. As such they are incented to use the least cost items. While some
efforts have been made by service providers to ameliorate this by specifying certain items, it is
unlikely that mandating by policy will ever be as effective as a direct ownership in the finished

• Training – training is a cost in the contractor business model and therefore engaged in only as
absolutely necessary. Even in the case where the training is provided at no cost to the contractor,
time out of the field is lost revenue opportunity and again, is at odds with the interests of the
service provider and owner of the CPN.

Because of this temporal alignment between installer and satellite company, there is no vested interest in
the integrity of the CPN infrastructure by the contractors who are paid to build it and yet service providers
are highly reliant on this network for long-term customer retention and profitability.

Connectors and Craft

Aside from the misalignment of business objectives, a critical issue remains: there are multiple points of
failure in the CPN infrastructure of traditional satellite TV networks. In fact, there are more connections
between cable and connector in a typical customer premise network (CPN) than any single other
component. The vast majority service related issues are directly related to the connectors and their
installation. These poor connections contribute to customer dissatisfaction, costly truck-rolls and repeat
truck rolls, unnecessary service calls and eventually, churn – loss of upfront investment and future
revenue potential.

A typical customer dwelling has upwards of 30 connections between the dish and the customer’s CE
appliances. Every one of these connections is a potential point of failure. The failures range from loss of
signal, RFI leakage (causing distortion to the picture and pixelization), water migration into the coax
degrading the electrical properties and DC voltage within the transmission lines which accelerates
component degradation, all of which diminish the service to the customer.

The principal contributing factor to this is the craft by which the connections are made by the installation
technician. Due to apathy, the need for speed (driven principally by installer compensation and incentive
practices), poor training or a combination of the above, the level of attention to detail on this critical issue
drives the cost of service beyond the ability of the operator to profitably service the customer.

In a July 2005 survey of satellite installations in the field the following results were quantified by
installation technicians:

• What percentage of connections do you come across in a single day that have oxidized (white
braid) or corroded center conductors?
o 69% of tech reported 10% or more
• What percentage of loose connectors do you run across in a single day?
o 41% of techs reported 25% or more
• No weather seals on outdoor ports?
o 38% of techs report this is the case frequently / always

(*Other craft related variables leading to signal failure are detailed in the appendix).

Higher emphasis on training and installation may mitigate some of this issue. However, recognizing the
human variable will persist regardless of training, PPC provides the most comprehensive training program
available in this market today and has augmented that by inventing a connector that minimizes craft issues
to help restore customer profitability for service providers.

Specifically, with regard to training and compliance there are two schools of thought:
• Mandate compliance with required standards – rewarding / penalizing results
• Reinforce compliance with standards while providing increased training and installation products
that improve the inevitable reality in the field and where possible, improve installers detail

While we recognize the first approach may be ideal, the change in behavior on the scale that is required
can only be achieved by significant and costly changes in training and incentive plans. Therefore

improving the performance in the field by providing superior integrated solutions (product, training and
incentive) has driven PPC’s quest in this category.

Cost of a truck roll ranges between $50 - $90 with an average approximating $75. The events that
precipitate the need for a visit to the consumer premise ranges from critical, such as a break in the
network (i.e. dish out of alignment), to the nonsensical, such as a loose connection between the network
and a CE appliance (i.e. TV).

However, reports indicate that it is not uncommon to have upwards of 40% of the truck rolls precipitated
by connector related issues, the most frequent of which are accounted for as loose connectors. While there
are many causes for this and the precise attribution of reason codes to specific problems may be an
unknown variable, most operators agree the majority of the issues are attributable to improper installation
by technical service personnel. Reports from systems indicate that greater than 80% of installers do not
use torque wrenches as prescribed by connector manufacturers, industry standards bodies and in the
training the installers receive.

Installers non-adherence to installation specifications is the critical, yet controllable “human variable”.
The industry standards body has painstakingly delineated the correct specifications for a proper
installation and corporate policy for most service providers requires adherence to them. Standards with
regard to:
• Recommended torque applied to connections to prevent the loosening of connectors
• Appropriate use of weather seal or port seal hardware (most systems require for exterior
connections) and the correct application of weather seals or port seals when they are used
• Application of appropriate connector to cables found in the field (and there are approximately 30
different varieties of cables to be found across the various ‘last mile’ networks or embedded
within consumer premises across the country, each requiring its own compatibly sized connector -
the likelihood of any given installer having the appropriate connector on hand is its own unique
• The specific and often unique tools required for the proper application of connectors to cabling –
not all installers have the correct tools and therefore improvise. Even those who do have the
correct tool may be insufficiently motivated to get off the ladder and back to the truck to hunt the
right tool down.

Informal surveys among installers indicate:

• In spite of the training they have received 15%- 20% of installers report that ‘finger tight’ is an
adequate degree of torque
• While the majority of installers acknowledge that weather seals are helpful in reducing moisture
migration, 20% do not consistently install them

While the PPC EX6XL will not alleviate improper installation but we do know that when installed
correctly this product improves the likelihood of a secure connection that will stand the test of time in all
environmental conditions.

Customer Interaction
Another issue associated with the “human variable” with regard to installation is interpersonal dynamics.
As with any point of contact with the customer, the service provider is being personally represented.
Often, the technicians are not especially conversant in the art of customer service and their interaction as a
representative of the organization has the potential for negative consequence.

Issues related to the interaction between the installer and the customer are significant and actively
monitored by all service providers (some of the interactions are legendary in their degree of
inappropriateness and offense). The insertion of yet another variable into the delicate relationship with a
customer has a disproportionate chance for negative outcome.

This issue is compounded when the installer is an employee of a subcontractor and is not incented to
interact with the customer and has no particular vested interest in the outcome of the exchange

Network Integrity
Analog signals are very forgiving of the issues presented by imperfect infrastructures. Historically,
consumers were less aware and more tolerant of signal quality issues and for the most part, happy to get
the range of channels cable operators provided. However, digital signals are more susceptible to digital
artifacts (i.e. pixelization, frame-freezing) caused by loose connections or water migration that diminish
signal strength. In any case, TV service providers are calling for a viable, cost-effective solution to their
network conundrum.

As in the case with satellite TV, the drop from the dish to the home is DC powered and this greatly
accelerates the deleterious effects moisture can have on electronic components and conductivity. This
shortens the time frame between initial installation and subsequent problems. An editorial note: this is an
example where the installer might be adversely motivated to not install a weather seal on an outdoor
connection as the degradation / trouble call will come well after the 60 day window of stability required
for receipt of compensation.

Self Inflicted Network Pressure

Compression and modulation schemes – change the tolerances of the networks making services that
previously were within acceptable tolerance ranges now are beyond acceptable margins

Competitive pressure switching back to cable means satellite companies need to ensure every effort is
made to retain customers

• Satellite does not offer a “practical” two-way technology solution for Voice over Internet Protocol
or VOD. Satellite's one-way feed can send shows to TVs, but there's no path back to the satellite,
making its pay-per-view offerings much less popular since they start at scheduled times (there are
POTS or DSL return paths available but they are impractical, expensive and not ubiquitous). Plus,
cable is a more attractive platform for ads because it can target spots to specific neighborhoods.
"Last year satellite had all the advantages. Now cable has attacked them on just about every one,"
says Craig E. Moffett, an analyst at Sanford C. Bernstein & Co.

• Looming but still a bit distant are threats from phone giants Verizon Communications Inc. (VZ )
and SBC Communications Inc. (SBC ), which are gearing up to offer programming services. With
its first trial under way in Keller, Tex., Verizon is offering a full menu of TV channels, part of a
bundle with its own high-speed Internet services.

Direct and Indirect Costs

• Churn – controllable churn vs. uncontrollable churn (50/50 split)

• Customer relationship issues leading to satisfaction and retention issues – loss of revenue and
corporate valuation plus physical disconnect (if applicable)

• Customer value as calculated by Wall Street when assessing satellite TV system value – value of
$1,200 - $1,600 per sub is estimated by leading analysts.

• Cost of acquiring new customer vs. retention of existing – 10X more expensive to acquire new –
current estimates point to $550 - $600 per acquired customer for CATV and slightly higher for

• Other obstacles to effective solution to this connector issue:

o Short term ROI implications for management
o Budget allocations for Capital invest made and will need to be challenged to accommodate
a more expensive, longer term solution
o Personal implications to management: risk of bonus, perceptual risk involved with taking
chance recommending costly new solution

Basing decisions on network components as a function of their upfront cost when the value of the network
component’s application can only be seen in the context of long term subscriber relationship is not the
appropriate measurement.

What would the math be if he factored in the cabling costs, training costs, truck rolls, repeat truck rolls,
inventory of multiple parts needed with other connectors, waste due to improperly applied connectors,
customer service phone call costs and missed opportunity to generate incremental revenue by installing
new subs vs. servicing existing?

4. PPC Solution

PPC has undertaken the challenges noted above and created a connector that minimizes craft issues to
help restore customer profitability for service providers. The PPC EX6XL was designed to address some
of the most common and deleterious issues in the field:

1. Moisture migration –With the use of a port seal (recommended) the EX6XL offers unsurpassed
performance in outdoor applications, not only preventing moisture migration into the cable but
protects degradation of the port and associated equipment as well.

2. Cable Variety – the EX6XL has a Universal compression connection designed to fit 99% of the
varieties of cable found in the field. This connector provides the greatest dynamic fit range of any
on the market today. This single connector accommodates Quad, Tri and 60% braid cable more
effectively than any other single connector with unsurpassed water sealing ability, RFI integrity
and compression strength.

3. Durability – the superior craftsmanship, design and materials used in the construction of the
EX6XL ensure long term effectiveness of the connectors performance

4. Ease of installation - the EX6XL requires the installer only have one installation tool to become
expert with and carry and provides a single connector option for installers reducing the possibility
of error in the field

This product, through its innovative, patented design will enable a marked increase in efficiency by
simplifying installation with higher installation success rates. This subsequently translates into fewer
repeat truck rolls and less cause for customer dissatisfaction. Higher efficiency and success with lower
operating cost make this an intuitive winner.

However, the benefits of this product are not exclusively limited to the connector itself. Purchase of the
PPC EX6XL is accompanied by a basic level of training and a commitment by PPC to your success with
this product.

5. Case Study / Scenario Analytics

The final challenge facing TV providers is balancing the impact of the upfront investment in the integrity
of their plant against the recognition of that investment ROI over time or calculating Total Cost of
Ownership, which includes so many variables. Immediate pressure on Cash Flow and subscriber
retention, combined with subcontracted installer agendas, pit short-term budgets against long-term
business initiatives.

Using conventional upfront cost comparisons, the following summarizes the immediate cost of
incorporating the PPC EX6XL into an operators existing installation and maintenance protocols.

When dispatching a truck to service a customer premise for a service call and the issue is identified to be
connector related, there are three potential scenarios an operator might consider:
o Identify and replace the offending connector(s)
o Adopt a policy of multiple connector replacement to ‘upgrade’ the CPN to decrease the potential
for connector related service calls in the near future (as in replacing all outdoor connectors)
o Complete replacement of all inferior / non-PPC connectors throughout a CPN.

While we believe a well installed whole house connector upgrade will provide an unsurpassed level of
“ensurance” against future truck rolls, we recognize that this is not always practical and has significant
operational implications, not the least of which is cost. Therefore, the most prudent course is the multiple
connector replacement, ‘upgrade’ program. Arguably the if the PPC EX6XL is only partially
implemented, the CPN is still susceptible to connector related truck rolls due to all other connections in
the CPN but for the cost of the truck roll, the economics favor the incremental investment of time and
material to increase the network integrity.

Multiple Connector “Upgrade” Scenario

For this exercise, we have limited application of the PPC EX6XL to a replacement scenario for a
replacement of outdoor connectors given accessibility and finite number of connectors. However, it
should be noted that after realizing great success in market with this product, many systems have
simplified their entire installation process by mandating exclusive use of the PPC EX6XL indoor and out.
• 20% of F-connectors are used in outdoor application and 80% indoor
• Average cost of F-connectors is $.23
• Average cost of F-connectors is $.23 and weather seal $.05, or $.27

That translates into cost per connector as follows:

Current scenario - assuming 100 connectors
80% of connectors are $.23 (80 x $.23 = $18.40)
20% of connectors are $.28 (20 x $.28 = $5.60)
Total cost per 100 connectors is $24.00 or $.24 per connector

PPC AquaTight ™ scenario - assuming 100 connectors

80% of connectors are $.23 (80 x $.23 = $18.40)
20% of connectors are $.34 (20 x $.34 = $6.80)
Total cost per 100 connectors is $25.20 or slightly over $.25 per connector

Therefore the question to be addressed is, are the benefits of:

• Reduced service calls generated by connector related problems – it is estimated that 40% of
service calls are attributable to loose or poorly installed connectors
• Simplified, more effectively installed connectors due to training associated with purchase of PPC
• Fewer reasons for customer dissatisfaction due to signal problems caused by water migration, RFI
leakage and poor connections
• Churn mitigation due to poor service quality
• Indirect costs (waste) associated with current cable replacement protocols

worth the incremental $.01 difference in the average cost of connectors? Moreover, when that incremental
cost is amortized over the multi-year depreciation of capital purchases, do the benefits not meaningfully
outweigh the amortized incremental cost?

In order to understand the benefit the installation of these connectors have on the operation we need to
make some assumptions over time that relate to reduction in connector related service calls and customer
satisfaction that will result from “less aggravation” from being a patron of the service.

In order to rationalize this decision two primary questions need to be answered:

• What reduction in connector related service calls will this generate?
• What is the impact of fewer service related issues on customer retention?

Assuming average monthly churn rate of 2% and looking at the evolution of a subscriber base over a 3
year period with a 100% implementation of the PPC EX6XL, savings related to the reduction of
connector related service calls per 100 homes should equate to $150.00 – all other factors being equal.

Alone this might not be enough to rationalize the expense since it leaves a negative delta of $300. The
question then becomes, how many customers, who would have churned due to service related issues need
to be saved to rationalize the implementation of this program?

Assuming monthly ARPU of $50 ($600/ year) the saving of one customer per 200 would break even on
this investment on purely up front cost basis. Looking at this another way, if this might extend the life of
one subscriber in 100 for 6 months, or 6 subscribers out of 100 for one month, it would pay out.

Of course this does not begin to factor in the other aspects of the TCO the will contribute to the overall
bottom line impact this PPC product and attendant service component can have on your business.

Finally, this is a completely testable proposition and PPC is willing and eager to partner with you to
validate in-market the impact of this innovative new product.

What is difficult to accurately quantify is the Total Cost of Ownership / long-term residual value this
nominal investment will add to the bottom line. It is easy to appreciate conceptually that a pro-active
deployment campaign of the PPC EX6XL will lead to last mile / consumer premise network integrity.
There can be no doubt that this is highly desirable outcome for all system operators.

• How many $75 dollar truck rolls does a $.34 connector need to prevent before it becomes a
worthwhile investment?
• When viewing subscribers as assets that equate to company valuation (current approximation is
$1,500 per sub) how many must be retained in order to justify the deployment of superior links in
the last mile infrastructure?
• How much proof is required to make a decision on an intuitively superior product? Call your PPC
representative and we will build an appropriate real world in-market test to address any
quantitative performance needs you may have.

The value of the PPC EX6XL can be seen through the following equation:

Network availability + flexibility

Value = Total Cost of Ownership

Network Availability - the number one factor impacting churn – if the system cannot deliver you don’t
have a business….you certainly won’t have a customer very long in today’s competitive environment.
This must be impeccable.

Flexibility – is an insurance policy that should be invested in immediately to ensure that the CPN is
optimized to handle maximum capacity as technology evolved driving requirements for higher tolerances.
Building the most robust network now will save future service calls

Total Cost of Ownership - in this case TCO is a composite of the following variables:
• upfront connector costs
• reduced churn
• improved operating costs due to less waste of coax and connectors due to improperly applied
• simplified installs that allow more new subscribers to come on line sooner
• training costs – what is the value of a well trained installer making fewer mistakes?
• truck rolls & repeat truck rolls – with rising fuel costs as a volatile variable
• reduced inventory costs - stocking one connector vs. multiple parts required for other connectors
• customer service phone call costs
• missed opportunity to generate incremental revenue by installing new subs vs servicing existing

For more information on the PPC EX6XL or to request a real-world, in-market proof of performance,
contact your service representative or call 1-800-800-6652.

6. Appendix
• About PPC

PPC, a division of John Mezzalingua Associates, Inc., is a privately held and family
operated company serving the television industry since 1940. PPC is driven by a
partnership philosophy and leveraging innovation to solve our partner’s business problems.
PPC’s innovation efforts have yielded more patents annually in the markets it serves than
any other company.

PPC is located in Syracuse, NY and is a world leader serving major telecommunication

companies domestically and internationally.

PPC’s vision is to constantly improve and simplify connection technology through

groundbreaking innovations that will allow our customers to reach their full potential

We have an overriding commitment to quality in everything we do

• Installer Variables – The Human Element

• Dielectric Length
• Braid Length
• Center Conductor Length
• Center Conductor Clean of Adhesives
• Round Dielectric
• Dielectric Flush to Post Base
• No Scoring of Center Conductor
• No Foil on Dielectric
• No Braid on Dielectric
• Connector compressed Fully
• Correct Weather Seal Used
• Weather Seal Installed Correctly
• Outdoor connections Torqued to 20-30 in/lbs
• F Security Shields Used
• Trap Security Shield Used
• Correct F-81 Used (indoor vs. outdoor)
• Multiple Traps Installed in Optimum order

Installer turn-over

The PPC EX® : Achieving a “True Universal” Connection

The EX ® connector was designed with the challenging requirements of powering in mind. The
unique compliant co-polymer body achieves true universality: the connector performs on all
types of RG6 cable and eliminates the “wrong connector” problem.

The EX ® uses the o-ring

as a redundant seal, not
as the primary seal like
other connectors.

Large tapered compression area

creates a moisture-tight interface
at the back of the connector.
Three circumferential gaskets seal the
The EX ® achieves a gas-tight connection body to the post.
between the nut and the post by using
machined ramp surfaces similar to those
used in aircraft hydraulics.

• Customer Endorsements

Endorsement #1 – about the AquaTight specifically

As the Technical Operations Manager for the Adelphia, Macedonia, OH office I am pleased to say that
the PPC connector product line has performed admirably. We use the RG59, RG6 and RG11 compression
fittings and recently introduced the EX6XLWS compression fitting with the attached weather seal to the

Adelphia Communications focuses heavily on repeat trouble calls, both after the initial install and after a
prior trouble call. We have been able to reduce our repeat calls by 5% and at a cost of $65 per truck roll
the savings are significant. Part of our success has been the PPC connectors.

As we were about to introduce the EX6XLWS connector, PPC engineers visited each of the Adelphia
offices in the Cleveland area and provided insight into the engineering of the connector product and
instruction in proper cable preparation and installation procedures. Part of the training included a prep tool
inspection to insure that not only the proper tools were being used but that all tools were in good working
order to insure that each technician achieved a consistent result each and every time. We are on the verge
of newer, more advanced services such as VOIP, faster modem speeds, and all-digital networks to name a
few and this quality product coupled with superior product support and service is invaluable.

In this increasingly competitive environment PPC helps give us the competitive edge.


Frank T. Adams
Technical Operations Manager,
Adelphia Communications
8385 Bavaria Rd.
Macedonia, OH, 44056

Endorsement #2 – about PPC products and training and their impact on business

December 13, 2005

Jane Catchpole
6176 East Molloy Road
East Syracuse, NY 13057

Dear Jane Catchpole,

Subject: Product Training and Quality

I just wanted to let you know that I am a long time user of PPC products. I own a CATV
contracting company that handles nearly all of the MDU and special projects for Time Warner Cable of
Maine. I recently encountered two reps from your organization at the Time Warner office, Colin
McConnell and Dan Mezzalingua. They were in for a training session and when asked what I thought of
the PPC connectors my honest reply was “They are the best made”. Later that day they came out to my
jobsite to check out the connectors in a serious saltwater application at a marina. Both of your reps were
very helpful and took a genuine interest in the product and it’s use, staying with me for over 3 hours on
the jobsite working along side my guys and showing them tips for easier and more consistent installation
of the connectors. Their knowledge was greatly appreciated and this was the first time as a contractor I
had ever been given training from a connector manufacturer or had a manufacturer who really seemed
concerned with me and my issues. It really blew me away.
I have used PPC connectors in 10 different states with three different companies and would just
like to let you know that I continue to enjoy the high quality of your products. The user-friendly design
cuts down on training expenses and especially, charge backs, a large consideration for any contractor and
especially for an owner/operator. My company will install as many as 5000 of your RG-6 and RG-11
connectors per week, and since the switch, I have never gone back on service call for a bad connector that
was not a technician mis-installation issue. The cold New England winters will cause an occasional
installer to fail to put a RG-11 connector on correctly, but even that is a rare occurrence and it is not
design problem, just a combination of cold cable and cold hands. With my price of a truck roll ranging
from $60 to $74 depending on the region, charge backs make a big difference to my bottom line. Since we
moved to using PPC connectors exclusively and being provided with manufacturer trainings and support
my small contracting company has saved a minimum of $2000 in charge backs this year alone versus the
Gilbert connecter we were using. This causes a trickledown effect, basically Time Warner sees a
reduction in trouble calls, saving them dollars, I don’t have to pay as many charge backs, so I keep more
of my money, and my techs are happier as I don’t have to talk to them about connector issues and they
don’t have to lose money out of their paychecks for the charge backs. I viewed the move to PPC to be a
no-brainer and a total win-win situation for all of us involved.
I just wanted to take a minute to recognize the hard work and dedication that you and your team
have shown especially for a non-direct purchaser of your product. Too often you only hear from
customers when there is a problem and this letter is well deserved. Let Colin know that his presence did
not go unnoticed and it is greatly appreciated. I would like to thank PPC for his visit and will look
forward to another training session in the spring when we are ramping up for another busy season. If you
ever need a reference for your product or support feel free to use me. I can be contacted by cell 207-890-
6625 or email at Thank you again for the hard work of PPC and I congratulate
you on being the best in the industry.

Mat Striegel
President - ProWire

Endorsement #3 –PPC is more than just products and training – they are dedicated partners

December 27, 2005

PPC John Mezzalingua Associates Inc.
6176 East Malloy Rd
East Syracuse, NY 13057

I would like to send along my thanks to PPC for the years of dependable service we have
received from both the great products you provide and also for the outstanding die hard support
that Mike Huonder and the rest of the PPC staff has given us. Mike had called on me for
several years never tiring of convincing us that PPC should be our connector provider. Now
some nine years and a complete rebuild of our system later I am convinced we made the correct
decision in purchasing our hard line, drop connectors, filters, and traps from PPC.

We have been more than pleased with the on time delivery, problem solving and tremendous
on site training provided by PPC. This combined with the use of PPC compression fittings for
RG11. RG6, AND RG59 drop wire has reduced truck rolls at $70.00 each, by approximately 7%.
This has saved us ten of thousands of dollars while providing our customers with the reliable
high quality service they deserve. The use of the universal connector has also increased our
inventory turns and added to our savings.

I would like to extend a very special thank you to Mike Huonder for his untiring service and
dedication to us, also thanks to Mike Metcalf and all of PPC for the great work you do.

Garey Budzinski
Purchasing Manager
Buckeye CableSystem
Toledo Ohio 43614

About the Author:

Tom French, President of French & Company, has participated in the telecommunications industry
in many and varied roles over the course of the past 15 years. His experience includes significant
quantitative contributions to the growth and success of organizations such as AT&T Broadband,
DirecTV and Cablevision. In addition, his unique broad operational and strategic skills have
contributed to the emergence of technology driven start-ups in wireless, interactive technologies,
video on demand and the internet.

For further inquiries on this subject or to discuss how his skills might be profitably applied to your
business challenges, please contact him at or call, 516-903-4087.