Broadband is a complex issue. (Service Spotlight).

One of the hottest amenities currently being offered by multifamily communities is Internet access. Popular with students, professionals and retirees, access to the World Wide Web is quickly becoming a must-have--on the same list with fitness equipment and a second bath.

As residents become more savvy about the Internet, they start looking for faster ways to access it for the daily news, business reports and their all-important e-mail. And that's where broadband comes into play.

Broadband is a term encompassing several methods of high-speed Internet access, obtained via a cable modem or over phone lines via DSL. Users don't dialup; instead, access is instant--freeing up both precious moments of time and their phone lines. Broadband users access the Web faster and can talk on the phone at the same time, which, for professionals and students, is a major advantage. Downloading large files is also simplified, which is important to residents working from home.

Once a benefit offered only to the wealthier residents of upscale luxury housing, broadband Internet access is quickly becoming an industry standard.

"Independent research forecasts indicate that there will be 1,340,000 high-speed Internet subscribers in multifamily units in 2002, growing to a projected 5,999,000 in 2005," says a Verizon Avenue spokesperson. "That represents that there will be four times the number of subscribers in only four years. Also, additional research indicated that almost half of all potential renters will select a new apartment based on the availability of high-speed Internet access at that community.

According to Verizon, as the price of computers falls, more and more people will be looking for high-speed access. Within four years, the company predicts that owners of B and even C class properties will need to offer some kind of broadband service to attract new residents.

It's the wave of the future.

Resident Demands

"It's clearly a demanded amenity," says Verizon Avenue President Bill Wallace. "We're seeing more and more cases where residents are shopping among apartment communities based, in part, on whether or not they have Internet access or not. It's clearly a criteria."

The trend makes sense--students use the Internet for research and socializing, young professionals use it as a primary communication device, and retirees make up one of the largest and fastest growing populations using e-mail to keep in touch with grandchildren and far-away friends. By providing and advertising the availability of broadband technology, owners can attract renters from nearly every population.

Wallace says another trend is bulk purchasing of broadband services. Owners buy large blocks of Internet service at wholesale prices, and then can either charge residents retail prices and turn a profit, or pass the savings along as a competitive advantage. Every apartment is equipped with high-speed access, so there's no setup or paperwork for the resident--and no time to wait before he or she gets connected. And that lack of a typical one to three week wait for high-speed connection can be a big advantage in an increasingly competitive marketplace.

Verizon is forecasting an increase in retail access prices, as demand increases over the next few years. By purchasing bulk access, owners can actually offer broadband service to residents at a lower price, giving them yet another advantage in the marketplace.

"Not every owner is turning it into a profit center," Wallace says. "Some of them are passing the savings through to residents."

Installation

According to Wallace, broadband installation requires little more than an unlocked door on a multifamily property. There is no wiring infrastructure required, and installation usually requires little more than rolling a single cabinet into the telephone control room. "We literally roll in one cabinet and connect it to the existing infrastructure," he says. That means little expense and no hassle for property owners, which isn't what most think of when they think about retrofitting their properties. "In 90 percent of the cases, the property owner doesn't have to do anything," Wallace says.

Residents access the `net over existing copper phone wires, using digital subscriber line access modulator (DSLAM) technology that was designed specifically for the multifamily industry. This technology provides fast, reliable service that's miles away from dial-up.

Finding a Provider

Wallace recommends that multifamily owners who want to provide broadband to their residents look for established companies that have experience in multifamily. He also tells multifamily owners to look for a company with stability in their market, as the recent shutdown of the @Home service demonstrated.

@Home was a major provider of broadband Internet service that shut down shortly before Christmas. While many of its customers were shifted to other high-speed Internet services, some had to revert to dial-up service, which was considered a major blow to them.

"I tell property owners to look at the back office," he says. "Can they do what needs to be done to keep your service running reliably? They have to bill for service, deliver the service, maintain it--and it's all time-consuming and expensive. You want to find someone who is devoted to the industry and is in it for the long haul."

He also recommends finding a company whose technology remains on the cutting edge.

NSC Members Providing Broadband Service

AT&T Broadband and    www.att.com
Internet Services

Time Warner Connect   www.accesstimewarner.com

Verizon               www.verizon.com

WSNET Programming     www.wsnt.com
and Technology

Kim Fernandez is a freelance writer for trade and consumer publications who lives in Bethesda, Md. A former Managing Editor for Units, she has written about the multifamily housing industry since 1994.