Builders use community intranets to help package complete telecom packages with lower phone, high-speed Internet and cable TV rates.

How do I love thee? Let me count the ways.

The question asked in that old love poem creates a quandary for Rick Mildner, general manager for Haven Properties' The Tributary at New Manchester community outside Atlanta. The dilemma: It's almost too difficult for him to count reasons why he loves building a totally connected community.

But let's try to "count the ways" anyway: 1. Sell the units faster. 2. Boost the absorption rate of homebuyers purchasing high-speed Internet access service. 3. Negotiate "greatly reduced" prices for cable TV service, high-speed Internet access and telephone service. 4. Sell the homes for marginally higher prices. 5. Create long-term, satisfied homebuyers. 6. Boost lot values by 5 percent to 10 percent. 7. Involve the sales force in the sale more deeply by providing them with an avenue to discuss the homebuyer's lifestyle needs, therefore potentially leading to increased sales of all amenities. 8. The user interface is cool. 9. Offers an opportunity to receive feedback and to respond to problems more quickly. 10. etc., etc., etc., (as Yul Brynner said in his Oscar winning role as the king of Siam in the 1956 movie "The King and I.")

These influences are guiding more builders and developers to examine the potential for master-planned single-family and multidwelling unit (MDU) projects. Recent data show at least a 70 percent growth in connected communities. Meanwhile, builders say the user interface is an important piece of the pie to create a functional community intranet, which should be only one part of a complete telecommunications package.

Fiber Backbones Spur Growth

Just like in the old love poem, it's getting harder to count the ways in which connected communities nationwide have grown. Two years ago at the Electronic House Expo (EHX) Fall 2003, Tom Reiman, president of The Broadband Group, participated in a panel discussion and estimated there were only about 30 "master-planned communities" under development nationwide. Just a year-and-a-half later at the EHX Spring 2004 in another panel discussion, Reiman estimated there were "too many to count."

One way to estimate the number of connected communities nationwide is looking at the list produced by the Fiber –to-the-Home (FTTH) Council and the Telecommunications Industry Association. Released in October 2004, the list cites 217 communities in 37 states currently providing high-speed services via fiber backbone, a 70 percent increase in just six months. The list, prepared by Render, Vanderslice & Associates and TeleChoice, does not include fiber-based projects still on the drawing board or those where customers have yet to move in—like The Tributary at New Manchester in Douglasville, Ga.The list does not even take into account communities that do not offer a fiber backbone, but may still be offering non-fiber-based high-speed Internet service, video on demand (VOD) or other services.

Indeed, in 2003 the three largest competitive local exchange service providers (CLECs Bell South, SBC and Verizon) adopted a common specification for the delivery of fiber to the premise and announced plans for initial deployments in 2004. Even states such as West Virginia now tout "connected communities."

FTTH deployments continue to be driven by municipalities, competitive local exchange carriers (CLECs) and new residential developments, according to the FTTH Council.

"Communities are recognizing that the life-enhancing applications and opportunities enabled by fiber to the home make it a critical infrastructure need for its citizens," adds Mike DiMauro, FTTH Council president.

"Communities across the country are realizing the power of broadband communications networks," says Matthew J. Flanigan, TIA president. "Not content to wait for upgrades from the local telephone or cable companies, they are laying their own fiber and building their own communications infrastructure. These ‘smart' communities enable their residents and businesses to become much more productive and innovative, thereby improving the quality of their citizens' lives."

Reaping Benefits of Intranets

Community intranets are certainly not well suited for smaller developments. Anecdotal evidence from developers suggests that a minimum of 80 to 100 homes is needed. But regardless of size, certain communities are poster-boys for intranets because of the buyer demographics.

At The Tributary at New Manchester, the community intranet is only one aspect of an overall telecommunications plan. The 1,600-acre project, which will have its first homes for sale in April or May 2005, consists of 2,500 single-family homes, 1,500 apartments, and thousands of square feet of office space and retail stores. Mildner says a community intranet fits in perfectly with this building plan.

"We are creating a small town, not just a master-planned community. In that case, the community intranet becomes an integral part of the communications within the community," Mildner says. About 1,200 of the units will be situated in a small village. "It will be an inwardly directed community," he adds. By that he means that inhabitants will be encouraged to shop and interact with the retail and office space in the development vs. being forced to leave the development for shopping and work needs, or even babysitting and recreational activities.

The overall telecom plan includes cable TV service, high-speed Internet service and telephone. At press time, Haven's technology partner, PTC Computer Solutions, was down to the wire in negotiations with two service providers. "The idea is that we will get all those services at a greatly reduced price," says Mildner, who would not speculate on a specific percentage of savings.

If you are building a connected community, why not shout it out? Haven Properties is doing that ... to an extent. "In marketing connectivity, you have to be very careful," says Mildner. "It is either very important or of very little use. It either plays a central role in the homebuyer's decision making process or it plays no role!"

With that in mind, the developer will be offering Internet access to prospective buyers for a mock community intranet. The online sample will permit prospective buyers to play with interactivity for voice on demand and other services.

"The sales floor [in our freestanding sales office] is really where technology marketing plays a key role. It is part of the selling process," says Mildner. Why? Because Haven will be placing interactive, self-service kiosks in the sales office that will allow buyers to select specific areas where they want more information. The kiosks will have a menu of basic and optional amenities. According to Mildner, the kiosks are more suited for the GenX buyers that the developer is targeting to The Tributaries. The model homes will also be loaded with technology, he adds.

"Absolutely, the community intranet will help us sell the units faster," says Mildner, who would not speculate on how much faster. But he says the key is to offer the technology in incremental packages.

The Tributaries packages will be combinations of services, such as VOD, virtual private networks (VPNs—a community intranet), multiple email addresses, access to wireless hot spots in the public areas, or access to a competitive internal and external gaming networks, combined with connection speeds, such as 512kbps to 1.5Mbps to 5Mbps. The services will be based on a fiber backbone. Haven Properties is negotiating a deal that will offer the developer a share of the recurring service revenues. That's why the company is interested in using the packages to boost the absorption rate among homebuyers in the community. Mildner expects 100 percent penetration for high-speed Internet service among the GenX crowd. Among Baby Boomers who might buy in The Tributaries, he is confident that "a vast majority" will purchase an upgrade package.

In terms of property value, the verdict is still out. Mildner says he has seen research that shows the lot value in fiber communities between 5 percent and 10 percent higher than other properties. "We expect a marginal increase in the sales price of the homes, but where we really expect an increase is in the absorption rate, but we haven't quantified that yet," he says.

Haven Properties has a pricing strategy. "For $100 per month, we will be offering basic cable, phone with long-distance service and basic Web access. That's our magic number," says Mildner, who says he has seen other connected communities offer comparable services for as much as $165 per month.

Content, User Interface Are Vital

No matter what the infrastructure, one of the keys to a successful community intranet seems to be the quality and ease of use of the interface. No matter how fast the connection, homeowners will not be loyal frequent users if there is no simple-to-use interface. Web tablet manufacturer CorAccess has recently debuted a new interface called its Gatekeeper on its Companion Web tablet, an 8.4-inch wireless color touchpanel with a stylus and recharging cradle.

"For most builders, home automation is a snore," says Craig Slawson, president of CorAccess. "It needs to benefit him and his community." Slawson says the reason more builders do not make community intranets part of their new master-planned developments has nothing to do with the online content, but instead is related to the physical location and accessibility—or lack thereof—to the interface.

"It needs to be on in a high-traffic area of the home," claims Slawson. To that end, CorAccess' Gatekeeper has been deployed in high-rise MDUs in Florida and Toronto with the intention of being a vital part of inhabitants' daily activities. Slawson believes the Web tablets must be highly accessible, preferably as a wireless unit. First of all, the home page of the customizable interface poses as a giant clock with weather and traffic alerts. It also can scroll Home Owners Association (HOA) alert messages. Other functions allow a user to book a conference room at the complex using a "concierge" button, or have your car brought to the front door using the "valet" button. The system will even automatically generate a printed valet ticket and allow the homeowner to access a garage camera to see his or her car. Other common functions using the interface include setting up tee times for golf, establishing dinner reservations, or making appointments for the spa or fitness center. For tech-savvy users, instant messaging capability is available. Slawson says the system can even be used by a local Realtor to show off floor plans.

In fact, one developer in Coconut Grove, Fla., is so enamored with the floorplan function that he incorporated it into his external Internet site (www.grovernorhouse.com). The system allows surfers on the site to access the floorplans of units on multiple floors, and then click on individual rooms to see a detailed schematic with a list of amenities. CorAccess has a builder program through which the units are available for as little as $190 per home, or a program in which consumers can use their own PCs and have access for as a little as $100 per month.

Other manufacturers making a push for connectivity in MDUs are Elbex America and AMX. AMX's Amenities Solution division starts with a backend server shared by the entire building. Each residence is equipped with an NI series controller that communicates with the server and controls the in-home electronics. AMX is ideally suited for MDU environments, says George Falica of Cimax USA, an integrator in N. Miami Beach, Fla., because the NI series is a self-contained unit that won't go down in one home if a unit happens to fail in a neighbor's home.

"Instead of having to bid against a bunch of companies for one [single-family] job, I would rather have a contract where I have 700 houses all in one place, and they're all mine," he adds in an interview with CE Pro, a sister publication to TecHome Builder. AMX, along with integrators, is working on backend services that add value to the Amenities intranet—things like valet service, room service, spa appointments, tee times, emergency buttons, and alerts concerning billing information and homeowner association news.

"In the Trump building you tell them you're going to come outside, and they'll ask you lake or beach, and the number of guests, and they'll have your chairs set up for you," says Falica.

Trump Palace and Trump Royale in Sunny Isles Beach, Fla., were Cimax's first MDU triumphs. The two-tower complex has 738 rooms ranging in price from $600,000 to $25 million. Each unit comes with a Modero 7500 touchscreen as standard, but few buyers settle for that. The average bill for technology is about $170,000 per condo, says Falica.

Cimax also provides building-wide technology including home theaters for the common areas; A/V for the fitness rooms, and CCTV, biometrics and iris scanning systems.

For its part, AMX is tightly controlling its Amenities program. "We require dealers to be at a certain level to be involved in an MDU project," says Scott Norder, AMX vice president of business development. "The developer doesn't want anything that slows down the process."

Content Is Key

For most intranets, having "deep" content is important. Homebuyers, especially tech-savvy GenX'ers, are not likely to frequent a boring Web site, even if it does provide them with security features such as accessing an image from the front door camera.

Other common aspects of a community intranet are a community calendar, clubs/social activities area, and list of sporting events, like local soccer matches. Some builders and HOAs use the intranet as a direct conduit to answer questions or to react to problems from residents.

Some little-used functions of the community intranets include surveying residents about likes and dislikes of their homes, along with selling advertising. Builders have the option to manage a community intranet internally, taking on the responsibility for updating content. Most, however, will likely opt to outsource the intranet management.

PTC Computer Solutions is one such provider that patterns the content based upon the emphasis desired by the developer. "Some developers emphasize security aspects, others want to push TV channels and high-speed Internet access," says David W.B. Parker, president of PTC, makers of NETNeighbor. He says most communities will include access to the community intranet in their HOA dues, so residents are not facing another monthly billing statement. NETNeighbor not only develops and manages the content, but the company also negotiates with the local cable operators, telephone providers and Internet Service providers on behalf of the developer to create a single, lower-cost telecom package. "The idea is that the homebuyer does not have to make a single phone call to any provider to set up his TV, phone and Internet service. It is ready to go for him the day he moves in," says Parker.

As part of implementing a community intranet, builders must commit to a basic level of wiring in the homes they construct, such as a bundle of Cat 5 and RG-6 with multiple drops in the home.