Not sure how to approach this question but will give it ago. First ask a clarifying question as to whether they are talking about fixed or mobile broadband (or both). I’m also a little confused about what broadband would exactly entail… would it be wifi internet, cellular data plans and cable tv.
I’ll take it as wifi internet now
Assume they are just talking about fixed Start top down with the population of the U.S. 320 million. 3 people household on average gives us about 105 million households. We also have to take into consideration secondary homes. I also read somewhere that the U.S. has 5 million secondary homes.
Internet penetration in the U.S. is pretty high and I read somewhere that it is around 90%. Therefore we can estimate that 100 million households have broadband internet. If we estimate that on average broadband costs $50 we can estimate that it is 5 billion dollars.
The number doesn’t seem to right for me - I’d expect it to be considerably higher. Also think I could segment by purchasing power but then again from experience I see that even lower income will choose higher internet speeds.
How was my approach?
Thank you!
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