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How much is the broadband industry worth in the United States?

marketsizing
New answer on Jul 07, 2021
2 Answers
490 Views
Anonymous A asked on Jul 07, 2021

 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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Ian
Expert
Content Creator
replied on Jul 07, 2021
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate

Hi there,

You forget to multiply by 12 months...your number will be more reasonable then :)

Otherwise, this approach generally makes sense!

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Anonymous A on Jul 07, 2021

@Ian would you just consider wifi?

Suheb
Skilled
replied on Jul 07, 2021

Looks good but you are forgetting to get a yearly number plus the most important segment- Business (small cafes to all the way to corporates) 

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