Demand for Broadband Revised Upward

  • Broadband Penetration
COOPERSTOWN, NY  - A new method for calculating broadband take rates reveals that demand for broadband is significantly higher than it was thought to be - a finding that changes the business case for service providers considering further buildouts.

Consulting firm Brian Webster Consulting published a revised methodology for calculating broadband take rates in the United States. Using the approach described in Webster's new white paper, the broadband adoption rate in areas where broadband services are available is 72.9 percent, or about 10 percent higher than currently accepted industry estimates. The report has a breakdown for each state.

Based on these higher take rates, broadband deployments or expansions may be economically viable in areas once written off due to low household density. More accurate data and the ability to identify exactly where unserved homes are located leads to better-informed deployment strategies and more effective use of funding to address unserved households.

“Combining the enhanced broadband take rate with other economic data and trends as input to return-on-investment models and analysis,” notes Haig Sarkissian, principal consultant at Wireless 20/20 LLC, “builds additional confidence for investors on the merit of the broadband deployment business case.”

Brian Webster Consulting teamed with data provider Gadberry Group to design and prototype an approach that provides near address-level provision for broadband consumption and take rates.

“Earlier this year we provided several first-round [stimulus funding] applicants with block-level demographics, including consumer broadband usage,” explains Gadberry Group principal Larry Martin. “Combining these data with innovative analysis techniques has led to this new perspective on broadband take rate.”

“By leveraging our years of mapping experience, we help our clients strengthen their business case and go-to-market plans, allowing them to present their cases more clearly with images as well as with hard data,” says Brian Webster, principal consultant. "With the new insight provided by the census block take rate, business case analysis is further enhanced, thereby reducing the risk in the broadband investment and deployment.”

The complete white paper is available on the WirelessMapping Web site .

WirelessMapping.Com has been providing wireless and geospatial mapping services for seven years, both with and without accompanying demographic reports that show the number of households covered or passed. Most recently WirelessMapping has been involved in census block level mapping and demographic support services to clients developing applications to the American Recovery and Reinvestment Act (ARRA) stimulus funding through the NTIA BTOP and RUS BIP. Past and current clients include Lockheed Martin, EarthLink, Covad, Federal Engineering, Sprint PCS, ExteNet Systems, Southern California Gas and Electric, Strix, Thunder Bay Telephone Company and BroadbandCensus.com.

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