Using Site Selection Data Analysis Software to Provide Fiber Optic Internet Access

Where should a provider build fiber optic internet first? It’s a site selection question: the best market combines strong demand with the lowest cost to serve. Today, let’s use our site selection software and models to demonstrate how Vista Site Selection can use data to identify regions where providing fiber optic internet service will find its best audience.

For the purpose of this case study, we’ll focus on the state of Michigan. Using our proprietary model, let’s try to find the single best location to lay fiber optic cable. Finding this ideal location will combine a number of factors: We’ll want to consider where there is a large audience for that service, but also where we can limit costs by laying the minimum amount of cable.

Start with the county

Starting at the most general level, we’ll use our model to identify the county in Michigan with the highest demand for fiber optic internet. The data in our model shows that Wayne County has the highest number of addresses without fiber optic access, more than 600,000. This makes sense, as the county is home to Detroit, the state’s most populous city.

Narrow to the neighborhood

Now, let’s tighten our target within that area. Looking at the data, we see that the most dense batch of addresses without fiber optic is clustered around downtown Detroit. Our information indicates that the area with the most addresses lacking fiber optic (more than 5,500) also has a median age of 36, an age that correlates well with a tech-savvy audience.

There is one downside, however. The median household income in this area is $29,415, which doesn’t bode well for marketing a service like fiber optic.

Filter for the right audience

Using our model, we can filter for areas where the median household income is at least $70,000, a better target. Using this filter, we can identify an area in Dearborn, just west of Detroit, which features more than 2,200 addresses without fiber optic. Not nearly as many as downtown, but it has an average household income of more than $100,000. Just as important, it also has a median age of 38, which corresponds to that tech-friendly market that we’re trying to target.

The takeaway

The biggest pocket of demand isn’t always the best market. Layering demand, cost and audience fit is what turns a heat map into a decision.

Like how we used data and analytics to identify an ideal market for potential fiber optic users in Michigan? Reach out and learn more about how Vista Site Selection can help you on your next project.