A total addressable market is a combination of a network provider’s on-net and near-net buildings. Regarding on-net buildings, they are defined as:
On-net buildings are properties where network service providers have physically built connectivity that they own. This means that tenants can move into the building and receive internet connections right away.
As for near-net buildings, they can be defined as:
Near-net buildings are locations that are just a short build away from the buildings that you already service.
Most network providers already understand their on-net footprint, though there are varying degrees of how well this data is managed from organization to organization. But, assuming your on-net footprint data is accurate, your next step is to get an understanding of all of your near-net opportunities. This is done by running a near-net analysis.
Before we go any further, let’s define what that analysis is:
A service offering that provides a distance-based assessment of buildings in close proximity to a network service provider’s existing routes.
Running a near-net analysis to expand your total addressable market isn’t just the logical step here, it’s a very beneficial one. In fact, here is what happened when Mid-Atlantic Broadband conducted a near-net analysis.
“Connectbase expanded our serviceable location list three-fold with near-net analysis, from 2,600 on-net locations to almost 9,000 on-net and near-net locations.” Dave Keller, Chief Revenue Officer, Mid-Atlantic Broadband.
According to Connectbase Labs, on average we see providers’ networks double in size after a near-net analysis. Seeing a 2-3x growth of your network is a no-brainer decision.
Understanding your total addressable market and knowing how to strategically improve your market presence should be initiatives for all network providers that are looking to grow their revenue.