Estimation question

How much would it cost to set up WiFi in New York?

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What this question tests

Tests structured cost estimation for a large infrastructure project, breaking a vague ask into components with reasonable, stated assumptions.

How to approach it

  1. Clarify scope: 'WiFi in New York' likely means citywide public outdoor WiFi coverage (like LinkGNYC), not indoor building WiFi; state this assumption upfront.
  2. Estimate area to cover: NYC is roughly 300 square miles across 5 boroughs; assume focusing on the ~30 square miles of dense public/commercial areas (Manhattan plus dense corridors) for meaningful ROI.
  3. Estimate access point density: assume outdoor WiFi access points cover roughly 100-150 meters radius each in dense urban settings, requiring several thousand access points for full coverage.
  4. Estimate cost per access point: assume $10,000-15,000 per installed public AP including hardware, installation, and backhaul connectivity (a reasonable public infrastructure estimate).
  5. Multiply: e.g., 5,000 access points x $12,000 = $60M capital cost, then add annual operating cost (maintenance, bandwidth, support) at roughly 15-20% of capex per year.
  6. Sanity-check against a real comparable: NYC's LinkGNYC kiosk program is a known real initiative, so compare the order of magnitude and note the estimate is directional, not precise.

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