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January 27, 2020
High Speed Internet Prices Will Increase 3x Rate Of Inflation Due To Smartphone/Tablet Traffic

OpenVault Q3 2019 OVBI shows usage acceleration, creating new revenue opportunities

Hoboken, NJ; November 13, 2019 – Cord cutters’ average broadband usage has risen rapidly to more than half a terabyte of data per month creating largely untapped opportunities for service providers, according to the Q3 2019 OVBI (OpenVault Broadband Industry) report issued today by OpenVault, a leading provider of industry analytics and technology solutions for broadband operators.

The report sheds new light on the rapid acceleration and impact of cord cutting, as well as differences in consumption patterns between subscribers on Usage-Based Billing (UBB) plans and those on Flat-Rate Billing (FRB) plans. Among the findings:

- Average consumption by cord-cutter subscribers was 520.8 GB, an increase of 7% in Q3 alone and almost double the monthly weighted (UBB plus FRB) average subscriber usage of 275.1 GB.
- The percentage of cord cutters who are “power users” consuming 1 TB or more of data per month is 12%, almost triple the 4.2% Q3 figure for weighted average subscribers. 
- The total number of power users increased 62% year over year, driven largely by FRB subscribers. While UBB subscribers chose 1 Gbps packages at a rate that is 89% higher than that of FRB subscribers, FRB subscribers exceeded 1 TB at a 30% higher rate and 2 TB at a 64% higher rate than those on UBB plans.

Explosion in the amount of WiFi traffic and the trends are likely to get a lot worse due to WiFi MVNOs of Comcast & their competitors.

Some highlights :

Power users consume triple the average WiFi user 21% Increase in average broadband consumption (WiFi)

Expect to see the trends accelerate as the wireless subscribers of the CableCo’s that are persuing WiFi offload as part of their MVNO traffic start to ramp their customer bases.

You’ll see a reintroduction of tiering pricing for high speed internet; as usage now goes beyond the tradition home due to Smartphone offload!

High Speed Internet Prices Will Increase 3x Rate Of Inflation Due To Smartphone/Tablet Traffic