Broadband usage increases ahead of cutting the cord

Broadband usage can predicate cord-cutting, claims a new report.

According to the Q2 2019 OpenVault Broadband Industry (OVBI) report, thousands of subscribers who shifted to broadband-only packages exhibited steadily increasing broadband consumption in the months prior to the change. 

The analysis found that the difference in usage between cord cutters and average subscribers rose from 14% six months before the event to 20% in the month immediately prior and 30% in the month that the cord was cut. In the following three months, the difference rose to nearly 70%.

The OVBI report was made up of aggregate consumption of millions of subscribers, and also showed the significant usage difference between internet-only households and those with a bundled package of broadband and pay TV. 

Among Internet-only households, average bandwidth consumption in Q2 was 390.42 GB, while bundled subscribers consumed, on average, 210.89 GB of data in 2Q19 – representing a difference of 85%.

The report also found that average broadband usage in European markets increased by more than 28% from Q2 2018 to Q2 2019, slightly ahead of the 25% year-over-year growth in the United States. The share of European subscribers consuming more than 250 GB was 22.13% as of June 2019, up nearly 47% from June 2018.

Elsewhere, the report highlights the difference between usage-based billing (UBB) and flat rate billing (FRB) plans, with UBB subscribers 23% less likely to exceed 1TB of usage and 61% less likely to exceed 2 TB.

It also claims that a 41% of FRB subscribers are provisioned for speeds of under 30 Mbps, compared to 13% of UBB subscribers – suggesting that many UBB subscribers opt for faster packages that tend to come with higher usage limits. 

Josh Barstow, executive vice president of Corporate Strategy and Business Development for OpenVault said: “While Usage-Based Billing often is considered as a revenue enhancing tool, the reality is that it spurs subscribers to find harmony between their broadband speeds and their usage patterns.

“As more and more subscribers exhibit cord-cutting behavior, visibility into usage behavior and sound Usage-Based Billing plans will help operators to manage increasingly busy networks and ensure subscriber satisfaction.”