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Cord-cutting set to spike as broadband users drop bundles: OVBI report

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    Eutelsat announces $1.56bn capital increase

    Eutelsat announces $1.56bn capital increase

    Palestine Film Institute to present three documentaries at Sheffield DocFest

    Palestine Film Institute to present three documentaries at Sheffield DocFest

    Conviva expands MENA presence with strategic hire

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    Orange partners with Huawei to deploy 5G in Egypt

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    Sharjah Broadcasting Authority and Chinese media delegation explore strategic collaboration

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    Amman Film Industry Days selects 18 projects for 2025 Pitching Platforms

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    Korean Film Festival returns to UAE for ninth edition

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      Eutelsat announces $1.56bn capital increase

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      Cord-cutting set to spike as broadband users drop bundles: OVBI report

      Staff Writer by Staff Writer
      August 16, 2019
      in Satellite/Comms
      ShareTweetPostEmail

      The analysis showed 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.

      Research from OpenVault has revealed that broadband usage patterns are providing signs of an imminent further rise in cord-cutting.

      The analytics and technology solutions provider’s Q2 2019 OVBI report tracked how thousands of subscribers who shifted to broadband-only packages during the first half of 2019 exhibited steadily increasing broadband consumption in the months preceding the change.

      The analysis showed 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%.

      Using aggregate consumption of millions of subscribers, the OVBI report also revealed what OpenVault said was a ‘significant’ difference between internet-only households and those who have a bundled package of pay-TV and broadband services. Among Internet-only households, average bandwidth consumption in 2Q19 was 390.42 GBytes, while bundled subscribers consumed, on average, 210.89 GB of data in 2Q19 – a difference of 85%.

      The data also showed that average broadband usage in European markets increased by more than 28% from Q2 2018 to Q2 2019, slightly ahead of the 25% YOY growth in the United States. Average downstream usage in Europe continued its annual growth trend of 30% in 2019, in which upstream usage grew 14%. The share of European subscribers consuming more than 250 GB was 22.13% as of June 2019, up nearly 47% from June 2018.

      Usage-based billing (UBB) was being deployed to limit those consuming over a terabyte of data per month, defined as ‘power users’. When compared with subscribers on flat-rate billing (FRB) plans, UBB subscribers were 23% less likely to exceed 1 TByte of usage and 61% less likely to exceed 2 TBytes. A higher percentage of FRB subscribers were found to be provisioned for lower-speed packages compared to UBB subscribers and among FRB subscribers, 41% were provisioned for speeds of 30 Mbps or less, compared with 13% among UBB subscribers.

      Commenting on the report 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 behaviour, visibility into usage behaviour and sound-based billing plans based billing plans will help operators to manage increasingly busy networks and ensure subscriber satisfaction.”

      Tags: broadbandCord-CuttingUBB

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