US outpacing Europe in key broadband metrics

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Average broadband usage in Europe is growing at a significantly slower pace than in the US, according to year-over-year comparisons of Q2 2018 data by OpenVault, a leading provider of industry analytics and technology solutions for broadband operators.

According to OpenVault, average cable broadband usage per household in Europe grew at a rate of 19.5 per cent during the 12 months ended June 30th 2018, compared to an average of 31 per cent in the US during the same time period. Moreover, Europe’s .46 per cent percentage of Power Users – households using greater than 1TB per month – is less than one-fifth of the 2.5 per cent percentage of Power Users in the US.

Globally, OpenVault finds that household broadband usage growth continues to grow at an annual rate of more than 30 per cent, but Usage Based Billing can enable cable telecommunications providers to reduce associated strain on their networks and generate incremental revenues. OpenVault notes that average usage per household as of June 30th 2018 was 226.4GB, up slightly from Q1 2018. When compared with results from June 30th 2017, OpenVault data showed:

  • Year over year average usage growth of 31.3 per cent, from 172.4GB/HH to 226.4GB/HH;
  • Year over year median usage growth of 37.4 per cent, from 88GB/HH to more than 116.4GB/HH; and
  • Year over year growth in Power Users (i.e. HH using >1TB) of more than 100 per cent, from 1.2 per cent of HHs to 2.5 per cent.

In addition, OpenVault’s analysis has identified usage-based billing as a factor in curbing usage growth and strain on networks, opening the door to significant operator revenue growth while potentially enabling avoidance of capex required to keep up with demand.  By comparing operators offering usage-based billing (UBB) with those that offer flat-rate (Non-UBB) pricing, OpenVault found that:

  • 12.2 per cent higher average usage per HH for Non-UBB operators (241.9GB/HH) in June 2018, versus 215.6GB for UBB operators;
  • 34 per cent greater year-over-year usage growth by Non-UBB customers (36.6 per cent), versus 27.3 per cent for UBB customers, for the 12 months ended June 30, 2018; and
  • 55 per cent greater Power User usage exceeding 1TB by Non-UBB customers (3.1 per cent), versus 2 per cent for UBB customers.

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