Service providers see some flattening in COVID-19 pandemic bandwidth demand growth

At least some service providers report that while bandwidth demand remains higher than prior to the outbreak of the COVID-19 coronavirus pandemic, the rate of demand growth appears to be easing somewhat. Meanwhile, some service providers are taking financial and process steps to keep their businesses running as smoothly as possible.

Here’s a roundup of items related to network and business operations from the past week:

• AT&T reports that core network traffic on Easter Sunday, April 12, was 21% greater than on what it termed “a similar day at the end of February” (see infographic). That figure compares to 18% the previous day, 26% on April 11, and 28% on April 9.
• OpenVault, which previously had suggested that broadband demand growth rates are flattening (see “Broadband demand growth approaching a plateau, suggests OpenVault”), provided evidence that Easter Sunday traffic spikes may have been common. The company says downstream consumption on the networks it tracks was 16.3 GB per subscriber on April 12, an increase of 15.8% over the previous Sunday (14.1 GB) and of 37.9% over Sunday, March 1 (11.8 GB). Upstream use per subscriber was 0.97 GB, up 18.6% versus the previous Sunday high of 0.81 GB on April 5 and 51.7% over the 0.64 GB on March 1.
• Verizon reported signs of demand stabilization on April 9. “While usage in key categories is still up compared to a typical day, the large increases we saw over the first four weeks of this transition have started to normalize,” said Kyle Malady, Verizon’s CTO. “While we are still in an unprecedented situation and are monitoring the network extremely closely 24×7, we may be seeing the tail end of the large variations in customer usage behaviors we have seen the last few weeks.” As the graph released that day indicates, several service categories showed week-on-week usage declines. As of this morning, Verizon hadn’t released traffic information for Easter Sunday.
• On April 7, cable MSO Atlantic Broadband reported that it had seen an overall increase in internet traffic of 25%, with some service areas seeing as much as a 30% uptick. Netflix traffic had climbed nearly 60% on average, while video-on-demand use had increased 50%. While the company says it has “ample bandwidth” available, it also has the ability to add more if required.
• C Spire, which operates wireless, residential fiber to the home, and business networks that serve customers in Mississippi, Alabama and Tennessee, said April 7 that it has seen VPN use grow 38%, Netflix use jump 40%, streaming increase 20%, and use of FaceTime surge 37% since mid-March. Distance learning use of the network is up 100% over that timeframe.
• Network operators are also changing the way they interact with their customers. Cox Communications and Verizon have announced virtualized customer assistance programs. Cox has launched “On-site with Virtual Assist,” which enables Cox technicians to troubleshoot problems with residential services without entering the customer’s home. The technicians can communicate with the customer via phone call, text, or video chat. Similarly, Verizon said it has created a suite the comprises a virtual assistant, video chat app, and self-service portal. Technicians can address issues inside a customer premises without entering the building while communicating with the customer.
• On the financial front, AT&T said April 7 that it was in a strong cash position, in part due to having arranged a $5.5 billion term-loan agreement with 12 banks “to provide additional financial flexibility.” The company added, “The strength and relevance of our core subscription businesses, our continued execution on our business transformation initiatives, and sizing our operations to economic activity will provide cash from operations that will support network investments, dividend payments and debt retirement, as well as the ability to invest in business opportunities that arise as the economies recover.”
• The news is not as good at Dish Network, according to media reports. The satellite-based services provider has cut employees and is re-evaluating its business, reported Reuters.

―Light Wave