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

April 14, 2020

Meanwhile, some service providers are taking financial and process steps to keep their businesses running as smoothly as possible.

Stephen Hardy

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 network figures released April 9, 2020.

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 24x7, 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.

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About the Author

Stephen Hardy | Editorial Director and Associate Publisher, Lightwave

Stephen Hardy is editorial director and associate publisher of Lightwave and Broadband Technology Report, part of the Lighting & Technology Group at Endeavor Business Media. Stephen is responsible for establishing and executing editorial strategy across the both brands’ websites, email newsletters, events, and other information products. He has covered the fiber-optics space for more than 20 years, and communications and technology for more than 35 years. During his tenure, Lightwave has received awards from Folio: and the American Society of Business Press Editors (ASBPE) for editorial excellence. Prior to joining Lightwave in 1997, Stephen worked for Telecommunications magazine and the Journal of Electronic Defense.

Stephen has moderated panels at numerous events, including the Optica Executive Forum, ECOC, and SCTE Cable-Tec Expo. He also is program director for the Lightwave Innovation Reviews and the Diamond Technology Reviews.

He has written numerous articles in all aspects of optical communications and fiber-optic networks, including fiber to the home (FTTH), PON, optical components, DWDM, fiber cables, packet optical transport, optical transceivers, lasers, fiber optic testing, and more.

You can connect with Stephen on LinkedIn as well as Twitter.