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May 5, 2020 10:50 pm

The Average Household Will Surpass ISP's 1TB Data Caps Within 3 Years, Study Finds

According to an analysis from Decision Data, the average broadband-connected U.S. household will surpass current 1TB ISP data caps before 2024. What this could translate to is more overage fees for customers, unless ISPs like Comcast and CenturyLink abandon data caps or continue to waive fees, like some are doing due to the pandemic. From the report: As we reported this month, the average home internet customer is now using close to 400GB of data a month, a number that would have surpassed the original ISP data caps from 2016 by over 50-100GB. At current fee structures for overages (which vary by provider), this would add between $200-$250 a year to the average household cable bill. Our newest analysis of historical FCC data and trending usage data predicts that within the next three years, or before the year 2024, the average household will use over 1TB of broadband data a month, putting them above the current caps. The mean will likely remain below current cap numbers, but as more households turn into power users, the average will continue to spike. Interestingly, we started conducting research on this trend prior to the COVID-19 pandemic. Toward the end of our research and as self-isolation policy started peaking, we are now seeing the largest spikes in home internet usage in history, far beyond what we could have previously predicted or analyzed. ISPs have properly responded by placing temporary holds on their overage fees for breaching data caps, which reflect that many more consumers have reached or exceeded the 1TB monthly data cap during the pandemic. While we believe this spike will mellow as people return to a more normal life in the next 12 months, it will still settle considerably above pre-outbreak levels. As policy gravitates toward more generalized self-isolation and work-from-home, we expect a substantial overall increase of demand on home internet to remain.

Read more of this story at Slashdot.


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