Home » Broadband Speed »Charter Spectrum »Consumer News »Data Caps »Online Video »Wireless Broadband » Currently Reading:

Average Spectrum Broadband-Only Customer Now Using More than 400 GB a Month

Charter Spectrum’s broadband-only customers run up more than double the amount of broadband usage average customers subscribing to both cable TV and broadband use, and that consumption is growing fast.

“Data usage by residential internet customers is rising rapidly and monthly median data usage is over 200 GB per customer,” Charter CEO Thomas Rutledge said on a morning quarterly results conference call. “When you look at average monthly usage for customers that don’t subscribe to our traditional video product, usage climbs to over 400 GB per month.”

Last week, Comcast reported its average broadband customer also used over 200 GB a month, but did not break out the difference between those subscribing to cable TV and those who do not. If Comcast’s broadband-only customers are consuming a comparable amount of data, they could be nearing half of their monthly usage allowance (1 TB), in markets where Comcast caps its customers’ usage. But because that is only an average, it means many more Comcast customers are likely nearing or now exceeding Comcast’s data cap, exposing them to hefty overlimit penalties.

Spectrum does not impose any data allowances on its customers — all usage is unlimited.

Charter officials also reported their average mobile customers use “well under 10 GB a month.” The fact Charter did not get more specific about mobile usage is important because the new product is getting scrutiny from some on Wall Street concerned it will have a hard time becoming profitable because of its wholesale agreement with Verizon Wireless, which provides the 4G LTE service for Spectrum Mobile.

Subscribers have been primarily drawn to the $14/GB plan, which includes unlimited talk and texting, because it offers a very low entry price for a full-function wireless plan. But a customer only needs to use more than 3 GB of service per month to find their bill higher than what they would pay subscribing to Spectrum Mobile’s $45 unlimited usage plan. If Charter executives said the average mobile user consumed 5 GB of data, analysts could deduce what the average customer bill probably looked like. To maximize profits, Charter needs customers to select an unlimited data plan and keep data usage low to assure it can cover the wholesale costs Verizon Wireless charges the cable company for wireless connectivity.

Rutledge

Rutledge stressed he expects Spectrum Mobile to be profitable with the current Verizon Wireless MVNO contract in place — the service simply needs a larger user base to overcome its current losses.

Rutledge also announced Spectrum Mobile was testing dual SIM technology, which could allow it to eventually offload more of its 4G LTE traffic to its own (cheaper) network, which could eventually include mid-band wireless spectrum and the CBRS spectrum the company is already testing for fixed wireless service for rural areas. Spectrum could also follow Comcast with its own in-home network of publicly available Wi-Fi or innovate with unlicensed wireless mobile spectrum using small cells or external antennas.

Charter executives noted that customer data demands were pushing many to upgrade to higher speed internet products.

“Over 80% of our internet customers are now in packages that deliver 100 Mbps of speed or more and 30% of our customers are getting 200 Mbps or more,” Rutledge said. “We’re also seeing strong demand for our Ultra product, which delivers 400 Mbps, and we have gigabit service available everywhere.”

The costs to continue upgrading service for broadband customers are negligible on the company’s current platform, Rutledge admits. In the future, Charter Spectrum is considering offering 10 Gbps and 25 Gbps symmetrical service to customers, and it can scale up upgrades very quickly.

“For example, in only 14 months we launched DOCSIS 3.1, which took our speeds up to 1 Gbps across our entire footprint at a cost of just $9 per passing,” Rutledge said.

Currently there are 3 comments on this Article:

  1. Dylan says:

    I’m glad to be broadband only with Spectrum. Also glad they provide unlimited data at no extra charge.

  2. EJ says:

    With continued cord cutting, larger game patches/updates, and high definition/4K streaming it makes sense. Also kids and even adults can be pretty sloppy with there internet usage. Leaving YouTube running on a loop and things like that.

  3. reader50 says:

    “… and we have gigabit service available everywhere.” – very doubtful. My area’s rate card shows 30 and 100. Checking orders for nearby addresses says speeds are 30, 100, or 120 for Ultra. No mention of 200+, and certainly no mention of gigabit.







Search This Site:

Contributions:

Recent Comments:

  • John Andrew Grogan: Yes, I'm in rural Kentucky and it went up to between 20 - 25 but only for some websites and some content. They are some websites throttled but not man...
  • Mark: Is anyone else getting faster speeds now with ELP? I noticed this about two weeks ago. I am getting around 22 up / 2 down. I live in Ohio....
  • Marian Kay Reaver: Cinemax was part of My Contract. I am Not happy about it just disappearing, nor is HITZ a Comparable Alternative. Quite Disgusted By the Situation. A...
  • Stacy Wagner: You can add cinemax to your Hulu subscription for $10 which is $2 cheaper than xfinitys add on rate and even if it cost more I would pay it just as a ...
  • Stacy Wagner: This is absolute nonsense. Things like this make it worth the time and effort to figure out which streaming sites I'll need in order to finally cancel...
  • Debbie Lippitt: To bad about Verison as I have lived 2 places now where Verison is the only one that can get you service. All the others fail. I have also been liter...
  • Andy: Well that's cause you're in New York State. Those much higher than average taxes you New Yorkers pay is being used to fund high dollar legal suits aga...
  • Paul Houle: Elliot Management recently wrote an Urkase against the management of AT&T and I don't blame them. AT&T prices DirectTV as if it was a premium...
  • Dyl: (Small type) You must lease their new xFi gateways to receive a Flex box....
  • Roy: As of September 2019, my legacy EDLP in NYC is still $14.99 (no fees no taxes, my own modem/router). This is even after an in-home service call last m...
  • LG: 300Mbps with no bandwidth cap for $50 / month? I'll believe that when I see it. Likely $50 only if you have some grotesque TV package....
  • Phillip Dampier: The problem with all of these kinds of schemes is that they usually irritate legal subscribers, while pirates and password sharing alternatives flouri...

Your Account: