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Telecommunication
Industry Outlook for February
NFWARE BLOG
03/03/2021
In this newsletter outlook, we highlighted the most interesting insights, trends from new reports and keep you updated with recent news in February.
Reports of the Month:
Pandemic Drives a 35% Increase in Global Internet Capacity
The COVID-19 pandemic drove Internet bandwidth up 35%, according to TeleGeography.
The main insights according to the report:
The main insights according to the report:
- Europe had the highest regional capacity and saw the greatest growth from 2019 to 2020.
- Global peak international Internet traffic increased at a compound annual rate of 30% between 2016 and 2020.
- Average global international Internet traffic increased from about 120 Tbps to 170 Tbps from 2019 to 2020.
- The COVID-19 pandemic drove the peak traffic growth rate to 47%. It had been forecast to be 28%.
It's been very interesting to track global trends in terms of capacity and traffic over the past year, and learning how operators responded to the pandemic. Our latest data shows that global capacity and internet traffic surged in 2020, mostly driven by the widespread remote work and learning, with more people relying on the internet than ever before, - said Anahi Rebatta, Telegeography Senior Analyst.
COVID-19 Drove 51% Increase in Broadband Traffic in 2020
Per-subscriber average data usage for 4Q20 was 482.6 GB per month, a 40% increase over the 344 GB consumed in 4Q 2019 and a 26% increase over the 3Q20 average of 383.8. At the same time, broadband providers saw subscriber increases of 6.5%, creating a net effect of 51% more broadband traffic.
The OpenVault report highlights some users data:
The OpenVault report highlights some users data:
- 14.1% of subscribers now consume more than 1 TB of data per month. That represents a 94% rise – 61% in 4Q20 alone – from the 4Q19 average of 7.25%.
- Extreme power users, those consuming more than 2 TB per month, increased by 184% year over year, from 0.76% in 2019 to 2.2% at the end of last year. Similar to the 1 TB data, 120% of that increase occurred between Q320 and Q420.
- Providers offering unlimited, flat-rate billing packages saw nearly 30% more power users than those with usage-based billing plans.
- More than half (53.6%) of all subscribers now consume more than the former power user threshold of 250 GB per month.
Network operators now must contend with significantly higher average bandwidth usage, with implications for both network management and revenue. Network operators should evaluate all network management options to ensure they deliver the best customer experience while maximizing profitability, - said OpenVault analyst.
News of the Month:
5G of the Month:
5G and remote services help South Korean telcos make more profit
With the help of growing demand for 5G and remote services, earnings of SK Telecom and LG Uplus increased over 20% in 2020.
Malaysia is planning to achieve 5G rollout to end of this year
Malaysia accelerates its introduction of 5G telecommunications in order to be one of the first countries in Southeast Asia to adopt 5G internet and cloud services.
Thus by the end of this year, people can begin to enjoy 5G technology in phases, - said Prime Minister Muhyiddin Yassin
Verizon and AT&T are winners of an $81 billion auction
According to The Federal Communications Commission, Verizon and AT&T are the winners of an $81 billion auction for the license to use important airwaves which are significantly faster than current wireless service and critical for building 5G networks.
These record-breaking results highlight the demand and critical need for more licensed mid-band spectrum and demonstrate the importance of developing a robust spectrum auction pipeline, - said CTIA CEO Meredith Baker
5G increases UK mobile speeds but the
availability is still a problem
Mobile network speed increased due to 5G in the UK but it only works in the areas with the strong signal. According to Global Wireless Solutions (GWS), 5G signal is available across 37% of the tested markets.
Mergers & Acquisitions of the Month:
Sweden's Sinch buys Inteliquent in a $1.14 billion cash deal
Sweden's Sinch is planning to become more competitive in the U.S. cloud communications market by acquiring U.S. based voice network operator Inteliquent.
Sweden's Sinch is planning to become more competitive in the U.S. cloud communications market by acquiring U.S. based voice network operator Inteliquent.
Telefónica gets $1 billion deal in Chile
Telefónica got additional funding to reduce its debt by around $400 million by selling its 60% stake of Chilean fibre network business to investment group KKR.
The transaction will allow us to accelerate the deployment of our networks through an efficient capital structure, at the same time as allowing us to crystallize the value of our assets and monetize a part of them, - said Laura Abasolo, Chief Finance and Control Officer (CFCO) at Telefónica
IPv6 of the Month:
Chief Scientist at APNIC presented an IPv6 update for 2020
Insights from this update:
Insights from this update:
- In 2020 the net growth of IPv6 users was just 3%, to 27% of users by the end of the year.
- While the IPv6 network infrastructure level has grown by around 15%, the rate of user uptake of IPv6 in 2020 has lagged the progress of infrastructure provision activities.
- While the overall net growth of users in these 24 months was just 9% across the entire Internet, some ISPs in various economies undertook a much more concerted effort to extend IPv6 services to their user base
- India and China account for some 380M new IPv6 users, out of a total of 464M new IPv6 users for the Internet as a whole.
- There were some 332M users added to the IPv6 Internet in 2019 and 132M in 2020.
