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Bandwidth hogs exist, but the light users are key, says report

Recent data from Internet traffic management company Ellacoya says that only …

Jacqui Cheng | 0
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A tiny segment of Internet users generate almost half of all Internet traffic, according to data from Internet traffic management company Ellacoya. In monitoring traffic across different networks, the company analyzed the data of about 2 million Internet users from August to December of 2006 in order to categorize them into five groups: "bandwidth hogs," "power users," "up and comers," "middle children," and "barely users." As it turns out, bandwidth hogs only make up about 5 percent of the entire Internet-using audience, but generate about 43.5 percent of the total traffic. Conversely, another 40 percent of users—the barely users—make very light use of the Internet and only generate about 3.8 percent of traffic. The remaining 55 percent of users generate the remaining 50 percent of traffic.

What in the world are the bandwidth hogs doing to generate all of that traffic? It appears as if VoIP is significantly more popular among bandwidth hogs than with the light users, with 41.9 percent of the heavy traffic group using some sort of VoIP service by December—an increase of 0.4 percent from August. The barely users—while not using VoIP as heavily as the hogs—picked up on VoIP at a much faster rate between August and December, jumping from 1.0 to 5.5 percent of total users in that period of time. The second lowest group, middle children, had an even faster adoption rate increase, jumping from 4.2 percent of users trying VoIP to 12.3 percent.

Ellacoya's Vice President of Marketing and Product Management Fred Sammartino told Ars that he believes that VoIP service usage seems to be growing because of the niche appeal, not necessarily because it's a good service. "There appears to be artificial cap at 42 percent with the bandwidth hogs. Something about VoIP is stopping them from breaking through that barrier, and we think that it's the quality of the service," he said. Lots of people are trying VoIP, Sammartino explained, but perhaps not liking it very much because the quality still isn't as good as landlines or even cell service. "It's not a technology that's going to cap out at 100 percent in its current state," he told Ars.

Another technology that does seem to have the potential to cap very close to 100 percent, however, is online gaming, according to Ellacoya's data. All five bandwidth groups got their game on en masse from August to December, with a surprising 66 percent of light users embracing gaming—a staggering adoption rate of 43.7 percent over five months. Bandwidth hogs jumped five percentage points from 90 to 95 percent. "We considered gaming to include all kinds of online gaming, such as the use of consoles like the Xbox and PS3, but also includes stuff like Internet backgammon and online gambling." Sammartino told us. "When you think of it that way, nearly everyone has played a game online in some capacity, and it's being adopted very quickly by the lower-end users."

What can service providers do with this data? Sammartino wants to emphasize that for companies looking to provide a new service, looking at overall traffic numbers is not likely to be the best indicator of what will end up taking off. "If you're just going by byte usage, you're going to skew toward power users which is just a tiny percentage of overall users," he said, pointing out that everyone on that chart pays roughly the same amount per month for various Internet services, whether they're a bandwidth hog or a barely user. More important, then, are the adoption rates of various types of users, particularly the average and lower-end ones. Ellacoya's data shows that it only takes about two years for an average user to show the characteristics of a power user in terms of adoption and Internet usage, and service providers should watch those trends as the key to generating more revenue in the future.

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Jacqui Cheng Editor at Large
Jacqui is an Editor at Large at Ars Technica, where she has spent the last eight years writing about Apple culture, gadgets, social networking, privacy, and more.
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