Fixed Wireless Access (FWA) continues to be a positive development for operators, many of whom are finding it difficult to fully capitalise on their 5G investments, according to recent research from RAN Research. The industry is increasingly focusing on 5G-based FWA offerings, which are expected to replace 4G-based and proprietary FWA systems over time.
However, there are notable regional differences. While Europe leads in revenue, the Asia-Pacific region (APAC) far exceeds it in terms of individual connections, with more than double the number. Meanwhile, significant progress is also being made in the Middle East and North Africa (MENA), Sub-Saharan Africa, and Latin America.
It is evident that FWA is no longer primarily associated with North America, particularly the US. For years, the United States dominated discussions, with rapid growth in rural FWA subscribers, despite the assumption that broadband saturation had been reached – clearly, this was not the case.
Globally, regions with high subscriber numbers often struggle with low Average Revenue Per User (ARPU). Developing markets are ripe for FWA, and while its success is evident, each new subscriber likely represents a customer previously frustrated by inadequate fixed-line options.
ARPU varies widely, from a high of $58 per month in the USA to a low of $1.96 in India. Such low ARPUs pose a challenge for operators and highlight the need for government incentives to extend fibre networks into rural areas. At the same time, low ARPUs can make FWA attractive as an additional revenue stream, with potential for follow-up services such as video streaming or cloud gaming.
Consumers in areas underserved or poorly served by wired broadband are increasingly demanding comparable services to their urban counterparts, which FWA can now provide.
Governments are keen to bridge the digital divide, and many are offering incentives to address deficiencies in rural broadband. FWA is becoming an important part of this strategy, particularly for underserved communities. Mobile operators are also exploring new revenue streams from unused spectrum, and in both developing and some developed markets, FWA has proven to be the most cost-effective way to extend broadband services to areas previously without reliable internet access.
Additionally, cellular networks are now catching up with the growing expectations for broadband performance and reliability. In developed markets, speeds typically range from 30Mbps to 60Mbps, with expectations of reaching 100Mbps and beyond in the coming years. In developing regions, expectations are more modest, with 10Mbps often being the target, which is sufficient for basic internet usage and remote working, though inadequate for high-definition video streaming.
5G RedCap, or ‘Reduced Capability’, is another consideration for FWA. This variant of 5G technology is designed to enable cheaper customer premises equipment (CPE) while still providing ample throughput for users. However, it requires a 5G Standalone (SA) network, and full 5G SA deployment remains some way off. In low-ARPU markets, the balance between the cost of RedCap CPE and its benefits will be difficult to manage.
For larger operators, FWA presents an opportunity for upselling additional services, particularly to commercial and enterprise customers. For businesses in underserved areas, FWA opens the door to additional networking and software services. Additionally, FWA could be used as a backup connection for those relying on wireless failover, potentially replacing the existing ISP connection. For businesses with multiple locations, FWA could reduce overall connectivity costs, providing clear benefits from a total cost of ownership perspective.
While the majority of FWA connections will remain in the consumer sector, it will also play an important role for businesses globally. Marketers are likely to highlight the ‘enabler’ function of FWA, but the Covid-19 pandemic has shifted business needs, leaving many gaps that FWA can help fill.
In conclusion, FWA remains a small portion of total global mobile connections. However, when compared to fixed-line broadband, it represents a significant share of the global total by the end of the forecast period. FWA can contribute to 5G densification for many mobile network operators (MNOs), though careful traffic management is necessary to avoid congestion issues.
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