One area that’s become an increasingly important topic among operators is the adoption of Fixed Wireless Access (FWA). FWA and the inevitable ubiquity of 5G offers telecom providers the opportunity to deliver new and enhanced services, including security, cloud-based solutions and interactive content.
5G is enabling more opportunities in the digital landscape. According to Fact.MR, the global 5G fixed wireless access market is estimated to secure $121 billion by 2032. Operational efficiencies can be introduced with new technology due to 5G and in the consumer space, one thing to consider is what are the new revenue sources.
U.S. operators have been at the forefront of deploying FWA services, leveraging their 5G investments to provide broadband access to underserved areas or as an alternative to wired connections. They have recognized the potential of FWA as a means to expand their customer base and generate new revenue streams.
Major carriers in the U.S., from Verizon to T-Mobile US are buying in to Fixed Wireless Access, and their customer base is too. In Q4 of 2022 Verizon added 379,000 fixed wireless access customers. T-Mobile US reported after Q3 of 2022, they welcomed their two millionth FWA subscriber. By the end of 2025, Verizon and T-Mobile are expected to have between 11-13 million total FWA customers.
What is Fixed Wireless Access?
Fixed Wireless Access can be used to connect homes to the internet quickly by utilizing radio waves that are transmitted by a wireless base station or access point to send high-speed signals that offer data transfer both to and from consumer devices.
Internet speeds and performance of FWA connections vary based on factors such as signal strength, distance from the base station and number of users that are sharing the same connection.
As mobile operators enter the home, they can and should leverage their consumer applications, such as personal cloud and security/protection plans in this new growth area.
Market opportunities
There are opportunities for operators to deliver broadband services to homes using FWA where fiber is more expensive. While this is another way for mobile operators to expand their reach, it’s also creating a gateway to offering new services to markets that may have been underserved. Thus, new services to existing customers will not only improve ARPU and reduce churn, but also expand the addressable market to sell to more households.
Operators must act fast on the home value-added services opportunities that a 5G FWA-powered carrier grade cloud offering provides, which include protecting the data and content of every member of a household. This serves as a massive win for both operators and subscribers.
The potential that FWA offers by delivering data speeds that exceed current broadband networks positively impacts consumers by providing instant uploads and downloads and minimal latency when streaming, video conferencing and cloud computing.
Another benefit of FWA is that it can be installed quickly, easily and at a lower cost compared to fiber and cable technologies because FWA relies solely on wireless signals, and there is no need for cables or digging trenches.
FWA enables a myriad of applications that can be powered in, around and through the home. Therefore, it will continue to serve as a powerful addition to the expansion of internet infrastructure. Faster broadband can power the smart home and provide a reliable connection, including access control, security and surveillance, appliances, entertainment and collaboration. FWA leverages 5G capacity to delivery faster services.
Additionally personal cloud services that manage digital content across multiple devices, including smartphones, tablets and desktop computers are even easier to use when they are powered by faster connectivity.
FWA offers a new foundation for service providers to build on. By providing an affordable, ultra-fast broadband service that is easy to deploy and install, consumers can enjoy all types of new services and bundles — a win-win scenario for everyone.
Following the success and lessons learned by U.S. operators, service providers around the world are adopting a similar approach. By doing so, they can tap into new markets and cater to areas where deploying wired infrastructure is challenging. While use cases are still emerging, FWA has built tremendous momentum in the US and globally, as a proof point for leveraging 5G networks.