FWA 5G wireless broadband may be the next competitive battleground
Broadband seems to be gearing up to be the next competitive battleground. Traditionally, Cable TV and telephone companies offer wireline broadband. Suddenly, wireless carriers are starting to use FWA to offer wireless broadband. So, let’s take a closer look at what’s coming as this battle intensifies.
The newcomer is 5G wireless broadband using Fixed Wireless Access. This is creating a new universe of growth opportunities for the wireless industry.
That being said, it does not mean FWA is perfect. Like with all new technology, there are issues that need to be dealt with. First you roll it out, then you discover the weak and strong links. Then you strengthen the weak parts. Only after the technology has proven itself road-ready should it be rolled out on a wider scale.
US Cellular working with Tarana Wireless to expand FWA capacity
Today, we are in the very early innings of this new game.
A new, weak link with FWA seems to be capacity. US Cellular thinks a company called Tarana Wireless could be a real solution to this problem with their technology.
So, US Cellular is in the early stages of testing FWA and trying to find the weak spots so they can strengthen them before a wider rollout.
This is a responsible way to do business.
The problem US Cellular is having is when the demand for FWA is so great, capacity problems are created. As the stress on the wireless network increases, a new solution is necessary.
Tarana Wireless may have solution to FWA wireless broadband problem
Enter Tarana Wireless. They are working to help US Cellular increase its FWA capacity. If this works, I expect this relationship to not only continue but expand.
Not only that. US Cellular can’t be alone with FWA capacity issues. I would assume every wireless carrier will wrestle with the same issues.
There are always many companies with many solutions to many problems. So, I would expect other ideas to pop-up and enter the marketplace going forward as well.
It will take trial and error to determine the best path forward for the long-term.
Wireless has been searching for new growth areas for years
Companies always search for new areas of growth. Wireless has been searching for years.
Example, years ago, one growth step was moving from analog to digital in the late 1990s. Or moving from 2G through 5G over time. Or how expanding the app market from a few hundred apps with the Blackberry to millions today on the iPhone and Android.
In recent years AT&T acquired DirecTV, Time Warner, Warner Media, CNN, Warner Brothers Studio and more. Verizon acquired AOL and Yahoo for new growth as well.
Unfortunately, this did not work out, but you can see the need. The need for growth which they are all still focused on.
Wireless growth has slowed in recent years
In recent years, growth slowed in the wireless industry. So, the industry has been stuck for years searching for the next growth wave.
Recently, FWA has looked like a new, growth opportunity. FWA lets wireless carriers expand their customer base to include 5G wireless broadband for the home.
Wired broadband is a service currently being delivered by wired service from cable TV companies like Xfinity, Charter, Altice, Cox and others. Or from telephone companies like AT&T, Verizon, CenturyLink and the like.
FWA helps wireless carriers, but is a threat to cable TV broadband
While FWA is good news for wireless carriers looking for new growth, the news is not so good for companies offering wireline broadband, which they compete with.
As FWA grows, it threatens companies in cable television and telephone who offer wired broadband.
That means cable TV needs to find a solution to this new threat FWA creates for them.
Comcast Xfinity seems to be dabbling with wireless broadband.
We are still in the early stages of this new FWA technology, and everyone is watching its development very closely.
Air5 helps cable TV use 5G wireless to battle FWA, improve broadband
FWA is a threat to the cable television industry. So, how will cable TV fight back?
Last week, a new company named Air5 introduced a new technology to help the cable TV industry strengthen and improve their broadband technology in order to battle this new FWA threat.
Air5 uses 5G wireless technology to empower the cable TV industry to improve and combat FWA and other threats.
This could offer the cable TV competitors new technology to help them combat the new competitive threat of FWA.
Tarana Wireless and Air5 could arm both sides for competitive battle
So, as you can see, the broadband industry is getting ready to escalate the competitive battle between wired and wireless.
That means the next several years should be a real competitive battle. Prices could come down. Plus, this could also be an area for investors to focus on.
Wireless and cable television companies need to pay attention to what’s coming next with FWA and the next move for cable TV providers from companies.
Suddenly, the tired and older broadband sector is getting ready for a real and new competitive battle.
It is important every competitor on both sides prepare for the coming battle.
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