SNS Telecom: U.S. Network Operators will reap $1B from fixed wireless by late 2019
Summary:
U.S. wireless network operators will realize about $1 billion in revenue from 5G fixed wireless access (FWA) networks by the end of 2019, market research firm SNS Telecom predicts in a newly released report “5G for FWA (Fixed Wireless Access): 2017 – 2030 – Opportunities, Challenges, Strategies & Forecasts.” The report predicts that the market will reach $40 billion by 2025. It will enjoy a compound annual growth rate (CAGR) of 84 percent between the expected beginning of standardized deployments of 5G fixed wireless access in 2019 and 2025, according to a press release.
Verizon and AT&T are seen as the leaders to deploy 5G FWA networks in the United States. Verizon has made no secret of their 5G FWA plans, announcing an initial roll out of the technology in 11 markets, including Ann Arbor; Atlanta; Bernardsville (NJ); Brockton (MA); Dallas; Denver; Houston; Miami; Sacramento; Seattle; and Washington, D.C. Some, if not all of these markets will utilize a Samsung 5G access platform, operating in the 28 MHz spectrum band. The carrier has promised gigabit type performance, even suggesting it as comparable to FTTH.
AT&T is already active as well, with 5G FWA trials in Austin and Middleton (NJ), that also feature DIRECTV NOW video streaming. These trials are in prep for a 2018 commercial 5G FWA launch, the company reported back in June.
Juniper Research Ltd. analysts recently said that they expect 1 million 5G connections to go live in 2019. If the SNS predictions are right, then many of those connections may be for FWA services in the US.
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About the Report:
The SNS Telecom report has the following key findings:
• 5G-based FWA subscriptions are expected to account for $1 Billion in service revenue by the end of 2019 alone. The market is further expected to grow at a CAGR of approximately 84% between 2019 and 2025, eventually accounting for more than $40 Billion.
• SNS Research estimates that 5G-based FWA can reduce the initial cost of establishing last-mile connectivity by as much as 40% – in comparison to FTTP (Fiber-to-the-Premises). In addition, 5G can significantly accelerate rollout times by eliminating the need to lay cables as required for FTTP rollouts.
• The 28 GHz frequency band is widely preferred for early 5G-based FWA deployments, as many vendors have already developed 28 GHz-capable equipment – driven by demands for early field trials in multiple markets including the United States and South Korea.
• Millimeter wave wireless connectivity specialists are well-positioned to capitalize on the growing demand for 5G-based FWA. However, in order to compete effectively against existing mobile infrastructure giants, they will need to closely align their multi-gigabit capacity FWA solutions with 3GPP specifications.
• While many industry analysts believe that 5G-based FWA is only suitable for densely populated urban areas, a number of rural carriers – including C Spire and U.S. Cellular – are beginning to view 5G as a means to deliver last-mile broadband connectivity to under-served rural communities.
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The report provides answers to the following key questions:
How big is the opportunity for 5G-based FWA?
What trends, challenges and barriers will influence the development and adoption of 5G-based FWA?How have advanced antenna and chip technologies made it possible to utilize millimeter wave spectrum for 5G-based FWA?
What are the key application scenarios for 5G-based FWA?
Can 5G-based FWA enable mobile operators to tap into the pay TV market?
How can mobile operators leverage early deployments of 5G-based FWA to better prepare their networks for planned 5G mobile service rollouts?
What will be the number of 5G-based FWA subscriptions in 2019 and at what rate will it grow?
Which regions and countries will be the first to adopt 5G-based FWA?
Which frequency bands are most likely to be utilized by 5G-based FWA deployments?
What is the cost saving potential of 5G-based FWA for last-mile connectivity?
Who are the key market players and what are their strategies?
What strategies should 5G-based FWA vendors and service providers adopt to remain competitive?
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