Juniper Research: 5G Fixed Wireless Access (FWA) to Generate $2.5 Billion in Global Network Operator Revenue by 2023
According to Juniper Research, the revenue generated by telecom operators from 5G fixed wireless access (FWA) services is expected to increase by 480 percent between 2022 and 2023, from $515 million to $2.5 billion. Broadband and Internet of Things (IoT) networks are just two examples of the usage of FWA services, which offer high-speed Internet connectivity using cellular-enabled CP (Customer Premises Equipment).
According to the research company, 5G FWA revenue for telecom operators will total $24 billion globally by 2027. This increase is attributed to 5G’s advanced capabilities, such as ultra-low latency and increased data processing, which enables it to offer connectivity services that were previously impossible with 4G technology. The company predicted that, with 96% of total sales coming from the consumer market, operators would earn the most money.
A compelling user proposition for FWA solutions must be provided by telcos through the bundling of extra services like video streaming, gaming, and smart home security, according to Juniper Research. This will enhance user experience and give telcos a competitive edge over technologies like FTTP (fiber to the property).
The advantages of FWA are now on par with those of services provided by fiber-based networks. By offering last-mile solutions supported by their current 5G infrastructure, operators have an immediate chance to make income from internet subscriptions directly to end customers, according to research author Elisha Sudlow-Poole.
The Juniper Research survey also recognized private 5G networks as a significant monetization prospect, giving superior network capabilities to 4G. According to the research company, smart manufacturing, shipping ports, and airports are the most likely sectors where telcos would implement 5G FWA. In order to maximize return on investment, it also advises operators to collaborate with fiber optic networks in conjunction with 5G FWA to facilitate the last mile solution.
Juniper Research asserted operators should bundle services including video streaming, gaming and smart home security into their FWA offerings to better compete with FTTP. The company cited private networks as a key revenue opportunity for operators due to the superior network capabilities compared with 4G. Smart manufacturing, shipping and airports are also key use cases.
Juniper Research also indicated operators should use 5G FWA to provide last mile connectivity, by treating it as a collaborative effort with fibre networks to maximize performance and return on investment. Recent GSMA Intelligence research showed 83 operators across 29 countries have launched FWA.
Juniper Research author Elisha Sudlow-Poole concluded by saying:
“The benefits of FWA are now comparable with services using fiber-based networks. Operators have an immediate opportunity to generate revenue from broadband subscriptions directly to end users by providing last-mile solutions underpinned by their existing 5G infrastructure.”
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References:
5G Fixed Wireless Access Forecasts Report 2022-27: Share, Size (juniperresearch.com)
https://www.juniperresearch.com/whitepapers/how-operators-will-capitalise-on-5g-fixed-wireless
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