Global telco revenues from 5G Fixed Wireless Access (FWA) will rise from $515 million in 2022 to $2.5 billion next year, according to a new report from Juniper Research. FWA includes services that provide high-speed Internet connectivity through cellular‑enabled CPE (Customer Premises Equipment) for uses including broadband and IoT networks.
The research predicts that operators’ 5G FWA revenue will reach $24 billion globally by 2027. It identified the consumer market as the sector generating the highest revenue for network operators, representing 96% of global 5G FWA revenue. However, it warns that operators must provide a compelling user proposition for FWA solutions through the bundling of services such as video streaming, gaming and smart home security to enrich user experience and gain competitive advantage against incumbent high‑speed connectivity technologies, such as FTTP (Fibre‑to‑the‑Premises).
|Key Market Statistics|
|Market size in 2022:||$515m|
|Market size in 2023:||$2.5bn|
|2022 – 2027 Market Growth:||480%|
Juniper Research author Elisha Sudlow-Poole remarked: “The benefits of FWA are now comparable with services using fibre-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.”
Juniper Research notes that the increase in 5G subscribers will be driven mainly by “the accelerating migration of cellular subscriptions to 5G networks, owing to operator strategies that minimize or remove any premium over existing 4G subscription offerings,” and that 600 million additional 5G subscriptions are expected be created next year, “despite the anticipated economic downturn in 2023.”
The report predicts that the growth of 5G networks will continue, and over 80% of global operator‑billed revenue will be attributable to 5G connections by 2027. The telecommunications industry demonstrated its robustness against the impact of the COVID-19 pandemic, and the report forecasts that the growth of 5G will also be resilient against this economic downturn due to the vital importance of mobile Internet connectivity today.
Juniper Research co-author Olivia Williams noted: “Despite the growth of the Internet of Things, revenue from consumer connections will continue to be the cornerstone of 5G operator revenue increase. Over 95% of global 5G connections in 2027 will be connected personal devices such as smartphones, tablets and mobile broadband routers.”
Private 5G Networks Represent a Key Opportunity for Operators:
In addition, the report predicts that the ability of standalone 5G networks to offer ‘network slicing’ will act as the ideal platform for the growth of 5G private network revenue. 5G Standalone (SA) uses 5G core networks supporting network slicing technology, which can be used to take a ‘slice’ of public 5G infrastructure and provide it to private network users. In turn, this helps mitigate the cost of private 5G network hardware and increase its overall value proposition, all against a background of deteriorating macro-economic conditions.
The report recommends that operators use 5G FWA to facilitate the last mile-solution by treating the relationship between FWA and fibre networks as wholly collaborative to maximize network performance and return on investment.