ABI Research joins the chorus: 5G FWA is a competitive alternative to wired broadband access
5G Fixed Wireless Access (FWA) allows Mobile Network Operators (MNOs) to provide Quality of Service (QoS) offerings with higher speeds and unlimited data, creating a demand for 5G FWA, which will continue to grow over the next few years. Global technology intelligence firm ABI Research forecasts that 5G FWA subscriptions will reach 72 million by 2027, representing 35% of the total FWA market in 2027.
Although LTE FWA services have already been widely deployed worldwide, they often cannot provide the speed needed to compete with wired broadband connections. 5G FWA is set to offer data rates rivaling the range of fiber, making it a competitive alternative to wired broadband solutions. “FWA is one of the few use cases that utilize 5G Massive Multiple-Input Multiple-Output (mMIMO) networks to their full extent, with a typical monthly utilization that could be as high as 1TB per subscriber. Many MNOs that have launched 5G are expected to offer FWA services, driving 5G FWA market growth,” explains Fei Liu, 5G and Mobile Network Infrastructure Industry Analyst at ABI Research.
Both developed and emerging markets benefit from 5G FWA. North America, Western Europe, and Asia Pacific are driving 5G FWA deployments. In North America and Western Europe, MNOs are using 5G FWA to compete with DSL broadband services. Major U.S. operators, like T-Mobile, see a huge opportunity with 5G FWA because two-thirds of its residential customers living in urban and suburban areas are dissatisfied cable customers, making up a significant amount of its 5G FWA customers. In Western Europe, EE UK launched 5G FWA in 2019 and plans to cover 90% of the UK with 5G by 2028. Fastweb in Italy launched 5G FWA in 2020 and plans to cover 12.5 million homes and businesses by 2025. There is growing interest in the Asia Pacific as Reliance Jio eyes 100 million homes through 5G FWA.
“MNOs should launch 5G FWA to utilize their network capacity to make additional revenue. However, they need to be vigilant on how many FWA subscribers they can support, and which type of service they wish to offer (best effort or QoS). In the long term, MNOs need to apply Artificial Intelligence (AI) techniques such as Machine Learning (ML) to evaluate their network resource, network capacity, and spectrum to ensure a steady 5G FWA growth,” Liu recommends. “When the 5G FWA service starts to challenge their network capacity, these MNOs may have to deploy millimeter wave (mmWave) to guarantee the quality of their FWA services and overall network capacity,” Liu concludes.
These findings are from ABI Research’s Fixed Wireless Access market data report. This market data is part of the company’s 5G & Mobile Network Infrastructure research service, which includes research, data, and analyst insights. Market Data spreadsheets comprise deep data, market share analysis, and highly segmented, service-specific forecasts to provide detailed insight into where opportunities lie.
Fixed-wireless access antennas can be placed near windows or on roofs as shown in this diagram:
Image credit: Qualcomm
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Other Market Rearch Firm Findings and Forecasts for 5G FWA:
A study published by Leichtman Research Group earlier this month claimed that FWA services accounted for 90% of U.S. net broadband additions last year, compared to 20% in 2021. Fixed wireless/5G home Internet services from T-Mobile and Verizon added about 3,170,000 subscribers in 2022 – compared to about 730,000 net adds in 2021.
Verizon VP Sampath Sowmyanarayan recently said that Verizon’s FWA is winning 50 to 60% of its consumer segment customers and about half of its business segment customers from cablecos, with only a minority of subscribers coming from unserved and/or rural areas. The rural percentage may rise in the future due to growing availability and C Band deployment in rural markets, but not because capacity constraints are limiting it in urban and suburban markets. Outside the U.S.:
- EE UK launched 5G FWA in 2019 and plans to cover 90 percent of the UK with 5G by 2028.
- Fastweb in Italy launched 5G FWA in 2020 and plans to cover 12.5 million homes and businesses by 2025.
- “There is growing interest in the Asia Pacific as Reliance Jio eyes 100 million homes through 5G FWA.” Admittedly Jio has yet to offer a time frame for hitting that target, but if it makes good on its pledge to offer nationwide 5G coverage by the end of this year, 100 million FWA customers by 2027 seems eminently achievable.
Other bullish forecasts for the global 5G FWA market from JC Market Research and Research & Markets are here and here.
Regarding, telco 5G FWA revenues, a Juniper Research forecast last September was $2.5 billion globally this year, up from $515 million in 2022. It expects that number to climb to $24 billion by 2027 driven by consumers switching from fixed broadband.
About ABI Research:
ABI Research is a global technology intelligence firm delivering actionable research and strategic guidance to technology leaders, innovators, and decision makers around the world. Our research focuses on the transformative technologies that are dramatically reshaping industries, economies, and workforces today.
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References:
https://telecoms.com/520843/5g-fwa-emerging-as-a-competitive-alternative-to-fixed-broadband/
https://telecoms.com/517535/telco-5g-fixed-wireless-revenues-set-to-rocket/
Research & Markets: 5G FWA Global Market to hit $38.17B by 2026 for a CAGR of 87.1%
JC Market Research: 5G FWA market to reach $21.7 billion in 2029 for a CAGR of 65.6%
5G FWA launched by South Africa’s Telkom, rather than 5G Mobile