OPTIMIZE YOUR FWA NETWORK EXPERIENCE AND MAXIMIZE PROFITABILITY
With numbers like these, and the fact that FWA is currently capturing more than 90% of the fixed broadband net adds in the US 6 , it makes sense that every CSP is assessing the potential benefits FWA could bring to their business.
The revenue opportunity in terms of attracting new subscribers with FWA connectivity is clear. But is it as simple as “build it and they will come?”
According to GSA, an operator’s decision about whether to offer services will be shaped by four key factors: 7
What is the current state of coverage for fixed-line broadband services in the country or territory? There is significant variation globally in the level of both fixed and mobile broadband coverage. While the OECD average for the percentage of fixed broadband subscriptions with contracted speeds faster than 30Mpbs and 100Mbps is 60.8%, some countries such as Korea, Chile, Spain, Sweden and Japan are over 90% for >100Mbps, and in the case of Korea a near-universal 99.8% for 30Mbps. 8 Dig into FWA deployments, and there is similarly great variation. While Europe has led the way so far with FWA deployments, accounting for roughly half of all 5G FWA networks, emerging markets in Asia and Africa are expected to lead the next wave of market boom. 9 In these markets, where there is more limited fixed broadband coverage, FWA will become the primary internet access method for millions. 1 Are there many remote regions with little to no broadband availability? In some markets, such as the UK, regulators enforce Universal Service Obligations which give subscribers the legal right to request a “decent, affordable broadband connection” of 10 Mbit/s download and 1 Mbit/s upload – i.e. “decent enough” for streaming services such as Netflix and regular online activity. What’s more, if the cost of building or upgrading a subscriber’s individual share of the network connection is £3,400 or less, they won’t have to pay for this work to be done with all the cost borne by the CSP. 10 Extend this across multiple remote regions with no or very poor fixed broadband, and the CAPEX liability on the CSP can be significant. In these remote, underserved regions, FWA will not only deliver an experience far in excess of “decent”, it is the only economically viable solution. 2
6. Ericsson , Fixed Wireless Access Insights 2024, p.7 7. GSA , Fixed Mobile Access, Global Status Update (November 2023), p.4 8. OECD Broadband Statistics (December 2022)
9 . CCS Insight , Fixed Wireless Access Forecast to Create Revenue of $67 Billion by 2027 (31 January 2024) 10. OFCOM , Your right to a decent broadband service: What you need to know (8 August 2023)
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