A big market need exists globally for 5G-enabled fixed wireless access (FWA), with only one out of every three households around the world (excluding China) having access to fixed broadband and only 25 percent of those households experiencing speeds greater than 100 Mbps, according to a report by Counterpoint Research. As a result, FWA will become the “killer app” for 5G. Subscriptions will vault from 75 million in 2021 to 460 million worldwide by 2030, as countries get serious about closing their respective digital divides, the report concludes.
“Many developing economies as well as parts of developed economies still suffer from a digital divide with many unable to access broadband connectivity,” Counterpoint Research Principal Analyst Tina Lu said. “In light of [the broadband need], we are seeing a significant push from operators and even governments to prioritize national broadband initiatives with 5G FWA becoming integral to their 5G rollout strategies.”
5G FWA will drive the bulk of the growth beyond 2025, replacing 4G FWA connections that will be still prevalent in some markets across the Middle East and Africa, developing Asia, and Latin America until 2024. Between 2022 and 2030, 5G FWA will have a CAGR of 54 percent and global FWA cumulative revenues will reach $200 billion, according to the report.
The U.S. is currently driving both sub-6 GHz and 5G mmWave FWA services together with Australia, Italy, and a few Middle Eastern operators. For example, T-Mobile launched its 5G Home internet service to provide high-speed broadband to bridge gaps and challenge cable monopolies, and Optus in Australia has been rolling out FWA services since the beginning of 2021.
“New 5G network architectures and broader spectrum promise enhanced broadband services at a scale not possible in previous generations,” Lu said. “The U.S. is currently the single biggest 5G FWA market, with both Verizon and T-Mobile being bullish on 5G FWA with mmWave rollouts ideal for dense urban connectivity, and sub-6 GHz spectrum driving broader coverage and above average throughput speeds.”
Several MNOs across Europe and the Middle East are adopting 5G FWA, but European operators in the UK and Spain are still pushing fiber broadband infrastructure, which is delaying the rollout of 5G FWA networks, the report said. Africa, India, and other South Asian countries (excluding China) have the lowest fiber penetration and thus have the most potential for 5G FWA subscriber growth this decade. 5G FWA services will launch in Latin America in the coming years, which will drive home broadband penetration.
By J. Sharpe Smith, Inside Towers Technology Editor
Reader Interactions