According to a report by Counterpoint Research, 5G fixed wireless access (FWA) subscribers are projected to grow at 54 per cent compounded annually by 2030 as 5G take centre stage, providing enhanced broadband services at a scale not possible in previous generations. The report further notes that many developing economies as well as parts of developed economies still suffer from a digital divide with many unable to access broadband connectivity. As per the research firm, 5G-enabled fixed wireless access (FWA) is expected to have a revolutionary use-case for bridging this digital divide and providing connectivity where fibre or even DSL has not yet reached.
The company estimate the total FWA broadband subscriptions to climb to around 462 million by 2030 from roughly 75 million in 2021. Meanwhile, as per the report, 5G FWA will drive the bulk of the growth beyond 2025 replacing 4G FWA connections that will be still prevalent in some markets across MEA, developing Asia and Latin America until 2024.
Commenting on the market dynamics, Tina Lu, Principal Analyst, Counterpoint Research, said, “By the end of 2021, only one out of every three households around the world (excluding China) had access to fixed broadband. And only 25 per cent of those households enjoyed speeds greater than 100 Mbps. With the growing work-from-home and hybrid working and learning trends, a stable, fast and high-capacity connection has become imperative. In light of that, 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. For example, the launch of T-Mobile 5G Home Internet service in the US to provide high-speed broadband across USA trying to bridge gaps and challenge cable monopolies. Similarly, Optus in Australia has been aggressively rolling out FWA services since the beginning of 2021. Furthermore, several MNOs across Europe and the Middle East, are seeing rising adoption for 5G FWA.”
Meanwhile, speaking about the 5G FWA momentum and outlook, Lu added, “The US 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-6GHz spectrum driving broader coverage and above average throughput speeds. European operators, especially in UK and Spain are still pushing to increase fibre broadband infrastructure, thus delaying the rollout of 5G FWA networks. But the last-mile connection to fibreis very costly in rural areas, which opens the need for 5G FWA. Africa, India, and other South Asian countries (excluding China), on the other hand, have the lowest fibre penetration and thus have the most potential to drive the 5G FWA subscriber growth this decade. Latin America will also see 5G FWA services launch in the next few years to drive home broadband penetration.”
As per Parv Sharma, senior research analyst, “It has been a double-edged sword the last couple of years for 5G FWA adoption. While the pandemic accelerated the demand for broadband connectivity, but it also put serious pressure on MNOs capital expenditure (CAPEX) budgets slowing down 5G rollouts. The supply chain issues exacerbated the situation as the average 5G CPE prices remained in the $500-$700 range, well-above mass market level.”
