According to a report by Counterpoint Research, India is expected to become the world’s largest 5G fixed wireless access (FWA) market by 2027 with over 30 million subscribers and overtake the US, the current global leader, with 15 million subscribers.
Although India’s current FWA subscriber base is three times smaller than that of the US, the country already accounts for approximately one-seventh of the global 5G FWA subscriber base, which is forecasted to reach 35 million by the close of 2024. Jio has played a pivotal role in this growth, recording 2.8 million FWA connections by the September quarter of 2024. Its services are now available in over 7,700 cities and towns, including tier-II and tier-IV regions. Airtel, too, has expanded its FWA footprint, covering over 1,300 cities and towns.
FWA is becoming a critical driver for 5G monetisation globally, and the response from Indian consumers has been promising. Telecom operators report that average monthly data usage per FWA connection (household) ranges from 500-600 GB, significantly higher than fiber broadband usage (250-300 GB) and 16 times the data consumption of mobile users (30 GB).
With comparable tariffs for fixed and wireless broadband, FWA offers higher average revenue per user (ARPU) for operators, estimated to be three to five times greater than 5G mobile ARPUs, which stand at around Rs 200.
However, satellite broadband providers like Starlink and Amazon’s Kuiper could pose a challenge to 5G FWA in India. With extensive satellite constellations offering significant capacity, these services may provide competitive or even lower-priced alternatives to 5G FWA, potentially disrupting the market.
