Fixed wireless access (FWA) is a type of 5G or 4G LTE wireless technology that enables fixed broadband access using radio frequencies instead of cables. The technology enables network operators to deliver ultra-high-speed broadband to suburban and rural areas, supporting home and business applications in places where fibre is prohibitively expensive or logistically challenging to lay and maintain. Meanwhile, in urban settings, FWA complements existing wired and mobile networks by offering an additional layer of connectivity. It can enhance network capa­city in densely populated areas, where traditional infrastructure might experience network congestion. FWA can be used to extend connectivity to areas that are difficult to reach with cables, such as apartment complexes or buildings with limited wiring options.

While FWA solutions have existed for over two decades, the performance im­pro­ve­ments enabled by 5G offer a larger add­re­ssable opportunity. This is driving re­ne­w­ed operator interest in the technology, re­flected in the growing number of commercial deployments of 5G FWA around the world. A look at the growing relevance of FWA in the 5G era, global trends and drivers, developments in India and the way forward…

Emergence of 5G FWA

FWA has emerged as a key use case of 5G. 5G FWA provides over 10 times higher speeds than 4G FWA, due to a range of technological improvements. It uses standardised 3GPP designs and common mo­bile components. FWA is one of the few use cases that utilises 5G massive multiple-input multiple-output (mMIMO) networks to their full extent, with a typical monthly utilisation that could be as high as 1 TB per user. Featuring new radio in the millimetre wavelength (mmWave), 5G FWA can provide a competitive alternative to fixed-line digital subscriber line (DSL) solutions, cable and fibre across all markets. This will provide the means by which suburban and rural consumers can receive the bandwidth required to support high-definition streaming services and high-speed internet access.

Overall, the advent of 5G has revolutionised the capabilities of FWA, making it a more viable option for high-speed internet connectivity in various settings. Many telecom operators that have launched 5G are expected to offer FWA services in the near future, driving FWA market growth.

Global momentum

FWA broadband based on LTE is already available worldwide, while 5G FWA is rapidly gaining traction. The Global Mobile Suppliers Association has identified 535 operators in 186 countries and territories that have announced service offerings for FWA using LTE or 5G, and 455 operators in 173 countries and territories that have already launched these services. Meanwhile, a recent Ericsson study shows that FWA data traffic represented 21 per cent of the global mobile data traffic at the end of 2022. This is projected to grow by a factor of nearly six to reach 143 EB in 2028 – about 30 per cent of total mobile data traffic. The US-based MNOs including Verizon and T-Mobile US are pushing broad 5G coverage to support FWA connectivity, while some European markets are more focused on driving fibre broadband infrastructure, thus delaying the roll-out of 5G FWA networks. Regio­ns with lower fibre penetration such as Africa, India, Latin America and South Asia (except China) are expected to drive 5G FWA subscriber growth.

Growth drivers

There are six main factors driving the FWA momentum across markets. Con­tinuous improvements in network performance make FWA increasingly competitive and good enough for various use cases, including extensive video streaming and enterprise operations. In addition, new spectrum in several bands is being made available globally. The network cost is also gradually dropping, enabling an attractive operator business case for FWA, and making it affordable to households for services such as TV/video streaming. Further, the surge in demand for internet and video streaming has led to a growing need for high-performance broadband services. This demand cannot be met with legacy DSL or cables. On the financial front, ma­ny telecom operators are struggling to find revenue growth. FWA is seen as an attractive opportunity for additional revenue streams. Governments are also actively supporting the expansion of connectivity and broadband access through a range of pro­grammes and subsidies, as there is a cle­ar link between increased broadband pe­netration and economic growth.

Opportunity in India

India has a home broadband penetration of less than 10 per cent, and fibre-to-the-home connects only 34 million homes in India. A considerable segment of the population struggles with fibre access. FWA has thus emerged as a popular 5G use case to address the last-mile connectivity issues in both rural and urban India, where access to fibre infrastructure is a challenge.

However, the technology is yet to gain a significant foothold in India. A major reason often cited by operators and analysts is the high cost of consumer premises equipment (CPE). Currently, the average price of FWA routers is over $100, making it less practical for telecom operators to in­stall the equipment at consumer pri­ces given the low average revenue per user in the country. It is therefore necessary to br­ing down the total cost of 5G FWA CPE to accelerate deployment and adoption in the Indian market. Given the potential of the technology to bridge the digital divide, especially in rural India, incentivising local gear manufacturing can help make FWA an economically feasible offering. To this end, the government has recently ann­ounced the addition of 5G FWA equipment under the production-linked incentive scheme for telecom and networking products. Equipment manufacturers can now claim benefits for local manufacturing of 5G FWA equipment, boosting the availability and affordability for operators.

Operator initiatives

In August 2023, Bharti Airtel announced the launch of its 5G FWA offering, Airtel Xstream AirFiber, for consumers in Delhi and Mumbai. It is the country’s first 5G wireless Wi-Fi solution that will offer internet to consumers in fibre dark areas. According to the telco, Xstream AirFiber is a plug-and-play device with in-built Wi-Fi 6 technology that will offer wide indoor coverage and can simultaneously connect up to 64 devices.

Meanwhile, Reliance Jio has created a dedicated 5G network slice for the provision of its 5G FWA solution, Jio AirFiber. Jio aims to launch the AirFiber device in the coming months. The telco has announced its plans to invest $25 billion in 5G, including $5-6 billion for FWA, showing the operator’s commitment to the new technology. Jio is aiming to reach 100 million connected premises (fibre+5G) with its FWA solution.

Future outlook

FWA is expected to witness massive growth driven by the demand for faster broadband connectivity. According to the latest Ericsson Mobility Report, FWA connections worldwide are projected to increase from 100 million at the end of 2022 to 300 million by the end of 2028. Of this, nearly 80 per cent are expected to be over 5G. Higher volumes of 5G FWA in large, high-growth countries such as India have the potential to drive economies of scale for the overall 5G FWA ecosystem, resulting in affordable CPE that will have a positive impact across low-income markets. The number of FWA connections in the Asia Pacific is expected to nearly triple, increasing its share of global FWA connections from 36 per cent to 46 per cent by 2028.

As technology continues to advance and FWA deployment expands, this wireless alternative will evidently play an integral role in the overall telecom ecosystem. FWA can efficiently bridge the connectivity gap in underserved areas, while also augmenting urban networks. As stated by the International Telecommunication Union in its State of Broadband Report 2021, FWA will not work in competition with pre-existing technologies such as wired broadband, mobile wireless and satellite — rather, it will complement them.

Sarah Khan