Numerous telecommunications market studies have found that fixed wireless access (FWA) is one of the fastest-growing major use cases for 5G networks, providing an attractive alternative to fiber optic connections, especially in areas where laying physical cables is impractical or too costly. Now, a study by mobile industry body GSMA has found that the commercialization of 5G FWA is moving forward at a rapid pace.
of 5G FWA: State of the Market Report Led by T-Mobile and Verizon in the United States, commercialization of 5G FWA is on the rise, with 131 fixed broadband service providers expected to launch services in 64 markets by 2024.
The United States is the world’s largest 5G FWA market, with rapid adoption in consumer and business segments over the past two years. As a lower-cost alternative to FTTP/B (fiber to the premises/business), 5G FWA is proving to be an attractive way for US operators to provide fixed broadband services in unserved/disadvantaged areas with little or no competition. The GSMA believes that the percentage of the population living in such areas will be a key factor in determining addressable markets in other countries.
In addition to the United States, 5G FWA household penetration rates are expected to exceed 10% by 2030 in countries such as Australia, Austria, Germany, New Zealand, and Saudi Arabia.
5G technology offers speeds up to 10 times faster than 4G FWA, bridging the gap with traditional broadband technologies such as fiber optics and cable, sparking renewed interest in FWA networks in general.
Overall, the industry group predicts that the number of 5G FWA connections across the 70 countries will grow 358% between Q4 2023 and Q4 2030, from 17.3 million connections to 79.2 million connections.
The main driver of growth is what the GSMA predicts will be an “exponential” increase in the number of connections, especially increasing consumer demand. 5G FWA has been the leading consumer use case for the third consecutive year in eight major regions, including China, France, Germany, the UK and the US. Consumers are turning to 5G FWA as an attractive alternative to aging xDSL networks and cable broadband, especially for high-speed home broadband in hard-to-reach rural areas.
Another driver of market penetration are all the major global 5G network infrastructure providers that are actively promoting the deployment of 5G FWA. They see 5G FWA as a way for operators to more quickly monetize their significant investments in 5G networks. The major players are Ericson, Huawei, ZTE and Nokia. Their respective government initiatives are also actively supporting the transition from legacy technologies and increasing the availability of 5G FWA devices.
Looking ahead, however, the study warns that prospects for 5G FWA adoption are mixed. GSAM predicts that, even though 5G FWA will achieve the second-highest net addition levels globally of all fixed broadband network technologies between 2023 and 2030 (after FTTP/B), the rate of growth for 5G FWA will vary significantly by country.
Specifically, countries such as Australia, Austria, Germany, New Zealand, Saudi Arabia, and the United States are expected to have 5G FWA household penetration rates above 10% by 2030. Most other countries will have 5G FWA penetration rates below 10% by 2030, with some in the low single digits.