4G and 5G FWA show the way to a fully connected world
Connecting the unconnected has long been a goal for governments across the globe and substantial initiatives are now established that are bringing internet connections to remote locations in developed markets and previously unconnected territories in the developing world. Critically, this connectivity must be offered at a cost that users can afford and this places constraints on which technologies can be utilized. In situations where fiber-to-the-premises (FTTP) is not economically viable, the alternatives are fixed wireless access (FWA) or satellite connections. 4G and 5G FWA cellular options can deliver suitable performance while low earth orbit (LEO) satellites are increasingly becoming available.
With 4G typically offering peak speeds of 100Mbps and download speeds of 50Mbps or more, the technology is more than adequate for routine internet usage. Ultra HD video, for example, needs at least 15Mbps. For those needing more robust performance 5G offers greater throughput and lower latency. 5G-Advanced, for example, can achieve speeds of 350Mbps but this comes at a financial cost and some 5G customer premises equipment (CPE) is still well above an affordable level for the mass market at US$500-700.
New FWA white paper explains how to erase the digital divide
This cost will come down as economies of scale are achieved for the mass market and 5G FWA adoption depends on this. A new whitepaper, titled ‘How fixed wireless access is erasing the digital divide’, published by Quectel, has revealed that momentum is underway. The paper highlights that GSMA Intelligence has predicted breakout growth of 55% for 5G FWA in 2024, with 5G accounting for 61% of FWA connections in Q4 of 2024.
Revenues for 4G and 5G FWA are growing. Dell’Oro Group has released figures that suggest total FWA revenues, including radio access network (RAN) equipment, residential CPE, and enterprise router and gateway revenue remained on track to have advanced 27% in 2023, driven largely by residential subscriber growth in North America, as well as growing branch office connectivity deployments globally. The firm projects that global FWA revenues will exceed US$9bn by 2027 with long term subscriber growth expected in Southeast Asia and the Middle East and Africa.
These encouraging numbers depend on continued reductions in CPE cost and the vendor community has focused on how to make costs more appealing to lower GDP markets. The Quectel whitepaper cites Counterpoint Research reporting the average selling price (ASP) of a sub-6GHz 5G CPE was US$476 in 2022 with mmWave equipment significantly more expensive. However, by 2030 ASPs for both technologies will converge and decrease. Counterpoint expects greater scale and maturity to see ASPs move downwards after 2025 to the extent that adoption will be practical in lower average revenue per user (ARPU) markets such as India and Africa.
There are two dynamics driving adoption. One is the growing affordability of 5G CPE that is opening up the appeal of the technology for FWA and the other is the cost-efficiency of mature 4G FWA for lower GDP markets. 4G offers most of what users need for most of the time but its near-ubiquitous coverage and maturity means it is an ideal technology for bringing internet connectivity to markets for the first time. With vast territories set to never be passed by fiber, FWA presents a practical alternative.
To view the whitepaper visit: Fixed wireless access white paper 2024