Fixed wireless access to move further into broadband in 2022

2022.03.16

 5G as a percentage of FWA deployments Deloitte predicts that fixed wireless access (FWA), which uses cellular data signals to deliver broadband Internet to homes and businesses, will see big growth in 2022, and expects the number of FWA connections to increase from a record 60 million in 2020 to 82 million next year. Interestingly, 5G fixed wireless access will account for only 4% of such connections in 2021 and 7% by 2022. One might think that 5G fixed wireless access accounts for most of the current generation of FWA connections. It's a small percentage, but looking ahead to 2026, the direction of growth becomes clear: it's all about 5G. While our analysis shows a compound annual growth rate of 19% for FWA connections between 2020 and 2026, the compound annual growth rate for 5G FWA connections will be even faster, with a compound annual growth rate of nearly 88% over the same period," Deloitte said in a statement. 5G is not the only driver of FWA growth Looking at Deloitte's FWA growth chart from 2020 to 2026, you can see how 4G and other technologies plateau and start to decline in 2025, where 5G not only starts to grow, but really moves into the territory that older connections dominate. The reason for the growth is undoubtedly 5G, but Deloitte describes a "confluence of factors" that all eventually come together to make FWA more than just a niche technology. For decades, many operators have been selectively deploying FWA to provide Internet services to their customers. ...... To date, FWA has not been widely adopted by operators outside of a few countries such as Austria or Finland," Deloitte said. . Deloitte said governments are now beginning to focus on FWA as an alternative to wired Internet in underserved areas, and 5G means it is finally reliable enough and fast enough to deliver. 5G's deeper network infrastructure and higher spectrum efficiency greatly improves the economics and technical feasibility of FWA deployments, which in turn can support new deployments and revenue opportunities," Deloitte said. . Government projects to increase broadband access in rural and underserved areas often favor wireline solutions, but have recently begun to become technology agnostic, provided the service can meet minimum performance thresholds, Deloitte said. Deloitte also mentioned DSL services, which are ripe for replacement by 5G FWA. It quotes unnamed operators in the U.S., Italy and Switzerland as having "clear plans to upgrade and replace existing DSL connections with 5G FWA and fiber, thereby reducing costs by discontinuing traditional copper networks. According to Deloitte, FWA also appears to be seen as a major use case for 5G. Deloitte said that 90 percent of providers launching 5G services offer 5G FWA, adding that only 62 percent of providers without 5G services offer FWA. Industries impacted by WFA growth Deloitte said the growth of 5G and FWA will impact several different industries. Some companies, such as network operators, are clearly impacted by revenue growth and new potential customer bases. Other industries, such as cable companies, which have dominated home Internet since the birth of broadband, may see revenue losses from mobile network operators, which offer FWA with cellular plans. In addition to network operators, network equipment manufacturers stand to gain a lot. Deloitte cites the fact that 5G is compliant with industry standards such as 3GPP, which means that original equipment manufacturers have the opportunity to work together to create interoperable devices. Interoperability will be key to supporting more wireless innovation, Deloitte said. "Standards allow the device vendor ecosystem to collectively develop and commercialize common, interoperable devices and equipment, thereby reducing costs and simplifying installation for operators and users. Deloitte expects the growth of 5G FWA to be a key component of expanding availability while providing new revenue streams, growth areas and innovation opportunities for telecoms and original equipment manufacturers. It's a win-win for everyone involved, says Deloitte.