The rollout of 5G networks around the world will make Fixed Wireless Access (FWA) the fastest growing home broadband market segment in the next five years, according to ABI Research. Instead of a physical connection to the Internet, such as fiber or cable, FWA uses a mobile network to power a router that provides an experience similar to landline connectivity. While 4G has been used to power the FWA, 5G is a big boost for the technology because of the added speed and capacity, enabled by broadband and long-range spectrum, that newer networks provide.
5G business
The advantage of 5G FWA is that it can bring super-fast, even super-fast broadband services in hard-to-reach areas, and offer greater flexibility and competition in urban areas. This is especially true in the United States, where several large cities are served by a single carrier and where mobile operators offer 5G FWA using millimeter wave (mmWave) spectrum. ABI Research says that 5G FWA currently accounts for less than 1% of all residential broadband subscriptions. However, the increasing availability of 5G, coupled with increased demand for connectivity, will see the market grow at an annual rate of 71% over the next five years, or 58 million subscriptions, or 4% of the global market. In the wake of the pandemic, the total number of home broadband subscriptions rose 4% year-on-year to 1.100 billion, driven by the shift to online work, education and e-commerce. In addition to new technologies like 5G FWA, providers will also invest in fiber and cable infrastructure upgrades to meet demand and better compete as the market becomes saturated. "The growing adoption of Internet-connected devices, smart TVs and smart home devices, as well as the consumption of consumer media through Internet applications, will continue to drive broadband-to-broadband adoption for years to come," Khin said. Sandi Lynn, industry analyst at ABI Investigate. “In addition to network upgrades, broadband operators must invest in advanced software and hardware to optimize network performance and support better user experiences. Providing advanced home network devices, Internet security, and home network self-diagnostic tools can help service providers reduce churn rates and improve average revenue per user.