Why service providers should care about FWA value offerings

According to our FWA handbook, there were more than 130 million FWA connections by the end of 2023, with the number of connections forecasted to grow and reach 330 million by 2029 - not only is 5G FWA the most successful 5G use case, it is here to stay and to go places.

Connectivity varies from country to country, impacting the level of accessibility and types of connectivity available to households, but the segments we illustrate are present in all countries/markets. The variation of segments, their attributes and requirements will contribute to a shift in perspective that it is not only price that is the strategy to push FWA, but rather that FWA can be seen as a versatile and flexible offering, depending on how it is positioned. In some countries it is a contender, while in other and areas it is a compliment (Source: ConsumerLab FWA Study)

With this blog series, we aim to expand on the three proposed offerings: value, performance and customization. We will look at the six household segments that are represented in each of those clusters, what unites them and what differentiates them.

The value cluster includes the segments “Price Pushers” and “Mobile Champions”, which are the two household segments we will learn more about in this blog.

Then we have the performance cluster, where “Capacity Upgraders” and “Connectivity Upgrades” are.

Lastly in our third cluster, customization, we have the household segments “Bundling Seekers” and “Convenience Seekers”.

Let’s begin by looking at the value cluster; as the name might imply, households within the value cluster tend to gravitate towards ensuring best value for their buck, indicating a higher price sensitivity compared to the other segments.

Price pusher have price as their main priority, while for households within the mobile preference segment price is a priority but the attributes they look for are the simplicity in ensuring the all offers they have are wireless and with the same operator, and in return for their loyalty they expect good prices and service.

The common denominator for all of us with regards to connectivity is reliable, stable and fast connectivity to what each one of us individually (or, in the case of households, collectively) consider a reasonable price. But there is more to that - the people behind those segments.

To best learn about these segments, we will look at connectivity from their point of view, to understand what triggers their behavior and why they opt for the preferences they have

Meet Linda and Pavitra, members of the Price Pusher and Mobile Champions segments

The Price Pusher

Linda, a 59-year-old resident of a smaller city, lives in a detached house nestled in a community that values affordability and strong relationships. As the matriarch of a large family, she constantly seeks cost-effective solutions to meet their needs without compromising on quality, particularly when it comes to internet service. Living in a tighter economic bracket, Linda is highly price-sensitive, carefully scanning the market for competitive pricing that offers reliability without breaking the bank.

In her household, advanced technology takes a back seat as Linda and her family prefer sticking to traditional, reliable solutions that have stood the test of time. However, her pragmatic nature means she’s not averse to exploring new technologies like FWA—provided they offer tangible improvements in value and have got positive feedback from her peers and neighbors.

As relatively average internet users, Linda and her family utilize their connection for common online activities such as streaming videos, browsing websites, and engaging on social media platforms. While they don’t chase the highest bandwidth available, the necessity for a stable connection that can support multiple devices simultaneously is a priority to accommodate everyone’s daily needs.

In her dealings with internet providers, Linda prioritizes transparency and fairness. She expects clear, upfront communication about costs and a guarantee of no sudden price increases. Accessibility and quality of customer service are critical to her; she values providers who demonstrate a consistent track record of reliability and are quick to resolve any service disruptions or issues. This level of service reassures her that she’s not only investing in an internet connection, but also in a relationship that values her consumer rights and satisfaction.

The Mobile Champion

Pavitra, aged 35, thrives in the bustling environment of a mid-sized city, a place where technology and connectivity seamlessly integrate into daily living. Her home is a hub of digital activity, with each family member adept at navigating a plethora of mobile devices. This tech-savvy family frequently experiments with the newest apps and services, ensuring they are at the forefront of digital trends. They possess multiple smart devices each, which they use for an extensive range of activities—from streaming the latest entertainment to managing remote work and participating in online schooling.

Pavitra's interest is piqued by the potential of 5G technology, which promises to revolutionize their mobile experience with unprecedented speed and connectivity. Her family appreciates the robust mobile network accessed through their SIM cards, primarily viewing their home broadband connection as a supplementary resource to their primary mobile connections.

In her interactions with internet service providers, Pavitra demands clear, transparent communication about the specifics of service bundles, and how each element can add value to his family’s digital lifestyle. She prefers contracts that offer flexibility, allowing for hassle-free upgrades as newer, more advanced technologies roll out. Pavitra expects proactive customer support, ready and equipped to help maximize the benefits of her chosen service package.

Pavitra’s ultimate goal is to streamline her household’s telecommunications into one cohesive, efficient package managed by a single provider. She is drawn to bundles that not only merge all necessary services—mobile plans, home internet, and more—but also optimize cost-effectiveness, performance, and convenience. Such packages appeal to her particularly because they simplify both billing and administrative tasks, making his busy life a bit easier to manage.

The trending house type for both price pushers and mobile preference is the detached houses* (both small and large), a possible driver for aiming to have the lowest price is the need to secure flexibility in having multiple connectivity points spread out around the home. Aside from enabling them to enjoy the flexibility of balancing the connectivity in the home, FWA helps to ensure households have access to reliable and fast connectivity. We see the same trends echoed in the representations from households within the mobile preference segment.

What would be of interest for Linda is the possibility having access to reliable connectivity but for a lower price, where indoor customer premise equipment (CPE) are offered. A bigger representation of households within the price pushers are elderly or retired, being able to offer them a mix of low price offering along with promotions to include mobile broadband (MBB) creates opportunities to capture customers within this segment.

For Pavitra, who belongs to the mobile champions segment, where the household is younger or multigenerational, the flexibility of having everything with one operator, minimal fuss and good service is of interest. For this segment, operators can gain traction by creating trial periods showcasing the FWA solution’s capabilities, and MBB offers can be included in the offer if Pavitra opts to subscribe to FWA.

In our second blog of ConsumerLab FWA blog series we will look into the Performance Cluster, home to Capacity and Connectivity seekers, households segments that are all about boosting and enhancing their connectivity. Curious? Then keep watching this space.

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