Capture value with 5G Fixed Wireless Access in a world of opportunities

Fixed Wireless Access

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With millions waiting for reliable home broadband, Fixed Wireless Access offers an efficient and scalable alternative to wired connections. Learn more about the technology bringing the power of 5G to new frontiers.

#FWA

Fixed Wireless Access (FWA) is a wireless connection that provides broadband access to a specific location such as a home or enterprise premises. It enables consumers to connect to the network and access high-speed internet via radio signal, without the need for physical cables. It supports both 4G LTE and 5G technologies, but it’s the speed and flexibility of 5G that really realizes the full value of FWA.

5G FWA is the first wireless technology capable of low latency and high speeds comparable to fiber optic connections. It therefore offers a competitive and cost-effective alternative for consumers in urban environments where xDSL, cable or fiber previously monopolized the market. The lack of cables also makes FWA ideal for connecting remote or underserved locations where running cables would prove too costly or difficult, making it a key technology for bridging the digital divide.

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How does FWA technology work?

In FWA, data is transmitted between the base station of a communication service provider’s (CSP’s) network and the antenna of the Customer Premises Equipment (CPE) device mounted either inside or outside the home or business premises.

FWA generally relies on the location remaining static to ensure reliable and high-performance delivery of connectivity or services. It does not include tethering mobile phones to connect Wi-Fi devices via standard mobile services, portable battery-based Wi-Fi routers or dongles.

Understanding the potential of FWA

Picture a remote mountainside village. Residents on the lower slopes may have old xDSL connections, but they’re painfully slow, unable to support any demanding or latency-dependent uses. They’ve waited years for fiber, but it never came due to the time-consuming and costly installation. Meanwhile, their higher, more isolated neighbors remain unconnected, beyond the reach of any cable.

Now imagine utilizing the nearby 5G network and infrastructure and a compact and easily-installed CPE device to connect even the most isolated homes via 5G FWA – all in a matter of days. Finally, they have access to high-speed internet and all it offers, opening a world of opportunities for education, gaming, healthcare services and more.

FWA compared to other connectivity technologies - what's the difference?

It can be confusing trying to understand the different technologies providing internet connectivity, and what sets them apart. So let’s clarify.

xDSL

Digital subscriber line (DSL) is a wired form of connectivity that uses telephone lines to transmit digital data. Like FWA, it used to be popular for some rural locations, as the existing phone infrastructure can be utilized. However, it is also the slowest wired internet, with service depending on proximity to the main DSL distribution point. In addition, as more countries continue to phase out legacy copper networks, DSL is gradually being discontinued.

Cable

Cable internet uses coaxial cables (the same as cable television) to send data via a cable modem. It is faster than xDSL, but slower than fiber. While it is capable of delivering high speeds, the system aggregates internet traffic, meaning many users often share the same connection, causing network congestion during peak hours. Being wireless, FWA is not impacted by such limitations.

Optical fiber

Fiber is the fastest and most reliable wired connection, but it also requires expensive infrastructure and labor-heavy installation. Given the need for cables, it is also not feasible for all areas and has limited coverage, while FWA can be deployed quickly and cost-effectively, reaching comparably high internet speeds.

Mobile broadband

Like FWA, mobile broadband is a wireless internet connection delivered via a mobile network, using a modem, dongle or other similar device for access. It is not as fast or reliable as FWA, so less suitable for dedicated use in one main location like a home or office, but does offer the freedom of portability.

Wi-Fi

Wi-Fi, like FWA, uses radio signals to wirelessly connect devices, accessing the internet via a router or access point. But it is a specific type of connection, primarily used to connect devices within a short distance to each other and the internet. It can be created using the internet connection from any of the above technologies; xDSL, cable, fiber or even FWA.

Wireless WAN

For larger enterprises who are looking for a broader IT-managed connectivity solution rather than the simple low-cost connectivity of FWA, a solution such as Cradlepoint’s wireless wide-area network (WAN) may be a better fit. Wireless WAN connects various local area networks (LANs) to each other as well as to headquarters, cloud servers, and beyond, allowing users to securely share access to applications, services, and other centrally located resources.

High bandwidth, low latency

Comparable speeds to fiber when supported by 5G.

Wireless freedom

No physical cabling infrastructure to manage or maintain.

Financial attractiveness

Affordable solutions with a light investment profile and lower risk.

Short time to market and revenue

Fast installation, deployed in 1-7 days, with quick revenue potential.

Easy to install

CPE can be self-installed and has a low footprint for simple relocation.

Simpler and more sustainable

Utilizes existing site infrastructure, unlike resource-intensive fiber or cables.

5G and FWA: fixed for success

The advanced capabilities and elevated performance of 5G is the foundation for the success of FWA, opening up opportunities to provide fiber-like services wirelessly and at a large scale. While boosts to speed, capacity and coverage coupled with FWA-specific optimization take performance to the next level, network slicing offers exciting new business-intent driven opportunities for differentiated services.

The introduction of 5G Standalone (SA) further transforms the FWA scenario, emphasizing efficiency, performance and differentiation. Network Slicing, Quality of Service and intelligent traffic management capabilities will enable next-generation monetization and business opportunities such as speed-based and premium tiered offerings.

Efficiency

Offload 4G to 5G FWA
Spectrum management

Performance

Coverage extension
Speed and capacity

Differentiation

QoS and slicing
Intelligent traffic management

Expert insights: key business opportunities of 5G FWA

Listen to Erik Ekudden, Ericsson’s Chief Technology Officer (CTO) and Stephen Chau, CTO at SmarTone as they discuss the key advantages of 5G-enabled FWA and how it improves coverage, supports businesses and enhances customer experiences.

Even though the global broadband landscape continues to expand, more than 1 billion premises are unconnected or underserved globally, representing a significant addressable market for FWA globally. A few key use cases or market areas in particular stand out as opportunities within this space.

FWA addressable market

Source: Strategy Analytics and Ericsson Mobility Report (Nov. 2023)

The remote and unconnected

Out of the 2.1 billion households globally in 2023, there are over 800 million that are still unconnected, lacking fixed broadband connectivity. Many of these households are today covered with LTE and, in the future, with 5G. Those that are more remote, in rugged terrain or in very dense urban areas may not even be serviceable by fiber, making FWA the key to connectivity.

Complementing wired solutions

FWA is an efficient and scalable alternative to wired connections. With around 220 million xDSL connections facing speed and future-proofing limitations, many CSPs are discontinuing these services. Others are targeting legacy cable areas with high-speed, cost-effective FWA or broadband-only offerings. FWA also introduces an alternative to areas dominated by a single provider, especially where fiber’s high roll-out costs have led to limited choice.

Secondary homes

Many people want broadband connectivity for leisure and work at their vacation/holiday homes. For example, Sweden has over 600,000 cottages (around 12 percent of permanent homes), many of which are in remote areas, while there are more than 4 million recreational homes in the US according to the US census.

Small businesses

Connectivity plays an important role for enterprises, and FWA can provide the ideal affordable solution for small businesses looking for fast, reliable connectivity at their premises that can be installed quickly and easily.

Get up to speed: service provider acceleration of FWA

FWA connections worldwide are expected to reach 330 million by 2029, generating approximately USD 75 billion in CSP revenues. And while FWA currently represents 30% of all mobile traffic volume, it’s expected to grow rapidly, surpassing the volume we have in all the world's mobile networks today by 2029. Flexibility is one key driver, with younger consumers less willing to commit to being tied to a contract or location long-term.

Adoption of FWA by CSPs is already high at around 80% – although 70% are still best-effort with volume-based tariff plans, and half are leveraging 5G. This indicates significant missed opportunities to capture revenue, given the FWA service is already in place. However it is still growing, with 30% already using speed-based tariff plans. Adoption has also accelerated in emerging markets, accounting for 55% of all new 5G FWA launches in 2024.

80 %

global adoption of FWA

50 %

leveraging 5G

30 %

using speed-based tariff plans

70 %

best-effort with volume-based tariff plans

Are you ready to leverage the global momentum of FWA, to upgrade wired infrastructure or bring connectivity to the unserved and help close the digital divide? From the various types of CPE’s on offer, to the best business plans to capture value, learn all you need to know before you deploy in our 2024 Fixed Wireless Access handbook series: a masterclass of actionable insights and best-practice strategies.

5G FWA momentum creating global economies of scale

5G is happening worldwide, with 5G FWA reaching mainstream (50% of FWA connections). Emerging markets see a particularly strong 5G FWA growth.

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Actionable insights webinar: capture the value of 5G FWA

Exclusive one-hour on-demand webinar, focused on the latest insights and global developments from the 2024 edition of the Fixed Wireless Access Handbook.

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Capturing the 5G FWA opportunity: A household view

In this Ericsson Consumer Lab study 19 countries were surveyed to explores the current stage of home broadband internet. And 5 key findings were identified for communication service providers to capture the FWA opportunity within the households.

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