Is Fixed Wireless Access the next big thing?

Fixed Wireless Access (FWA) is gaining significant traction in the telecommunications sector, with global service provider revenues estimated at $27 billion in 2022 and projected to reach $67 billion by 2028. This corresponds to a compound annual growth rate (CAGR) of 16%. The appeal of FWA is largely due to its ability to effectively utilise existing mobile broadband infrastructure, particularly with the expansion of 4G and 5G networks.

These advancements have enabled service providers to extend broadband offerings to small and medium-sized enterprises (SMEs) using FWA. Research covering 139 countries indicates that more than three-quarters of service providers are now offering FWA services. Additionally, the proportion of providers offering FWA over 5G has increased to nearly one-third, up from one-fifth the previous year. In countries such as Australia and Japan, there has been notable growth in connections, underscoring the widespread adoption of FWA technologies.

Defining FWA

In the context of enterprise networking, FWA refers to using a wireless connection for a fixed location, often as an alternative to or backup for traditional wired internet connections like fibre. FWA typically leverages cellular networks, such as 4G or 5G, to provide broadband access to a single, static location. 

How FWA works

FWA utilises a base station (often a cell tower) and a customer premise equipment (CPE) device (like a router) at the business location. The CPE device connects to the base station via radio waves to establish a wireless internet connection. This allows the business to access the internet and network resources without relying on a physical wired connection. 

Benefits of FWA for enterprises

Fixed Wireless Access (FWA) offers several benefits for businesses, including faster deployment, greater flexibility, and enhanced accessibility, especially in areas with limited or no traditional broadband infrastructure. FWA can also provide a reliable and affordable alternative to wired solutions, particularly for businesses needing to connect new locations or expand their network quickly. 

• Cost-effectiveness: FWA can be more affordable than traditional wired solutions, especially in areas where fibre is not readily available or where construction costs for wiring are high. 
• Faster deployment: FWA can be deployed quickly, often with minimal setup or configuration. 
• Flexibility: FWA can be more flexible than wired solutions, as it allows for the movement of the CPE device and the ability to connect multiple locations remotely. 
• Backup and diversity: FWA can serve as a backup or diverse connectivity path for mission-critical applications, ensuring business continuity in case of outages or disruptions to the primary wired connection. 
• Scalability: FWA solutions can be easily scaled to accommodate the growing bandwidth demands of modern businesses. 

Considerations for FWA

• Signal strength and interference: Wireless signals can be affected by factors like distance from the base station, weather, and obstructions, which can impact performance. 
• Security: FWA connections need to be properly secured to protect against unauthorised access and cyber threats. 
• Data caps and pricing: Some FWA plans may have data caps or other usage-based pricing models, which should be carefully considered. 

In essence, FWA offers a compelling alternative to wired internet for businesses seeking cost-effective, flexible, and reliable connectivity, especially in areas where fibre is not readily available or as a backup solution. 

FWA opportunities

FWA is in many cases an alternative to wired broadband.

• Cable: FWA is an alternative for cable subscribers when there is no other choice of fixed broadband provider, with lower cost and/or higher speeds.
• Fibre: FWA can be viable where there is only one fibre provider and users want choice.
• DSL replacement for service providers delivering broadband over copper-based local loops to provide higher speeds and reduced network operation costs.

The SME opportunity is typically for connectivity solutions, primarily addressing premises with fewer than 100 employees. Some service providers include value-added services on top of connectivity solutions, including security/ SASE, SD-WAN and IT services (such as Microsoft 365). For larger enterprises, Wireless WAN solutions offer even more complementary opportunities.

FWA: A Future-Proof Technology

With 5G efficiencies, FWA has an expanding addressable market worldwide, with great potential to deliver broadband in unserved and underserved areas. FWA is currently the largest 5G use case after mobile broadband in terms of uptake and the growing volumes of FWA connections worldwide are helping to reduce the cost of customer premises equipment (CPE), which in turn further drives uptake.

FWA competitiveness is based on three scale advantages:

1. FWA leverages 5G's multi-use case network scale, enabling service providers to make shared investments to monetise multiple use cases, spreading risks and lowering initial upfront investments to new use cases.
2. FWA leverages the scale of the global 5G device ecosystem, reaching 1 billion connections in 2022 (2 years faster than 4G measured from its launch), enabling affordable devices and a broad device ecosystem.
3. 5G FWA leverages the scale of the 3GPP innovation ecosystem, bringing billions of dollars of R&D investment and new spectrum to higher capacity and performance of devices and networks.

To highlight the third point, one of the latest 3GPP innovations has been the millimetre wave extended range functionality, enabling FWA connectivity at gigabit speeds over 11 km.

5G service providers are well positioned to serve the millions of businesses that currently lack fast and reliable broadband, closing the digital divide and empowering enterprises.