Broadband for all with Fixed Wireless Access
Stocks News :
- The latest in wireless network technologies – fixed wireless access (FWA) is growing in popularity globally.
- FWA is being recognized for cost-effectiveness and positive ROI. The technology is also serving untapped markets and increasing speed of existing broadband connections including 4G/5G.
- Most importantly, FWA has the power to eliminate digital divides and improve economic development of both developed and developing countries, but this requires strong support from regulatory authorities.
The holy grail for tech giants is to discover an unmet solution and use the internet to amplify it across every corner of the globe. While Google and Facebook embody this dream, many credit these companies for the rapid expansion of the internet. This recognition, however, is owed to global telecom operators and equipment vendors who are creating the infrastructure to support these tech giants.
Introducing Fixed Wireless Access (FWA)
The latest in wireless network technologies – fixed wireless access (FWA) – has been implemented by telecom operators in more than 230 networks across 120 countries thereby allowing more than 100 million users, in rural, suburban, and urban areas not only to access the internet – but do so at higher speeds.
FWA gives home users internet access by using wireless routers, known as customer-premises equipment (CPE) to connect terminals to the wireless network base stations.
FWA praised for cost-effectiveness and strong ROI
In 2019, 4G FWA gained more new users than wired broadband in the markets outside of China. 5G commercial deployment started by approximately 60 telecom operators, approximately 50% of which opted to deploy FWA in parallel. Driving these numbers is the ease of set-up, cost-effectiveness and flexibility that FWA provides. It eliminates the need for complex right of way (ROW) acquisition and costly cable routing in trenches, or through walls.
Operators are also experiencing strong returns on investment. In the Philippines, Globe, achieved a 25% increase in FWA users in 2019 and a spike in broadband revenue accounting for 14% of total revenue.
FWA creates opportunities in untapped markets
With the ease of set-up of 4G FWA technology, operators can provide home broadband services over existing wireless networks to users in rural areas with a short pay-back period.
Evidence of this can be seen in Sri Lanka where 80% of its population live in rural areas. In 2013, home broadband usage was approximately 9% but since local operator, Dialog, turned to 4G FWA then, usage rate rose to 26% in 2019. This amounts to over 800,000 new connections which have facilitated activities such as distance education, medical diagnosis, and digital finance.
FWA increases the speed of existing broadband connections
By incorporating a series of leading wireless network technologies, FWA is able to enhance digital experiences and improve business results with a peak rate of 1 Gbps.
This can be seen in the Caribbean. In 2017, internet penetration in Trinidad and Tobago was slightly above 77%, and fierce competition existed among three broadband operators. Due to low-quality user experiences and high operating expenses of existing connections, one of the countries’ operators TSTT, suffered a 21.4% drop in business revenue and a 33% decrease in users. In 2018, TSTT deployed Huawei’s FWA solutions and offered optical fibre deployment in urban areas. This overturned their market share losses as they were able to offer internet access, and third-party video services 30% below the market average.
5G FWA ideal for global mobile operators
4G/5G FWA is also capable of providing up to 1 Gbps downlink bandwidth which mimics fibre-like experiences. This is ideal for global mobile operators who are seeking to expand their market presence.
As 5G is evolving from the initial commercial adoption, to a new stage of scaled deployment, the 4G/5G FWA industry ecosystem can significantly improve user experience and strengthen SME capabilities as the increased speed satisfies demand for smart homes, 4K video, and AR/VR services.
Opportunities coexist with challenges
An ITU report in 2019, indicates that nearly half of the world’s population still has no internet access. In fact, only 11.8% of households in less developed countries have internet access.
This means, even though FWA has huge potential, there are a number of challenges that the entire industry needs to overcome particularly in terms of weak investment, and a lack of cost-effective terminals.
Cao Ming, Vice President of Huawei’s Wireless Network Product Line, called for strong support from regulatory authorities at the national level to promote “Broadband for All”. He advocated for unified broadband standards, special spectrum allocation to eliminate bottlenecks, flexible social infrastructure to simplify site addition or expansion, and, preferential tax policies to ensure that FWA networks will be affordable to both operators and their customers.
The value of broadband inclusiveness
As FWA bridges digital divides the technology is showing far-reaching implications. FWA is paving the way for the inclusive growth that is advocated by global organizations, including the United Nations, the World Bank, and the International Telecommunication Union (ITU).
According to the World Bank, universal broadband can eliminate digital divides and improve the economic conditions of both developing and less developed countries. The World Bank has stated that a 10% increase in broadband penetration can lead to a 1.3% increase in global GDP.
In developed areas that are fortunate to have an abundance of network services, improved broadband experiences can pave the way for more innovative services and enhanced online experiences.
This underscores the unwavering significance that global telecom operators and equipment vendors have in bringing the benefits of technology to everyone.
