What is the future of fixed wireless broadband?
I saw two recent stories on the growth of fixed wireless (also called fixed wireless access – FWA) in the US and I thought it is a subject worth discussing on this page.
In RCR Wireless News, we read that wireless providers are dominating broadband in the US.
A new report by New Street Research indicates that fixed wireless additions will comprise close to 100% of residential broadband additions in 2025, with this percentage only slipping modestly in subsequent years. This is not so new, as Leichtman Research has reported that fixed wireless comprised 104% of broadband net adds in 2023, up from 90% in 2022, as seen in this March 2024 Light Reading report. These figures are based on publicly available numbers from wireless carriers, top cablecos, and top telcos.
There was also a story in Light Reading, talking about the growth of fixed wireless as a “major dynamic for the mobile industry”. For US tower owners, FWA is seen as a driver of increased demand for vertical infrastructure.
Despite fibre having superior technical characteristics, fixed wireless broadband has been winning customers over, even in urban areas where fibre and cable options are available. Why would wireless win out when competing against faster, technologically superior options?
One of the quoted analysts, Roger Entner of Recon Analytics, credits customer service factors as indicated by better net promoter scores, pricing, and simple disconnection processes. The author of the RCR piece says there is no linear relationship between speed and customer satisfaction. Consumers may have found that speeds sufficient to handle multiple simultaneous video streams are sufficient. “Having a car that can travel 500 MPH will do little to improve travel times, as law enforcement is not likely to be amused by such speeds.”
In 2020, I wrote “Broadband: how fast is fast enough?”. I followed up with “How fast is fast enough for broadband?” in 2023. Each of those articles talked about whether universal fibre should be on the national agenda.
Fixed wireless is being deployed in Canada primarily as a rural broadband solution. There are numerous smaller wireless internet service providers (WISPs)operating in rural communities and most of the mobile wireless carriers have residential wireless options. So far, I haven’t seen as much FWA being offered as an urban or suburban residential broadband alternative in Canada to the extent seen in the US.
I can think of a number of factors. What are your thoughts?