Households Shift Toward 5G Fixed Wireless Access

Households Shift Toward 5G Fixed Wireless Access
Dražen Tomić / Tomich Productions

Ericsson's latest ConsumerLab Report revealed that 5G Fixed Wireless Access (FWA) is becoming more popular among residential customers. The report shows that 7 out of 10 households have 5G FWA choosing it as a full replacement for their previously used connectivity. Convenience is emphasized as one of the key advantages of FWA, in which case households indicate that FWA outperforms wired solutions in flexibility, customization, and ease of installation.

The study also shows that households expressed higher satisfaction using 5G FWA than fiber in terms of service experience (delivery time, contract conditions, equipment quality, and cost level), and satisfaction is on par with fiber for network performances (speed, indoor coverage, security, and capacity). Apart from insights into the state of 4G and 5G FWA from a household perspective, the report reveals data points about preferences in choosing FWA and barriers that hinder households from opting for this type of connectivity. It also reveals the satisfaction level with a network service provider and lists potential growth opportunities based on the input received from the survey participants.

The report identifies six distinct household segments, each with varying levels of interest and need for FWA. These segments, including Price Pushers, Bundling Seekers, Capacity Upgraders, Connectivity Upgraders, Convenience Seekers, and Mobile Champions, offer valuable insights for service providers targeting different consumer preferences. "The report explores the high potential growth of the FWA market given that 1 in 2 households have stated their interest in 5G FWA and highlights that even beyond the US, households choosing 5G FWA are abandoning their previous home broadband connections," said Jasmeet Singh Sethi, Head of ConsumerLab.

"Fixed wireless access is currently the largest 5G use case after mobile broadband in terms of uptake, with connections worldwide forecast to grow almost threefold to 330 million by the end of 2029, generating USD 75 billion in annual service provider revenues. The study results validate household preferences for high-speed broadband and convenience supporting 5G FWA adoption. With 5G technology and networks in place, it is the right moment to capture this large opportunity with more than a billion underserved households and enterprises globally,” added John Yazlle, Head of Fixed Wireless Access at Ericsson Networks.