LIVE FROM CCA ANNUAL CONVENTION, ORLANDO, FLORIDA: Fixed wireless access (FWA) technology is finally an economically viable option for operators due to the rise of cord-cutting among consumers and lower equipment costs, the CTO of Cambridge Broadband Networks explained.

John Naylon told Mobile World Live that, until now, it hadn’t really been considered profitable to build a FWA network, but said “that’s about to change”.

“It’s the combination of the customer premise equipment costs, the range that you can serve, the acceptability to customers, that combination of factors is coming together,” Naylon said.

He added it’s now “quite credible” that a 5G FWA network carries a lower cost to build to deliver an equivalent level of service than traditional cable.

Revenue on the horizon
This confluence of factors turned FWA into a tangible use case with easy-to-calculate return on investment. If operators tap into just 10 per cent of the US broadband market, they stand to reap some $8 billion in annual service revenue, Naylon noted. The figures are similar for Europe, he added.

“They’re big markets. So that’s why it’s such an important focus,” he explained. “I think it’s a credible way to balance the investment you might need in new spectrum or new infrastructure investment with sight to new revenue.”

Evidence of the shift in operator mindset is already apparent.

Verizon earlier this week launched its 5G residential broadband service using the technology in four markets, and T-Mobile US set its sights on delivering FWA broadband to more than half the country should its proposed merger with Sprint be approved.

A slew of other operators, including AT&T, Charter Communications, US Cellular and C Spire, are also exploring use of the technology.