5G Fixed Wireless Access as a Monetisation Tool
The latest edition of the Ericsson Mobility Report (EMR) reveals that 5G Fixed Wireless Access (FWA) is becoming an essential monetisation strategy for communication service providers (CSPs) globally. With global 5G subscriptions expected to reach 2.9 billion by the year’s end, operators are increasingly adopting speed-based tariff models to compete against traditional fibre and cable offerings.
Global Adoption of FWA by Communication Service Providers
According to the report, more than 80 percent of CSPs worldwide are now offering FWA, with 51 percent providing speed-based tariffs, an increase from 40 percent last year. This trend is especially noticeable in North America, Europe, and the Middle East. By 2030, FWA is expected to represent over 35 percent of new fixed broadband connections, translating to around 350 million lines.
Insights from Ericsson’s Chief Technology Officer
Erik Ekudden, Ericsson’s Senior Vice President and Chief Technology Officer, expressed that service providers have recognised the potential of 5G. He noted that they are beginning to monetise it through innovative offerings that go beyond simply selling data plans. To achieve the full capabilities of 5G, continuous deployment of 5G standalone and the expansion of mid-band sites are crucial.
India: Leading the Global 5G Transition
India has emerged as a leader in the global transition to 5G. By the end of 2024, it is expected that 5G subscriptions will reach 290 million, representing 24 percent of the mobile base, with projections indicating this number could rise to 980 million by 2030. Current data consumption per user in India is 32 GB per month, the highest globally, and it is anticipated to double to 62 GB by 2030.
Robust Mid-Band Network in India
India’s rapid embrace of 5G is supported by a robust mid-band network, which achieved 95 percent population coverage by the end of last year. In comparison, Europe has 50 percent coverage and North America boasts over 90 percent. The extensive availability of mid-band spectrum empowers telecom operators to deliver both high capacity and extensive coverage, essential for an improved customer experience.
Ericsson’s Role in India’s Digitalisation
Nitin Bansal, Managing Director of Ericsson India, highlighted the company’s commitment to supporting the nation’s digitalisation. He noted that the strong 4G and 5G infrastructure established in collaboration with CSP partners is fostering connectivity and promoting inclusive growth.
Exploring 5G Use Cases Beyond Connectivity
Apart from enhancing connectivity, CSPs are also exploring various 5G-enabled applications across sectors like broadcasting, retail, gaming, and enterprise productivity. The report indicates that by the end of 2024, 5G networks will carry 35 percent of global mobile traffic, with forecasted growth to manage 80 percent by the end of 2030.