Exploring Fixed Wireless Access Internet Service 

In the ever-evolving landscape of communication technology, Fixed Wireless Access (FWA) has emerged as a game-changing solution, providing reliable internet connectivity to homes and businesses. FWA is offered by major telecom giants such as T-Mobile, Verizon, and AT&T, allowing customers to enjoy high-speed internet without traditional wired connections. While FWA presents an exciting opportunity, it’s important to note that its availability is currently limited to select areas.

What is Fixed Wireless Access (FWA)?

Fixed Wireless Access (FWA) is a broadband internet service that delivers high-speed connectivity using wireless technology, eliminating the need for physical cables and infrastructure. FWA operates by establishing a wireless connection between a customer’s location and a nearby cell tower. This technology allows users to access the internet from a fixed location, whether it’s a residential home or a business establishment.

Limited Availability and Slot Constraints

At present, Fixed Wireless Access is only available in specific geographic areas where the telecom companies have deployed the necessary infrastructure. Unlike traditional wired broadband, FWA service coverage is dependent on the proximity of a cell tower. Due to this limitation, not all regions have access to FWA, making it essential for potential customers to check whether their area is eligible for this service.

Moreover, FWA service has a unique constraint that sets it apart from traditional internet offerings: the number of available slots per cell tower. Telecom companies cannot oversell FWA connections beyond the capacity of a given tower. This ensures that users connected to the tower can experience more consistent and reliable speeds without experiencing significant slowdowns during peak usage times.

Fixed Location Verification

Unlike mobile broadband, Fixed Wireless Access requires users to have a verified fixed location. This means that customers cannot use FWA for on-the-go connectivity like they would with mobile data plans. The verification process is crucial for maintaining network stability and ensuring that the service is provided to the intended location.

Variable Speeds Depend on Time of Day and Signal Quality

Even with limited access, the speed of Fixed Wireless Access connections can vary based on factors such as time of day and signal quality. During peak usage hours, such as evenings when many users are online, the network may experience increased congestion, leading to potential slowdowns in internet speed. Additionally, the quality of the signal between the customer’s location and the cell tower can impact the overall speed and stability of the connection. Using an external antenna can typically help in cases where the signal and/or signal quality may be too weak inside. 

FWA Highlights

FWA has many benefits for home and business owners. If you have availability in your area, it’s best to take advantage of the service ASAP before all slots are taken. If you’re on the fence about it, take into consideration the following highlights that showcase FWA’s potential:

  • Rural and Underserved Areas: FWA has the potential to bridge the digital divide by providing high-speed internet access to remote and underserved areas where laying traditional wired infrastructure is cost-prohibitive or logistically challenging. This can empower rural communities with improved educational, economic, and social opportunities.
  • Quick Deployment: FWA offers a faster deployment timeline compared to laying physical cables. This agility is particularly valuable in disaster-stricken areas where rapid connectivity is crucial for emergency response, relief efforts, and communication restoration.
  • Cost-Effective Solution: For both service providers and customers, FWA can be a cost-effective alternative to traditional wired broadband solutions. It eliminates the need for extensive underground cabling and associated infrastructure costs.
  • Reduced Environmental Impact: The absence of extensive physical infrastructure reduces the environmental impact associated with laying cables and digging trenches, contributing to a more sustainable approach to connectivity expansion.
  • Business Connectivity: FWA offers a reliable and high-speed internet option for small businesses and startups, enabling them to establish and maintain their online presence without the limitations of traditional wired connections.
  • Future-Proofing: As technology advances, FWA networks can be upgraded with minimal disruption, ensuring that users can benefit from evolving connectivity standards without major infrastructure overhauls.
  • Complementary Technology: FWA can complement existing wired and mobile networks, providing an additional layer of redundancy and network resilience, especially in areas prone to service disruptions.

Paving the Way for the Future of Fixed Connectivity

Fixed Wireless Access offered by telecom giants like T-Mobile, Verizon, and AT&T represents a promising advancement in internet connectivity technology. By eliminating the need for physical cables and infrastructure, FWA brings the convenience of high-speed internet to more homes and businesses. However, its current limited availability and dependence on cell tower capacity mean that FWA is not yet accessible to everyone. As technology continues to evolve, it’s likely that FWA services will expand to cover more areas and improve the overall online experience for users in the future.

What is the Controversy Over 5G Home Internet

How well 5G Home Broadband solutions perform could affect telecom stocks over the next few years. This is because not all parties are convinced that 5G wireless is going to succeed, or at least be capable of competing with cable broadband services. While T-Mobile and Verizon Wireless have begun marketing and selling their 5G Home Internet plans, AT&T has no plans on pushing this service option. 

Currently, there’s been a controversy amongst cellular providers and cable TV companies over telecom stocks. It’s even possible that 5G services could compete with local phone companies in areas that are still served by copper line-based DSL services. 

“Verizon and T-Mobile think the service can be a growth driver and will have attractive economics,” UBS analyst John Hodulik told Investor’s Business Daily. “FWA (fixed wireless access) is likely to do better where there are limited options for broadband and among subscribers used to lower speeds, so that means legacy DSL subscribers and slower speed cable.”

He added, “The big question is whether FWA has staying power over the next 5 to 10 years given necessary speed increases.”

Is 5G Wireless Worth the Cost?

AT&T has opted not to get into the fixed wireless game at this time. Their reason is simply that it lacks potential. In comparison, due to data usage surges over time, FWA can become less economic than fiber-optic landline alternatives.

“I think it stems from a genuinely different view of the engineering and capacity constraints,” MoffettNathanson analyst Craig Moffett told IBD. “The divergence in views about fixed wireless access between AT&T and Verizon or T-Mobile speaks to a genuine controversy in the telecom industry.”

He also stated that telecom companies are scrambling to make money from huge investments in 5G radio spectrum.

“The renewed appetite for FWA may be a sign of a dawning realization that the gee-whizzy use cases of 5G may never materialize,” Moffett said. “That could be forcing operators to revisit every possible source of incremental revenue in a bid to earn at least some return on their huge investments in 5G spectrum.”

The Broadband Competition

If you’re fortunate enough, there are cable TV options with high speed Internet options. For those who are not, and don’t want to try relying on satellite, there’s cellular and FWA. 

Comcast, one of the largest cable TV companies, says it’s not concerned with broadband competition from fixed 5G wireless services.

“Time will tell, but it’s an inferior product,” Comcast Chief Executive Brian Roberts said at a recent Morgan Stanley conference. “And today, we can say we don’t feel much impact from (it). It’s lower speeds. And in the long run, I don’t know how viable the technology holds up.”

To put it into perspective, Eighty-seven percent of U.S. households subscribe to an internet service at home, according to Leichtman Research Group. Cable TV firms comprise 70% of the broadband market, per LRG.

At the end of 2021 Verizon had about 223,000 fixed wireless broadband customers, though most were connected via 4G wireless networks. On the other hand, T-Mobile had 646,000 fixed broadband subscribers, all connected to 5G.

Per Wall Street analysts, T-Mobile is expecting to serve a range of 7 million to 8 million fixed 5G wireless subscribers by 2025. Verizon has estimated 3 million to 4 million subscribers over the same period.

AT&T and Fixed 5G Wireless

Another area of fixed 5G has been debated over and that is whether it could be more successful in suburban/urban markets or in rural areas.

“FWA is definitely a threat to cable companies,” Peter Rysavy, head of Rysavy Research, said in an email. “Particularly with (high frequency) mmWave, 5G can compete directly with cable. Mid-band spectrum is also effective but is best suited for lower density population areas. In these deployments, even T-Mobile limits the number of fixed wireless subscribers it can support in any geographical area.”

At UBS, Hodulik says that even if positioned as a low-end service, fixed 5G broadband still has a potential market of 20 million to 30 million homes.

As much as AT&T may not want to get into FWA, they have a sizable wireline local service area in 22 states. That means it will face competition from fixed 5G broadband, just like cable TV firms.

“AT&T has a huge wireline asset base that is only 25% upgraded to fiber,” Oppenheimer analyst Tim Horan told IBD. “So they are very exposed to competition from fixed wireless.”

At an analyst day on March 11, AT&T said it plans to upgrade 50% of its local markets, about 30 million customer locations, to high-speed fiber-optic broadband service by year-end 2025.

AT&T’s CEO, John Stankey, commented on the controversy over FWA saying that they see FWA as playing a limited role for mobile small business and enterprise applications, as well as in rural areas.

“We’re not opposed to fixed wireless, and I’m sure there’s going to be segments of the market where it’s going to be acceptable and folks are going to find it to be adequate right now,” Stankey said.