Parks Associates, a market research and consulting firm specialising in consumer technology, released new data this week highlighting the surging adoption of fixed wireless access (FWA) in America (USA). The report indicates that FWA, which leverages mobile network infrastructure to deliver broadband internet, is rapidly becoming a significant player in the residential internet landscape.
According to Parks Associates’ newly launched Broadband Market Tracker, FWA subscriptions through mobile network operators reached 7.8 million U.S. homes in the first quarter of 2024. This represents a substantial increase in FWA adoption, especially considering the overall market size. The firm also reported that approximately 106.3 million U.S. households had subscribed to home internet services at the end of 2023.
“Naysayers of fixed wireless access should be aware that the technology’s usage is demonstrably on the rise,” stated Kristen Hanich, director of research at Parks Associates. Her comments were included in the new data and underscore the growing importance of FWA in the broadband market.
Hanich further elaborated on the trend, noting, “FWA and satellite internet are the fastest-growing segments of the broadband market. These technologies are attracting consumers who were previously unserved or underserved by traditional providers, such as cable and fiber-optic internet companies.”
Two of the largest players in the FWA space – T-Mobile and Verizon – both reported slower growth rates in FWA net adds for the first quarter. In T-Mobile’s case though, the drop from 500,000 to 400,000 net adds per quarter was expected. T-Mobile in Q1 passed the 5 million mark for FWA subscribers and Verizon reported a total FWA tally of 3.4 million subscribers. These figures include both residential and business FWA customers.
The new data highlights a critical aspect of FWA’s appeal – its ability to bridge the gap in internet access for underserved communities. Traditional internet service providers (ISPs) have often prioritised denser urban areas for infrastructure development, leaving rural and remote locations with limited or no internet options. FWA, by utilising existing cellular networks, offers a more cost-effective and scalable solution to deliver broadband internet to these underserved regions.
Parks Associates’ report also emphasises the consistent growth of the FWA subscriber base. Hanich pointed out, “For the past several years, the FWA base has grown by 700,000 to 900,000 subscribers per quarter, while cable connections have shown a decline.” This data suggests a potential shift in consumer preferences, with users increasingly opting for FWA due to its perceived benefits.
- FWA adoption in America is reported to have reached over 7.8M households in Q1
- Parks Associates Research Director Kristen Hanich states that FWA and satellite internet are the “fastest growing” segments in broadband
- MVNO adoption is also reported to be on the rise, as cable mobile offerings are typically cheaper than postpaid mobile plans
While FWA offers a compelling solution for underserved communities, it’s important to acknowledge that the technology has its limitations. Fixed wireless internet speeds can be susceptible to fluctuations depending on network congestion and weather conditions. Additionally, data caps imposed by some mobile network operators might not be suitable for users with high internet usage requirements.
However, advancements in mobile network technology, such as the rollout of 5G, are expected to address these limitations. 5G promises significantly faster and more reliable internet speeds, making FWA an even more attractive option for residential broadband.
The growing adoption of FWA signifies a dynamic shift within the American broadband market. As FWA technology continues to evolve and mobile network operators expand their infrastructure, this segment is poised for further growth. While traditional ISPs like cable and fiber-optic providers will likely maintain a dominant market share, FWA presents a compelling alternative for underserved communities and users seeking a potentially more affordable and readily available internet solution.
The long-term impact of FWA on the broadband market remains to be seen. However, Parks Associates’ new data serves as a clear indicator that FWA is no longer a niche technology. It is a force to be reckoned with, and its influence on the way Americans access broadband internet is undeniable.
