60 GHz FWA to Complement FWA Market While 5G and LTE to Own Majority of the Market

Recently, network equipment makers have announced fixed wireless access (FWA) solutions based on 60 GHz. Cambium Networks announced its V5000 solution in September 2020. Siklu recently joined 60 GHz FWA space with the announcement of N366 and T256.  Cambium Networks’ V5000 solution supports up to 15 Gbps speed, 280-degree coverage, and can connect 30 client nodes; Siklu’s N366 features 360-degree coverage supporting nearly 16 Gbps total capacity. T265 is the terminal unit for complete FWA deployments. Both solutions from Cambium Networks and Siklu can be configured as point-to-point (PTP), point-to-multipoint (PMP), and mesh mode of operation.  Both solutions are compliant with Terragraph, a technology developed by Facebook Connectivity. Terragraph is an 802.11ay-based solution which aims to deliver multi-gigabit broadband connectivity to residential and business customers.

Since 60 GHz band falls in the mmWave spectrum, it is capable of delivering multi-gigabit data rates. It offers a great economic advantage because it is unlicensed spectrum—in contrast to licensed spectrum, where service providers need to have heavy investment in spectrum usage. Availability as an unlicensed band enables service providers to achieve lower deployment cost.

60 GHz band is commercially used in 802.11ad (WiGig), the standard for short-range wireless connectivity, targeting indoor use cases such as residential routers and VR headsets, supporting high-bandwidth connections between PC or console and VR headsets. FWA broadband is another use of 60 GHz with strong business potential.  With support of high-speed, low-cost, and fast time-to-market deployments, some service providers in North America and Asia-Pacific (e.g., Common Networks, NextLink, and YTL Communications), have already launched or started trialing FWA broadband in 60 GHz.

As of today, only 50% of the world’s households have fixed broadband connectivity. The rest of the population heavily relies on mobile networks to connect to the internet; a limited number relies on other technology such as satellite broadband. Fixed wireless access (FWA) broadband access using the LTE network is a widely used alternative technology for broadband access in many markets. Since 5G network roll-outs started, the FWA market has gained more attention from both service providers and end users to provide gigabit speed broadband access to homes and businesses. Operators including Verizon, Vodafone, EE, and others have launched 5G FWA service, and many others are exploring the possibility of 5G FWA roll-out.

Considering the global fixed broadband penetration rate at present, FWA services have great potential worldwide. However, the choice of technology, 5G/LTE or other proprietary FWA, varies depending on market conditions such as infrastructure, fixed broadband penetration, population density, and other economic aspects. Due to the high capacity and low latency provided by 5G technology, 5G-based FWA service is the best for developed markets, targeting the areas with high fixed broadband connectivity but limited fiber connection. LTE can be a good choice for emerging markets, which usually lack fixed network infrastructure, to address the broadband demand throughout high-density urban to rural areas. In some markets, especially in rural areas of North America, proprietary technologies using unlicensed bands are used to offer FWA service. The FWA industry has now added 60 GHz solutions aiming to provide low-cost gigabit broadband access.

FWA services using 3GPP technologies, LTE, and 5G are expected to represent major market shares due to investment by mobile network operators and stronger ecosystems supported by chipset and device makers. Other FWA technologies, including 60 GHz solutions, are likely to be deployed in the areas where Tier 1 operators are not heavily investing. The lack of license fees is attractive for smaller operators to roll out high-speed broadband to residential and business customers. In order to gain market share in FWA space, solution providers need to improve operator awareness of 60 GHz FWA advantages.  Emerging markets and sparsely populated areas can be good candidates for rolling out 60 GHz-based FWA services. Although 60 GHz offers high-speed and low-cost deployment, short range and line-of-sight requirements can create challenges in deployment. Solutions which support assured reliability and reach are required for successful roll-outs.  ABI Research expects that 60 GHz-based FWA services won’t be directly competing with LTE and 5G based services, but will be coexisting with them in the global FWA market.