5G FWA will be the fastest growing residential broadband service with over 58 million subscribers by 2026
2021-09-01
The user base of the global residential broadband market will exceed 1.1 billion in 2020, an increase of 4% over the previous year. Not surprisingly, the COVID-19 pandemic has accelerated the demand for broadband connections. Even after the pandemic recovers, user demand for high-capacity residential broadband will remain strong. According to data from ABI Research, a global technology market consulting company, 5G fixed wireless access (FWA) will become the fastest-growing residential broadband segment, with a compound annual growth rate of 71% in the next five years and more than 58 million users by 2026 .
Remote work, online learning, e-commerce, and virtual healthcare are driving the demand for high-speed broadband throughout 2020. The significant increase in the use of Internet-based home entertainment such as video streaming and online games has also pushed existing broadband users to upgrade their broadband services to higher-level packages, while households without broadband access have become new users. "The increasing popularity of Internet-connected devices, smart TVs, and smart home devices, as well as consumer media consumption through Internet applications, will continue to promote the popularity of high-speed broadband in the next few years. In addition, many companies allow some of their employees to perform after the pandemic. Working remotely, this will further drive the demand for home broadband services,” explained Khin Sandi Lynn, industry analyst at ABI Research.
In order to meet demand, broadband operators are investing heavily in the expansion of higher-capacity broadband networks. Some cable TV operators continue to invest and upgrade to the DOCSIS 3.1 specification, while the cable standardization organization CableLabs and other industry participants are already working hard to develop DOCSIS 4.0 technology. Lynn said: "Although cable operators may not deploy new technologies in the short term, Comcast has completed laboratory testing of the DOCSIS 4.0 full-duplex system-on-chip from Broadband in April 2021. Cable companies may It will extend the life of the existing DOCSIS 3.1 standard by a few more years. However, DOCSIS 4.0 can support up to 10 Gbps downstream speed and 6 Gbps upstream speed to improve customer experience and use AR/VR or bandwidth-intensive services. Therefore, It will definitely become the next-generation technology choice."
Similarly, telecommunications companies continue to upgrade their xDSL to fiber-to-the-home (FTTH) networks. In addition, when the deployment of high-speed fixed broadband networks is not economically feasible, FWA services are a cost-effective alternative. The ongoing 5G network deployment and the development of expanded 5G millimeter wave solutions will enable service providers to provide high-speed 5G FWA services in cities and low-density areas. It is estimated that by 2026, 5G FWA services will account for 4% of residential broadband services, and in 2020 this proportion will be less than 1%.
As the penetration of residential broadband saturates mature markets, competition among broadband operators may pose challenges to maintaining market share. Lynn pointed out: "In addition to network upgrades, broadband operators also need to invest in cutting-edge software and hardware to optimize network performance and support a better user experience. Providing advanced home network equipment, Internet security, and home network self-diagnosis tools can Help service providers reduce churn and increase average revenue per user."
