What's Happening?
The fixed wireless access (FWA) market in the U.S. is experiencing increased competition as more providers enter individual markets. T-Mobile and Verizon currently lead the sector, but AT&T is set to intensify
competition with its new 5G-based FWA product, Internet Air, following its proposed $23 billion acquisition of EchoStar spectrum. T-Mobile's Mint Mobile brand has launched MINTernet, a fixed wireless offering, while Verizon is focusing on the multiple-dwelling unit market, aided by its proposed acquisition of Starry. According to MoffettNathanson's analysis of OpenSignal data, about 80% of U.S. households have at least one FWA option, with 35% having two options and 13% having three. The presence of multiple providers in a market is expected to expand FWA's share of the broadband market, although the opportunity for market share diminishes with each additional entrant.
Why It's Important?
The expansion of FWA options is significant for the U.S. broadband market as it offers consumers more choices, potentially leading to better pricing and service options. This increased competition could challenge traditional cable operators, who may lose market share to FWA providers. Cable One, which focuses on rural markets, is particularly vulnerable due to its higher broadband pricing and customer base with lower disposable income. The competition from FWA could drive cable operators to innovate and offer more competitive pricing to retain customers. The broader availability of FWA services could also enhance internet access in underserved areas, contributing to digital inclusion and economic development.
What's Next?
As the FWA market continues to grow, traditional cable operators may need to adjust their strategies to compete effectively. This could involve introducing new pricing tiers or improving service offerings to match the appeal of FWA options. Additionally, regulatory developments related to spectrum allocation and infrastructure investment could impact the growth trajectory of FWA services. Stakeholders, including consumers, businesses, and policymakers, will be closely monitoring these changes to assess their implications for the broadband landscape.
Beyond the Headlines
The rise of FWA services could have long-term implications for the U.S. broadband market, potentially reshaping the competitive dynamics between wireless and wired providers. This shift may also influence investment decisions in network infrastructure and technology development, as companies seek to capitalize on emerging opportunities in the FWA sector. Furthermore, the increased competition could drive innovation in service delivery and customer experience, benefiting consumers and fostering a more dynamic market environment.
