According to GSA (Global Mobile Suppliers Association), at the halfway point through 2022, both 5G and LTE network ecosystems are showing continued, healthy growth.
5G is commonly misunderstood as being the “replacement” for LTE networks. One of the most powerful aspects of 5G standards is that incorporates many other wireless, wireline, cable, satellite and other technologies – creating a synthetic “quilt” of functionality. Figures are through the end of June ’22.
• LTE – 977 operators in 244 countries are evaluating new or have built LTE networks
• LTE – 760 operators in 210 countries providing mobile and/or fixed wireless LTE
• 5G – 496 operators in 150 countries and territories investing in 5G mobile or fixed networks
• 5G Compatible – 218 operators in 87 countries with 3GPP-compatible 5G mobile or fixed networks
• 5G Standalone – 108 operators in 52 countries investing in 5G standalone networks
• VoLTE – 287 operators investing in VoLTE in 131 countries
• LTE-A – 360 operators in 146 countries and territories
hanks to their Fixed Wireless Access (“FWA”) offerings. This represents a trend that is likely to continue as Verizon and T-Mobile progressively deploy more spectrum and resources and solely at capturing broadband customers.
Blurred Lines
Several years ago, cable companies turned to a mobile network reseller strategy (“MVNO”) to offer mobile devices, home automation offerings and a vast array of IoT devices to strengthen the retention characteristics of their broadband subscriber base. Both Compact and Charter have MVNO agreements with Verizon.
Comcast and Charter have since amassed a network of millions of public Wi-Fi hotspots to reduce their MVNO data cost and reliance on Verizon.
In addition, both cable companies have purchased wireless spectrum within their footprint and recently begun to deploy supplemental mobile networks of their own to creating a stronger, more profitable offerings that leverage both VZ’s and their own wireless infrastructure.
In Each Other’s Pocket
Although cable carriers possess a limited amount of wireless spectrum and wireless carriers have a limited amount of core fiber capacity to provide service to large numbers of subscribers, it’s important to note that both companies are making substantial capex commitments to expand that capacity.
Collectively, Verizon and T-Mobile have indicated they plan to capture roughly 12 million broadband subscribers by 2024. Comcast and Charter, of the other hand, also sees an enormous revenue opportunity, best described by Comcast Chairman Brian Roberts as “We’ve barely scratched the surface in the opportunity here at only 8% penetration of our residential broadband customers”.
tional cable offerings.
Aggressive Market Share Growth Ahead
Given the drastically lower capex and deployment metrics of FWA, wireless operators will progressively target home and business markets as more spectrum comes online and fiber densification reaches deeper into their coverage footprint.
Market Uncertainty Creates Opportunity
– Growth rates and subscriber trends are highly predictable
– A solid understanding of technology roadmap and metrics provides clarity as well as a substantial opportunity to benefit from market uncertainty
– Proprietary metrics and benchmarking necessary as FWA rapidly moves from talking point to a financial line item
