5G FWA device prices in India now below global average: Thiaw Seng NG

'Middle eastern markets show 5G FWA based home broadband can thrive even after fiber network penetration rises'

Thiaw Seng NG, head of Strategic Network Evolution -- Market Area South East Asia Ocean & India at Ericsson, says 5G fixed wireless access (FWA) in India is well positioned since prices of Customer Premises Equipment (CPE) like the ones that power Airtel and Jio’s Airfiber have fallen below the global average. In an interview in New Delhi, he tells Subhayan Chakraborty that West Asian markets show 5G FWA-based home broadband can thrive even after fiber network penetration rises. Edited excerpts.

Reliance Jio and Bharti Airtel have introduced FWA-based home broadband options, but the prices remain high. How soon do you see customer premises equipment (CPE) prices dropping in India?

In India, CPE prices for FWA have already come down to $100-120. Worldwide, the pricing typically falls within the range of $150-$160. In India, they are able to offer these prices due to the scale of coverage, while aiming not to overburden subscribers. Instead of requiring subscribers to make direct payments, a security deposit can be utilised. Additionally, if we consider Jio, their pricing package aligns with that of fixed broadband, which also entails the installation of a router.

 

AirFiber offerings from both telcos in India have attracted consumer interest. What has been the experience for operators foraying into 5G FWA globally ?

Globally, whenever operators launch FWA, they do it at the same price point as fiber-based fixed broadband. They try to monetise by offering upgraded speeds, and bundling over-the-top (OTT) content such as Netflix. We see a few countries that have been highly successful. This includes Oman, where FWA subscribers have grown four times since the launch of 5G in 2020. Today, 5G FWA subscribers have become 92 per cent of the FWA subscriber base. In Oman, Bahrain, and Qatar, even though the penetration of fiber is high, operators are still able to attract customers towards the FWA network through contracting free packages. Two years ago, more than half of the new additions to fixed broadband was fiber-based in the United States. But from 2022 onwards, 95 per cent of net additions have been FWA.

Enterprise use cases are expected to bring in most of the revenue from 5G for operators. What has been the experience for Ericsson?

From the enterprise perspective, we will focus on several segments. Specifically, there is a growing demand from SMEs for fixed wireless access, particularly in areas where high-speed connectivity is lacking. The primary area of emphasis is the digitisation of workspace, as exemplified by Verizon in the US offering SMB-focused packages, which is proving to be a lucrative business. While typical consumers use around 300GB per month, businesses tend to use considerably less, ranging from 150 to 120GB per month. This segment is performing well in terms of pricing.

Moreover, we are also working with some of the esteemed car manufacturers in the United States. They have implemented 5G in their factories to enhance automation and incorporate machinery equipped with 5G chips, resulting in remarkable success.

What is 6G expected to accomplish that 5G has not?

There are certain areas that haven’t been adequately addressed by 5G. For instance, low-power wide area-use cases, currently dominated by 4G and narrowband Internet of Things (IoT) are quite cost-effective. 5G prioritises low latency and high speed, but there’s a segment like RedCap, which is more suitable for broadband IoT, reducing device costs and offering good speed.

In the upcoming 3GPP Release 19, there is an intriguing concept called ambience IoT. This technology enables devices to harvest energy from their surroundings to power data transmissions to the network. It’s a segment that current technology hasn’t fully addressed. Another crucial area is achieving ultra-low latency, particularly below one millisecond, which is essential for applications such as factory automation where safety is paramount. 5G, particularly in its millimetre wave form, has not been able to meet this sub-one millisecond latency requirement.