Fixed wireless probably will not be a significant use case for 5G in most markets. For several reasons, it is likely the U.S. market will rely on fixed deployments much more than other early-mover markets.
Existing deployment of fixed network broadband in several early deployment markets (South Korea, Japan) is advanced enough that an overlay of fixed wireless does not make financial sense (wholesale provides a better business case than building facilities).
On the other hand, facilities-based competition in U.S. markets also makes full fiber-to-home a difficult business case for tier-one telcos, because of stranded assets. Assuming a minimum of two full broadband networks, with potential video revenues also lower because satellite delivery has significant market share, FTTH increasingly has to be built on an assumption of take rates about 40 percent.
Geography and density also matter. Many early deployment 5G markets will happen in relatively compact geographical areas with high density. That tends to be less the case in the U.S. market, where rural and suburban areas with very-low or relatively-low density are common.
Under such conditions, the FTTH business case is challenged. But as Google Fiber also has discovered, that also increases the value of any wireless platform, which costs less, on a homes-passed basis, and should also prove more sustainable on a cost-per-customer basis.
Existing deployment of fixed network broadband in several early deployment markets (South Korea, Japan) is advanced enough that an overlay of fixed wireless does not make financial sense (wholesale provides a better business case than building facilities).
On the other hand, facilities-based competition in U.S. markets also makes full fiber-to-home a difficult business case for tier-one telcos, because of stranded assets. Assuming a minimum of two full broadband networks, with potential video revenues also lower because satellite delivery has significant market share, FTTH increasingly has to be built on an assumption of take rates about 40 percent.
Geography and density also matter. Many early deployment 5G markets will happen in relatively compact geographical areas with high density. That tends to be less the case in the U.S. market, where rural and suburban areas with very-low or relatively-low density are common.
Under such conditions, the FTTH business case is challenged. But as Google Fiber also has discovered, that also increases the value of any wireless platform, which costs less, on a homes-passed basis, and should also prove more sustainable on a cost-per-customer basis.
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