One traditional reason mobile networks have not been direct substitutes for fixed (cabled) networks for internet access is the value-price relationship. Where mobile network data consumption has been priced at about $9 to $10 per Gbyte, fixed networks have offered gigabytes at less than $1 per gigabyte (tariffs sometimes below 20 cents per Gbyte).
Basically, mobile data has cost 20 times (actual usage) to 60 times (retail price compared to usage limit) that of cabled access. Leaving speed out of the analysis, mobile data has not been affordable, compared to equivalent amounts of cabled network usage (between 160 Gbytes to 200 Gbytes, for example).
Speed also has been an issue, as mobile networks traditionally have been slower than fixed (cabled) networks.
But AT&T already is moving to eliminate much of the “cost of data” gap, using its 4G network, in rural areas, in fixed mode.
The 10 Mbps AT&T fixed wireless service includes a usage allowance of 160 Gbytes per month, and actually uses the Long Term Evolution (4G ) network in a fixed mode. For most consumers, that will close the “cost per Gigabyte” problem.
Speed remains an issue, however, at least until the 5G network and millimeter wave bandwidth is made available. Still, the AT&T deployments show that mobile networks can move closer to comparability with cabled networks, using 4G, and could close the gap entirely in the 5G era.
AT&T has launched its fixed wireless service in Georgia, planning to reach 26,000 locations by end of 2017 and over 67,000 locations across Georgia by 2020.
AT&T plans to reach over 400,000 locations nationwide using fixed wireless by the end of 2017, and over 1.1 million locations nationwide by 2020.
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