Mike Sievert, T-Mobile CEO says the company has added 500,000 home broadband customers. T-Mobile ho0pes to grow that base of customers to seven million to eight million accounts by 2025. That might equate to perhaps six percent of the U.S. home broadband installed base.
The service delivers speeds in excess of 100 Mbps, with typical downloads in the range of 35 Mbps to 115 Mbps for $50 per month with the AutoPay option, or $55 per month without it.
Skeptics will argue that will not compete with other platforms offering gigabit speeds. But a significant portion of the market buys service in the 100 Mbps or slower regions. In 2021, nearly half the U.S. customer base buys service between 100 Mbps and 200 Mbps.
It is a reasonable assumption that performance will improve over time, but it will remain the case that a significant portion of the customer base will prefer to buy services at the lower range of speeds. That might represent about 20 percent of the market.
Verizon added 50,000 fixed wireless accounts in the third quarter of 2021 and had about 150,000 total subs by the end of the third quarter.
Fixed wireless, under most scenarios, will remain a relative niche in the home broadband market. But fixed wireless will matter at the margin, representing four to 13 percent of accounts in many countries globally. Globally, fixed wireless can represent about nine percent of the home broadband market, some would argue.
For a firm such as T-Mobile that had zero installed base share until this year, that would be a significant incremental revenue driver.
In fact, fixed wireless might generate more revenue than edge computing, private networks or internet of things, for most service providers.
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