Cape Town, At the Africacom 5G Summit, a significant white paper titled "5G FWA in Africa, Emerging Trends and Opportunities" was released, offering a comprehensive analysis of the development and future potential of 5G Fixed Wireless Access (FWA) services in Africa. The paper, a collaborative effort by GSMA Intelligence, ICASA, MTN South Africa, and Huawei, highlights 5G FWA as a viable solution to Africa's last-mile fixed broadband connectivity challenges.
According to Huawei, Director of GSMA Intelligence, 5G FWA is gaining recognition globally as an alternative to fixed broadband. Notably, 116 operators have launched commercial 5G-based FWA services across 57 markets. This maturity in 5G FWA technologies and commercial applications presents significant digitalization opportunities in Africa, addressing the region's fixed broadband connectivity gaps.
The paper reveals that 30 operators in 17 African markets have launched commercial 5G services, with 14 of these operators providing 5G FWA services. Additionally, nearly 10 other African countries are preparing for commercial 5G launches. 5G FWA, being ten times faster than its 4G counterpart, is not just an upgrade but a pragmatic strategy for mobile operators to enhance connectivity services for home and enterprise network devices. This development opens new opportunities in the home and ToB markets, with 5G FWA leaders positioned to compete in a largely untapped market.
The white paper discusses various factors influencing FWA service development, such as spectrum availability, existing 4G FWA services, CPE prices, spectrum slicing technology, and 5G network coverage. In South Africa, the 3.5GHz, 2.3GHz, and 2.6GHz spectrums are crucial for 5G FWA development. The 2.3GHz and 2.6GHz bands, supporting both 4G and 5G, enable operators to expand 4G networks while developing 5G, maximizing investment benefits. However, high CPE costs in sub-Saharan Africa pose a significant challenge to 5G monetization and FWA market growth. GSMA Intelligence suggests government intervention in reducing terminal taxes to foster digital economy development. African operators are already mitigating market entry barriers through CPE trade-ins and credit systems.
GSMA Intelligence emphasizes the importance of connectivity in building Africa's digital economy. 5G FWA is strategically positioned to bridge the last-mile fixed broadband gap, providing enhanced connectivity to households and enterprises. To capitalize on these opportunities, stakeholders, including governments, policymakers, operators, service providers, and ecosystem partners, need to support the deployment of 5G FWA networks and encourage adoption among households and businesses.