At the Africacom 5G Summit, a collaborative effort between GSMA
Intelligence, ICASA, MTN South Africa, and Huawei resulted in the release of a
white paper titled "5G FWA in Africa: Emerging Trends and
Opportunities." This comprehensive document delves into the present
developmental trends and future prospects of 5G Fixed Wireless Access (FWA)
services across the African continent.
According to Kenechi Okeleke, Director, GSMA
Intelligence, 5G FWA has been widely recognized as an alternative to fixed
broadband, with 116 operators worldwide having already launched 5G-based
commercial FWA services in 57 markets. The maturity of 5G FWA technologies and
commerce is bringing new opportunities for digitalization in Africa and helping
Africa address the gap in last-mile fixed broadband connectivity.
At
present, 30 operators in 17 markets in Africa have launched 5G commercial
services, among which 14 operators have launched 5G FWA services. Nearly 10
other African countries have announced plans to launch 5G for commercial use.
5G FWA is 10 times faster than 4G FWA. 5G FWA is not only an upgrade of 4G FWA,
but also a pragmatic strategy for mobile operators to expand mobile data
services and provide enhanced connectivity services for home and enterprise
network devices, opening up new incremental space in the home and ToB markets.
Leaders in 5G FWA get the opportunity to compete in a market that remains
mostly wide open.
The newly released white paper noted that the development of FWA
services depends on various factors, including spectrum availability, 4G FWA
availability, CPE price, spectrum slicing technology, and 5G network coverage.
In terms of spectrum, the 3.5GHz, 2.3GHz and 2.6GHz spectrums are critical for
operators in South Africa to develop 5G FWA. In addition, 2.3GHz and 2.6GHz
spectrums have multiple commercial values because these two spectrums can
support both 4G and 5G, allowing operators to expand 4G networks while also
being used to develop 5G. Multiple benefits from one investment.
In terms of
CPE prices, GSA data shows that 4G/5G CPE shipments double every year. However,
CPE costs in sub-Saharan Africa are far too high, which has become a bottleneck
for 5G monetization and FWA market development. The GSMA Intelligence
whitepaper recommends that the government reduce taxes on terminal to promote
the development of the digital economy. Many operators in Africa have lowered
the threshold for market development through CPE trade-in and credit.
In the white paper, GSMA said that connectivity is
critical to building Africa's digital economy. 5G FWA is well-placed to play
its role in addressing the gap in last-mile fixed broadband connectivity by
delivering enhanced connectivity services to households and enterprises. To
take advantage of these opportunities, stakeholders like governments and
policymakers, operators, service providers, ecosystem partners, need to take
steps to facilitate the deployment of 5G FWA networks and stimulate adoption among
households and enterprises.
