The rise of fixed wireless access (FWA) is reshaping how consumers connect to the internet, particularly as it harnesses the power of 5G technology to provide high-speed connectivity without the need for extensive fiber infrastructure. Major telecom companies like Reliance Jio and Bharti Airtel are rapidly expanding their broadband services, making FWA a vital component in the growth of the telecommunications sector.
Significant Growth in FWA Subscribers
Recent data from the Telecom Regulatory Authority of India (Trai) reveals a notable increase in FWA subscribers, climbing to 6.77 million in March, up from 6.27 million in February. This surge of nearly 500,000 new users in just one month highlights the increasing appeal of FWA as a reliable broadband solution in both urban and rural areas. It’s worth noting that Trai only began tracking FWA subscriber statistics in January, emphasizing the service’s rising significance in the market.
- March FWA Subscribers: 6.77 million
- February FWA Subscribers: 6.27 million
- Monthly Growth: 500,000 users
FWA: A Revenue Stream for Telecom Operators
FWA stands out as the sole profitable consumer application of 5G technology for telecom operators, allowing them to quickly scale their services without the lengthy and costly process of laying fiber cables. Analysts point out that this technology enables companies to tap into markets that extend beyond metropolitan areas, especially in locations where fiber installation may be challenging or prohibitively expensive.
For example, in Assam, Reliance Jio has successfully met the demand for FWA by delivering services in regions with limited fiber access along the Brahmaputra River. This strategic move has led to rural customers constituting approximately one-third of the total FWA subscriber base, with Jio taking the lead in these underserved markets.
Urban Expansion of FWA Services
Urban deployment of FWA is also accelerating, particularly in neighborhoods where securing permits for fiber installation has been a persistent hurdle. Both Airtel and Jio unveiled their FWA services in the second quarter of FY24, offering high-speed internet bundled with entertainment options. Monthly plans range from ₹599 to ₹699, generating a higher average revenue per user (ARPU) compared to conventional mobile services.
Financial Insights and Market Position
In a recent report by Goldman Sachs, Jio’s home broadband segment, which encompasses both fiber and FWA, accounted for about 9% of its impressive ₹30,018 crore revenue in the fourth quarter of FY25. Currently, Jio caters to approximately 18 million home broadband subscribers, with FWA connections making up 5.6 million of that total. Notably, half of these new subscribers hail from areas outside Tier-1 cities, as the company aims to achieve 100 million home connections.
Airtel’s Strategic Focus on Home Broadband
While Airtel is yet to release its fourth-quarter results, the company has consistently emphasized the importance of home broadband in its strategic plans. As of March, Airtel boasted around 1.2 million FWA subscribers, according to Trai data.
With a mere 41.39 million wired broadband users in India, household internet penetration remains at about 14%, presenting a significant opportunity for FWA to flourish. Industry experts highlight that Indian telecom operators are currently outpacing global giants like AT&T and T-Mobile in terms of quarterly FWA subscriber growth, driven by the expansive Indian market and the swift adoption of 5G technology.
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