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Fixed Wireless Access Handbook: This Is A Brochure Sub-Headline On Two Rows Extracted Version 3rd Edition
Fixed Wireless Access Handbook: This Is A Brochure Sub-Headline On Two Rows Extracted Version 3rd Edition
Wireless
Access
handbook
This is a brochure sub-headline
on two rows
Extracted version
3rd edition
ericsson.com/fwa
Discover what´s new in
FWA
DiscoverHandbook
what’s new 2020
in FWA Handbook 2020
FWA market potential
FWA advantages over Fiber FWA connections uptake FWA connections forecast
Examples of 5G offerings Expanded CPE evolution and TCO mmW Extended Range
Best Effort Guaranteed QoS
Zain Vodafone Three Verizon Optus DNA
KSA Germany UK USA Australia Finland
Marketed Speed Subject to traffic Subject to traffic Subject to traffic 300 Mbps (typical) 50 Mbps 100 Mbps
CPE Installation User guide User guide User guide Self-Install App Self-Install App Professional
...and more...
2. FWA solution 24
Broadband market
Executive Summary
– A new market opportunity
Underserved market
Global demand for broadband connections from both households Globally, the fixed broadband market is still growing and,
and Small and Medium-sized Enterprise (SMEs) has been strong according to the ITU (2018), fixed broadband subscriptions have
for several years. increased by eight percent annually over the past five years.
The majority of this growth comes from China. Furthermore, this
Essentially, the broadband market can be divided into fixed and
growth is expected to slow down as existing technologies strug-
mobile. From a global subscription perspective, the mobile broad-
gle to reach a growing number of households economically. The
band market is substantially larger than the fixed broadband
mobile broadband market has enjoyed higher growth; increasing
market: approximately 6 billion mobile broadband versus
on average by more than 20 percent annually over the past five
1.1 billion fixed broadband subscriptions (Ericsson, 2019). It is
years (Ericsson, 2019).
worth noting that the number of fixed broadband users is at least
three times the number of fixed broadband connections due to Despite the growth in both fixed and mobile broadband, there is
shared subscriptions in households, enterprises and public access a large underserved household market. This market can, to a very
spots. large extent, be served cost-efficiently with FWA, when it is built
on the huge installed base and global reach of mobile technolo-
gies such as LTE and 5G New Radio (NR).
W
g
Wi-Fi
g
Wi-Fi W
g g
Wi-Fi Wi-Fi g
Wi-Fi
Drivers
Drivers and momentum
and momentum
Increased
Increased demand FWA Lower network cost
momentum
Additional Government
revenue connectivity ambitions
FWA is by no means a new phenomenon. Those who have had a The growing global popularity of the Internet and video streaming
not so successful experience of deploying FWA, based on WiMAX has led to increasing demand for high-performance broadband
or earlier technologies, may ask themselves, why now? What is services. This demand cannot be meet with legacy xDSL or cable.
different this time?
In addition, many operators are struggling to find revenue growth.
There are six main reasons FWA is gaining momentum in the FWA is seen as a good opportunity for additional revenue streams.
industry.
Governments are also fueling connectivity and broadband roll-
Network performance keeps improving, making FWA increasingly outs through various programs and subsidies, as there is a clear
competitive and good enough for various use cases, including link between increased broadband penetration and economic
extensive video streaming. In addition, new spectrum in several growth (Ericsson and Imperial College London, 2017).
bands is being made available globally.
These six factors combined are generating increased industry
At the same time, the network cost (cost per delivered bit) keeps momentum behind FWA.
dropping, enabling a viable operator business case for FWA, and
making it affordable to households for services such as TV/video
streaming. As an example, a site fully evolved with 4G and 5G
capacity will deliver mobile data 10 times more cost-efficiently
than a basic 4G site (Ericsson, 2018). However, many of the
cost-efficiency steps can already be achieved through the LTE-A
evolution.
1 2 3
Time to market Financial attractiveness Sustainability
- Fiber roll-out is time consuming - Fiber build-out is capital intense with - Fiber build is resource-intensive
- Fast time to market with FWA lower ROI outside dense urban areas - FWA reuses existing site
- FWA has light investment profile infrastructure
with lower risk - 5G enables operators to have
one network for multiple services,
including MBB, FWA and IoT
Many operators view FWA and fiber as their future fixed tech- FWA also has a more attractive investment and risk profile than
nologies, replacing legacy fixed technologies as well as bringing fiber. Fiber build-out is a capital-intensive process, with most of the
access to unconnected homes and businesses. FWA deployments investment made up-front (that is, before signing up customers
have three main advantages over fiber deployments, related to and earning revenues). At the same time, the investment returns
time to market, financial investment profile and sustainability. diminish as fiber deployments move away from dense urban areas
and fewer homes are served per kilometer of fiber. FWA has a lighter
First, FWA has a shorter time to market than fiber. FWA leverages
investment profile, with lower initial investment (if any, when spare
existing mobile network infrastructure, utilizing spare capacity
capacity is utilized) and investment scaling in line with subscriber
and already-acquired but undeployed spectrum. Once that capac-
growth. Moreover, capacity investments for FWA can be shared with
ity is utilized, new capacity can be added to existing sites, either
other mobile network services resulting in lower risk. Even if there is
through software upgrades or additional new hardware – mean-
no uptake of FWA services, the operator can still use that capacity
ing there is no immediate need to build new sites. Conversely,
for other services, including MBB and IoT.
building out fiber is a much longer process, often requiring permits
and civil works to dig fiber. FWA deployment on customer prem- Finally, FWA deployments are more sustainable and environment-
ises is also typically faster than fiber deployment. Fiber always friendly than fiber, as most of the infrastructure is reused. FWA
requires home activation on site, while FWA can be deployed reuses main sites and towers that are already built, with most up-
through self-installation in the majority of cases. grades performed without the need for site visits (unless new hard-
ware is required). On the other hand, fiber build-out is resource-
intensive, requiring construction, often with excavation and trans-
portation of resources, including site visits to customer premises.
Upsell opportunities
Operator
revenue
Telephony Bundles
— Voice services — MBB Quad-play
— Music, e.g. Spotify etc.
FWA
Over the past seven years, total global mobile operator service Interest in connected homes is growing fast and they include
revenues, in constant currency, have been flattish (GSMA and home security, energy and utility management, online shopping
Strategy Analytics, 2019). As a result, many operators are strug- and health and wellness, to mention a few. There are also up-
gling to find top-line growth. FWA is seen as an exciting new selling opportunities through offering add-on video-on-demand
opportunity to increase revenues. services, such as Netflix. It is worth noting that such services are
only revenue generating if they are bundled into service packages,
For mobile-only operators, household broadband is in many cases
as they can be bought separately (over-the-top, OTT) by
an unaddressed market. By targeting this market with FWA, these
households.
operators can tap into a considerable pool of residential spending.
In addition, there are opportunities to offer new services in areas
For converged operators, FWA also offers a new revenue opportu-
such as e-health, e-security, and e-education.
nity in areas and segments that are not cost-efficiently addressed
or reached by their existing fixed broadband offerings. FWA is also Which new services are offered will vary according to the operator’s
of interest to converged operators trying to close down existing current position. For example, a converged operator may already
POTS/xDSL services, which are getting increasingly outdated and have a number of offerings on the fixed side that can be easily
costly to maintain. By replacing their POTS/xDSL service with extended into an FWA offering; while a mobile-only operator may
FWA, built on existing mobile infrastructure, converged operators be very selective about which services they want to offer.
can find significant cost savings and efficiencies, strengthening
In summary, connecting a home with FWA opens up a number of
the business case for FWA.
possible revenue streams beyond pure connectivity.
The additional revenue streams that can be targeted are highly
dependent on the operator strategy being pursued. For instance,
many operators act as a triple-play Internet Service Provider
(ISP), selling Internet connectivity, fixed telephony and IPTV.
Those who do not already offer IPTV can use FWA to open up new
IPTV revenue streams. All of these offerings can also be bundled
with mobile services, including MBB, as a quad-play offering.
Examples of government
connectivity initiatives
Examples of government connectivity initiatives
As mentioned earlier, governments are fueling connectivity and 3. The Secure and Trusted Telecommunications Networks Act for
broadband roll-outs through various programs and subsidies, as replacement of untrusted vendors in rural broadband networks
there is a clear link between increased broadband penetration and (U.S. Government Publishing Office, 2020)
economic growth (Ericsson and Imperial College London, 2017).
4. The USDA Broadband ReConnect Program with a USD
There are several such initiatives globally, and these are increasingly 600 million mix of grants and loans to support investments
technology agnostic. There are four examples that involve FWA. (U.S. Department of Agriculture, 2019)
In the USA, the closing of the digital divide is growing in impor- 5. The E-Rate program, a USD 4.15 billion subsidy of broadband
tance and the ambition is to expand the benefits of high-speed services to schools and libraries (FCC, 2019)
Internet to millions of consumers in every part of the country.
In Europe, a similar initiative offers a fund to unlock investments
The ambition is to not only drive economic growth in rural Amer-
of billions of Euro in broadband deployment in underserved areas,
ica, but to expand the online marketplace nationwide, creating
where high-capacity networks are not yet deployed.
jobs and business opportunities across the country (Federal
Communication Commission, 2017). As an example, during 2018, Norway has an interesting model – the Haga model – involving
The Connect America Fund Phase II (Phase II) conducted an municipality-driven collaboration in rural areas where purely
auction to give support to certain eligible areas across the United market-driven broadband build-out is not feasible. Passive site
States. In this Auction103 bidders won USD 1.49 billion over infrastructure is funded, owned and managed by the municipality.
10 years to provide fixed broadband and voice services to over Different stakeholders can then contribute different assets – such
700,000 locations in 45 states (Federal Communication Commis- as landowners providing site access – and co-funding is granted
sion, 2018). from the Government (NKO 2018). This approach has increased
broadband coverage in Norway.
There are five new significant initiatives that are affecting rural
broadband investments: Another approach has been adopted in Australia, where state-
owned nbn is building a fast, wholesale local access broadband
1. The Rural Digital Opportunity Fund (RDOF) with USD
network to connect the nation and bridge the digital divide. nbn’s
20.4 billion allocated for broadband to unserved and under-
key objective is to ensure all Australians have access to fast broad-
served consensus blocks, focusing on fixed and fixed wireless
band as soon as possible, at affordable prices, at the lowest cost
broadband access (FCC, 2020)
(nbn, 2019). It is worth noting that nbn is technology-agnostic
2. The USD 9 billion 5G Fund for Rural America, focusing on and uses the technology that is most appropriate for the house-
improving mobile broadband in rural areas (FCC, 2020) hold or area – including fiber, FWA and satellite, among others.
Competitive FWA
Competitive infrastructure
FWA infrastructurelandscape
landscape
Disruptors
3GPP industry
— Established ecosystem FWA Small
— Licensed spectrum challengers
— Economies of scale infrastructure
— Huge footprint
To be competitive, FWA operators need to be able to offer data At the bottom of the axis, we see local, proprietary technologies.
at very low production cost per bit, both in the short term and into These are often Wi-Fi derivates using unlicensed spectrum. Such
the future. The two dominant factors influencing this are: customized solutions can often give impression of cost-efficiency,
since the equipment is purpose-built without any feature beyond
• the ability to reuse assets from existing operations
the needs of FWA. However, evolution of such solutions over time
• having a future-proof ecosystem with scale and cost-efficiency is very challenging. A good example is WiMAX, which, despite
major initial traction among FWA operators and big incentives
The potential of reusing existing assets is illustrated for a variety
from authorities in terms of spectrum, for example, has ultimately
of operator types along the horizontal axis in the illustration
failed because of a poor ecosystem.
above. A greenfield operator, deploying a new network for the
sole purpose of offering FWA, has no assets to reuse – it has to By contrast, the 3GPP ecosystem benefits from the vast MBB
finance all network deployments and the establishment of busi- and smartphone market size, both in terms of network equipment
ness processes and systems, as well as the creation of brand and device chipsets. The cost is driven down by economies of
recognition and sales channels, for example. scale, and the availability of FWA CPE with attractive functionality
evolution is secured.
An incumbent fixed broadband operator is in a different but bet-
ter starting point: most existing network assets, other than the For example, consider a mobile operator (upper right quadrant)
access, can be reused, as can existing business processes and wishing to complement its MBB offering with FWA. Choosing
know-how. The wireless access part is new, which is still a major to offer FWA based on 4G LTE and 5G NR offers major potential
investment. to reuse assets (including spectrum, and RAN and core network
equipment), and helps the operator maintain its position in the
An incumbent 3GPP mobile operator is in a much more advanta-
upper part of the graph, enjoying the benefits of the 3GPP eco-
geous starting position, since it can reuse the entire mobile net-
system. By choosing a non-3GPP technology, the operator would
work, and much of its business processes as well.
have limited potential for asset reuse and a weaker equipment
Finally, a converged operator is in a sweet-spot, being able to ecosystem, resulting in a shift down and left in the graph over time
reuse both mobile and fixed network components, as well as to a much less beneficial position.
business processes from selling fixed broadband (provided that
In summary, 3GPP mobile and converged operators are in an
the operator really combines assets in a converged way and
excellent position to address the FWA market. Depending on the
collaborates across the company).
local competition, fixed and even greenfield operators also have
The ecosystem power and scale aspect is shown along the a chance to get their piece of the market, assuming they decide to
vertical axis in the illustration. take advantage of the 3GPP ecosystem.
FWA market
attractiveness
There are a number of drivers influencing the attractiveness of the Market dynamics
FWA market. These may be divided into four main categories, as It pays to get a better understanding of the market being evaluated
illustrated in the picture. It is worth assessing these drivers at a for an FWA rollout. This process involves assessing consumers’
national, regional or local level (such as a small city or a suburban willingness to pay and the types of service offerings they are likely
area) to gain a better understanding of how successful and profit- to want. Further key factors in determining the market potential
able an FWA rollout would be in that specific area. It makes sense to are population density and likely uptake.
‘cherry-pick’ and find the most profitable geographical ‘sweet spot’
Competitive environment and substitutes
areas in which to make first deployments.
It is also important to assess the competitive environment.
Let’s take a closer look at each of the four main FWA success factors. The first step is to determine the availability of other fixed broad-
band alternatives, such as fiber, xDSL and cable. In addition, other
Operator strategy
mobile operators’ capabilities and likelihood of offering compet-
Independent of operator strategy, FWA offers an opportunity to
itive FWA services need to be evaluated. The availability of gov-
increase topline revenue. The exact market positioning and nature
ernment funding for the specific area should also be assessed.
of the offering depend on the operator’s overall strategic ambitions.
For instance, an operator pursuing a ‘network developer’ strategy Operator network and spectrum situation
may decide to focus on earning money profitably on the pure The condition of the network in the targeted FWA area needs to
connectivity part of FWA. While an operator pursuing a ‘service be assessed, as it is an important factor in the ease and cost of
creator’ strategy may want to launch innovative smart home FWA rollout. Key considerations are: site and current installed
services in addition to the connectivity part. hardware and software, backhaul capacity, spectrum availability
and current system load.
Three FWA
segments
5G 55-65%
Mobile
broadband LTE >90%
coverage
Fixed
broadband Fiber Cable and DSL Cable
access Fiber, ≈30% unconnected households
≈ 35% ≈ 10% FWA
(incl FWA)
Forecast 2025 0 2.2 billion
FWA segments It is worth noting that for ‘Connect the Unconnected’ and ‘Build
We have divided the FWA market opportunities into three distinct with Precision’ segments, we assume that linear TV needs are
segments, each with different characteristics, mainly based on satisfied by other means, such as terrestrial or satellite TV. For the
the offering, availability of fixed access and the corresponding ‘Wireless Fiber’ segment, some offerings may include a full IP-TV
average revenue per user (ARPU) that can be expected from offering, implying dramatically higher data consumption.
customers.
These three segments will be used throughout this handbook to
The first segment is ‘Wireless Fiber’. Here, there is competition distinguish the offerings and technical solutions tailored to them.
with fixed broadband, driving a need for higher-rate offerings and
FWA segments and broadband market
capacity. The ambition is to provide fiber-like speeds and handle
The chart above shows a forecast of how household broadband
households’ TV needs with a corresponding high ability to pay.
needs will be met by a variety of technologies in 2025.
Typical sold data rates are 100–1,000+ Mbps, and typical ARPU
levels are USD 50–100. 3GPP technologies are forecast to have huge population and
household coverage by 2025. For instance, LTE is forecast to
The second segment is ‘Build with Precision’. Here, there may be
reach over 90 percent population and household coverage, while
some availability of xDSL. However, there is a limited business
5G is expected to cover up to 65 percent of the world’s population
case for providing fixed broadband alternatives. The need is for
by 2025. The huge potential household coverage creates a great
high data rate and capacity, and a willingness to pay. Typical sold
opportunity for mobile operators to deliver FWA services on top of
data rates are 50–200 Mbps and ARPU levels are around
their existing MBB offerings.
USD 20–60.
When it comes to fixed broadband, approximately 60 percent of
The third segment is ‘Connect the Unconnected’. This segment is
all households are forecast to have a copper, cable or fiber broad-
characterized by virtually non-existent fixed broadband alterna-
band connection in 2025. In many markets, it’s not economically
tives, and mobile broadband using smartphones is the dominant
viable to build such broadband infrastructure much further. We
way of accessing the Internet. ARPU levels are limited and user
forecast that around ten percent will have an FWA connection in
expectations of access speed are relatively low. Typical sold data
2025, which we expect to be spread across all FWA segments,
rates are 10–100 Mbps and ARPU levels are around USD 10–20.
with a bias towards the ‘Build with Precision’ and ‘Connect the
Unconnected’ segments. Based on ITU data, we estimate that
around 30 percent of households will still be unconnected in 2025.
There are several reasons FWA is of growing interest as a DSL copper decommissioning plans, and in Norway, Telenor has set a
replacement. deadline for the decommissioning of its copper network (Cullen,
2019). In other cases, copper network decommissioning is driven
First, even with developments to increase the broadband speeds
by economic conditions, as maintenance and operational costs
offered by copper-based networks, speeds are reduced as the dis-
remain stable while the number of copper-based subscribers falls
tance between the home and the first aggregation point increases.
steadily.
As a result, these networks need to be upgraded. FWA offers a very
effective DSL replacement, especially in areas with low household Third, some service providers are not replacing copper networks
density (such as rural areas) where fiber build-out is costly. after damage caused by disasters such as storms, fires, floods and
earthquakes. It is increasingly common for service providers to
Second, some service providers are planning to shut down their
rebuild these networks with newer technologies such as fiber and
copper networks, driven by regulatory conditions in certain cases.
FWA.
Cullen International reports that six European countries have
First mover
opportunity
Closing Upsell
window of possibilities
opportunity
Household
FWA TTM
lock in effect
Substantial academic research has found that ‘first movers’ – firms • FWA time-to-market (TTM) – in view of the closing window
that enter a market early – tend to exhibit higher business perfor- of opportunity, FWA CSPs have a competitive advantage as it
mance than firms that enter the market at a later stage. The degree is typically around four times faster to deploy FWA than fixed
of improved performance varies according to several factors and broadband alternatives. For example, fiber deployment has the
across industries. Studies within the telecommunication industry challenge of obtaining permits for trenching, meaning much
tend to support the theory of first-mover advantage, showing that slower time to market than FWA, which is built on top of existing
they enjoy higher market share and operational financial results MBB infrastructure. In addition, FWA is much more capital-effi-
than later entrants (Jakopin and Klein, 2012). cient and, according to Fierce Wireless, FWA providers can enter
rural and urban markets at about one-tenth of the cost of laying
For FWA, there are four main areas contributing to first-mover
physical fiber (Fierce Wireless, 2018).
advantage:
• Household lock-in effect – once CSPs sign up households to
• Closing window of opportunity – as has been mentioned
broadband subscriptions there tends to be a ‘lock-in’ effect.
previously, the FWA and broadband opportunity needs to be
In some cases, there are long-term contracts which contribute
assessed at a local level. However, the opportunity window
to this. Experience shows that for FWA household broadband
is closing as fiber build-out are targeting the most profitable
subscriptions – with CPE installations as well as bundling with
household areas. In addition, there are also CSPs with propri-
MBB, fixed telephony and entertainment, for example – tend to
etary wireless technologies addressing these areas. The reverse
increase this lock-in effect.
situation is also true: when FWA is deployed in an area, it is very
hard to develop a sustainable business case for fiber, as it tends • Upselling possibilities – building on the household lock-in
to need a high sign-up level among households in a given area effect, connecting a home with FWA opens up several potential
to be profitable. revenue streams beyond pure connectivity, including bundles
with MBB and Smart home services.
To summarize, FWA offers a business opportunity that needs to
be addressed by CSPs, as there are many indications of a strong
first-mover advantage.
200
*
Number of service providers
150
100
50
Dec 18
Aug19
Feb20
0
FWA offerings
In February 2020, Ericsson updated its study of FWA retail pack- First, there is increased adoption among the base study group
ages offered by service providers worldwide. This is the third iter- (from August 2019), rising from 141 to 175. Second, in the new
ation of the study, complementing those completed in December group of 46 service providers, there are 10 service providers offer-
2018 and August 2019. The study classifies tariff plans on offer to ing FWA, bringing total number to 185. There are also 26 service
consumers, based on data from service providers’ websites. providers offering broadband-only connectivity using a mobile
In 2018/19, 264 service providers were analyzed. Since then, one battery‑powered pocket router, which has shown a steady decline
service provider has withdrawn from the market and another 46 from the initial study when there were 36 in that segment.
have been added to the analysis. However, to maintain the accu-
Looking at the regional breakdowns, there is growth across all
racy of comparisons with previous iterations, analysis of the addi-
regions, with four out of six regions now showing more than
tional 46 will be referenced separately when applicable.
50 percent FWA adoption. Western Europe has the highest FWA
As at February 2020, 185 out of the 309 service providers studied adoption rate, at 89 percent.
had an FWA offering, which represents an average of 60 percent
globally. The growth in FWA offerings comes from two sources.
The limited reporting from service providers and regulators of FWA in the broadband context
FWA connections, combined with varying FWA definitions, results There are approximately 2 billion households in the world. By the
in differences in the reported number of connections globally. end of 2019, approximately 1.2 billion (60 percent) had a fixed
We estimate there were 51 million FWA connections by the end broadband connection, and by the end of 2025 this will reach
of 2019. This number is forecast to grow threefold through 2025, approximately 70 percent. In this context, FWA will represent
reaching close to 160 million. FWA data traffic is estimated to 10 percent of fixed broadband connections. However, it is worth
have represented around 15 percent of global mobile network mentioning that FWA is also seen as a replacement option of
data traffic by the end of 2019. This is projected to grow by a fac- the approximately 300 million DSL connections. Considering the
tor of around 8 to reach 53EB in 2025, accounting for 25 percent number of FWA connections, many households consist of several
of total mobile network data traffic globally. individuals using the same connection. However, in the mobile
broadband context, there are more connections than individuals.
The forecast of close to 160 million FWA connections by the end
of 2025 represents approximately 570 million individuals having
access to a wireless broadband connection.
Subscriptions: Subscriptions:
— Data rate, at low/medium load. — Peak rate
Rate policed to subscribed level — Monthly bucket (common)
— Rate differentiation among
households, location-dependent
— Monthly bucket (uncommon)
Last hop dimensioning:
Last hop dimensioning: — Design for target app
— One unique line per household coverage at cell edge
(5% worst-performing users)
at estimated busy hour load
Fixed and mobile broadband paradigms are different, both in Last hop dimensioning
terms of subscription offerings and dimensioning. For dimensioning, the last hop is wireless, so all the characteristics
of a wireless network will apply. Unlike fiber, but similar to DSL loop
Subscriptions
length, there will be varying connection quality to different house-
Fixed broadband subscriptions tend to focus on maximum data
holds. And, unlike fixed broadband overall, the last hop is radio and
rates, achieved under normal circumstances, that is, at low to
so shared, which means that quality will degrade with load.
medium load. The user traffic is often shaped to not exceed the
sold data rate. Additional monetization usually takes the form of All these characteristics will have to be taken into account when
upgrade packages with increased data rates. Monthly usage buckets dimensioning an FWA network, and since we promote the use of
are seldom advertised as a part of the subscription, although there sharing assets with mobile broadband (when available), it needs to
are often rules against over-consumption in the contract details. be brought into the operator’s general RAN dimensioning exercise.
Hence, for fixed broadband, the sold data rate is the normal value Note that for fixed, FWA and mobile broadband alike, there is
that household subscribers relate to. transport aggregation above the last hop, which is dimensioned
according to standard principles and can also contribute to a
By contrast, for mobile broadband, peak rates are sometimes used
varying user experience.
for marketing, and normally the network transmits the maximum
rate that the mobile device can handle. Monthly data buckets In essence, FWA will reuse subscription paradigms from fixed
dominate the subscription paradigm, and additional monetization broadband, while for dimensioning, due to the radio properties of
is achieved through upgrades to larger data buckets, all the way to the last hop to households, FWA will use modified dimensioning
‘unlimited’ data. methods and terms from the mobile broadband paradigm.
Hence, for mobile broadband, monthly data buckets are the normal
subscription value that mobile subscribers relate to.
This difference needs to be understood by both consumers and
operators (fixed and mobile). Our view is that fixed broadband
subscription paradigms will be inherited for FWA, rather than mobile
broadband ones. Households should buy on the basis of data rate
and not be concerned about consumption in terms of data buckets.
ate
ng
Remote working: 100 kbps–5 Mbps
nd Social media: 60-750 kbps
Household broadband is dominated by video usage. Different dict how each consumer will continue watching the shows once
video applications use a range of resolutions and frame rates, lead- started, which means that significant buffers (up to one hour) of
ing to different requirements on data rate. The illustration shows ‘good’ data could be built up using free capacity, if the operator
some examples of required data rate for different applications. provides such an option (see Smart Subscription later in this chap-
ter). This relieves the dimensioning requirements, since a longer
Data rate
time interval than the actual peak can be considered.
The data rate requirement depends on the quality of the video,
which in turn depends on the resolution, frame rate and encoding Delay
quality. Modern video servers have content coded in multiple qual- The absolute delay of starting the play out is not very strict: one or
ities, and end-to-end protocols switch between these, depending a few seconds is acceptable. However, to be able to quickly get up
on the data rate perceived by the receiving client. to speed (say 10 Mbps) with TCP after possible link interruptions,
a quite low delay is still desirable.
In the illustration, the Netflix numbers are based on the new
encoding standard of HEVC in the 4K format and the less efficient Direction
H.264 encoding in the other formats (How-to Geek, 2018). Netflix All the above requirements are for downlink. We regard the FWA
and other vendors will introduce HEVC into all formats step-by- household case as extremely downlink-dominated, as video
step, increasing the encoding efficiency by 25 percent (Apple, streaming is the dominant service. The uplink must still support
2018). the application signaling to get the video started, and a relatively
high rate of TCP acknowledgments, as well as reasonable experi-
Video providers work with rather big device buffers to avoid
ence for uploads and uplink webcam-type streaming.
quality degradation when network conditions vary. For example,
Netflix typically strives to build up a 90-second buffer. Video pro- For SMEs, the traffic patterns are different, less video-centric and
viders, with YouTube leading the way, can rather accurately pre- less dominated by the downlink direction.
Build on
Optimize what exist
Realize the
Support &
full potential Deployment &
What if
Optimization Support with FWA analysis Planning
Manage Sales
To realize the full potential of FWA, adequate initial planning is • Build on what exists: to estimate the minimum number of
not enough. Critical decisions need to be made throughout each households to serve per location while maintaining service levels
main lifecycle step:
• What-if analysis: planning and prediction around service levels
• Deployment & Planning expected per household or cell/sector of interest
• Sales & Operations • Manage: monitor experience before and after an FWA upgrade,
or when adding mid-band 5G NR to existing sites
• Support & Optimization
• Support: prepare Customer Care with insights per user and rele-
Customer analytics insights on an individual or FWA household
vant KPIs to respond to calls faster and more accurately
level will simplify decision-making, improve customer experience
and optimize return on investment. Examples of where infor- • Optimize: investigate and optimize user experience inside the
mation is needed to support decisions across each lifecycle step building to guarantee specific QoS levels
include:
• Assess: FWA performance with peak-hour dimensioning
insights per location and per CPE to estimate minimum number
of households to serve per location while maintaining service
levels
• Sales: adjust the sales strategy to introduce targeted FWA offer-
ings to a specific area where market penetration is low or avail-
ability of competing broadband offerings is high
2. FWA solution
2. FWA solution
Ericsson | Fixed Wireless Access handbook 2. FWA solution 25
Busy hour consumption dav: Busy hour consumption dav: Busy hour consumption dav:
0.05–0.5 GB/h 0.5–3 GB/h 1–10 GB/h
Our three defined segments are partly characterized by the range Similarly, we can define indicative value ranges for the average
of the sold data rates offered. Examples of typical sold data rates busy-hour consumption per household dav: 0.05–0.5 GB/h,
for the three different segments are: 0.5–3 GB/h, and 1–10 GB/h, respectively. Note that for ‘Connect
the unconnected’ and ‘Build with precision’ segments, it is assumed
• ‘Connect the unconnected’ – 10–100 Mbps
that linear TV needs are satisfied by other means (terrestrial or
• ‘Build with precision’ – 50–200 Mbps satellite TV). For the ‘Wireless fiber’ segment, some offerings may
include a full IP-TV offering, which is the reason for the high end of
• ‘Wireless fiber’ – 100-1,000+ Mbps
the value range. Offerings to enterprises will typically also need to
Using the defined terminology for the operator-internal network be dimensioned for high minimum rate Rmin and for a higher frac-
dimensioning, we can also define indicative value ranges per tion of traffic in the uplink, and such offerings are often considered
segment for the minimum data rate Rmin: 1–5 Mbps, 5–15 Mbps, part of the ‘Wireless fiber’ segment.
and 15–45 Mbps, respectively. These correspond to different
numbers of simultaneous video streams, and combinations of
streams, for SDTV, HDTV and 4KHDTV resolutions.
2. FWA solution
26 Ericsson | Fixed Wireless Access handbook
In a converged network operator – where both mobile and fixed Core network (CN)
access are offered by the same company – the degree of actual The 3GPP core network is already deployed, with its ability to
convergence of organizations and network components (such as handle high numbers of flows and high volumes of traffic. When
BSS systems, network management and core networks) can vary adding FWA, operators should ensure that core network handling
widely, from very limited to moderate. Most converged operators of the data is suitably ‘low touch’, in order not to drive unnecessary
have a clear strategy to converge more of their organizations and cost. It is also worth considering a number of functional additions
networks to realize synergy and cost benefits. that will be valuable for FWA, including new ways of regulating
bandwidth or data rates, flexible charging support, and limiting
This means that, when combining their existing assets, converged
the use of FWA to a local geographical area.
operators will already have most of the knowledge, processes and
network components needed to offer an FWA service. This puts It is also worth operators considering reusing some components
these operators in an excellent position and represents a clear of the fixed access core network. This typically involves functions
advantage over greenfield stand-alone FWA providers. on the Internet side of the Broadband Network Gateway (BNG),
such as Network Address Translation (NAT), firewall and caching.
Radio Access Network (RAN) including RAN transport
The 3GPP RAN (including RAN transport), with its high-capability Service layer domain
4G LTE access, already exists, implying that equipment and pro- In the service layer domain, policy control is often already
cesses to operate the network are already in place – from radio, deployed, and helps to set policies for the core network functions
via baseband and RAN transport and their management systems, listed above. In addition, when the FWA service includes a fixed
to the site infrastructure and other related equipment. Adding telephony offering, the existing IMS/VoLTE system can act as the
FWA capability to these merely involves adding capacity and cov- backend voice telephony server for that service too. Operators can
erage in a well-defined and geographically selective way, while also reuse an existing fixed VoIP service solution, different from
observing the FWA traffic model and its differences from mobile IMS, for the new FWA offering if desired.
broadband when dimensioning the network. Smart slicing of the
RAN capabilities helps in allocating suitable resources between
mobile broadband and FWA.
2. FWA solution
Ericsson | Fixed Wireless Access handbook 2. FWA solution 27
2. FWA solution
28 Ericsson | Fixed Wireless Access handbook
The core network for FWA is a subset of what typically is used for Proper dimensioning of the FWA core taking into account the
MBB. As a starting point, converged operators can leverage their existing mobile broadband offering and anticipated traffic volume
existing packet core to deliver FWA to new customers. From the is essential to ensure smooth operations and minimum cross-
fixed side, operators can reuse network elements on the Internet service impact.
side of the Broadband Network Gateway (BNG), such as Carrier
While only a standard packet core is required for FWA, there are a
Grade Network Address Translation (CG-NAT) and caching. There
number of additional core key functions which are useful for offer-
is a large amount of optional functionality in the core that is useful
ing FWA services:
for FWA. For example, Service Awareness in the gateway can be
used to detect what services are used in the network, enabling • Voice Telephony – voice service can be offered using an IMS-
actions like prioritization of voice. By adding Policy Control, polices based telephony application with corresponding CPE support
can become more dynamic and individualized.
• End-to-end QoS – a voice telephony session can be prioritized
The Control Plane (CP) in 4G / 5G Non-Stand Alone (NSA) con- in the transport and radio transmission networks by activating
sists of Mobility Management Entity (MME) and Gateway-Control functions in radio, transport and core
Plane (GW-C), while in 5G Stand-Alone (SA) it consists of Core
• Bandwidth control – the throughput allocated to a user or
Access and Mobility Management Function (AMF) and Session
service can be managed by a number of different mechanisms
Management Function (SMF). The User Plane (UP) in 4G / 5G
in the core
NSA consists of a Gateway- User Plane (GW-U), while in 5G SA it
consists of a User Plane Function (UPF). • Flexible charging – both flat-rate and bucket-based charging
schemes can be supported
To simplify management and setting of network parameters,
we recommend running FWA on a separate Access Point Name • Location awareness – users’ location can be determined and
(APN). This enables general policies for FWA to be set for all FWA appropriate actions taken if subscribers move outside their
users, and statistics for FWA and mobile broadband to be col- home zone
lected separately. Operators might also consider having a sepa-
• Flexible IP addressing – both dynamic IP address allocation
rate Serving and PDN Gateway (S/P-GW) for easier dimensioning
(common in mobile broadband) and static IP addresses
and management. The APN can be preconfigured in the CPE or
(common in fixed broadband) are supported
provisioned in the HSS. In HSS it is also possible to set parame-
ters such as Service Profile Identifier (SPID) used for RAN slicing • CPE management – the new kind of CPE used in FWA will need
(as described in the Radio Network Aspects chapter) for FWA a management system conforming to standards used in fixed
subscribers. The FWA APN needs to be configured in the gateway broadband
with appropriate polices and parameter settings. If separate FWA
gateways are used, for example because distribution is needed, • OSS/BSS – existing network monitoring and provisioning
steering to the right gateway should be configured in MME / AMF. procedures need to be augmented to support FWA
These are further elaborated in the next few pages.
2. FWA solution
Ericsson | Fixed Wireless Access handbook 2. FWA solution 29
Customer Premises Equipment (CPE) is a vital part of an FWA There are also hybrid solutions coming to market which can be
solution, as it terminates the 4G LTE and 5G NR air interfaces. installed on a favorable window either inside or outside. Window
This means it has a direct impact on end-user service and quality, placement may be of particular interest for urban 5G NR services,
as well as the operator cost for providing FWA services. There are where Inter Site Distance (ISD) is small but it is still essential to
two types of CPE: outdoor and indoor. From a performance per- minimize wall, window and deep indoor attenuation losses. For
spective, an outdoor unit is always preferable unless the home is outdoor window placements, a Wi-Fi unit may also be included, so
close to the serving radio base station. that RF and power go through the window from an indoor support
module, even though securing the required Wi-Fi coverage may
Outdoor CPE typically contains a directional antenna and all the
be a challenge.
necessary functions to terminate the air interface protocols. It is
connected via Ethernet to an indoor Residential Gateway (RGW), While indoor CPE units are widely available today and sold to
which connects end-user devices over Wi-Fi or via Ethernet. The end-users in operators’ retail stores, outdoor CPE units are nor-
outdoor unit itself is powered via Power-over-Ethernet, so only mally owned, controlled and managed by the operator, with
one cable is needed. There are different varieties of outdoor CPE: continuous management and supervision of performance done
some designed for rooftop installation and others for wall mount- via TR-069/TR-143 (see the description of CPE management).
ing. One advantage of outdoor CPE is that it can be used with The outdoor CPE functions as a network termination point, where
any Wi-Fi router, whether an operator-provisioned and managed quality of service is measured and secured. With an indoor device
RGW, or an off-the-shelf Wi-Fi router. there is always a higher uncertainty of the positioning and the cor-
responding radio link quality, as well as the risk that it gets moved
As well as terminating 4G LTE and 5G NR, indoor CPE also con-
or obstructed somehow.
tains the necessary RGW functionality – making it a one-box
solution which is easy to install and connect to the network. If the operator wants to offer voice services, the indoor CPE or the
However, indoor CPE has significantly lower antenna gain which stand-alone RGW should contain a SIP client that is compatible
makes it less suitable in FWA deployments where many house- with IMS VoIP telephony, so that an RJ-11 device can be con-
holds are served. Additional receiver branches (4Rx) can be added nected (see the description of voice support).
to compensate for the lower antenna gain, normally with an omni
The type of CPE that makes best sense for an FWA deployment
antenna. Another side-effect of integrated LTE-NR/Wi-Fi units is
depends on many factors, including ISD, topology, offered service
that LTE and NR evolve in line with 3GPP standardization, while
levels and number of households connected.
Wi-Fi evolves in line with IEEE standards, meaning that the unit
may never meet the latest of both standards.
2. FWA solution
30 Ericsson | Fixed Wireless Access handbook
Indoor Outdoor
Outdoor CPE will improve spectrum efficiency, and allow 2–3 times
as many served households with comparable service levels.
The biggest difference between outdoor and indoor CPE versions Whereas indoor CPE is comparable to a smartphone in terms of
is the ability to achieve promised service levels, especially during spectrum efficiency, outdoor CPE is typically two to three times
busy hours. An indoor CPE device is comparable with a smart- more efficient. Put another way, for the same data consumption,
phone user in terms of the radio resources required, or slightly around two to three times as many households can be served
worse as it’s always located indoors. By contrast, an outdoor CPE or, alternatively, two to three times as much spectrum would be
device has the advantage of a 15–25 dB better signal quality, needed to serve indoor-only FWA households. A final advan-
which equates to lower Mbps production cost, higher speeds and tage of outdoor CPE is that the relative performance difference
better coverage – which is especially valuable further out in the between the best, median and worst users is significantly lower,
cell in mid-band and mmWave deployments. which makes FWA commercial agreements easier.
An outdoor CPE provides the best performance as it has an in-built End-users may detect that they receive fairly good coverage and
directional antenna (for example, 10–14 dBi at 3.5 GHz) and is acceptable speed with an indoor device, but this can change
installed with a predictable radio link quality to the selected Radio very fast once a specific cell gets loaded with more users. In an
Base Station. The typical antenna configuration has two Rx anten- unloaded cell, any user can get many radio resources (PRBs)
nas, but devices with four Rx antennas are also available. More Rx allocated, and achieve acceptable speeds whatever the radio link
antennas can be useful in urban environments, as multiple signal quality and the fact that only QPSK modulation may be possi-
paths are available to the device. However, the transmission mode ble, for example. In a loaded busy hour scenario, significantly
for a single CPE is still only rank-2 as the modem is expected to be fewer resources get scheduled and only the devices able to han-
installed with good line-of-sight or near line-of-sight. dle higher modulations (such as 64- and 256-QAM) can achieve
acceptable speeds.
A correctly installed outdoor CPE is directed to the best serving cell,
leading to a lower link budget path loss and improving the utiliza- The modulation and channel coding scheme are determined by
tion of mid-band and mmWave TDD spectrum. The large gain in the devices’ continuous Channel Quality Indicator (CQI) feedback
signal quality is a result of the 10–15 dB difference in antenna gain in the uplink. A lower CQI indicator will make it very ‘expensive’
and the avoidance of another 10–15 dB in wall/window attenua- for the radio network to stream higher data rates, for example for
tion losses suffered by indoor devices. Another contributor to signal video and TV with a lower modulation level.
attenuation in indoor devices is the deep indoor loss, as the device
is likely to be placed in a hidden location, perhaps to provide opti-
mal Wi-Fi coverage, contributing another 5 dB in path loss.
2. FWA solution
Ericsson | Fixed Wireless Access handbook 2. FWA solution 31
One of the main advantages of using 4G LTE and 5G NR FWA Multi-band and multi-access (FDD and TDD) solutions may be
over ‘proprietary’ FWA technologies is the enormous availability very useful, as FWA operators can use total spectrum assets and
and continuous development of new 3GPP devices. As the same share FWA and MBB usage across several bands. For exam-
chipsets are used in FWA as in smartphones, there is an ecosys- ple, an operator might start offering FWA services on widely
tem of multiple chipset suppliers producing hundreds of millions of deployed 1800 MHz (B3) spectrum for a small number of FWA
chipsets a year. Apart from the previously described indoor, hybrid users and later expand capacity and number of households on the
and outdoor CP types, there are other varying characteristics 2600 MHz (B7) band. Eventually it’s likely that higher, mid-band
across different products. spectrum (such as 3.5 GHz (B42 or 43)) will be used, and having
CPEs already prepared for this spectrum will be of great value.
The device capabilities are described in the ‘UE Category’ informa-
tion, and enable the Base Station to communicate as efficiently Recently, an innovative proposal for CPE design both for indoor
as possible with the device. For example, Cat4 supports up to and outdoor has been made. It’s main objective is to achieve the
150 Mbps, Cat6 300 Mbps and Cat12 600 Mbps in the downlink. right balance of the benefits of indoor devices in terms of zero
In addition, 256QAM modulation is supported by Cat12, Carrier or low installation cost, and the better performance of outdoor
Aggregation (CA) capabilities are also defined: for example, 2 CC devices. Examples are LTE and antenna units mounted on the
with Cat6 and 2, 3 or 4 CC with Cat12 devices. Apart from basic inside or outside of a window. This could be further enhanced by
carrier aggregation, it may also be valuable to support inter-band feeding RF and power through the window from a special indoor
CA and the ability to combine different spectrum assets, including module. The outdoor unit could also include Wi-Fi functionality,
1800 and 2600 MHz. Clearly, more advanced devices will be more making it a convenient, one-box solution.
expensive as a result of their more complex chipsets and more lim-
ited competition for later chipset releases.
To reach higher peak speeds and support ‘wireless fiber’ FWA
deployments, support for later and higher ‘categories’ will be
essential for operators and end-users. Even with more moder-
ate data usage, support for higher peak speeds is important as
network capacity will increase as end-users can download and
stream the same content faster. Ultimately, device capabilities
such as bandwidth (CA) and MIMO layers should correspond with
those the FWA network is built for. For example, with an FWA net-
work configured for 100 MHz of total bandwidth, end-user devices
should at least support 60–80 MHz
2. FWA solution
32 Ericsson | Fixed Wireless Access handbook
There are a large number of vendors who offer both indoor and Cat16 with four-carrier CA and multiple bands (B3,7,38,40-43), as
outdoor CPE for FWA. However quite a few of them are very well as inter-band CA. Casa System is also introducing new inno-
small players, with typically one or two local customers. Cur- vative variants with installation guidance through smartphone
rently, the largest market is for indoor LTE routers including Wi-Fi apps. Casa System has experience in designing Layer 2 solutions
and router functionality, which are sold in mobile operators’ retail with GRE-tunneling to allow connection to a free of choice ISP.
stores. The Global mobile Supplier Association (GSA) also keeps
GreenPacket is a Malaysian company that offers RGWs and
a fairly accurate update of available Mobile Broadband Devices
indoor CPE with different characteristics. Similar to Comba, it has
(GAMBoD) on their homepage.
products that support FDD and TDD combinations – which is use-
In principle, any CPE device on the market will work – after rel- ful for customers starting FWA services on existing MBB spectrum.
evant and normal IODT has been conducted at the chipset level
WNC is a Taiwanese ODM manufacturer that only designs to
– just as with smartphones. Ericsson is currently working with
customer order, and has no customer-facing brand of its own.
trusted suppliers of LTE and NR CPE, all capable of design, adap-
Currently WNC has designed a 5G NR pocket routers on Ericsson’s
tation and the ability to supply the necessary volumes to meet
behalf, for early 5G NR integration.
market demand. Some vendors focus on ‘off-the-shelf’ product
portfolios, while others are ODM design houses. Also, Askey is from Taiwan and is focusing to be early out with
5G NR products both for outdoor and indoor.
Comba is a multi-competent company and a tier-1 supplier
for passive antennas. It focuses on outdoor devices and pro- Inseego, a San Diego-based company, focuses on advanced
vides compact outdoor LTE CPE which comes with standard out- 5G NR FWA CPEs including unique designs that could be installed
put power (+23 dBm), good antenna design, small size and good directly on windows for ease of installation. Inseego has a broad
price–performance. Installation does not typically require a pro- portfolio of mmWave and sub-6 FWA indoor and outdoor solu-
fessional installer, as sounding support guides the orientation of tions to support many different installation scenarios.
the unit to the most suitable base station. The basic Cat6 FDD/
Lately the leading smartphone manufacturer Oppo has started to
TDD version supports B3, 7, 28 and B42 and intra-band carrier
engage in the growing FWA segment, bringing its ability to indus-
aggregation (CA). New developments include Cat12 and Cat15
trialize products for large scale volumes.
devices and 5G NR devices.
Overall, there is a fast pace of innovation and evolution in the
Casa System’s main customer, Australia’s nbn FWA operator,
FWA CPE market, and we will see new products continuously
requires state-of-art technology to provide FWA service in rural
introduced. The 3GPP device ecosystem is enormous and opera-
areas with high performance and coverage requirements. These
tors with an Ericsson FWA network will be able to benefit from this
demands are met with a product with higher output power
by using and interworking with the most suitable CPE at the best
(+26 dBm), larger antenna size, higher cost and mandatory pro-
price, functionality and performance.
fessional installation. Casa Systems’s latest product will support
2. FWA solution
Ericsson | Fixed Wireless Access handbook 2. FWA solution 33
FWA toolbox
FWA toolbox
Existing MBB+FWA
MBB radio Utilize capable
network existing radio network assets radio network
Add
radio network capabilities
Densify
the radio network grid
An existing mobile radio network, normally designed for voice Add radio network capabilities
and mobile broadband, is an excellent base for offering an FWA In a mobile broadband RAN, radio capabilities are continually
service. Depending on the radio network starting point and the added to handle more traffic, more customers and higher app cov-
operator’s ambitions for FWA, there is a toolbox available to make erage. To handle FWA as an additional service, some of these addi-
the network capable of handling a combination of voice, mobile tions may have to be made sooner, to achieve a combined network
broadband and FWA in combination. with sufficient capabilities. Again, the opportunity to add capabili-
ties and co-finance these from MBB and FWA together is an import-
This document describes these tools under three main categories:
ant advantage for an existing mobile operator.
• Utilize the existing radio network assets
Radio network capabilities to add include:
• Add radio network capabilities, and
• Add spectrum – upcoming wide spectrum bands in 3–6 GHz
• Densify the radio network grid and mmWave open up potential for high data rates and capacity,
benefiting both MBB and FWA.
A well planned mix of these tools should be deployed to meet the
particular needs of each local situation. • Add higher-order modulation, MIMO and beamforming – offering
the potential to squeeze out the most from each spectrum band.
Utilize existing radio network assets
The ability to utilize existing radio network assets is a fundamen- • Add FWA-tailored software features – important capabilities to
tal advantage that sets mobile operators apart from start-ups or handle FWA in its own right, and to provide adequate quality to
greenfield competition in the FWA market. However, the advan- MBB and FWA in shared deployments.
tage is only fully realized if all relevant RAN assets are efficiently
• Add additional sectors on existing sites.
combined for voice, MBB and FWA. If the operator chooses to not
utilize existing assets built for voice and MBB, the financial case • Add 5G NR access – designed for low latency and for wide spec-
for FWA becomes more difficult, which reduces the number of trum bands, creating an excellent overall network together with LTE.
economically viable local areas for FWA. It also levels the playing
Densify the radio network grid
field with stand-alone FWA providers and so opens up unneces-
Densification of the radio network grid is an established way of
sary competition.
increasing area capacity. In FWA target areas, and when the ‘utilize’
Radio network assets to utilize include: and ‘add’ tools have been used to their full potential, densification
can offer further gains. Normally in such areas, there needs to be
• Existing radio sites – a very important asset, both when sites are
action taken to enhance MBB so, again, the MBB and FWA upgrade
operator-owned and when rental agreements and processes
needs should be considered together and should co-finance densifi-
exist with tower company-owned sites. The ‘tool’ of utilizing
cation of the network.
existing sites is not used by itself, but in combination with other
actions to make those more cost-efficient. Options for densifying the radio network grid include:
• Spare load in deployed spectrum and associated deployed radio, • Macro site densification – this is an opportunistic approach: where
baseband and transport network equipment, which is quite new macro sites can be found, such opportunities can be taken.
common in FWA target areas. A very efficient tool, since it ca
• Small cell site densification on poles – can be needed if the macro
be realized without new CAPEX.
grid is sparse and the operator’s ambition level is high.
• Acquired but undeployed spectrum – a situation common in
As described, these tools are also used to improve MBB, and since
FWA target areas, making radio deployment in new bands
we advocate sharing resources and assets between MBB and FWA,
possible without the cost of acquiring new spectrum.
all the actions taken will benefit both services simultaneously. This
means that both decisions and financing of the actions can be taken
jointly, considering both MBB evolution and FWA.
2. FWA solution
34 Ericsson | Fixed Wireless Access handbook
The choice of tools used depends on the network starting point ‘Densify the radio network grid’ is mainly applicable when absolutely
and the operator’s ambition level for the FWA offering; it is highly needed, typically only for the ‘Wireless fiber’ segment, as it drives
correlated with the segments we use to describe the FWA markets. cost which need to be matched by a corresponding ARPU level.
‘Utilize existing network assets’ is always applicable, across all
segments.
‘Add radio network capabilities’ is mostly applicable in ‘Build with
precision’ and ‘Wireless fiber’ segments, where ambitions are
higher and there is competition with fixed broadband, driving the
need for higher-rate offerings and capacity.
2. FWA solution
Ericsson | Fixed Wireless Access handbook 2. FWA solution 35
Spectrum acquired
Spectrum
deployed
Undeployed spectrum
Sites 100%
Spectrum is normally auctioned and acquired nationwide or over Utilizing undeployed bands and adding radios for them is a nat-
large areas or markets, including urban, suburban and rural areas. ural next step to cater for FWA, if utilizing previously deployed
The full capacity is often only needed in urban areas for MBB. bands is not sufficient to meet FWA ambitions. Baseband and
RAN transport equipment can be reused from the existing deploy-
The spectrum already acquired in auctions, but still undeployed in
ment, but a new dimensioning exercise is needed (see specific
suburban and rural areas, is a great asset for which large invest-
case studies).
ment are already made. For example, the US AWS-3 spectrum
auction in 2015 raised close to USD 45 billion (FCC, 2015).
The geographical fit for FWA is excellent, since FWA targeted
areas are often suburban and rural, where unused spectrum is
most prevalent.
2. FWA solution
36 Ericsson | Fixed Wireless Access handbook
Key:
5G
4G Low bands
3G (sub-1 GHz)
2G
2017 2018 2019 2020 2021 2022
New spectrum with large bandwidths is becoming available in The US case of CBRS (3.5 GHz) deserves a special mention, since
increasing quantities. This includes mid-band TDD spectrum in the it is a shared frequency with an incumbent military system. While
3.5–4.5 GHz range, 20–100 MHz per operator, and high bands in not strictly always available in all cells throughout the country, it is
the mmWave range, notably 28 and 39 GHz, 400–800 MHz per believed that this band will be important for the US market in the
operator. coming years.
Such broad bands can carry large amounts of traffic. This is one of
the reasons the FWA opportunity has come to the fore recently.
All these bands are important for enhanced MBB and can also
benefit FWA – as long as operators view their spectrum assets as
one common pool, and deploy carrier aggregation between LTE
carriers, and dual connectivity with NR (which we strongly recom-
mend as a general rule).
2. FWA solution
Ericsson | Fixed Wireless Access handbook 2. FWA solution 37
2. FWA solution
38 Ericsson | Fixed Wireless Access handbook
Add 5G NR capabilities
Add 5G NR capabilities
Solutions Benefits
2. FWA solution
Ericsson | Fixed Wireless Access handbook 2. FWA solution 39
Benefits of these include: • Forward compatibility – the option to extend the radio access
technology with new capabilities and new technology compo-
• Increased spectral efficiency – 3 x IMT-A transmission point
nents, while retaining support for legacy devices. Some design
(TRP), including MU-MIMO gains
examples include minimizing always-on signaling, keeping
• Increased energy performance – 100 x unloaded, 5 x loaded transmissions together and avoiding static/strict timing relations.
• Reduced cost per bit – 10 x reduction Benefits of these include:
New services • Increased capacity – 1,000,000 connections per km2
Several improvements can be made to allow for new services that
• Ultra-reliable communications – 99.999 percent
have new requirements, such as massive IoT and mission-critical IoT:
• Sub-millisecond latencies – <1 ms RTT
• Multi-service optimized radio – the flexibility to adapt various
radio/RAN characteristics to the specific needs or capabilities of a • Ready for future killer apps – 5G relevant for 10-plus years,
certain service or device, and multiplex these on a common radio/ despite technology acceleration
RAN resource. Advanced scheduling mechanisms bridge the
All numbers mentioned are based on the IMT-2020 requirements,
required characteristics of a slice, and high resource optimization
and we believe that product performance may be able to exceed
• Low latency – there are several improvements that can these numbers in many areas.
reduce latency:
• Short scheduling units – short regular slots (for example,
125 ms at 60 kHz subcarrier spacing) and mini-slots
(arbitrary starting point and length within a slot)
• Fast retransmissions, for example by frontloading reference
and control signals to enable rapid data demodulation and
decoding
• Uplink grant-free transmission to give fast access to the channel
2. FWA solution
40 Ericsson | Fixed Wireless Access handbook
Poles are already used for various needs New efficient site solutions Acquire sites in bulk – deploy selectively
Densification using outdoor small cells is an option when utiliza- There is a need for good and easily deployable RAN equipment on
tion of existing assets and adding radio capabilities are not suffi- such poles – both when using legacy poles, and when exchanging
cient to meet FWA ambitions, and no macro densification is pos- the light pole infrastructure with new poles ready-equipped with
sible. This is a high-investment action, due to the relatively limited RAN equipment. The images above show some examples of effi-
coverage area per site and the consequential high transport and ciently deployable RAN solutions.
site cost per household covered. It is a powerful tool, but should be
Site acquisition is another key factor: unlike macro sites, small cell
used very selectively.
sites must be acquired in bulk, for the process and administration
First, it is worth noting that microcells on poles are already cost to be viable. For example, site access can be obtained to all
deployed in various ways across different markets. A large vari- poles in a certain neighborhood or all bus stops in a certain area.
ety of equipment is already installed on lighting and utility poles, However, this should not be confused with the density at which
and not just cellular equipment. The images on the left show such base stations are actually deployed at FWA launch. As we will
installations in North America. Often, there are permits to load the examine in the transport section, providing transport connectivity
poles with considerable equipment weight and size, so it is not to a pole site is a substantial cost item, so while the site acquisition
always the case that weight and size limitations limit the instal- needs to be done in bulk, the actual deployment has to be done
lation of normal microcells on poles. Of course, local regulations selectively, with almost surgical precision to minimize transport
vary, and it is possible to find areas where the use of existing poles deployment cost. Undeployed pole permits can be saved for fur-
is virtually impossible, and others where the use of poles is per- ther densification at a later date, if possible.
fectly viable for today’s microcells and associated equipment.
Finally, in some situations, strand mounting may be a cost-effi-
Since the cost of acquiring the site and deploying its transport is cient deployment variant, although for that case, weight and size
high per area covered, the strategy must be to aim for maximum of equipment really matter more, and tend to drive a higher site
possible use of the site. Therefore, as many frequency bands as density. This, in turn, increases overall transport cost and other
possible should be deployed, including both LTE and NR, and cost items that scale with the number of sites.
especially those used in smartphones, to also get an instant MBB
benefit from the new site.
The availability of utility poles is heavily dependent on the use of
overhead power lines. These tend to be common in parts of the
Americas, and are a good asset when searching for FWA deploy-
ment target areas.
2. FWA solution
Ericsson | Fixed Wireless Access handbook 2. FWA solution 41
2. FWA solution
42 Ericsson | Fixed Wireless Access handbook
‘The European suburb’ represents a market within our ‘Wire- The operator uses the following as the basis for dimensioning
less fiber’ FWA segment, characterized by relatively mature LTE the system:
MBB, decent fixed broadband offerings (mostly ADSL), but with
• The network should be designed to be able to connect at least
no general fiber infrastructure deployed in the targeted areas.
30 percent of households with a target of 15 percent for the
In the case study we assume a population density of 2,400 peo- first year
ple per km2 and, with an average of 2.2 people per household,
• The households’ TV needs are assumed to be served by the
that means 1,000 households per km2.
FWA service, via an IPTV bundle
Typical ARPU for MBB is around USD 25, and we expect to be
• For video streaming support, households should, when needed,
able to charge USD 50 for a dedicated household FWA Inter-
experience at least a minimum data rate (Rmin) of 30 Mbps even
net service with a sold rate of 100–1,000+ Mbps and ‘unlimited’
during busy hours. This corresponds to two 4K HDTV video
data (with limitations against excessive consumption in the con-
streams, or a combination of multiple SDTV and HDTV streams
tract, as with fixed broadband services).
(see the chapter ‘Household data rates and data consumption’).
• Based on the operator’s experience from similar FWA areas,
the average household’s consumption during busy hours is
1.1 GB/h, corresponding to an average data flow of 2.5 Mbps
during busy hours (With the assumption of 10 percent of data
being consumed during a busy hour, this would correspond to
340 GB per month).
3.0 GHz
WCDMA and GSM to handle legacy UE
Non-deployed 20 MHz FDD
1.0 GHz
GSM 10 MHz
Optical backhaul transport
LTE 10 MHz FDD
0 500 m 1km
Per Lindberg A/ Michael Kuhner | PE2 | A | 2020-xx-xx | Ericsson Internal | Page 138
The starting point for this case is a network dimensioned for Using the LTE smartphone forecast for Western and Central
MBB capacity. There is a grid of macro sites with three-sec- Europe for the end of 2020 from the Ericsson Mobility Report
tor antennas and an average ISD of about 1 km, which means (Ericsson, June 2020), high-level analysis shows that the
an average of 870 households per site. The operator has deployed LTE capacity is around 50 percent utilized, given the LTE
access to six FDD bands: three bands below 1 GHz (typically smartphone subscriber density in the area. This means that there
700–900 MHz), and three bands in the 1–3 GHz range (typically is some spare radio capacity that can be utilized by FWA as well
1,800, 2,100 and 2,600 MHz), but all bands are not deployed as as to handle the expected growth of MBB traffic.
the population density is lower than in urban environments.
The macro sites are backhauled using fiber-optics and the trans-
Most of the smartphones are LTE-capable, and there is also GSM port is dimensioned to provide the LTE peak rate achievable using
and WCDMA coverage to handle simpler phones. A typical macro the deployed spectrum in one sector per site (around 225 Mbps
site has one LTE carrier on 800 MHz and one on 1800 MHz as with 30 MHz and 64QAM) – meaning it is sufficient for current
well as a WCDMA carrier in the 2,100 MHz band, and a GSM car- MBB with some spare capacity.
rier in the 900 MHz band. The 2,600 MHz band is not deployed
in this area.
Overall solution
Add: step 4
Add: step3
Utilize existing macro sites, baseband and transport
6.0 GHz
LTE/NR 50 MHz TDD Utilize available spare capacity on deployed sub-3 GHz bands for LTE
Add: step 2 Add LTE/NR in TDD midband (e.g. 3.5 GHz)
WCDMA 5 + 15 MHz
Outdoor CPE focus to maximize performance
– Indoor CPE as complement
LTE 20 MHz FDD Utilize: step 1
1.0 GHz
GSM 10 MHz
LTE 10 MHz FDD
Per Lindberg A/ Michael Kuhner | PE2 | A | 2020-xx-xx | Ericsson Internal | Page 139
Cumulative OPEX and CAPEX – low upfront investment Cash-flow base case – payback in 18 months
Step2
Pole densification
PD2 | 2019-05-30 | | Page 137 Step1
OPEX and CAPEX investments over time The left side of the illustration shows cumulative OPEX and
FWA investments (OPEX and CAPEX) are very scalable, varying CAPEX divided into variable cost per subscriber and variable cost
with subscriber uptake and number of site deployments. This is an per site for each of the first five years. The variable cost per sub-
important advantage over fixed broadband and fiber, where the scriber grows with the new subscriber uptake, reaching 30 percent
investment profile is characterized by large upfront investments, market share at year 4. The site-related variable costs, both
before subscriber uptake is known. Moreover, FWA reuses existing CAPEX and OPEX, where step 1 radio, baseband and other site
MBB assets, including site infrastructure and spectrum assets. equipment is taken for year 0 and year 1 onwards, also include
RAN OPEX. Step 2 is taken at year 2, ahead of the capacity needs
Incremental FWA OPEX includes power consumption, backhaul
expected for year 3.
transmission, core and network support, as well as subscriber
acquisition costs and incremental business operation costs. The Cash-flow – payback in 18 months
incremental CAPEX includes network systems and indoor CPE The estimated revenues are based on a monthly ARPU of
(fully subsidized in this case). Network CAPEX includes radio and USD 50, growing with subscriber uptake over time. The operating
baseband hardware, software and installation services, as well cash-flow (dark blue) in the cash-flow graph is represented by the
as a cost allocation of 10 percent of the radio CAPEX to allow for difference between annual revenues and FWA operational costs.
incremental transmission and core costs. Annual CAPEX is related to CPE costs (distributed over years 1 to
4) and network CAPEX, where network investments take place
at year 0 (step 1) and year 2 (step 2). The accumulated cash-
flow curve indicates break-even in about 18 months from launch,
resulting in an attractive business case.
[USD]
Per Lindberg A/ Michael Kuhner | PE2 | A | 2020-xx-xx | Ericsson Internal | Page 146
Fiber deployment costs It is worth highlighting a few points about this comparison:
Here, we compare deployment costs for the European suburb
• It excludes both the cost of the CPE and the local installation to
FWA case with those for fiber deployment. The fiber deployment
and within the household (that is, the fiber from the curb to the
costs are estimated using a simplified regular suburb model,
house in the fiber case, and the cabling from an outdoor CPE in
with single-family homes in a rectangular grid, evenly distributed
the FWA case). CPE and local installation costs are assumed to
along the streets. We have assumed a fiber connection rate of
be within the same range – around USD 400–1,000 – for both
30 percent of households, which is similar to the 30 percent mar-
FWA and fiber installations.
ket share used in the European suburb FWA case.
• It excludes OPEX, which is typically higher for FWA than for fiber.
The chart plots the deployment cost per household connected
This means that over longer time periods, fiber could be a more
by fiber as a function of household density. Each of the curves
sustainable investment despite its higher deployment cost.
shows a fiber cost per kilometer of USD 5,000–50,000 per kilo-
meter, which is a typical range. The variations in cost for fiber • A further advantage of FWA over fiber is its anticipated shorter
deployment relate to the type of terrain and geology, the permits time to market.
needed, and the deployment type (for example, overhead or bur-
ied). These are the real deployment costs per connected house-
hold (at the 30 percent rate), which should not be confused with
the cost per passed household.
Comparison of fiber deployment versus FWA
The European suburb FWA case assumes a household density
of 1,000 households per square kilometer, and an ambition to
address 30 percent of the market. As our business case con-
cludes, the deployment cost of the FWA solution is below USD
500 per connected household. This cost point is marked in the
chart above to highlight that, in this case, the FWA network
deployment cost is lower than that of fiber whenever the fiber
deployment cost is above USD 5,000 per km.
4. Abbreviations and
references
1. FWA market opportunity 2. FWA solutionData rates, data consumption and subscriptions
Ericsson, 2019 How much data does Netflix use?, How-to Geek, 2018.
ITU, 2018 General Authoring requirement, Video, Apple, 2018
Ericsson Mobility Report November 2019, Ericsson, 2019 Uppföljning av regeringens bredbandsstrategi 2017,
PTS, 2017
Fixed wireless is a big deal. Here’s why, Fierce Wireless, 2018
FCC launches $20B Rural Digital Opportunity Fund,
February 2020 3. Tailored network solutions for different segments
Telia Estonia offerings, Telia 2020
FCC proposes the 5G Fund for Rural America, April 2020
Ericsson Mobility Report, Ericsson, June 2020
H.R. 4998 – Secure and Trusted Communications Networks
Act of 2019, signed into law in March 2020
U.S. Department of Agriculture, ReConnect Program, 2019
Mobile broadband boosts the economy,
Ericsson and Imperial College London, 2017
GSMA and Strategy Analytics, 2019
Nasjonal kommunikasjonmyndighet, 2018
Samarbeidsprosjekter med kommune i Norge om
mobilutbygging, Telenor, 2013
nbn, 2019