According to the Facts and Figures 2023 report, just 37% of Africa’s population uses the internet, representing a digital divide for hundreds of millions of people. Only a tiny fraction of the continent’s people have access to a high-speed broadband connection at their homes.
For the millions of households waiting for reliable broadband, the arrival of 5G fixed wireless access (FWA) offers a promising and efficient solution.
As a cost-effective, scalable solution that can be rolled out rapidly, 5G FWA could be essential in including more of Africa’s population in the digital economy. This, in turn, will open exciting opportunities in terms of access to education, healthcare, economics, and entertainment. It has been clear for some time that FWA is the most viable way to close the infrastructure gap in remote parts of Africa that are poorly serviced by fixed-line infrastructure.
Closing Africa’s infrastructure gap
5G could unlock the full potential for FWA by offering a solution that offers significantly higher speeds, lower latencies and superior scalability than earlier solutions such as 3G and 4G/LTE. 5G can, under the right conditions, offer user experiences that compare favourably to fibre. Excluded subscribers no longer need to accept second best.
5G FWA is booming worldwide as network operators invest in the tech to reach underserviced areas and offer a backup for fixed lines. According to GSMA Intelligence, 116 operators in 57 markets had launched 5G FWA services as of September 2023. Global 5G FWA connections are forecast to reach nearly 80 million by 2030, while 5G FWA revenues will reach $44 billion.
For mobile network operators, 5G FWA offers an opportunity to drive further growth as mobile markets reach saturation. In many cases, they can leverage existing licensed spectrum and networking infrastructure – albeit with some differences in deployment and application – to generate new revenues.
The 5G FWA opportunity for operators in Africa is particularly significant, given the size of the addressable market for household broadband connectivity and emerging demand from small, micro and medium-sized enterprises (SMME) for faster and more reliable connectivity.
The importance of affordable CPE devices
However, the successful implementation of 5G FWA in Africa requires that the ecosystem works together to address several challenges, including the affordability of customer premises equipment (CPE) devices and the need for more investment in backhaul infrastructure to support higher demand.
Affordable, easy-to-use CPE is one of the key ingredients for 5G FWA that is often overlooked. CPE devices, which include routers and mobile hotspots, enable end-users to access 5G FWA services. They must be compact, reliable, quick and easy for non-technical users to set up and work nearly anywhere in the home.
However, the high cost of 5G CPE devices relative to local incomes is a barrier to adoption in some African countries. According to GSMA Intelligence, the cost of a 5G CPE device can exceed 400% of the minimum monthly wage in select African countries like Nigeria, making it inaccessible to most consumers.
The role of chipset manufacturers in reducing CPE costs
Telecom operators can look at options such as subsidies and financing to make CPE devices more affordable for consumers. Policymakers, meanwhile, can help create an enabling environment by reducing duties on CPE devices and supporting infrastructure investments.
Chipset manufacturers play a crucial role in addressing the challenge by developing high-performance chipsets that reduce the overall cost of CPE devices. For example, our T750 chipset enables device manufacturers to build compact and affordable 5G CPE products.
The T750 chipset facilitates 5G speeds of up to 4.7Gbps using existing cellular infrastructure, making it an attractive option for operators looking to expand their
5G has already proven itself as a commercially viable last-mile option. It has the potential to revolutionise Africa’s telecom industry by allowing many consumers who don’t have access to fibre to access true broadband speeds and performance for the first time. This is an opportunity that the industry should seize as soon as possible.
Rami Osman | Director | Business Development | Middle East and Africa | MediaTek | mail me |
Related FAQs: 5G FWA
Q: What is 5G FWA and how does it serve as an alternative to traditional fixed broadband?
A: 5G FWA (Fixed Wireless Access) is a technology that utilises 5G network capabilities to provide high-speed internet access to homes and businesses without the need for physical cables. This service is especially beneficial in areas where traditional fixed broadband is not feasible, addressing the gap in last-mile fixed broadband connectivity.
Q: How can 5G FWA address the gap in last-mile fixed broadband connectivity in Africa?
A: 5G FWA can significantly enhance last-mile fixed broadband connectivity by delivering high-speed internet to underserved regions in Africa. By leveraging existing cellular infrastructure, it can reach areas where deploying traditional fixed broadband networks would be economically impractical.
Q: What are the current development trends and future opportunities of 5G FWA in Sub-Saharan Africa?
A: Current development trends indicate a growing interest in the deployment of 5G FWA networks across Sub-Saharan Africa. The potential of 5G FWA is seen as a catalyst for explosive growth in broadband services, creating future opportunities for improved connectivity and digital inclusion.
Q: How does 5G FWA compare to 4G FWA in terms of performance?
A: 5G FWA offers significantly higher speeds and lower latency compared to 4G FWA. This enhanced connectivity makes 5G FWA a more viable option for demanding applications such as streaming, gaming and remote work, thereby attracting more users in the FWA market.
Q: What are the challenges associated with the deployment of 5G FWA networks?
A: Challenges include infrastructure investment, regulatory hurdles and the need for spectrum allocation. Additionally, the deployment of 5G FWA requires collaboration among telecom operators, governments and stakeholders to overcome these barriers and ensure widespread access.
Q: Are there any commercial 5G FWA services currently available in Africa?
A: Yes, several telecom providers in Africa have begun offering commercial 5G FWA services. These services are aimed at both urban and rural customers, providing them with a reliable alternative to traditional fixed broadband options.
Q: How can 5G FWA contribute to the enhancement of services?
A: By providing high-speed internet access, 5G FWA can enhance various services in Africa, including education, healthcare and e-commerce. Improved connectivity can enable better access to online resources and services, significantly impacting economic growth and social development.
Q: What future opportunities does 5G FWA present for businesses?
A: Future opportunities for businesses include the potential to expand their customer base through improved connectivity, enabling new service offerings and enhancing operational efficiencies. 5G FWA can also facilitate innovative applications such as IoT and smart city initiatives, driving further economic development.