According to Rethink Technology Research, fixed wireless access (FWA) will be a major source of new revenue for operators globally over the next seven years – but with sharp regional variations. APAC will drive substantial FWA subscriber growth, while populous APAC countries led by China and India will roar ahead in subscriber numbers.
This dichotomy between revenues and subscribers reflects stark differences in monthly ARPU generated by FWA, as for broadband services generally, ranging from $7 for APAC to $2 in India. Such low ARPUs pose a challenge to operators by themselves and mean that fibre can only penetrate deep into rural areas with the help of government incentives. Low ARPUs can also make FWA an attractive proposition for operators as an additional revenue source, with opportunities for follow up added value services such as video and cloud gaming.
There is a very different picture for FWA revenues, however, where Europe will take a strong lead with 35% of the global $62.9 billion in 2030, followed by North America on 24% and APAC only third on 16% – reflecting the low ARPUs.
FWA is being driven by three parties – consumers, operators, and governments – all acting in response to rising demand and improved technology capabilities.
Consumers in areas unserved or poorly served with wired broadband are demanding broadband service more comparable with those offered to their urban peers, and these can now be provided increasingly by FWA.
Mobile operators are interested in the potential for new revenue streams or services that can exploit unused spectrum. In developing nations, FWA has emerged as the most economical option for extending broadband services to users previously denied internet access at acceptable speeds, or at all.
Governments want to reduce digital divides, and many have been offering incentives for digital levelling-up, to remove deficiencies in rural areas. FWA is increasingly on their radars as one element of the broadband mix for underserved communities.
Meanwhile, the global network automation market is to reach US$34.8 billion over the next decade, according to Future Market Insights. The market is assessed to be US$4.4 billion for 2023 and is likely to progress at a compound annual growth rate (CAGR) of 23% from 2023 to 2033.
The market is expected to see rapid expansion, due to rising connected device usage, the emergence of hybrid workspaces, and 5G-driven applications. Moreover, it is projected that an increasing focus on using network virtualisation may accelerate network automation market growth. The usage of network automation-enabled services across new industries and sectors, including BFSI, manufacturing, and retail, is favouring market growth.
While the US is the leading region in the adoption of network automation solutions and services, contributing almost 30% of the global revenue, India and China are the two remarkably growing economies for the network automation market in APAC.
Until 2022 and the preceding years, the network automation solution segment dominated the market with a 70% revenue share. However, the services segment is picking up rapidly and is estimated to progress at a rate of 25.5% during the forecast years. The on-premises segment for the deployment of network automation held a market share of 55% in the year 2022. Meanwhile, the deployment of cloud network automation solutions is getting rapidly popular and is expected to register a CAGR of 25% through 2033.
In other news, the International Data Corporation (IDC) report ‘Industry 4.0 and Beyond: How 5G-IoT Integration Enables Sustainable Operations’ illustrates the current environment of how Industry 4.0 is assisting enterprises in APAC to reach their sustainability goals. According to IDC’s ‘2022 Telecom Carrier Transformation Survey,’ 12.4% of telecom carrier respondents in APAC saw Industrial Internet of Things (IIoT) as a key rationale for initiating 5G services.
The promise of IIoT has piqued the interest of businesses, governments, and technology experts alike, as it promises to boost efficiency, productivity, and sustainability in areas like manufacturing, logistics, energy, and healthcare.
According to the United Nations’ Sustainable Development Goals, sustainability is the essential business strategy for the future. Smart manufacturing, energy-efficient construction and low-impact industrialization are examples of supporting activities. Industry 4.0 bridges this gap by integrating traditional industrial processes with digital technology, artificial intelligence, and the IoT.
According to the IDC, 5G connections in APAC will increase from 574 million in 2021 to 3,234 million in 2025, rising at a five-year CAGR of 87.9%. According to the IDC ‘Carrier Transformation Survey 2022,’ the most crucial use cases for the advent of 5G include vital industries such as manufacturing, smart cities with smart mobility, and smart buildings.
5G plays an important role in delivering a whole new set of ecosystems for businesses, which can help them achieve their sustainability goals much more easily and robustly. Private or dedicated networks have been established in manufacturing plants around the APAC to control various pieces of equipment on-premises. Unstable wireless communication and latency are challenges to digital transformation adoption in every organization that can be overcome with the help of 5G. IoT devices demand extremely reliable connections, which can be easily delivered via a private 5G network.
The integration of IIoT applications with 5G networks is transforming industries and forging the APAC region’s digital transformation path. Regional telecom providers recognize the vast potential of IIoT in promoting innovation, efficiency, and competitiveness. Telecom operators are paving the path for seamless connectivity and opening up new options for businesses to exploit IIoT solutions by implementing 5G networks.
The collaboration between telecom carriers and industrial partners is hastening the development of customized 5G solutions that answer specific business needs and unlock the far-reaching potential of IIoT applications. The advantages of 5G-enabled Industrial IoT, such as increased efficiency, huge device connectivity, remote management, and improved safety, are propelling businesses into a future of digital transformation and unparalleled connectivity.
