Telecom giants may first use Fixed Wireless Access (FWA) technology to enter Indian homes and upgrade to fiber once it becomes available. A report on Tuesday said that Reliance Jio may gain an edge in implementing the FWA, though Airtel may also do so.
FWA will be an important phase of 5G monetization
According to a report by Emkay Global, FWA will be an important phase of 5G monetization, as it can give telcos easy entry into homes, if the price is right. Telecom companies can upsell content, Internet of Things (IoT) etc. to improve their topline. Reliance Jio has already committed to invest $25 billion (including $11 billion in spectrum) in 5G, the report said. This also includes an investment of $5-6 billion for FWA, indicating a huge commitment by RJio to another new technology.
Spectrum held by both the companies
When it comes to readiness to deploy FWA technology, Reliance Jio is relatively ahead due to its wider 5G coverage, availability of better spectrum bands, better fiber infrastructure for backhaul, in-house technology with Mimosa acquisition and more foot-on Is. Reliance Jio and Bharti Airtel both have 3300MHz and 26GHz band spectrum which can be used for offering FWA service. However, Reliance Jio has the expensive 700MHz band which it is using for 5G launch and which can also be used for FWA.
Jio launches 5G in more cities and towns
Reliance Jio has launched 5G in more than 5,400 cities and towns as compared to 3,500 cities/towns for Bharti Airtel. The roll-out of FWAs using 5G could allow telcos to reach homes that were not previously covered by wireline broadband, said the MK report.