Fixed Wireless Access (FWA) is considered to be the first promising B2C use-case for 5G, offering customers a “fiber-like” experience. Capgemini explores several deployment sceneries, an analysis of Verizon’s 5G Home launch and the momentum it’s causing in the market, as well as the key components that need to be addressed when building a 5G FWA strategy. To learn more about Capgemini Invent’s expertise in 5G, contact our experts: Pierre Fortier Principal Consultant, Capgemini Invent Pierre.Fortier@capgemini.com Marouane Bikour Senior Consultant, Capgemini Invent Marouane.bikour@capgemini.com

1. April 2019, Telecom, Media, Technology
5 G F I X E D W I R E L E S S
A C C E S S : T R E N D S W E ’ R E
S E E I N G A N D C A P G E M I N I ’ S
A P P R O A C H

2. 2© 2019 Capgemini –All rights reserved.5G Fixed Wireless Access Point of view | 2019
5G Fixed Wireless Access (FWA) deployment scenarios based on
spectrum bands & population density
W H A T I S 5 G F W A ?
Outdoor/indo
or
Antenna
Home
Router
Fiber
backhaul
Small cell or Macro site
 Use of 5G radio to provide very high
speed broadband access
 5G FWA requires:
• Fiber backhaul
• 5G spectrum in sufficient quantity
to cope with home/office
broadband traffic in covered area
M I L L I M E T E R W A V E
(26GHz, 39GHz…)
M I D B A N D S P E C T R U M
(3.5 GHz)
 More spectrum available overall vs.
midbands (telcos can typically get
several hundreds of MHz)
 High BPL* calls for outdoor antenna,
line of sight to the cell tower  Need
for professional installation
 Smaller cell range vs. midbands
(*) BPL: Building Penetration Loss
e.g. 3.5GHz, 6GHz
kilometers
Outdoor/indoor
Antenna
Home
Router
Home
Router
e.g. 26GHz,
39GHz
~hundreds of meters
Outdoor
antenna
 Less spectrum available overall on these
frequencies
 3.5GHz 5G spectrum typically used for
mobile (capacity to be shared between
mobile & FWA)
 Outdoor or Indoor antennas can be used
 Larger cell range vs. mmW
High density
areas
Suburbs
Small/Rural
towns
Rural
areasDensity
High BPL* along with high rise
buildings presence requires a
complex deployment of
numerous small cells while
competition from FTTx can be
strong
Opportunistic deployments
to overcome specific local
challenges
Fewer high rise buildings
simplify deployment while
density is sufficient to allow
for a good addressable
homes per antenna ratio
mmW 5G FWA sweet
spot
mmW limited range and
fiber backhaul unavailability
negatively impacts the
business case for large
scale deployment in rural
areas
 5G FWA is
economically non-viable
Lower population density could
free enough capacity for 5G
FWA to compete against
available FTTx competition
Operators can allocate
enough capacity to 5G FWA
for it to be able to compete
with fixed offers
Need to balance midband
capacity allocation with
mobile while more capacity
is needed to compete with
FTTx Offers
 Operators will
struggle to allocate
enough capacity to FWA
Good fiber
backhaul
availability
Complex
Roll-out
Bandwidth/c
apacity
available
Good fiber
backhaul
availability
Easier
Roll-out
Bandwidth/c
apacity
available
Weak fiber
backhaul
availability
Easier Roll-
out
Bandwidth/c
apacity
available
Good/Weak
fiber
backhaul
availability
Easier Roll-
out
Average
Bandwidth/c
apacity
availability
Good fiber
backhaul
availability
Complex
Roll-out
Low
Bandwidth/c
apacity
availability

3. 3© 2019 Capgemini –All rights reserved.5G Fixed Wireless Access Point of view | 2019
5G FWA could be used as complement or substitute to FTTx, depending
on the telco situation, competitive dynamics & national broadband plan
FWA offers an opportunity to aggressively compete against
broadband offers and target cord cutting customers
FWA can be considered as an alternative to fiber roll-out or
relying on wholesales offers
FWA ca be offered within 5G mobile footprint or be deployed
within specific areas and later mutualized with 5G mobile
5G FWA competitiveness depends on quality, coverage,
price and services vs. competing fixed broadband offers
Focus on service and
price competitiveness
Challenging for 5G FWA
to compete
Very competitive vs.
fixed players
Focus on technology
and speed advantage
FTTx
quality&coverage
Fixed BB market competitiveness
(services, price, innovation)
+
-
+
-
Mobile mainly players
FWA is an additional technology in the broadband technology
portfolio available for the Telco
 Back-up in case clients cannot be connected to the fiber
network for technical reasons
 NGA coverage extension beyond (or ahead of ) FTTx footprint
Roll-out decision vs alternative technologies can be based on:
• Costs (CAPEX & OPEX)
• Local regulation
• Time-to-market (also vs. competition)
FWA can be either be deployed as a long term offer or as a
temporary offer
FWA’s strong backhaul requirement limits its deployment to the
edge or within the existing operator’s fiber backhaul
network
FWA offers need to be adapted to the competitive
landscape; efficient geomarketing is necessary
Price positioning in telco
offer range and against
competitors
(price & features)
Fiber
xDSL
FWA?
Broadband players
 Incumbent fixed players*
 Local/regional cable operators*  For Mobile “only”/“mainly” operators*
Germany
E X T E N D H I G H S P E E D B R O A D B A N D C O V E R A G E
( F T T X C O M P L E M E N T )
L e v e r a g e 5 G F W A a s a F T T x s u b s t i t u t e t o
c o m p e t e o n t h e b r o a d b a n d m a r k e t

4. 4© 2019 Capgemini –All rights reserved.5G Fixed Wireless Access Point of view | 2019
Building the 5G FWA business case requires analysing multiple factors
I L L U S T R A T I O N O F F A C T O R S T O T A K E I N T O C O N S I D E R A T I O N T O B U I L D
T H E 5 G F W A B U S I N E S S C A S E ( N O N - E X H A U S T I V E )
Number of
customers
Cost per customer
Factors reducing cost per
customer
 Mutualisation with Mobile 5G
deployments
 Fiber Backhaul availability
Factors increasing cost per
customer
 FTTx competitive landscape & 5G
FWA offer features and data cap
(requiring more capacity per
subscriber)
 Local deployment cost (need for
trenching, cost to use utility
poles, …)
If antennas have already been
deployed for mobile 5G, cost
to connect additional
customers to FWA is marginal When maximum capacity is reached, more
customers cannot be recruited without
degrading QoS or reinvesting in new sites or
small cells
Capacity depends on frequency bands available
& usage by mobile & other use-cases
Maximum achievable ARPU
FWA is not viable if cost to serve
is higher than the maximum
achievable ARPU, which depends
on:
 Competition prices
 Features of 5G FWA offer
 Positioning vs. broadband
offers portfolio

5. 5© 2019 Capgemini –All rights reserved.5G Fixed Wireless Access Point of view | 2019
Verizon’s 5G Home launch in Q4 is representative of a strong market
momentum around 5G FWA as a fixed broadband competing technology
In Q4 2018, Verizon launched a 5G* FWA 1-Play offer with OTT options in a handful of
cities in the US in competition against traditional cable broadband & TV offers
 Priority access to first release of 5G capable mobile devices
 Free upgrade of all hardware for the 1st year
 Exclusive access to 24-hour ‘concierge line’
 $70/month or $50/month for existing mobile customers with no annual contract
 No data cap
 Free technical installation: no deposit and no equipment charge
 Connect all your devices in your house
 Low latency gaming
 4K video streaming
 OTT focus with free Apple TV 4K or Google Chromecast Ultra device
Houston, TX - Indianapolis, IA - Los Angeles, CA - Sacramento, CA
Verizon 5G TF* with 4G backup home router made by Wistron NeWeb
Wi-Fi with support for mesh
Source: Verizon
(*) Although advertised as 5G, this service is not based on 3GPP R15. This is pre-5G/5G TF
 Home installation by a technician free of charge
 Technician ensures every device can connect to the new router with Wi-Fi
extenders installed if needed (free of charge)
Plan
Promise
Loyalty
Content
Installation
Device
Eligible cities

6. 6© 2019 Capgemini –All rights reserved.5G Fixed Wireless Access Point of view | 2019
First lessons learned from the Verizon 5G Home launch
Verizon customers are experiencing a ~600 Mbps ‘typical’ speed with
a peak speed of ~900 Mbps Subscribers
The service has proven robust in a wide variety of situations
including non line-of-sight
F I R S T V E R I Z O N & C U S T O M E R I N S I G H T S
I N D I C A T E A S T R O N G Q U A L I T Y O F S E R V I C E
5 G H O M E I S S U C C E S S F U L W I T H
V E R I Z O N A N D N O N - V E R I Z O N
C U S T O M E R S
Verizon’s offer positioning is aimed at cableco’s
strong position on the broadband market
We have many examples of people who have very clearly no direct line of sight
and are seeing 900 MB speeds in their homes. Since we've installed them,
we've had rain, we've had leaves on trees. And again, so we're getting real-
life practical experience, and I have to say customers not just meeting their
expectations, but pretty much, in every case, exceeding their expectations
Ronan Dunne - Executive VP & Group President of Verizon Wireless at the
Wells Fargo Tech Summit December 04, 2018
Verizon has adopted an aggressive pricing strategy
vs. competitors broadband offers (-30% vs. Xfinity’s
Extreme Internet & -25% vs. Spectrum’s Internet Ultra)
Verizon is looking to leverage on its strong mobile
customer base, by offering a 20$/month discount for
its mobile customers. Still, Verizon reported that 50%
of 5G Home customers at launch were non mobile
customers.
Ultra Wideband 28 GHz in 2018, 39 GHz in 2019 when standard 5G equipment is
available
Verizon is quoting a 1000m range for the base radio on 28GHz
Verizon announced in January that it will not deploy 5G home in new cities until standard 5G equipment is available
+

7. 7© 2019 Capgemini –All rights reserved.5G Fixed Wireless Access Point of view | 2019
First lessons learned from the Verizon 5G Home launch
Service availability
check
Order & schedule
installation date
Technician visits the to
test 5G signal 2-3days
before installation
(customer doesn’t
need to be present)
For outdoor installations only, the
technician visits the home to
ensure best antenna position
depending on signal strength
Technician visit
Installs outdoor or
indoor receiver +
Home router
Samsung indoor
antenna installed
on window
Outdoor
antenna
Connects
all Wi-Fi
devices to
the home
router
Customer can enjoy
the service
C U S T O M E R J O U R N E Y
I L L U S T R A T I O N S O F V E R I Z O N ’ S S M A L L C E L L A N T E N N A S (mostly installed in medium density areas)

8. 8© 2019 Capgemini –All rights reserved.5G Fixed Wireless Access Point of view | 2019
In order to build a robust 5G FWA strategy, operators need to address a
wide range of topics
FWA market
opportunity
E x a m p l e s o f t o p i c s t o a d d r e s s t o b u i l d
a n e f f e c t i v e 5 G F W A s t r a t e g y
Competitive
Market
Analysis
QoS and
customer
experience
Economics
 Which strategic axis is a priority
(complement/substitution to FTTx)?
 Identify key customer targets (Consumer/Enterprise)
 Identify target areas and addressable market over
time?
 Taking into account: national FTTx roll-out
plans and ‘mobile’ 5G roll-out plans
 Which market shares are at stake in target areas?
 Do you have insight into what your competitors are
doing and their approach to the market?
 Do your competitors have the ability
(technical/financial) to launch 5G Home?
 What are they’re target areas?
 Which expected QoS for 5G FWA broadband services is
a priority for you (speed, stability, managed TB/OTT
support…)?
 How will your customers subscribe (eligibility,
subscription, installation)?
 How does it compare to FTTx?
 What is the total investment needed for 5G FWA?
 Customer: CPE(s), installation
 Network (antenna, backhaul, civil works) esp. if
dedicated roll-out
 Identify savings potential with alternative technologies
(eg. wholesale fiber access, fiber roll-out)
 Identify expected benefits (loyalty, value potential)
depending on positioning & competition
C a p g e m i n i I n v e n t i s a t r u s t e d p a r t n e r t o T e l c o c l i e n t s
a n d c a n h e l p b u i l d a 5 G F W A s t r a t e g i c a s s e s s m e n t
Experts in 5G for
Telco companies
spectrum acquisition,
launch strategy,
5G services roadmap
Expertise in
strategy,
market
analysis and
business
planning
Proven knowledge
in network,
marketing, and
economic analysis,
all areas that are
key to this
transversal FWA
topic
Broad expertise
in the Telecoms
market in
multiple
European
geographies

9. For more information about Capgemini
Invent’s Telco and 5G expertise, please
contact our experts:
Pierre Fortier
Principal Consultant, Capgemini Invent
Pierre.Fortier@capgemini.com
Marouane Bikour
Senior Consultant, Capgemini Invent
Marouane.bikour@capgemini.com

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