Insights

Changing World: Fixed Wireless Access

June 28, 2020

As a teenager in rural Portugal, I felt disconnected from the mainstream. No internet. No ability to drive to a store to get newspapers. The major innovation at the time was satellite TV which opened my eyes to Spanish, French, Italian and German content. Today, my experience would be different. However, for 40%+ of global international households, that feeling of disconnection is still a reality today. They have no access to reliable broadband connection. Fixed Wireless Access proposes to bring this market onto the mainstream by offering houses reliable broadband connections leveraging the 4G and 5G wireless spectrums. This market is expected to grow strongly and to more than triple over the next 6 years (see figure).

Sources: Ericsson, Somar

The roll-out of broadband access through Fixed Wireless Access will bring tremendous opportunities to consumers while opening attractive opportunities for entrepreneurs:

  • Reliable and safe access to broadband internet, allowing users to benefit from streaming services, distance learning, e-commerce, telework, financial services, telehealth among many other benefits;
  • Redundant access to broadband when cable or other technologies go down;
  • Ability of families to move to less densely populated areas, saving on real estate costs;
  • Lighting up of internet of things opportunities like security monitoring, automated farming / manufacturing.

Opening new communities and households to the broadband ecosystem will open attractive business opportunities. This is an untapped market that has limited competition and is thirsty to access the benefits that many of us take for granted. The entrepreneurs that can successfully build a profitable business model to serve this new market will stand to reap attractive returns. At Somar we are following closely for potential investments in this space.

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