Introduction
Fixed Wireless Access (FWA) is a technology that uses radio waves to provide broadband-like internet connectivity. In India, increasing demand for internet access drives the need for a reliable and affordable connectivity option. FWA is an optimal solution to provide internet connectivity in such places where cables are impractical or costly to lay.
Compared to costly fibre-to-home rollouts in other countries, where does FWA stand in India’s dense urban and remote areas? What steps are needed for quick and affordable broadband expansion to underserved regions previously stranded on the wrong side of the digital divide?
In addressing the issues of FWA deployment and security, I came across Kigen, a global eSIM security company, operating out of Noida. Kigen has a vision to reduce the cost of FWA deployment through ties with the semiconductor industry. Kigen’s plans to support a local 5G FWA ecosystem in India is an interdisciplinary approach that extends beyond telecoms.
Fixed Wireless Access Setup
Fixed Wireless Access (FWA) is a wireless technology that uses radio waves to offer internet connectivity to “fixed” subscribers. In other words, FWA can be called a type of “wireless broadband”. The FWA transmitter and the receiver should be in line of sight for better connectivity.
The FWA transmitter is fixed at a position while the receiver can be mobile. The question arises “How can such a model function to provide internet connectivity in wireless settings?” The answer lies in a combination of an antenna and a device called CPE- Customer Premises Equipment.
Customer Premises Equipment
As the name suggests, customer premises equipment (CPE) is a device installed on the customer’s premises. Essentially, it ends the 4G LTE and 5G NR air interfaces, significantly influencing the end user service quality and the operator’s expenses associated with providing FWA services.
A CPE is typically installed in two parts: an Antenna and an IDU (indoor unit). The antenna is mounted on the rooftop or placed near the window to remain in line of sight (LOS) with the transmitter.
The antenna is connected to the IDU CPE for signal processing. The IDU CPE includes routers, modems, access points, and set-up boxes. CPE is the most critical part of FWA deployment. It ensures that network infrastructure offers secure and reliable connectivity to mobile users within the predefined range.
There are two types of CPE: Indoor and outdoor CPE.
Quality of experience can vary across the two categories, depending on building material attenuation. Most enterprises use indoor CPEs. However, indoor CPE costs are higher as the system needs to include additional installation, material costs and WAPs (Wifi Access Points). Whilst technical implementation can differ, the advent of eSIM technology can benefit both types.
Need for FWA in India
In 2010, there were only 93 million internet users in India. At present, according to The Economic Times, there are more than 850 million internet users in India. Government initiatives to drive digitization and telecommunication efforts enabled India to become one of the largest internet economies in the world, growing at a rate of 9.6% per annum, according to Informa and Financial Times. As a result, India has the second largest user base of connected population and one that is amongst the fastest growth economies for mobile digital services.
India will witness better geographical internet penetration in the next thirty years, with more coming from rural areas. Revenue opportunities are increasing for telecommunication companies and network operators. In certain rural areas, internet connectivity is relatively lower than in metropolitan regions. FWA as a means of connectivity provision overcomes challenges such as terrain or high-altitude regions where cable implementation may be impractical.
Why is 5G FWA deployment increasing in India?
India is witnessing an increased demand for FWA equipment, software, and firmware across its fleet of devices. FWA deployment extends beyond remote and unserved areas to high-demand metropolitan regions as well. Semi-urban areas are more efficiently deploying FWA. On an enterprise level, small to medium-sized enterprises showcase a high growth opportunity for 5G FWA adoption. According to Ericsson, global FWA revenue is expected to hit US 67 billion in 2028. Out of which, 5G FWA is set to account for 60% of the FWA market in the same year.
- Customer awareness: Indians are choosing 5G solutions due to ever-increasing bandwidth demands, loading speed, and internet usage. Customers have an insatiable hunger for faster and higher bandwidth internet and are fully aware of the 5G potential. The recent rise of bundled-in streaming apps and services is an indication of the future 5G direction.
- Enterprise service provision: Traditionally, tier-II cities within India have been the most challenging to connect with prior optical fibre implementations for meaningful connectivity that can support digital economic growth for enterprises. 6,000 cities outside of the main urban centres form the fastest growth for enterprise FWA addressable market, with premium connectivity packages including an installation of an outdoor CPE device as standard in broadband bundles per Reliance Jio.
- Low fibre penetration: India is a “mobile-first” market, with mobile users consuming the highest data amount per smartphone globally, according to Ookla. Low fibre and broadband penetration is a reason for FWA growth in India. FWA has lower deployment costs compared to fibre and cables. Low speeds and latency in commercial 4G FWA deployments also drive 5G FWA adoption.
The composite picture: What will improve FWA deployment in India?
5G FWA adoption is likely to help overcome some of the issues traditionally encountered by fibre rollout. How it will supplement, complement or directly compete with fibre will depend on the service provider’s monetisation strategy and how affordable FWA and particularly CPE components can be delivered. “Growing affordability of 5G CPE is opening up the appeal of the technology for FWA, especially in the growing digital services appetite that e-SIM technology has unlocked.” cites Mayank Sharma, Kigen’s VP of solutions. Kigen’s approach to boost 5G FWA adoption involves eSIM solutions. The eSIM capabilities were briefly discussed in our interview with Papiya Raipal, Country Director and Vice President of Engineering at Kigen. For 5G FWA to deliver its promise to bridge the digital ‘meaningful’ connectivity for India, two key aspects need to be resolved:
- High cost: 5G FWA should be a win-win solution for manufacturers, suppliers, and subscribers alike. In a cost-sensitive market such as India, to achieve reach, FWA equipment including CPE, must be brought down significantly. According to Counterpoint Research, the ASP (average selling price) of a CPE is estimated by Counterpoint to fall from $220 in 2023 fueling this FWA penetration.
Many telecom companies and OEMs implement NSA (Non-Standalone Mode) for 5G roll-out. It builds 5G on existing 4G infrastructure. However, such an approach is challenging due to compatibility issues. 4G front haul and backhaul networks are incompatible with 5G networks and equipment.
- Low security: Wireless technologies are required to address a larger set of security threats. The CPE-associated software and firmware need to address security vulnerabilities. Lack of strong authentication and authorization mechanisms can compromise network security and allow eavesdroppers to gain unwanted access.
As mentioned above, CPE should be in LOS to achieve better connectivity. For mmWave FWA, the signal can reflect or attenuate depending on the environmental conditions. There is also an increased risk of network congestion and EMI.
So, how does one go about solving the above challenges? Being a deep-tech specialist firm in eSIM enablement, Sharma sheds light on how eSIM can contribute towards 5G FWA adoption:
- CPE cost reduction: Choosing the bill of materials for a CPE affects FWA revenues for the seller or operator. The CPE is not sold in India to consumers like electronic devices. OEMs, telecom operators, service providers, and businesses buy CPE for FWA deployment.
Sharma explains, “The choice of CPE form factor plays a significant role in designing FWA offerings. While the focus is often minimizing the on-premises cost (i.e., cost of device + additional implementation) with basic hardware features and self-install options, the broader economic implications to network costs, and revenue drivers are often overlooked.”
Kigen aims to reduce high CPE costs by supporting more manufacturers to be able to support the demand from service providers.
CPEs need a SIM card to connect to 5G mobile networks. Traditionally, this is a discrete physical SIM, where a key component driving the cost is physical installation and onboarding of the connection onto the network. The key to reducing CPE deployment costs is the elimination of SIM card sourcing. With e-SIMs, ready-to-connect CPE devices can be directly sent to end users or can be onboarded with remote SIM Provisioning – easing the journey for consumers and operators.
“Compact, smaller network elements lower in weight and power consumption, fronthaul sharing and carrier aggregation are the focus of innovation helping operators to lower the costs for 5G CPE compared to prior technology. Advanced and power-efficient chipsets can really be a differentiator to sell FWA services that are also well-delivered” says Sharma.
Kigen has collaborated with leading semiconductor chip manufacturers, for an eSIM solution for CPE. Kigen has also developed the world’s smallest eSIM OS, capable of supporting 10 operator profiles on even memory-constrained chipsets available on the market
With Kigen’s eSIM OS, OEMs can develop affordable, functional, and energy-saving indoor or outdoor CPEs. eSIM-based CPE devices provide instant connection. With remote service provisioning, end-users can pick desired operators. As a result, the Kigen eSIM solution enables the development of chipset and module options for CPE devices. The good news for Indian manufacturers is that the Indian government’s telecom Production Linked Incentive (PLI) scheme includes 5G FWA/CPE equipment. There is an opportunity to raise the broadband coverage and quality of service using FWA, especially in urban settings.
The GSMA, an organisation which represents the interests of mobile network operators (MNOs), estimates up to 80% cost savings through the deployment of FWA versus FTTH in rural settings, 60% savings in suburban, and 35% savings in urban settings. In terms of absolute capex for existing mobile players, this makes sense.
- Improved security: It’s essential to consider not just the immediate cost but also the overall Total Cost of Ownership (TCO), which includes network maintenance, customer satisfaction, and potential revenue generation. Customer satisfaction improvements in the Quality of experience of connectivity are part of the driver for FWA CPE roll-outs over prior solutions. The Cellular Operators Association of India (COAI) has raised alarm this year that there has been an unprecedented surge in the theft of telecom gear in a few circles (service areas) – largely affecting cable and fibre installations.
Typically, a CPE device in urban areas serving Small Office/Home Office (SOHO) or high-density use-cases such as campuses, will connect 40-100 users compared to standard smartphone subscriptions. eSIM-based CPE devices provide more robust security against prior generations of WiMax-based 4G devices typically used for WiFi.
eSIMs bring the de-facto security model suited to the mobile-first market and ease of use for operators and end-users alike. eSIM cannot be stolen or swapped compared to physical SIM cards. The eSIM can also be used as a root of trust for secure services, India-stack (to incorporate KYC, Aadhar, etc) and further applications using GSMA standards such as IoT SAFE.
“CPE availability, choice and adoption is all about democratizing the access to high-speed connectivity, empowering communities and driving innovation in ways we have never imagined before,” concludes Sharma.
Final thoughts
My investigation into two simple aspects of how CPE devices can aid 5G FWA growth led to a new appreciation for one of the world’s largest and fastest-growing bases of digital consumers, buoyed by strong broadband connectivity. In our dawning era as a fast-growing digital-first economy, Kigen’s vision introduces a new injection of homegrown choice. This thriving ecosystem of suppliers for more secure and affordable solutions may just help towards the equitable access of ‘meaningful’ connectivity.
Find out more about partnership opportunities to move 5G FWA ahead at https://kigen.com/india/
