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INDUSTRY UPDATES
        34     JAN-MAR 2024



        New Opportunities of 5G FWA in Africa, Addressing the Gap in Last-
        mile Fixed Broadband Connectivity

 Draft
        At the Africacom 5G Summit,          commercial services, among which    3.5GHz, 2.3GHz and 2.6GHz spectrums
        GSMA Intelligence cooperate          14 operators have launched 5G       are critical for operators in South
        with ICASA, MTN South Africa, and    FWA services. Nearly 10 other African   Africa to develop 5G FWA. In addition,
        Huawei, released the white paper     countries have announced plans to   2.3GHz and 2.6GHz spectrums have
        titled "5G FWA in Africa, Emerging   launch 5G for commercial use. 5G    multiple commercial values because
        Trends and Opportunities, " which    FWA is 10 times faster than 4G FWA.   these two spectrums can support
        comprehensively analyzes the current   5G FWA is not only an upgrade of 4G   both 4G and 5G, allowing operators
        development trends and future        FWA, but also a pragmatic strategy for   to expand 4G networks while also
        opportunities of 5G FWA services in   mobile operators to expand mobile   being used to develop 5G. Multiple
        Africa.                              data services and provide enhanced   benefits from one investment. In
                                                                                 terms of CPE prices, GSA data shows
                                                                                 that 4G/5G CPE shipments double
                                                                                 every year. However, CPE costs in
                                                                                 sub-Saharan Africa are far too high,
                                                                                 which has become a bottleneck for
                                                                                 5G monetization and FWA market
                                                                                 development. The GSMA Intelligence
                                                                                 whitepaper recommends that the
                                                                                 government reduce taxes on terminal
                                                                                 to promote the development of the
                                                                                 digital economy. Many operators in
                                                                                 Africa have lowered the threshold for
                                                                                 market development through CPE
                                                                                 trade-in and credit.

                                                                                 In the white paper, GSMA said that
                                                                                 connectivity is critical to building
                                                                                 Africa's digital economy. 5G FWA
                                                                                 is well-placed to play its role in
                                                                                 addressing the gap in last-mile fixed
                                                                                 broadband connectivity by delivering
                                                                                 enhanced connectivity services to
        According to Kenechi Okeleke,        connectivity services for home and   households and enterprises. To take
        Director, GSMA Intelligence, 5G FWA   enterprise network devices, opening   advantage of these opportunities,
        has been widely recognized as an     up new incremental space in the     stakeholders like governments and
        alternative to fixed broadband, with 116   home and ToB markets. Leaders in 5G   policymakers, operators, service
        operators worldwide having already   FWA get the opportunity to compete   providers, ecosystem partners,
        launched 5G-based commercial FWA     in a market that remains mostly wide   need to take steps to facilitate the
        services in 57 markets. The maturity of   open.                          deployment of 5G FWA networks
        5G FWA technologies and commerce                                         and stimulate adoption among
        is bringing new opportunities for    According to the white paper,       households and enterprises.
        digitalization in Africa and helping   the development of FWA services
        Africa address the gap in last-mile   depends on various factors, including   White paper accessible here: https://
        fixed broadband connectivity.        spectrum availability, 4G FWA       data.gsmaintelligence.com/research/
                                             availability, CPE price, spectrum   research/research-2023/5g-fwa-in-
        At present, 30 operators in 17       slicing technology, and 5G network   africa-emerging-trends-and-
        markets in Africa have launched 5G   coverage. In terms of spectrum, the   opportunities.









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