What U.S. Cellular, Ericsson Millimeter Wave Fixed Wireless Test Shows

Ericsson, Qualcomm Technologies and U.S. Cellular say the companies have successfully demonstrated the first extended-range 5G NR millimeter wave broadband connection in the United States, on a commercial network, at a distance of five kilometers, delivering speeds of 100 Mbps. 

You might not find that remarkable. The networks are supposed to work, after all. But the test suggests that millimeter wave 5G, often thought to be a tool for urban, high-density applications, also can be used in many lower-density geographies as well. The test implies a single 5G millimeter wave cell can serve an area of 10 km diameter, or about six miles. 

Three miles might not seem such an important distance, but it roughly mimics the reach of a fixed copper network from a central office or remote node. The point is that 5G NR using millimeter wave spectrum might work in many medium-density rural areas. 

As Ericsson has argued, fixed wireless is feasible in at least three basic situations. Where density if high enough, fixed wireless can support speeds between 100 Mbps and 1 Gbps and where customer spend is between $50 and $100 a month.

In some other cases, depending on the competitive situation, fixed wireless could supply 50 Mbps to 200 Mbps speeds at prices between $20 to $60 a month.

In highly rural areas, where fixed network costs are prohibitive, fixed wireless could supply broadband access at speeds between 10 Mbps and 100 Mbps for monthly retail rates between $10 and $20. 

The “sweet spot,” most might agree, is suburban markets with medium density. Urban areas generally have access to fixed network access from two or more providers where fixed wireless might not have value proposition advantages. 

Rural markets might have reach issues which make fixed wireless difficult. Many suburban markets, though, might have competitive settings where fixed wireless would be a competitive offering for much of the market where there is significant demand for service between 50 Mbps and 200 Mbps and recurring prices between $20 and $60.

In the U.S. market, where cable operators have 70 percent of the customer base, and are getting virtually all the subscriber growth, there may no longer be a sustainable business case for telco fiber to the home. In that case, 5G and all next generation mobile platforms might be the only sustainable option for mobile or fixed network providers who want to compete with cable company offers.