Telecom News in the US, this week (Jan 27)

Briefing Document: 

Key Themes and Findings:

Fixed Wireless Access (FWA) is Expanding Rapidly:

• Global Growth: FWA is no longer just a "rural niche" in the US; it's experiencing rapid growth in Asia, the Middle East, and Africa. This is driven by the need for cost-effective connectivity and upgrades to existing 3G and LTE networks.
• FWA for Underserved Markets: Companies like Kwikbit are targeting niche markets such as manufactured home communities (MHCs) that are often overlooked by traditional fiber providers. They face permitting challenges, and old infrastructure.
• Verizon FWA Growth: Verizon has seen strong growth in its fixed wireless business, adding 373,000 subscribers in Q4, for a total of 4.6 million subs. The company is on track to hit 8 to 9 million FWA subscribers by 2028.
• C Spire Launches FWA in Mississippi: C Spire launched a 5G home internet service using FWA to expand internet access to underserved communities, providing speeds up to 100 Mbps. They are targeting the 23% of Mississippi households without internet access.
• MDU (Multiple Dwelling Unit) Focus: Verizon is planning to launch a fixed wireless product specifically for multi-dwelling units in the coming months, acknowledging that residential growth is slowing.

Wi-Fi Offloading as a Performance Booster:

• MVNO Speed Boost: Cable MVNOs like Spectrum Mobile and Xfinity Mobile have significantly increased download speeds by utilizing their large footprints of customer Wi-Fi hotspots for "offloading". These increases are on the order of 100 Mbps.
• Performance Impact: Spectrum Mobile saw median download speeds more than double from 84.35 Mbps to 188.63 Mbps in the past two years. Xfinity Mobile saw speeds increase more than 2.5 times in the same period, from 66.60 Mbps to 170.39 Mbps.

Competitive Pricing and Marketing Practices:

• T-Mobile Ad Controversy: T-Mobile was forced to discontinue advertising that claimed 20% savings versus AT&T and Verizon after a complaint, because it failed to clearly disclose the basis for the savings (inclusion of streaming service costs).
• Verizon Price Increases: Verizon is raising prices for customers with multiple lines (5+) and customers still on old plans. These price increases come in the form of a $3 per line per month increase to select myPlan accounts, and a $4 to $15 per line increase for customers on older "New Verizon Plan" accounts. Data overage fees are also going up for those on older plans.

Network Technology Evolution and Challenges

• 2G Shutdown: T-Mobile is officially shutting down its 2G network on February 9, 2025. This is a necessary step for network modernization but requires that users of 2G devices upgrade to newer technology. T-Mobile is offering free phones to customers still using 2G.

Financial Performance and Outlook

• Verizon's Strong Q4: Verizon reported strong Q4 2024 earnings, with revenue and subscriber growth exceeding expectations, boosted by postpaid mobile and broadband additions. Wireless service revenue was up 3.1% year-over-year, driven by pricing and FWA growth. Verizon's FWA revenues jumped 51.6% to $611 million in Q3 and exceeded $2.1 billion for the full year.
• T-Mobile Price Lock Concerns: An internal document shows T-Mobile is retiring its "Price Lock" guarantee for Fiber Home Internet service, raising concerns about potential future price hikes for both fiber and wireless customers.

Thank you for listening!
-Mario Mejia