Report Claims Fixed Wireless Broadband Could Give UK a £4bn Boost

A new report from the UK Wireless Internet Service Providers Association (UKWISPA), which was put together by Intelligens Consulting, has claimed that fostering greater use and acceptance of the latest innovations in fixed wireless broadband networks by the government could deliver £4bn of “quantifiable impact” in the UK.

The government’s Building Digital UK (BDUK) agency and its £5bn Project Gigabit broadband roll-out programme have, thus far, tended to prefer network solutions that adopt full fibre (FTTP) technologies, particularly when it comes to build contracts awarded under their main Gigabit Infrastructure Subsidy (GIS) scheme.

Full fibre lines are generally regarded as being more future-proof and less prone to issues like interference over distance (this is not an issue at all in the local Access network). But we have seen some gigabit wireless networks being built into rural areas using the government’s Gigabit Broadband Voucher Scheme (GBVS) too, albeit usually to a much smaller scale.

The new report (PDF) thus attempts to highlight how encouraging a greater focus on fixed wireless networks, albeit as a “complement” and “synergistic counterpart” to gigabit fibre technologies, “can deliver policy objectives more quickly and more cheaply, potentially saving taxpayers GBP 1 billion, while helping consumers benefit by over GBP 3 billion by advancing high speed broadband services to rural areas.”

The figure of £3bn+ above appears to partly stem from a model that uses wireless networks to more rapidly “advance gigabit” broadband services to cover 1.8 million homes (mostly in rural areas) by an average of 3 years (vs building via FTTP), although the calculation for this seems very simplistic and appears to focus on cost vs take-up.

The report states that the economic impact “depends on the assumed value of fast connectivity and the level of takeup“. According to the report, consumers will typically pay around £35 per month (for a service offering 100Mbps), which is used as a “guide as to the minimum consumers value it“.

Some, like those working from home or relying a lot on the internet due to a disability, may find it much more valuable, perhaps averaging at around £50 a month, said the report. The assumed take-up is 60% (i.e. similar to the BDUK’s original SFBB “superfast broadband” programme with mostly FTTC). But that was admittedly mostly achieved via a well-recognised network with hundreds of ISPs in support, which may be harder for Wireless ISPs to pull off.

“Combining these assumptions suggests that 60% of the 3 million relevant premises (being the 10% of the UK total expected to see no firm date for connection by 2025) could see benefit, of around £1,800 each, in total over the three years before fibre arrives. This is a total benefit, to consumers, of GBP 3.24 billion,” said the report.

The report also presents five recommendations for policymakers, which it says would be needed in order for them to “recognise the significant role of wireless technologies as part of the technology mix needed to support the Government to deliver its gigabit ambition.” This covers the need for streamlined procedures and regulatory processes that accommodate smaller wireless operators, among other things.

David Burns, Chairman of UKWISPA, said:

“This report highlights the huge role of FWA alongside fibre in achieving the UK’s ambitions to provide comprehensive access to gigabit broadband connectivity. Not only can roll-out be accelerated, but both urban and rural locations can get their enhanced connectivity sooner, and at less cost.

UK Infrastructure Investors, the DSIT, Ofcom and BDUK are all slowly realising the untapped potential that FWA has in accelerating gigabit internet rollout, and the advantages when built alongside fibre networks. This report sets out key areas and policy directions that can maximise this opportunity for the UK.”

As we always say when it comes to predictive studies like this – trying to accurately gauge the economic impact of deploying a faster broadband technology is notoriously difficult, not least since most premises won’t be starting from a point of zero connectivity (i.e. 30Mbps+ capable broadband is now available to 98% of UK premises and gigabit speeds will soon cross the 85% line, but this does fall when only looking at rural areas).

However, we do agree that wireless broadband solutions have always had a useful role to play, which could definitely be expanded upon to help service some of the remotest locations. But at the same time, a lot of the supporting ISPs aren’t exactly household names and real-world consumer experiences have tended to vary quite a lot between different providers and wireless technologies.

Fixed wireless providers also have competition from the ever-expanding reach of 4G and 5G based mobile broadband networks, as well as SpaceX’s Starlink network and the others that are due to launch into the same LEO satellite space.

One other challenge is that Project Gigabit has already awarded most of its GIS contracts and those that remain continue to focus on FTTP solutions, which suggests that UKWISPAs call for a greater focus on fixed wireless may be at risk of arriving too late to the party.

Nevertheless, the government has long recognised that homes in very hard to reach areas may not get FTTP due to the extreme build costs involved (here). But the alternative solutions discussed for those have tended to focus on the final 0.3% of the country (i.e. under 100,000 premises) – quite a bit less than the 1.8 million being talked about earlier.