The debate over the long-term viability of Fixed Wireless Access (FWA) as a broadband solution has intensified within the industry, driving a wedge between two leading telecommunications operators. AT&T and UScellular, major players in the broadband market, are sharply divided on whether FWA is a fleeting, interim measure or a sustainable, long-term strategy. This difference in perspective was notably highlighted during the Broadband Nation Expo in Washington, DC. As broadband requirements continue to grow and diversify, the strategic decisions surrounding the deployment of FWA technology are becoming increasingly critical. This divergence is more than a mere technical debate; it underscores fundamentally different business strategies and visions for the future of broadband connectivity.
AT&T’s Cautious Approach
AT&T is positioning FWA as primarily a transitional tool, not a final destination. Angela Wilkin, AT&T’s Assistant Vice President, argued at the Broadband Nation Expo that FWA is intended to act as a “bridge” for customers currently relying on outdated copper lines until they can be transitioned to fiber. This perspective aligns with previous statements from AT&T CEO John Stankey, who has made it clear that FWA should not be seen as a permanent solution. According to Wilkin, though exceptions exist in areas where deploying fiber may never be viable, the overarching goal for AT&T remains focused on fiber optics as the ultimate solution for high-speed internet.
Wilkin’s remarks reflect a broader, more conservative approach by AT&T towards new technology adoption. The company’s investment strategy prioritizes laying down fiber-optic cables over expanding FWA services. This cautious stance stems from a belief that fiber offers unmatched reliability and capacity for meeting future broadband demands. Fiber is not only a faster and more stable option but also a future-proof solution capable of supporting upcoming innovations and increased data consumption trends. By contrast, FWA is viewed as a stopgap—a necessary but temporary fix while more permanent infrastructure is put into place.
UScellular’s Aggressive Stance
Conversely, UScellular has adopted a more aggressive approach in embracing FWA as a cornerstone of its long-term strategy. Mike Dienhart, Vice President of Engineering and Network Operations at UScellular, made a strong case at the Broadband Nation Expo for FWA as a sustainable and economically feasible solution for many regions. Dienhart pointed out that in various areas, extending fiber infrastructure is simply not cost-effective, making FWA an optimal alternative. UScellular is optimistic about the growth potential of FWA, despite existing challenges related to spectrum availability, and views this technology as essential to expanding their broadband services.
Dienhart’s comments highlight a strategic focus that contrasts sharply with AT&T’s more traditional approach. UScellular, with around 134,000 FWA subscribers primarily utilizing its 4G network, does not see these numbers as the peak of its aspirations. Instead, the company envisions substantial future expansion, investing in both infrastructure and technology to elevate its FWA offerings. The emphasis here is on flexibility, scalability, and rapid deployment, attributes that FWA uniquely offers compared to fiber. UScellular is betting that these advantages will make FWA a core component of its broadband strategy, particularly in rural and underserved areas where fiber may never be a feasible option.
The Spectrum Challenge
A significant theme in this debate is the constraint posed by spectrum availability. Dienhart acknowledged that while the current mid-band spectrum allows UScellular to offer high-speed services, the finite nature of this resource limits the potential for expansion. The Federal Communications Commission’s (FCC) auction authority, which is currently inactive, serves as a considerable bottleneck in acquiring additional spectrum. This challenge is pivotal as it restricts the scalability and reach of FWA services, adding another layer of complexity to the decision-making process for telecom operators.
Spectrum scarcity is a mutual concern affecting both AT&T’s and UScellular’s strategic outlooks, albeit with different implications. For AT&T, the focus remains on investing in fiber, partly to circumvent the limitations imposed by finite spectrum resources. For UScellular, securing more spectrum is crucial to actualizing its ambitious plans for FWA expansion. Dienhart emphasized that obtaining additional spectrum licenses is essential for UScellular to grow its network and meet increasing customer demands. The limitations in spectrum availability, therefore, not only shape strategies but also act as a critical determinant of future success for both companies.
Divergent Paths Forward
UScellular has embraced Fixed Wireless Access (FWA) as a key component of its long-term strategy. Mike Dienhart, the Vice President of Engineering and Network Operations at UScellular, emphasized the viability and economic benefits of FWA at the Broadband Nation Expo. According to Dienhart, installing fiber infrastructure is often not feasible in many regions, making FWA an attractive alternative. Despite challenges like limited spectrum availability, UScellular remains optimistic about FWA’s growth potential and considers it vital for expanding broadband services.
This focus stands in stark contrast to AT&T’s more traditional methods. UScellular currently has about 134,000 FWA subscribers, mainly on its 4G network, but the company does not intend to stop there. It envisions significant future growth, committing resources to improve both infrastructure and technology. The company values FWA for its flexibility, scalability, and quick deployment capabilities—advantages that are particularly noteworthy in rural and underserved areas where fiber may never be practical. UScellular is betting on these strengths to make FWA a cornerstone of its broadband strategy.
