Market Survey:  Fixed Wireless Access CPE, Confidential Report for GSA  4G-5G FWA Forum Members

Introduction

▪ The purpose of the GSA 4G-5G FWA Forum is to educate the industry about the fixed wireless access (FWA) market. There are currently no agreed market definitions, there is a lack of market information and no consensus about the volume of FWA device shipments and FWA installed base globally

▪ The annual GSA FWA CPE market survey aims to address this issue. It was first conducted in 2021 and this report presents the findings of the 2022 survey, where data was collected from April to June 2022. A total of 26 CPE vendors from the GSA 4G/5G FWA Forum answered the survey

▪ The results present the aggregate answers of those 26 CPE vendors. We estimate that this is a significant representation of the market for 3GPP-based 4G and 5G FWA devices

▪ Participants in the survey were: Asiatelco Technologies, Askey, BEC Technologies, Casa Systems, Changhong, Da Ta Technologies, Esound Technology, Gongjin Mobile Communication/T&W, GosuncnWelink Technology, Green Packet, Huawei, Intelbras, Jaton Technology, Jointelli, MeiG Smart Technology, MiWire, Mobot Mobile, Nokia, Notion InfoTech, Oppo, TCL, TigerCel, Tozed Kangwei, Wavetel and WNC

Executive Summary

▪ On aggregate, respondents' sales volumes fell 25% year-on-year from 2020, while more than half of respondents saw volumes increase over the same period▪ The decline came from battery-operated hot spots, which fell 36% annually after a surge in demand during the Covid-19 pandemic

▪ The component shortage, which hit volumes in 2021, is now easing, with 18 out of 22 respondents expecting no or minor component shortage in 2023

▪ More respondents switched to outsourcing chipsets and modules in 2021 than they had planned to a year prior. There is a desire to source chipsets from more companies▪ Shipments of FWA 5G devices grew 162% in 2021, despite a total market decline, to represent 16% of shipments. By 2022, vendors expect more than a quarter of product portfolios to be 5G. Vendors are continuing to adjust their 5G CPE to support Wi-Fi 6

▪ Millimetre-wave-capable devices remain a small proportion of 5G FWA shipments, but more respondents are planning to introduce the technology, although some have delayed plans

▪ Shipment growth is expected to speed up again in 2022 compared with 2021, with the mean growth expected to be about 30%. Most of the growth is being driven by FWA CPE devices, which are expected to eclipse 2020 volumes

▪ Of all form factors, there is strong consensus that window-mounted, flexible indoor and outdoor CPE and self-installation apps are growing. Hybrid fibre/DSL CPE has a more mixed expectation

▪ "Connecting the unconnected" is seen as the most important trend for 2022. "Government broadband" and "5G launch" plans are not expected to be as significant in comparison with 2021

▪ Most respondents think prices of 5G CPE devices will still take a couple of years to reach parity with those of 4G CPE. Prices may also be affected by inflation, with 15 out of 22 respondents expecting minor inflation effects in 2023