Will 5G Enable Wireless Replacement of Home Broadband and Disrupt FTTH?

Ever since the advent of 3G wireless, there’s been debate as to whether significant wireless replacement of home broadband service is possible. After all, wireless replacement of home voice service helped decimate the pure wireline voice business for many carriers. Will the same happen for home broadband and put ongoing fiber-to-the-home (FTTH) investment at risk?

The latest candidate for possible wireless replacement of home broadband service is emerging in the form of 5G wireless. This latest wireless generation promises broadband speeds that are comparable to existing FTTH and cable broadband services, and far surpass a DSL broadband experience. Wireless gigabit speeds may be in reach from 5G. Recent comments from Verizon CEO Lowell McAdam adds intrigue to this discussion. “There’s a distinction between 5G in a fixed wireless environment versus a mobile environment,” said McAdam. “The use case for me that gets you over the hump on investing in the technology is the one that’s right in front of us right now and that’s a fixed wireless play.” McAdam went on to say that using 5G for fixed wireless, as a replacement for home or business broadband, may offer enough of a business case alone to justify Verizon’s investment in 5G. Any profits that come from 5G mobile would be “gravy” he said. Mobile 5G services aren’t expected to be reality until at least 2020.