Big and small operators must pay attention to bundles featuring fixed wireless access (FWA) and other wireless technology, according to “The Bundle Battle: Why Rural Broadband Providers Must Pay Attention to Wireless,” a report from CoBank.
Among big operators, Comcast and Charter have seen that wireless is an increasingly important technology. The report, which was written by Jeff Johnston, says that the two companies “have leaned heavily into this model.” This came as Verizon and T-Mobile began to bundle fixed wireless access (FWA) mobile plans. In the report, Johnson writes that these bundles are resonating with customers.
The report says that as of the end of 2024, Comcast had 7.8 million mobile customers, which was 12% of its residential broadband base. Charter had 9.9 million mobile lines and continues to grow. Johnston says that mobile has become a central element of their strategy.
The emergence of FWA is particularly important for rural bundles from both operators’ and customers’ perspectives, the report said.
“The economics of FWA are highly attractive for national wireless carriers,” Johnston writes.
“It lets them better monetize excess capacity on their mobile networks, especially in rural and suburban markets where network utilization is lower. When they bundle FWA with smartphones, it drives customer stickiness and increases the lifetime value of each user. And critically, it allows them to win customers without having to give away expensive devices like free iPhones, which eat into margins.”
The future is bright for FWA. Johnston writes that 6GHz band and other new spectrum, coupled with vendors such as Tarana’s introduction of more powerful FWA systems capable of fiber-like performance, will drive the popularity of wireless. Money also continues to pour in, with the promise of BEAD and other state, local, and federal sources and private investors.
Johnston says that the decision to offer mobile will be hard for smaller operators. The fact that wireless is not their core business and the margins are slimmer may give them pause. However, he points to smaller operators such as WOW!, Midco, and Mediacom and the National Content & Technology Cooperative master MVNO agreement with AT&T as signs that the approach is gaining traction.
Johnston’s report concludes that while there is no one-size-fits-all answer, the fact that cable operators continue to lose wired subscribers suggests that wireless bundles must be explored as a potential option.
