How ISPs Can Combat Growing 5G Fixed Wireless Competition

By Samuel Kornstein (Managing Director) and Matt Schwartz (Consultant), Strategy & Analytics
 

[This article was originally published in ACA Connects’ June 2025 edition of Independent Communications News]

Mobile network operators (MNOs) like T-Mobile, Verizon, and AT&T have gained 8.7 million residential FWA subscribers by utilizing their extensive wireless infrastructure to deliver simple, affordable home internet – reshaping consumer expectations in the process.

Fixed 5G Wireless Competition

The appeal of 5G FWA lies in its ease and clarity: plug-and-play installation, month-to-month billing, transparent pricing, and bundling with existing mobile plans. Add in a digital-first sign-up experience and the proposition is hard to ignore – especially for rural, low-usage, or budget-conscious households.

Despite its clear advantages, 5G FWA offerings face notable limitations: Peak speeds lag fiber, asymmetric upload speeds, and lower reliability during peak hours due to shared mobile network capacity. For households with high latency or performance-sensitive needs – such as online gaming or high-quality video conferencing – traditional wired broadband continues to offer a more reliable experience.

To stay competitive in a market reshaped by FWA, ISPs don’t need to replicate the model – but they do need to adapt. The key to success lies in understanding where FWA is winning customers and addressing those pain points directly.

Several strategic approaches can help internet providers retain and grow their base in this evolving environment:

  • Introduce value tiers: Providers should consider launching value-oriented broadband tiers to match FWA on price, without compromising the core value proposition of fiber or cable. This provides an alternative for price-sensitive customers at risk of switching to FWA.
  • Simplify the buying experience: FWA providers have removed friction through fast installation, clear plan options, and a smooth sign-up process. By improving these areas, ISPs can reduce FWA’s competitive edge. For many consumers, ease often matters as much as performance.
  • Target niche segments: Students, renters, seasonal residents, and low-usage households are particularly susceptible to FWA messaging. ISPs should consider tailored offers and retention campaigns to reach these groups before they switch.
  • Differentiate through customer experience: FWA’s digital-only model can leave customers feeling unsupported. In contrast, strong customer service can be a key differentiator in retaining customer loyalty.
  • Promote value-added services: Managed Wi-Fi, parental controls, device security, and smart-home integration can elevate the broadband experience and foster long-term customer loyalty.

While 5G FWA introduces real competition, traditional ISPs remain well-positioned to lead the market – if they adapt their strategies to meet evolving consumer expectations.

Cartesian Can Help

At Cartesian, we’ve helped providers across the U.S. navigate this shift by identifying at-risk segments and designing product portfolios that align with today’s competitive dynamics. Taking the right moves now can ensure ISPs don’t just withstand the shift – but lead through it. Contact Cartesian today to get started.