Verizon has reported a significant increase in demand for its 5G home internet service, known as fixed wireless access (FWA), with 261,000 new customers joining in the third quarter of this year. The company now boasts approximately 5.4 million FWA subscribers, leading to an annual revenue exceeding $3 billion. Chief Financial Officer Anthony Skiadas indicated that this growth supports the notion of FWA as a sustainable long-term business model.
The rising adoption of 5G home internet can be attributed to consumer frustrations with traditional internet services, particularly concerning escalating costs. A recent survey indicated that 43% of Americans experienced the most substantial price increases in internet services compared to other home utilities, with an average hike of $20.78. Many customers have expressed dissatisfaction over hidden fees and post-promotional price increases, prompting a significant number to reconsider their internet service providers.
Fixed wireless internet options, which are also available from competitors like T-Mobile and AT&T, are gaining traction due to their accessibility in rural areas and affordability. These services typically offer fixed pricing with additional perks such as unlimited data and bundle discounts.
However, in response to this surge, Verizon has taken measures to restrict its 5G home internet service. Customers using the service at different addresses than those registered have received notifications that their internet speeds will be reduced. This restriction is intended to ensure network performance, although some customers have noted inconsistencies in how this policy is enforced.
Recent reports have indicated a decline in median download and upload speeds for Verizon’s FWA service, raising concerns about network congestion and overall performance. A J.D. Power survey revealed that Verizon’s fixed wireless internet ranks lower in consumer satisfaction when compared to its competitors.
Why this story matters
- The shift toward 5G home internet signifies changing consumer preferences in telecommunications.
Key takeaway
- Verizon’s restrictions on service location usage highlight challenges in managing network performance amid rapid customer growth.
Opposing viewpoint
- While some customers are frustrated with these restrictions, others appreciate the benefits of fixed wireless internet without hidden fees and with competitive pricing.
