The Evolution of Broadband – Delivering Entertainment and Data – Part 2

Fixed wireless access goes head-to head with optical fiber

In the first article of this two-part series, we explored the evolution of cable television (CATV) and geosynchronous satellites to deliver television and Internet access. In this article we dive into fiber optics and fixed wireless access (FWA).

“Fiber optics is becoming like electricity. If you look at how electricity spread around the globe 100 years ago, that’s what’s happening now.”
— Reed Hastings, co-founder of Netflix

Needless to say, the man was on to something. Optical fiber remains the gold standard for high-speed, low-latency information delivery worldwide. It travels at about two-thirds the speed of light, has latency from coast to coast in the U.S. of just 30 to ms, and has been clocked at 1 million gigabits per second in the lab.

From its initial use in long-distance communication networks to its current role as the backbone of high-speed internet and media services, optical fiber has indeed become something akin to electricity — its presence is felt everywhere. It is also not entirely new: Daniel Colladon and Jacques Babinet demonstrated that light could be guided along water jets in the 1840s, followed by Alexander Graham Bell’s Photophone, which transmitted sound on a beam of light in the 1880s.

Abraham van Heel and Harry Hopkins wrote papers on imaging bundles of optical fibers in 1954, and Charles Kao and George Hockham at Standard Telephones and Cables (STC) Labs in England proposed using glass fibers for long-distance communication, effectively making Kao the “Father of Fiber Optics,” earning him the Nobel Prize in Physics in 2009. However, researchers at Corning Glass Works, including Donald Keck, Peter Schultz, and Robert Maurer, created the first viable optical fiber with attenuation low enough for communications.

Early uses of fiber in the 1970s were limited to telephone networks and long-distance communication. For this purpose, fiber had two big advantages over copper wires: It allowed data to be transmitted over much longer distances without signal degradation and supported much higher bandwidths, enabling the transfer of large amounts of information at unprecedented speeds.

By the 1980s, advancements in fiber-optic technology, including fiber manufacturing and laser technology improvements, paved the way for its broader adoption in communications infrastructure. As digital communication gained momentum and the Internet became ubiquitous, optical fiber became increasingly important for backbone networks, connecting cities and countries with high-speed data channels. These fiber-optic backbone networks were crucial in supporting the expanding needs of businesses, governments, and academic institutions, as they enabled faster data transfer and greater reliability compared to traditional copper-based systems. For example, fiber optic cables today carry over 95% of intercontinental internet traffic (Figure 1).

The 1990s marked a pivotal moment in the evolution of optical fiber for consumer use, owing to the growing demand for faster and more reliable broadband connections to households. To address this, telecommunications companies began exploring the deployment of fiber-optic cables closer to residential areas. The technology’s steps into the consumer market were the early implementations of fiber-to-the-curb (FTTC) and fiber-to-the-building (FTTB). However, copper connections were often still used for the last mile from the curb or building to individual homes.

The transformation came in the 2000s with fiber-to-the-home (FTTH) technology, which brought fiber-optic cables directly into residential spaces, allowing consumers to access significantly faster internet speeds and more reliable connections. This was a key development, coinciding with the rise of digital media, streaming services, and online gaming. Fiber-optic technology enabled the delivery of high-definition content, seamless video conferencing, and real-time online gaming, all of which required the high bandwidth and low latency that fiber could provide (Figure 2).

Throughout the 2010s, fiber-optic networks continued to expand driven by cloud computing and the growing popularity of video streaming services that place immense pressure on traditional broadband infrastructure (i.e., hybrid fiber coax, or HFC). Optical fiber, with its ability to handle gigabit speeds, became the go-to solution for internet service and ISPs around the world began rolling out fiber networks on a larger scale, with some regions achieving near-complete fiber coverage.

Advancements in optical fiber continued to push the envelope, including Dense Wavelength Division Multiplexing (DWDM), which allows multiple wavelengths of light to be transmitted simultaneously through a single fiber. Fiber-optic technology also began to play a central role in the rollout of 5G networks, where it serves as the backbone for transmitting data between cell towers and data centers, ensuring that mobile users can enjoy the benefits of high-speed, low-latency connections.

In the U.S., the adoption of fiber-to-the-home (FTTH) has been growing steadily, and as of April 2024, it was available to about 43% of U.S. households. Several companies provide FTTH services in the U.S., with varying degrees of coverage and market share. The largest provider is AT&T, which has been aggressively expanding its fiber network in urban and suburban areas. Verizon is another major player with its Fios solution, particularly in the Northeast. Google Fiber, while not as widespread, has been influential in pushing other providers to expand their fiber offerings. Regional providers like Frontier Communications and CenturyLink (now Lumen Technologies) have also invested in fiber networks, often focusing on specific geographic areas, and smaller local providers and municipal networks offer FTTH services in specific communities.

The evolution of optical fiber technology shows no signs of slowing down. Next-generation fiber technologies, including hollow-core and photonic crystal fibers (PCFs), are already under development, promising even higher speeds and more efficient data transmission. As their name implies, hollow-core fibers have a hollow core typically filled with air or another gas instead of the solid glass core found in conventional optical fibers. As light travels mostly through the air-filled core rather than glass, it can reduce latency because light propagates faster in air than in glass.

Photonic crystal fibers (PCFs) have a microstructured arrangement of air holes running along the fiber’s length, creating a photonic crystal structure that guides light. This makes it possible to guide the light in ways that conventional structures cannot. In short, while optical fiber has its limitations, it will not be replaced by wireless or any other technology in the foreseeable future, especially for use in intercontinental links. However, for the delivery of broadband and entertainment, a new competitor has emerged in the form of FWA.

The Bumby Road to Successful Wireless Broadband

For most people, FWA must appear to be something entirely new and never attempted before, but this is far from the case: The same basic approach has been used multiple times over the years, none of which gained traction for various reasons. For example, MMDS, or Multichannel Multipoint Distribution Service, emerged in the 1970s and gained popularity in the 1980s and 1990s. Initially designed for educational television, MMDS operated in the 2.5 GHz band and was often referred to as “wireless cable” because it could wirelessly deliver multiple channels of video programming.

The history of MMDS begins with the FCC’s allocation in 1963 for Instructional Television Fixed Service (ITFS). However, in the 1970s, the FCC allowed commercial use of some ITFS frequencies, which resulted in the development of MMDS. The technology gained traction in the 1980s to provide cable-like services to rural areas where laying cable would not be economically viable.

MMDS was based on a central transmitter that broadcast signals to small antennas installed at subscribers’ homes where set-top boxes decoded them. The technology provided coverage of about 25 to 35 miles from the transmitter, making it suitable for covering large areas with relatively low infrastructure costs. During the 1990s, it was viewed as a potential competitor to cable TV, and companies like WorldCom and Sprint invested heavily in the technology to enter the home entertainment market. However, MMDS offered limited channel capacity compared to what cable and satellite systems could provide.

MMDS providers began to shift their focus from television to broadband internet services and were adapted to provide data communication marketed as a high-speed alternative to dial-up Internet in areas lacking DSL or cable. Eventually, MMDS, as initially conceived, began to decline with the rise of more advanced technologies like fiber optics, improvements in traditional cable and DSL, and the emergence of new wireless standards.

In 2004, the FCC decided to repurpose the 2.5 GHz band for mobile broadband services, which had been used for MMDS. This marked the beginning of the end for MMDS, and the spectrum it once used has since been reallocated and is now used mainly for 4G LTE and 5G. Many companies that had invested in MMDS either pivoted to these newer technologies or sold their spectrum holdings to mobile carriers.

What came after MMDS was the Local Multipoint Distribution Service (LMDS) that operated between 28 and 31 GHz. While the latest iteration of FWA mostly targets residences, LMDS was conceived to serve high-rise office buildings in urban environments where access to Ethernet was relatively rare.

LMDS was a big deal for a few years, and many prominent names in the telecommunications industry got on board with cash in hand. As Wired wrote in 1999, “In New York and other urban areas across America, finally there’s a fast track to the broadband connectivity that copper wires, coaxial cable, and even fiber have failed to deliver.”

Unfortunately, after investing enormous sums of money in LMDS, most companies deploying it filed for bankruptcy or were acquired. The problems were that the required technology wasn’t ready, what was available was too expensive, and the well-known propagation problems at these frequencies weren’t effectively solved. In short, technology wasn’t ready back then to cost-effectively deploy millimeter-wave systems to consumers and make a profit.

Winstar Communications, the originator of LMDS, sold its FWA spectrum holdings for $42.5 million after Winstar went bankrupt in 2001. In 2006, GVC Networks bought Winstar’s subsidiaries and continued to operate telephone, video, and broadband services in 18 metropolitan markets under the name GVCwinstar until it too went dark. Winstar wasn’t the only company that tried its luck with LMDS. Nextlink Communications was formed as a subsidiary of XO Holdings in 2006, whose subsidiary XO Communications had earlier attempted but failed to launch an LMDS service under the name Nextlink.

Nextlink changed its name to XO Communications and had a considerable presence but failed to make a profit. Verizon eventually acquired XO Communications in 2016, purchasing its fiber-optic network business for about $1.8 billion. Other companies in this business included WNP Communications (acquired by Nextlink in 1999 for $595 million) and Telligent (went bankrupt; its assets were sold).

WiMAX Arrives

FWA gained momentum with the introduction of WiMAX (Worldwide Interoperability for Microwave Access) in the mid-2000s. WiMAX was designed as a long-range wireless broadband solution that provides internet access over several miles with higher bandwidth and lower latency than satellite-based systems.

It represented a significant leap forward for FWA as it could deliver speeds comparable to those of DSL, making it a more attractive option for consumers and businesses in rural areas. However, despite its promise, WiMAX faced challenges in terms of widespread adoption. It competed directly with emerging 4G LTE technology, which offered better coverage, speed, and scalability. As a result, many telecommunications providers shifted their focus toward LTE, and WiMAX’s influence waned over time.

As a last-ditch attempt to prevent WiMAX from being swamped by newer technologies, the WiMAX Forum introduced WiMAX Advanced, also known as WiMAX 2 or IEEE 802.16m. This technology was designed to provide significant improvements over its predecessor, including higher data rates, lower latency, and better spectral efficiency. WiMAX Advanced theoretically supports peak data rates of up to 1 Gb/s for fixed stations and 100 Mb/s for mobile applications and incorporates features like MIMO, beamforming, and improved handover mechanisms for seamless connectivity during movement.

While it remains a technically capable system, factors such as ecosystem support, economies of scale, and industry momentum have limited its widespread deployment. WiMAX is still used in some applications and regions, particularly in developing countries or areas with limited infrastructure. It’s also used for emergency communications, military applications, and industrial IoT, where its technical characteristics are advantageous. So, while WiMAX never took off, its underlying technology continues to exist today, as does the WiMAX Forum, which appears to be focusing on “WiGRID” networks dedicated to the utility industry as it moves toward the “smart grid.”

FWA Finally Gets It Right

The real turning point for FWA arrived with 4G LTE technology, which allowed it to become more competitive with wired broadband technologies. It offers reasonable speeds and reliability without the need for extensive physical infrastructure. As the capabilities of 4G LTE matured, FWA became increasingly attractive for delivering entertainment services and Internet access. With faster data speeds and lower latency, LTE-enabled FWA allows users to engage in bandwidth-intensive activities such as video streaming, online gaming, and video conferencing.

The transition to 5G technology marked the most significant evolution of fixed wireless access and expanded its role in entertainment services. Consumers can now stream high-definition and 4K video content, play latency-sensitive online games, and use cloud-based services, and the low latency of 5G enables new types of interactive and immersive entertainment experiences, such as virtual reality (VR) and augmented reality (AR), which require rapid data transmission and minimal delay.

The result? FWA is growing like a weed and overtaking all other technologies for delivering high-speed broadband to the home, including fiber (Figure 3). It accounted for 90% of the broadband additions in 2022, even though it provides speeds far lower than fiber or cable and is only slightly less expensive. Currently, speeds are lower than even the least expensive cable plans and an order of magnitude slower than those of fiber. That’s fine for most people but not households with “heavy users,” who could exceed what the limited bandwidth offers. In some locations, optimum placement of “the box” (with its integrated antenna) might not be possible, which would require an external (and its accompanying cable).

In addition, FWA has the same asymmetric service as cable—much higher download than upload speeds. Finally, FWA shares 5G bandwidth with mobile subscribers, so speeds might decrease when traffic on the network is heavy. Nevertheless, according to recent reports, people with FWA are happier with this solution than with what they had before.

The resurgence of FWA supports the idea that most people will do almost anything to get rid of wires, whether coax or fiber, both outside and inside the home. The providers, primarily T-Mobile and Verizon at the moment, make installation simple without sending out a technician for every new installation that costs them billions of dollars annually, so they can offer FWA with monthly costs ranging from $50 to $70 and (presumably) still make a profit. The provider simply mails a package to the home that includes a router-modem combo and sometimes an external antenna. All that’s required is to put this “box” near a window, download an app, and create a Wi-Fi SSID (Figure 4).

The current low cost of FWA also makes it appealing, even though its performance barely meets the FCC’s criteria for broadband in its current form. That said, when the wireless industry eventually widely deploys millimeter-wave frequencies, performance should increase dramatically, rivaling fiber, the high-speed champion. Deployment of millimeter-wave 5G has been a slow process, but it should eventually be widely available as mandated in the 5G standards. In short, FWS seems destined to be the go-to choice for broadband delivery, replacing cable and competing only with fiber where it’s available.