5 Challenges WISPs Must Overcome To Survive and Thrive

Wireless internet service providers (WISPs) have surged in popularity in recent years. Driven by the emergence of next-generation fixed wireless access (ngFWA), there were around 100 million FWA connections worldwide at the end of 2022—a figure forecasted to triple in size by the end of 2028. Particularly prominent in the U.S., FWA has enabled WISPs to bridge the broadband gap for rural communities underserved by fixed-line operators. Today, 2,000 WISPs serve over 4 million homes in remote areas across all 50 U.S. states.
 

However, WISPs face competitive pressures from large national wireless carriers and fixed-line operators looking to take advantage of the FWA opportunity. Investing heavily in deploying FWA networks, these new competitors can quickly build market share through attractive pricing plans, bundles, and promotions. Here are the top five challenges for WISPs:

1. The trap of speed-based marketing. Faster wireless capabilities allow WISPs to deliver speeds up to 1 Gbps, comparable to those of fiber-based service providers. Of course, actual speeds vary depending on network infrastructure, signal strength, distance from the base station, and network congestion, but are sufficient to meet an average household’s needs. However, for any service provider, leading with speed is a no-win strategy. While 90 percent of FWA providers in North America continue to offer “speed-based” plans, WISPS must develop value propositions that resonate with subscribers—not just speed. Speed is simply a commodity. When subscribers make their decisions based on speed, they will jump ship when a lower price comes along. Value and relationships create lifetime subscribers.
    

2. Addressing the spectrum challenge. Operating an FWA network requires access to spectrum in the right quantities and in the right spectrum bands. Acquiring expensive licenses is far beyond the reach of most WISPs; therefore, they’re reliant on unlicensed spectrum being made available by regulatory authorities. While this approach means WISPs can launch services without the costs associated with acquiring exclusive licenses, it comes with downsides. Interference and congestion are commonplace, range can be limited, and usage is at the mercy of regulatory rules that can change at any time. These factors place significant restraints on growth for WISPs at a time of heightening competition, but focusing too much on the spectrum challenge will use precious resources. 
    

3. High traffic is pushing networks to the limit. Network congestion, exacerbated by rising broadband traffic trends, is the downside of WISPs’ reliance on limited bands of unlicensed spectrum. Ensuring consistent and reliable quality of service (QoS) is challenging given the shared nature of the frequency bands. Accessing more spectrum—either licensed or unlicensed—to alleviate the problem is usually not a viable option. Instead, WISPs rely on regulators opening up more unlicensed spectrum for use, but they can do little to influence or accelerate this process. Focusing on network congestion issues will not differentiate you from competitors—many are facing the same challenge.
    

4. The network technology arms race. The economic advantages of lower infrastructure costs are often offset by the higher cost of extending services to remote or rural areas due to challenging terrain, power availability, and longer distances between users. WISPs must continually invest in upgrading their networks to support the latest standards and technologies—such as ngFWA—to remain competitive. Maximum return on investment (ROI) must be balanced against operational efficiencies, customer expectations, competition, hybrid fiber networks, and planning for future growth. Move the story of broadband to your company and its people—this will drive subscriber retention and ensure better ROI outcomes.
    

5. Rural broadband competition is intensifying. The WISP business model was predicated on serving communities with little or no existing high-speed broadband provision. Previously, WISPs faced no competition, and their targeted footprints meant they rarely competed. But this is changing as massive amounts of available funding have made broadband expansion more attractive for a wide range of players. As competition heats up, have a plan for keeping your brand and services front and center. This will remind your subscribers why they picked you—and ensure they’re not swayed by the next low-cost option that comes to town.  

The growth of small, community-focused WISPs over the last half-decade in the U.S. has been one of the broadband industry’s success stories. But with new challenges on multiple fronts, WISPs must respond to prevent losing market share. At first glance, these five challenges may appear “un-winnable” for WISPs—but that’s simply because they’re focused on the wrong perspective. 
 

To win the broadband race, WISPs must pull up their sleeves and pivot to becoming “experience providers.” This requires a shift to focusing on delivering an exceptional subscriber experience. For those WISPs that have concentrated to date on the engineering side of the broadband business and have been content to simply offer basic connectivity to their subscribers, this “dumb pipe” strategy will not be sufficient to overcome new competitors deploying FWA networks or faster fiber-based offerings. Instead, WISPs need to switch their focus to how the subscriber engages with their broadband service by offering services they want—and delivering them with exceptional service. 
 

Discover how Calix is helping WISPs address their unique challenges in the eBook, “Winning the Broadband Race: Unlocking Success for WISPs Using Subscriber-Centric Strategies.”