I recently had the pleasure of sitting down with Martin Creaner, Director General of the World Broadband Association (WBBA), for a far-reaching conversation about the fixed broadband industry’s future. We explored the WBBA’s rapid growth, the monetization challenges broadband operators face, and the pivotal role of AI in shaping tomorrow’s networks.
The WBBA’s Growing Role
The WBBA was established to fill a major gap in the industry. While mobile operators have long benefited from the GSMA, fixed broadband providers had no equivalent global association. Since its creation three years ago, the WBBA has grown from eight companies at the end of 2022 to over 160 organizations spanning 55 countries.
This fast growth reflects a broad industry need for collaboration. The WBBA’s membership now includes broadband operators, major vendors and stakeholders from the demand side—enterprises, hyperscalers, governments, and consumer organizations.
Monetization: The Industry’s Core Challenge
Our friends at Point-Topic predict global fixed broadband subscriptions will reach approximately 1.6 billion by 2029, reflecting a 10.2% increase from mid-2024 levels. Emerging markets primarily drive this growth, while mature markets experience slower expansion due to high existing penetration rates.
However, despite continuous broadband speed and capacity improvements, average revenue per user (ARPU) remains stubbornly flat or even declining. According to PwC's Global Telecom Outlook 2024–2028, fixed broadband ARPU is projected to decline at a compound annual growth rate (CAGR) of –0.1% over the next five years. This stagnation persists even as operators invest heavily in infrastructure upgrades, such as fiber deployments, to meet consumer demand.
ISPs are trapped in a race to the bottom as broadband markets become saturated with intense competition among providers. This competitive environment pressures operators to offer more for less, further squeezing profit margins.
As Martin put it, “Operators are providing faster and faster speeds and carrying more data traffic, yet the ARPU stays roughly static.”
This growing disconnect has led operators to take a more cautious approach to new technologies like 50G-PON or 6G in the case of MNOs. Instead, the focus is shifting toward better monetization of existing infrastructure.
One promising strategy is enhancing the customer premises network (CPN). Operators can offer quality-of-service guarantees for in-home and business networks, enabling them to charge premium prices. Martin noted that for a typical ARPU of $30 to $35, operators could potentially add another $5 to $10 per month by ensuring superior network performance at the customer premises.
The Role of AI in Broadband’s Future
AI is no longer just a back-office tool for network optimization. It is rapidly becoming a core enabler of broadband business models and a key differentiator to compete.
During our discussion, Martin outlined the WBBA’s various approaches to AI, spearheaded by its dedicated AI Working Group. Unlike many industry groups focusing solely on AI for network automation or predictive maintenance, the WBBA has deliberately chosen to explore AI across the broadband value chain.
The AI Working Group’s first area of focus has been deployment and pre-deployment phases. Here, AI can dramatically reduce costs and improve efficiency. For example, AI can analyze geographic, demographic, and usage data to identify the most profitable areas for network expansion. It can also help predict customer demand and streamline the construction and rollout of new broadband infrastructure. This intelligent planning is especially valuable in emerging markets where capital is scarce, and ROI must be carefully managed.
The second focus is sustainability. AI can optimize energy consumption and resource allocation across networks. As operators face increasing pressure to reduce carbon footprints and align with sustainability goals, AI-driven solutions can help balance performance and efficiency.
However, the most transformative area the WBBA explores is AI-driven business model innovation. The group is investigating how AI agents—autonomous digital assistants—could manage network performance, interact with customers, handle service personalization, and even dynamically adjust pricing models. In other words, AI could soon be responsible for how networks function and generate revenue.
“AI is changing the business model and operations, not just the technology.” — Martin Creaner
This is particularly relevant as operators seek new ways to monetize customer premises networks (CPN). By leveraging AI to monitor and guarantee quality of service inside homes and businesses, operators can offer tiered service levels, creating fresh revenue streams such as home automation without massive new infrastructure investments.
Finally, the WBBA’s AI efforts aren’t happening in isolation. The association is collaborating with other major industry bodies—including the GSMA, WBA, and even the Metaverse Standards Forum—to ensure that broadband networks will be ready to support the next decade's emerging AI-powered applications and digital services.
Looking Ahead: Events and Engagement
The WBBA has an ambitious calendar of events in 2025, including a major gathering in São Paulo this September and the flagship Broadband Development Congress in Paris this October. I also look forward to joining the WBBA’s Latin American Task Force, which will provide opportunities to engage with regional stakeholders.
Final Thoughts: Monetization is the New Frontier
Our conversation confirmed what I have long observed in my own research. The next revolution in broadband will not be won by simply offering faster speeds. It will be driven by those who can innovate in business models and outcomes for their customers.
Watch the full interview with Martin Creaner.