Rural telecommunications providers continue to invest in wireless services despite growing concerns about competition and difficulty negotiating roaming agreements, according to NTCA’s 2012 Wireless Survey Report.
The report found that 62% of respondents are providing wireless service to their customers and they continue to make significant investments in their wireless services. The cumulative investment in wireless facilities by rural local exchange carriers now averages $11.7 million per carrier, with an additional $1.4 million, on average, invested in spectrum.
While they have stepped up wireless investments, small, rural carriers also continue to be concerned with a number of factors affecting their ability to offer affordable and reliable wireless services. Ninety-two percent of respondents to the 2012 survey cited competition from nationwide carriers as a significant concern, compared to 75% a year ago.
Further, negotiating roaming agreements remains challenging. Sixty-nine percent of survey respondents categorized their experience in negotiating data roaming and in-market roaming agreements with other carriers as moderately to extremely difficult. Nearly two-thirds of all respondents selected their ability to negotiate roaming agreements with national carriers as a significant impediment to their ability to do business.
At the same time, rural wireless providers reported churn rates well below the national average, which would tend to indicate that customers are satisfied with the overall quality of service provided by the small providers. However, it is clear that the competitive threat will not diminish; rural carriers will need to continue to provide excellent quality service if they wish to retain their customers into the future.
NTCA’s wireless survey was conducted in the summer of 2012. More than 100 of NTCA’s member companies participated.
