Rural Carrier Groups Unimpressed by Verizon LTE Offer
The Rural Cellular Association and the Rural Telecom Group sharply criticized Verizon Wireless’s disclosure that it’s in talks about partnerships with rural carriers to accelerate LTE deployment in remote places. The association’s president, Steve Berry, said the announcement doesn’t deal with a crucial matter: Data-roaming agreements with smaller carriers around the country.
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Berry said he has been in negotiations with Verizon over data roaming and was surprised to see the 4G announcement. “We've been in discussions with Verizon and the large carriers for months now, trying to find a solution that is a non-regulatory solution, that brings the industry together and for a solution that is a working solution, a business solution,” he said in an interview. “I thought they wanted peace within the industry and a policy that serves consumers. … I just happen to believe that data roaming is sort of the long pole in the tent. Without data roaming, you don’t attract investment capital and you don’t have the ability to not only build out your system but immediately start paying for it."
Berry said he’s glad Verizon finally recognizes that it “will need the rural carriers if rural America is going to get 4G.” Verizon “has no plans for 4G in rural America,” he said. “Their proposal is interesting, and we look forward to their implementation plan.” But the real issue is data roaming, Berry said. “If the FCC wants to get innovative services to rural America, data roaming agreements must be mandated for 2G, 3G and 4G,” he said. “Roaming is a fundamental building block for broadband deployment, and the FCC has the power to provide a solution to solve this Gordian knot. … The FCC could fix this within 45 days. They could come out with a mandated data-roaming requirement."
The Verizon announcement “comes as a complete surprise to RTG and its members,” said General Counsel Caressa Bennet of the Rural Telecom Group. “No one from Verizon has included them in any discussions regarding leasing spectrum. Best we can tell, Verizon has talked to two larger rural carriers that sit on CTIA’s board.” She added, “If Verizon is serious about working with rural carriers, I would strongly urge them to contact the rural wireless trade associations to get this message communicated, because right now, rural wireless carriers are sitting in the dark wondering if this has been fabricated to keep Congress and the FCC at bay concerning their loads of warehoused spectrum in rural markets."
Verizon Wireless CEO Lowell McAdam told the Wall Street Journal that his company is still negotiating a deal with rural carriers. FCC Chairman Julius Genachowski and Commissioner Meredith Baker released a statement applauding the development. “Bringing the benefits of mobile broadband to rural America is one the Commission’s top priorities,” they said. “The news of Verizon Wireless’ plan to partner with rural providers to accelerate investment in 4G networks is very encouraging. … We look forward to learning more about Verizon Wireless’ initiative, its successful implementation, and other examples of industry-led innovation."
"Since Lowell made his remarks earlier this week we have had a very strong interest from rural carriers across the country in finding ways to work together,” said Jeffrey Nelson, spokesman for Verizon Wireless. “This is a really great sign the realities of LTE are going to reach rural America sooner rather than later.”