Sprint, Yahoo Executives Urge Partnerships with CCA Member Carriers
Sprint Chairman Masayoshi Son told the Competitive Carriers Association trade show Thursday small carriers “need to fight back” against the Verizon Wireless-AT&T wireless carrier “duopoly” that’s “taking over our country.” The top two U.S. wireless carriers had 73 percent of postpaid wireless subscribers in 2013, up from 56 percent five years earlier, according to statistics Son cited from the GSM Association. During the same period, the two carriers’ combined share of enterprise customers rose to 80 percent from 51 percent in 2008, Son said. “What happens in the next five years?” he said. Son has previously used similar arguments in arguing for further consolidation in the U.S. wireless industry, but did not address Sprint’s rumored interest in buying No. 4 U.S. carrier T-Mobile US in his remarks Thursday.
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Son’s comments followed Sprint’s rollout Wednesday night of partnerships with CCA and the NetAmerica Alliance to help them deploy 4G LTE in their markets. Sprint said it’s connecting its network with the CCA-created data roaming hub, allowing participating small and rural wireless carriers to provide LTE data roaming via Sprint’s network. NetAmerica members will get LTE buildout aid from Sprint on two fronts -- Sprint majority owner SoftBank will provide financial aid to NetAmerica members to help with their LTE buildouts, while Sprint will lease its unused holdings on the 800 MHz and 1900 MHz bands to NetAmerica members. Sprint customers will conversely get access to NetAmerica members’ 4G LTE networks, which may improve Sprint’s data speeds in rural areas, the carrier said. Sprint will also begin adding support for 700 MHz Band 12, used by the carriers belonging to CCA and NetAmerica, on some of its devices beginning in January 2015.
Sprint and the rural carriers hold complementary resources and are not direct competitors, making them ideal partners against Verizon Wireless and AT&T, Son said. “With our services, we can fight back,” he said, saying Sprint will make its planned 200 Mbps wireless data speeds available to the subscribers of carriers who collaborate with Sprint. Son framed the partnerships as an opportunity to equalize U.S. customers’ access to 4G LTE, but said it’s “also a clear demonstration of Sprint’s long-term commitment to bring real competition to the wireless industry.” CCA President Steve Berry praised Sprint for entering into the partnerships, saying that Son “shares your views about competition against the duopoly."
Yahoo is also ready to help CCA member carriers and understands their struggle against Verizon Wireless and AT&T, said Scott Kelliher, Yahoo’s industry sales leader-technology and telecom. “We fight our own sort of duopoly at Yahoo,” he said. “We're fighting a battle against Google and Facebook.” Yahoo can provide CCA member carriers with syndicated content that will increase their advertising revenues and subscriber interest, Kelliher said. “Here’s your chance to claw your way back,” he said.