Economics, Not Spectrum, Keeps Sprint, T-Mobile Out of Rural Markets, Mobile Future Says
A lack of spectrum in rural markets isn't the reason Sprint and T-Mobile aren't offering service in many rural markets, Mobile Future said in a white paper arguing against setting aside spectrum for competitors to AT&T and Verizon in future…
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spectrum auctions. The paper, by American Rural CEO Diane Smith, examines the five most-rural states: the Dakotas, Montana, Wyoming and New Mexico. All four national carriers hold spectrum in every county in those states, Smith wrote. “In counties where Sprint and T-Mobile provide no coverage on their networks, the companies hold on average more than 84 MHz and more than 32 MHz of spectrum, respectively.” The real impediment is economic, the paper said. The “revenue potential” for a wireless carrier in a major urban center is $248,000 per square mile of service, which drops to $262 per square mile in the least densely populated areas, Smith said. “The premise that Sprint and T-Mobile will use additional low-band spectrum to enter rural markets and compete with established providers is simply not supported by the facts,” she said. Sprint and T-Mobile had no immediate comment.