Editor’s Note: RCR Wireless News asked wireless industry analysts and executives to provide their predictions for what they expect to see in 2012 across their areas of expertise.
2012 is forecasting to be a pivotal year for regional wireless carriers across the United States. Many of the issues we have been combating for several years will still be plaguing regional carriers, along with new issues that arise every day in this dynamic industry. Several of these issues will reach a crucial turning point for carriers. We begin 2012 with numerous questions and not enough answers.
How will the phase-down of USF impact regional wireless carriers? Carriers will need to alter their business model to reflect the decrease in USF and become more creative in the ways that they can serve their customers. Regional consumers will be hit hard by these cuts with decreased communication options such as hindering public safety officials with the ability to respond to emergencies. It will take several years before providers fully understand and comprehend how USF cuts will shape the ways they do business.
With USF beginning its phase-down in 2012, many carriers will be faced with crucial decisions to make: including, to 4G or not to 4G? The evolution of networks to 4G and LTE will greatly impact the industry in 2012; and it will almost become a story of the “haves” and “have-nots.” The decrease in USF will significantly influence the direction that carriers will take and the route they will take to get there.
Fitting into this puzzle is the ongoing saga of roaming, interoperability and handset exclusivity. If a carrier decides to take the next step with their network, will they have the devices to use their network to its fullest potential? We are finally starting to see the iPhone making its presence among smaller providers, which is a great step in putting everyone on an equal playing field. The impressive growth of Android devices in the marketplace has enabled carriers to offer their consumers an alternative to the iPhone, but again, we see exclusivity in this market as our networks begin to mature.
Regional carriers are making large sacrifices to provide their customers with seamless nationwide coverage and cutting-edge technology. By paying exorbitant roaming rates, carriers find themselves faced with even more challenges. They have to carry the most current devices they can obtain, most of which use considerable amounts of data in order to remain in the ballgame. They have to provide their customers with continuous service throughout the country, which leads to high roaming costs for the providers. Many times, regional carriers are not able to economically provide a true nationwide data footprint for their customers.
The issues regional wireless carriers will face in 2012 are some of the biggest challenges ever presented in the industry. If the providers can find a way to fit these puzzle pieces together, they will be able to succeed well into future years. It will take a tremendous amount of support from Capitol Hill, as well as some larger carriers becoming more “competition friendly,” to turn these challenges into opportunities the smaller carriers can utilize to secure their future.
