Earlier this week I have a very interesting and I think important conversation with Steve Berry, who is the President and CEO of the Competitive Carriers Association. We discussed the CCA Mobile Carriers Show coming up in April in Tampa Florida. However, the conversation was very far reaching. Let me share some of that conversation with you here.
First, the CCA is basically a group of smaller and mid-sized wireless carriers across the United States and the companies that serve that market. The they are vital to the health of the larger wireless industry as we move forward to 5G and beyond.
The CCA goes to bat for smaller, mid-sized and rural carriers as they compete with the giants, Verizon Wireless and AT&T Mobility.
Verizon and AT&T are not members. T-Mobile is a member. You may think of T-Mobile as one of the giants of the industry today. And in fact, they are, today. However, yesterday they were one of the smaller carriers.
Their success in recent years has catapulted them into the same league as Verizon and AT&T. However, they still do understand the important issues of smaller competitors.
Two parts of wireless industry, Verizon, AT&T and CCA members
Now, let’s put the wireless industry into perspective. It is split into two distinct parts. Part one is the mega carriers, Verizon Wireless and AT&T Mobility. And in actuality T-Mobile as well.
Part two are the many smaller, mid-sized and rural carriers that operate in smaller markets. Companies like T-Mobile, Dish, C-Spire, US Cellular, Cellcom, GCI, Carolina West Wireless and many others.
CCA members like T-Mobile, Dish, C-Spire, US Cellular and more
These smaller wireless carriers play a very important role in today’s wireless world. They have the same need for new technology, just like the big guys. However, they have a much smaller footprint with smaller budgets.
Where Verizon or AT&T may have thousands or tens of thousands of different customers in any single area, smaller competitors may only have a couple thousand. That difference creates a big difference in the level of revenue generated. This limits them financially in their investment and expansion.
That limitation also plays an important role in their ability to acquire wireless data spectrum, as one example. They need spectrum, but they cannot spend what Verizon, AT&T and T-Mobile can.
CCA helps smaller wireless carriers balance playing field
Smaller, regional wireless and rural carriers have the same need for wireless data spectrum and 5G technology.
However, because they have a smaller customer base, and a smaller revenue stream, they simply cannot compete on equal footing with Verizon and AT&T.
At the same time their services are just as important to their customers.
CCA is the association which plays an important role trying to help balance the playing field. They go to bat for member companies in Washington DC, in places like the US Congress and US Senate.
Co-opetition best describes CCA members vs. Verizon, AT&T
The best word to describe the relationship between CCA member carriers and Verizon and AT&T is co-opetition.
Co-opetition is when companies both compete with each other and also work together, depending on the issue.
Example, if Verizon or AT&T need more coverage in less populated areas, they strike a deal and re-sell wireless network capacity from one of the smaller carriers in different regions around the country.
This is an important income stream for these smaller carriers. This is a balance that works.
Verizon and AT&T need smaller wireless competitors
Over time, sometimes, the big guys think to themselves, with the money they are paying the smaller carrier, they can install their own tower and save that money.
While that may work for Verizon, AT&T and T-Mobile, this often suffocates the smaller carrier. Sometimes it means smaller carriers must pull out of certain geographic areas.
This harms the marketplace. This cuts service in areas around the country. This is not fair to the customers or to the smaller carriers who often struggle.
Co-opetition should be a symbiotic relationship between wireless carriers
I understand how important it is for larger companies like Verizon Wireless, AT&T Mobility and T-Mobile to continue to compete, grow and remain strong.
However, I also understand how important it is for smaller companies in smaller market areas to do the same thing.
There needs to be a balance which keeps all players alive, and all areas covered.
Therefore, Verizon, AT&T and T-Mobile should recognize their responsibility to make sure their smaller competitors do well and stay in business.
After all, they need the CCA competitors as much as they need their own networks. Putting competitors in a weakened position will only hurt everyone in the long run.
Microsoft supported Apple in early days of competition
Let me give you an example. Remember the early years when Microsoft and Apple competed head-to-head. Apple could barely hold their own and struggled in the 1980’s and 1990’s. Back in those early days Microsoft could have choked Apple off.
If they did that, where would we be today. Today, Apple is a shining city on the hill. An industry leader.
Microsoft supported their smaller competitor Apple in those early days and that benefited not only Apple, but Microsoft as well and in fact the entire industry is better for it today.
Wireless carriers must rip-and-replace Huawei, ZTE gear
Another issue smaller and rural wireless providers are wrestling with is they are under financial pressure to remove Huawei and ZTE gear from their networks. This is a very costly move, and many carriers are struggling to do so.
Yet, because it is a US Government mandate, it must be done. This puts the big squeeze on smaller, often privately owned companies.
So far, costs are skyrocketing to $5.6 billion.
This problem mostly affects smaller and rural wireless carriers across the country. These are the companies who are financially stressed the most and least able to rush and meet this mandate.
Keynote speeches on wireless at CCA Mobile Carriers Show 2022
These are just some of the topics, problems and opportunities that will be discussed in various keynote speeches and educational sessions at the upcoming CCA Mobile Carriers Show 2022.
This is why it is important to support the Competitive Carriers Association. They play an important role in this increasingly competitive world in the wireless industry.
Of course, Verizon Wireless, AT&T Mobility and T-Mobile are important. However, what gets lost in the shuffle is that smaller and more rural wireless carriers are just as important. Yet they are the smallest and least capable defending themselves against the giants financially.
I learned quite a bit from my conversation with Steve Berry of the CCA. I look forward to further discussions and to learning more and sharing that with you in upcoming columns.
Enjoy the CCA Mobile Carriers Show in Tampa next month in April.
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