- The Competitive Carriers Association (CCA) held its annual convention in San Antonio this week
- The organization represents dozens of wireless carriers that continue to serve rural areas of the U.S.
- With all the big carriers connecting from space, the smaller operators are trying to figure out how they’re going to compete
SAN ANTONIO, TEXAS—Satellite connectivity is definitely on the minds of operators here at the Competitive Carriers Association (CCA) annual convention, and they’re looking at CCA to lead the way.
All the big wireless carriers – Verizon, T-Mobile and AT&T – have relationships with satellite companies that give them access to satellite connectivity in cell phones, either now or in the future.
In T-Mobile’s case, it’s partnered with Elon Musk’s SpaceX/Starlink and it already offers a commercial direct-to-device (D2D) service. AT&T and Verizon are both investors in AST SpaceMobile, which is in the process of launching a low Earth orbit (LEO) constellation that will provide D2D service to the operators. Verizon also offers satellite connectivity through Skylo.
Smaller operators – and we’re talking carriers with fewer than 1 million customers – are wondering how they can offer similar services. Importantly, they’re not contemplating that satellites will make their networks in remote areas obsolete. Rather, they’re thinking about how they can use satellites to enhance their own coverage and/or economics.
“We are evaluating what those partnerships look like with satellite providers,” said Chris Champion, VP of Government Relations at Mississippi-based C Spire and a member of CCA’s board. “I think that's something that this [CCA] organization as a whole could potentially get involved with.”
Both AST SpaceMobile and SpaceX/Starlink are members of CCA, said CCA President and CEO Tim Donovan. He’s already held conversations with government relations representatives at those and other satellite companies to get the ball rolling, he told Fierce on the sidelines of the CCA convention.
“I think what we're still exploring are the different competitive challenges from satellite services for fixed versus for mobility,” he said. For example, how well does satellite connectivity get inside vehicles – now or in the future?
For a long time, it’s been well understood that satellites don’t provide adequate coverage inside buildings. That’s always been the domain of terrestrial wireless carriers, which themselves at times have been challenged to provide decent coverage indoors.
Is Musk developing something that changes that? Who knows?
“I'm never going to underestimate technology evolving because I think everybody who's tried to do that has always been wrong,” Donovan said. “Sometimes it takes longer, sometimes it doesn't.”
Several CCA members echoed that sentiment, saying they admire what Starlink has done and wouldn’t write off its ability to find new solutions to old problems.
“They've had some outages, but I think we've all had some outages. I'm sure they'll figure that out,” said Frank DiRico, president and CEO of Fort Morgan, Colorado-based Viaero Wireless Technologies.
Champion noted how his company already competes with Starlink in offering broadband service to homes in rural areas. Fiber isn’t going to reach a duck camp in the middle of the Mississippi River, but “you can get Starlink there,” he said.
Change is in the air
From a Washington, D.C., policy perspective, one of the issues CCA is contemplating is how smaller rural carriers could avoid building a tower somewhere that could be better served via satellite, Donovan said.
Many rural carriers operate towers that lose money every month because they serve very few paying customers but they keep the sites because their customers need the coverage. That’s why they rely on government subsidies to help them stay afloat.
“There's a lot of change going on and we're kind of looking at that for both where the challenges are and where the opportunities are today. I wouldn't say that they're competitors, but our members are looking at how to work together,” Donovan said.
Said another way: “It's definitely an interesting time in this industry right now,” C Spire’s Champion commented.