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C Spire is not buying T-Mobile’s rural plans

T-Mobile has plan to provide economical fixed wireless service to rural consumers but C Spire is not buying that plan, as the regional wireless carrier told FCC.

For its merger deal with Sprint, T-Mobile came up with a pilot-launch plan of a fixed wireless access (FWA) service for $50 per month to select rural areas and committed to expand that service once its merger with Sprint become completed successfully.

But in an FCC filing, C Spire and the Rural Wireless Association (RWA), responded to that announcement of T-Mobile arguing that the telecom giant did not consider the financial impact of the backhaul in remote areas while making such promises., and hinted that the third-largest U.S. carrier lacks required backhaul capacity in rural areas which can support the speeds and coverage area currently represented by the T-Mobile and that also not supports the 5G plans of New T-Mobile.

4Competition Coalition is against the T-Mobile’s merger with Sprint and sees it causing higher prices with less competition and fewer choices left for the consumers, and both, C Spire and RWA, are part of that coalition.

In its ex parte filing on March 11, T-Mobile argued that some of its rural sites already have high speed backhaul while remaining will be provided with contracted fiber build-out. Moreover, T-Mobile has designed its backhaul future-proofed which can hold the performance required for the New T-Mobile and company has made the upgradable/scalable solutions and contractual arrangements for those backhaul already in place, it said.

Countering the T-Mobile’s arguments in its second FCC filing, C Spire claimed that realities of backhaul were ignored by the T-Mobile in its FWA plans, as it lacks details of proposed transaction which impacts the difficult economics of rural buildout having severe limitation of availability and cost of backhaul, it states.

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Maria Wiggins

Written by Maria Wiggins

Maria Wiggins:- News Stories
I am Maria Wiggins and I have over 11 years experience in the Technology industry giving me a vast understanding of how news affects the financial markets. I am an active day trader spending the majority of my time analyzing earnings reports and watching commodities and derivatives. I have a Masters Degree in Economics from Westminster University with previous roles counting Investment Banking.

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