Rural Local Exchange Carriers Continue to Invest in Wireless Services Despite Concerns About Ability to Obtain Handsets, Financing

ARLINGTON, Va., Sept. 7, 2011 /PRNewswire-USNewswire/ -- The National Telecommunications Cooperative Association's (NTCA) "2011 Wireless Survey Report" finds that rural local exchange carriers that provide wireless services to their customers serve an average of 4,400 wireless subscribers with an average of 35 cell sites. Their greatest concerns include:

• Their ability to compete with national carriers (75%).
• Handset/equipment availability (61%).
• Their ability to make necessary investments to be able to offer the latest services (60%).
• Their ability to negotiate roaming agreements with national carriers (55%).
• The ability to obtain spectrum at auction (53%).
• Their ability to obtain financing for wireless projects (33%).
• Backhaul capacity/cost (24%).

Despite the carriers' relatively small size and concerns, 87% of rural local exchange carriers offer wireless customers caller ID; 84% voice mail; 77% unlimited local calling, family plans and text messaging; 74% free long distance and Internet access; and 68% three-way calling and email.

Rural local exchange carriers have dedicated substantial resources to providing wireless service to their customers. Survey respondents reported an average total (cumulative) investment of $5.61 million in facilities and $665,000 in spectrum. Survey respondents' intend to offer their customers a wide variety of new services over the next 12-18 month period, including fixed and mobile data, VoIP, WiMax and 700 MHz service.  

Conducted in the spring of 2011, the survey collected data from NTCA member companies about their efforts in providing wireless services to their members/customers.  Responses were received from 127 companies in 35 states, for a 25% response rate.

The National Telecommunications Cooperative Association is the premier association representing more than 570 locally owned and controlled telecommunications cooperatives and commercial companies throughout rural and small-town America.  NTCA provides its members with legislative, regulatory and industry representation; meetings; publications and educational programs; and an array of employee benefit programs.  Visit us at www.ntca.org.

SOURCE National Telecommunications Cooperative Association

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