Could Rural Spectrum Bill Trigger More Big-Carrier Programs?

Bi-partisan legislation introduced in the Senate has the potential to engender more partnerships between major wireless carriers and smaller rural wireless network operators. The legislation, to be known as the Rural Spectrum Accessibility Act, would give three-year extensions on spectrum licenses to wireless carriers that lease unused spectrum to rural and smaller carriers.

The legislation was introduced by Sens Amy Klobuchar (D-MN) and Senator Deb Fischer (R-NE). Two of the national carriers -- Verizon and Sprint -- already have formal programs through which they lease spectrum in rural areas to smaller network operators. The Verizon program, known as LTE in Rural America, is only available to carriers in areas where Verizon does not offer 3G service, while the Sprint program, known as SMART, is available more broadly. If the rural spectrum bill were to be adopted, it would appear that Verizon and Sprint would have an incentive to expand these programs and that other major carriers including AT&T and T-Mobile might be more likely to offer similar programs of their own. Alternatively major carriers might consider leasing spectrum without also providing the additional benefits included with today’s rural programs.