Verizon Wireless's second 4G rural partner will lease spectrum for its own 4G build and resell Verizon network

The second carrier to join the Verizon Wireless LTE in Rural America program plans to use both available options for providing 4G LTE service through the Verizon partnership, including leasing 700 MHz spectrum from Verizon to build its own network and reselling services running over Verizon infrastructure.

“Our existing 3G footprint covers 345,000 pops and we will build out approximately 264,000 pops under the proposed 4G LRA program,” Richard Ruhl, general manager for Pioneer Telephone Cooperative Inc. wrote in an email to Connected Planet today. PTCI is one of several rural telecom companies that together own the new Verizon Wireless rural partner company Pioneer Cellular. “In our ‘non-build 4G’ service area, we will market Pioneer Cellular-branded 4G LTE products but use the Verizon network under a contractual wholesale arrangement.”

In addition, he said Pioneer has 3G spectrum covering 96,000 additional pops that are not part of the Verizon agreement, ultimately bringing Pioneer’s entire 3G/4G service area to 445,000 pops.

Ruhl also noted that Pioneer’s Cellular’s contract with Verizon Wireless calls for the portion of the network Verizon will be building to be completed by 2013, while the portion Pioneer will be building is targeted for completion by January 1, 2012. Ruhl said Pioneer liked the idea of using Verizon spectrum to upgrade Pioneer’s existing 3G network because it should enable Pioneer to protect its existing 3G investment and add the 4G component as an incremental investment.

Pioneer already has 700 MHz spectrum of its own that matches the same footprint encompassed by the Verizon rural program, Ruhl said. But that spectrum is already earmarked for a fixed 4G wireless broadband project that will be funded, in part, through a loan and grant that the company received through the broadband stimulus program.

The first carrier to join the Verizon rural wireless program was Bluegrass Cellular, which plans to lease spectrum from Verizon to build its own network.