The power of partnerships

Small wireless carriers want to offer their customers the same advanced services the big companies offer theirs. But the economics of innovation, as we all know, are less favorable for small companies, and it is difficult--often impossible--for them to keep pace with the big carriers in deploying advanced services.

As the next generation of wireless services is rolled out, this is troubling for smaller carriers. Beyond concern about advanced services for our customers, there are the related and larger issues of economic development, always a problem in rural areas. A further lag in deploying advanced communications technology in rural markets will only aggravate the difference between urban and rural economies.

Troubling as this is for us, it's not just our concern. It should be troubling for big carriers, too, because of the implications for their own customers and their own businesses. The reason, of course, is the result of the expanding national marketplace; today, wherever wireless customers travel, whether it's the customer of a small rural carrier or a large national carrier, they want and expect to find the same services they have grown to depend on and now "need."

This principle should be seen in light of two basic facts. First, more than 50% of America's coverage area, including Alaska, is served by approximately 150 small carriers, according to the Rural Cellular Association. Second, wireless has now become a truly national market--the big companies market products and services as a national product, and American consumers have learned to use wireless wherever and whenever they want. They use voice services that way, and they will expect to use advanced services that way as well.

I'm sure every carrier has had customers fill their ear about the difficulties with service when they're on the road or on vacation--"your" service as far as they are concerned. They don't always differentiate your service from a roaming partner. They have your phone, they get your bill and, in most cases, they are unclear about where service boundaries are and what changes to expect when crossing those boundaries.

The point is, the big carriers have a clear and vested interest in the smaller companies delivering broadband and advanced services sooner rather than later. Customers will expect the ubiquity of broadband and advanced services because they now get this with their voice service. But how long did it take for the industry to reach this point with voice? It can't take that long with advanced services or we all lose out. To get there quickly doesn't call for charity, but rather for enlightened self-interest and the desire to work together to find a "win-win" scenario for both the carriers and the consumer.

Cingular is demonstrating such an approach by making it easier for small companies to invest in the equipment and other elements necessary to provide advanced services. In a recent Request For Proposal to UMTS equipment manufacturers, Cingular asked vendors to sell these elements to rural carrier partners at the same price it pays--a huge savings for the smaller carrier. Earlier, Cingular had offered similar pricing considerations to several rural carriers making a conversion from TDMA to GSM/GPRS.

This makes for a promising partnership. It is an approach that all big carriers could follow, for their own interest, and that of the industry as a whole. The network is the only real product we sell. If we work together as a team to deploy a nationwide broadband network more quickly and efficiently, everybody benefits.

President Bush understands that broadband is necessary for people and businesses in rural areas--that it is important to their economy and quality of life. His administration has made deployment of broadband in rural areas a priority. Cingular is demonstrating a way to enable this to happen sooner rather than later. This is a plus for its own customers, consumers and businesses. It will be a plus for our customers in rural Southern Illinois, and it's a plus for the whole industry, and, ultimately, America's economy.

Terry Addington is a member of the board of the Rural Cellular Association and president of First Cellular of Southern Illinois. He may be reached at taddington@firstcellular.com.