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Tim Donovan, president and chief executive officer of the Competitive Carriers Association (CCA) told RCR that U.S. regional carriers need to continue investing in spectrum, network upgrades, and new services
In sum – what to know:
Technology investment matters – Regional carriers need continued spectrum and network investment, including completing the move to 5G standalone and preparing for 6G.
AI cuts costs – Automation and AI could help carriers with smaller workforces operate networks more efficiently while improving customer experience.
Spectrum access critical – Donovan says regional carriers need meaningful opportunities to compete for new spectrum as bands become available.
Regional carriers will need to maintain technology investment and access to spectrum if they are to remain competitive with nationwide operators, while AI and automation could help them manage costs, according to Tim Donovan, president and chief executive officer of the Competitive Carriers Association (CCA).
In an interview with RCR Wireless News, Donovan said the fundamental challenge for regional operators over the next three to five years will be continuing to take advantage of technological developments while maintaining a competitive service offering.
“We have some members who have long said that if you can’t keep up with your Gs, then you’re going to be left behind,” Donovan said. That principle remains relevant even as the industry becomes less focused on which wireless generation an operator is using and more focused on the technologies and services it can offer.
Donovan said carriers need to continue investing in spectrum, network upgrades, and new services. Completing the transition to 5G standalone is also important for operators that have not yet done so, he said, because it unlocks new functionality and lays the groundwork for 6G deployment.
“So the carriers that are still going to be strong operators down the road in three years, five years and beyond are those that are able to take advantage of these technological developments and continue offering a comparable product to their nationwide peers,” Donovan said. That will be important both for keeping up with customer expectations and taking advantage of the latest technologies, Donovan added.
Donovan said it is important for regional operators to maintain the same economies of scale as nationwide carriers so they are not forced to invest in bespoke band classes, equipment or network gear that may not be available at scale or could be significantly more expensive.
“So there are a lot of reasons why carriers need to keep up with their technology and keep moving forward,” he said.
AI could provide another way for regional carriers to manage the cost side of that equation. Donovan pointed to virtualization and AI applications in the network core that could help operations run more efficiently and, in some cases, agentically or autonomously. “I think a lot of companies are seeing what can be virtualized, where AI can help support new operations,” he said.
For regional carriers in particular, the ability to automate some network tasks could be significant because these operators often have more limited workforces. “From a rural carrier perspective in particular, this allows you to take what’s oftentimes a more limited workforce and put them towards the most efficient use instead of doing some of the tasks that can now be automated,” Donovan said.
He sees that as a way to reduce expenses while also improving the customer experience. “And that’s a great way to cut your expenses while also delivering a better consumer experience for your customers,” he said.
Spectrum access remains another major concern. Donovan said regional carriers need meaningful opportunities to participate in upcoming auctions and acquire new bands. CCA is also examining whether existing mechanisms designed to support smaller and rural operators, including bidding credits, are sufficient.
“It’s been some time since we’ve really looked at whether bidding credits or other auction mechanisms that help support rural carriers are getting the job done,” Donovan said. “And we need to make sure that they’re able to compete and win.”
Donovan said regional carrier participation can also benefit the broader auction process by pushing participants to establish the highest and best value for spectrum.
Beyond spectrum and technology, public policy will remain an important part of the regional carrier equation. Donovan said CCA is examining the future role of support programs including the Universal Service Fund and the Broadband Equity, Access, and Deployment Program (BEAD), particularly what happens after networks have been built.
BEAD is targeted primarily as a capital expense fund to help build networks, Donovan said, but he argued that policymakers also need to consider what comes after deployment.
