Western Wireless CEO John Stanton told state regulators that fixe...

wireless carriers could serve high-cost, thinly populated rural markets with investment less than half what wireline carriers must put into market, greatly reducing need for universal service subsidies. In some rural areas, he said, fixed wireless is only way public ever will see any phone service, let alone Internet access. Widespread fixed wireless loops in rural areas, he said, could reduce burden on federal and state universal service funds by $2.4 billion annually. He said his company’s experience with competitive local service in rural towns with populations under 1,000 had been initial rapid penetration of market, followed soon after by lower prices, more service options and better service quality from incumbent wireline telco. He said wireless represented only economically practical way to reach isolated rural communities when terrain and distance made stringing phone lines uneconomic. He said Western had received eligible telecom carrier (ETC) status to receive federal universal service subsidies in 12 states, but had encountered regulatory obstacles in such states as Mont., N.M., S.D., Wyo. He said obstacles arose when rural incumbents pulled out all stops to deny Western any subsidies, or state regulatory processes became protracted ordeals. Realizing competitive promise of fixed wireless in rural areas, he said, will require expedited ETC reviews, neutral entry rules, universal service subsidies that are explicit and portable.