U.S. regional carriers face a decisive period in network investment and spectrum access. The message comes from Tim Donovan, president and CEO of the Competitive Carriers Association.
In comments to RCR Wireless News, Donovan said smaller operators must keep pace with national rivals. They need stronger networks, fresh services, and access to future spectrum bands.
“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 warning still matters, even as the industry shifts focus. Operators now compete on service quality, coverage, and practical network capabilities.
A key step involves completing the move to 5G standalone. This version uses a dedicated 5G core network. It can support lower latency, better automation, and more advanced services.
It also prepares operators for 6G. That future standard remains years away, but planning has already started.
“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.
However, this path requires capital. Regional carriers often operate with tighter budgets and smaller teams. They also need equipment that vendors produce at scale.
Donovan warned against fragmented band classes and costly custom gear. Such requirements can raise prices and slow deployments for smaller providers.
“So there are a lot of reasons why carriers need to keep up with their technology and keep moving forward,” he said.
At the same time, AI and automation could ease some pressure. Carriers can virtualize more network functions and automate routine operational tasks.
“I think a lot of companies are seeing what can be virtualized, where AI can help support new operations,” he said.
For rural operators, that shift could prove especially valuable. Automation can free skilled staff for higher-value work. It can also help carriers respond faster to network issues.
“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.
This approach may reduce operating expenses while improving customer support and service reliability.
“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 central issue. Donovan said regional carriers need fair chances in future auctions. Smaller providers may need stronger support mechanisms to compete effectively.
“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.”
Policy programs will also shape the market. Donovan pointed to the Universal Service Fund and BEAD program. He said policymakers must consider what happens after networks get built.
For regional carriers, the next phase will demand discipline. They must modernize networks, secure spectrum, and control costs. Those that balance these priorities can remain credible challengers in underserved and rural markets.
