Rural broadband operators may need to consider adding mobile phone services to defend market share
DENVER, May 20, 2025 (GLOBE NEWSWIRE) — Competition for broadband subscribers in rural areas is heating up as national wireless and cable companies aim to capitalize on the growing popularity of bundled service packages. U.S. consumers increasingly prefer bundled smartphone and home broadband services for convenience, savings and seamless connectivity. Verizon, T-Mobile, Comcast and Charter are all leveraging the trend to expand into new and often smaller markets to grow their revenue bases.
According to a new report from CoBank’s Knowledge Exchange, the competitive landscape for rural broadband operators is evolving rapidly as improved technologies have made wireless broadband more viable and scalable, even in hard-to-serve areas. Combined with evolving consumer preferences and an influx of public and private investment, technological advances are reshaping the nature of rural connectivity.
“The smartphone–broadband service bundle is proving to be a powerful competitive force,” said Jeff Johnston, digital infrastructure economist with CoBank. “And it will become even more popular as technology improves and consumer expectations shift. Smaller broadband operators serving rural areas will need to seriously evaluate whether offering mobile phone service may be necessary to defend their market share and position themselves for long-term growth.”
With new spectrum band coming online and technology vendors introducing advanced fixed-wireless access systems with fiber-like performance, the ability to deliver high-speed internet wirelessly is only going to improve. Technology gains will allow national wireless operators to densify their rural networks and scale FWA even further, putting more pressure on local broadband providers.
Satellite broadband is also evolving. SpaceX’s Starlink has set the pace, but Amazon’s Project Kuiper will likely come to market aggressively in 2025. Depending on how the $42 billion Broadband Equity, Access and Development program funding is allocated, rural broadband operators could find themselves competing against government subsidized low Earth-orbiting satellite networks.
Some regional cable and broadband operators aren’t waiting to get caught unprepared. Companies like WOW!, Midco and Mediacom have all announced plans to launch mobile services. Meanwhile, the National Content & Technology Cooperative has signed an agreement with AT&T that enables its members to use AT&T’s mobile virtual network operator service to offer their own branded wireless plans.
For rural broadband providers, the cost of entering mobile is significant, but Johnston said the cost of doing nothing could be even greater. “It’s not an easy decision for small providers. Building out a mobile offering requires time, money and technical know-how. But given the changing market dynamics, now is the time for smaller broadband operators to determine whether offering mobile makes sense, not just to grow, but to defend what they have already built.”
Read the report, The Bundle Battle: Why Rural Broadband Providers Must Pay Attention to Wireless.
About CoBank
CoBank is a cooperative bank serving vital industries across rural America. The bank provides loans, leases, export financing and other financial services to agribusinesses and rural power, water and communications providers in all 50 states. The bank also provides wholesale loans and other financial services to affiliated Farm Credit associations serving more than 78,000 farmers, ranchers and other rural borrowers in 23 states around the country.
CoBank is a member of the Farm Credit System, a nationwide network of banks and retail lending associations chartered to support the borrowing needs of U.S. agriculture, rural infrastructure and rural communities. Headquartered outside Denver, Colorado, CoBank serves customers from regional banking centers across the U.S. and also maintains an international representative office in Singapore.
CONTACT: Corporate Communications CoBank 800-542-8072 news@cobank.com
