Commnet rethinks rural wireless strategy

According to David Gibson, there's one main principle driving Commnet Wireless: "We listen to our customers."

By doing so, the company is roughly a year into a total overhaul of its wireless strategy.

"What we're doing is refocusing our assets," explained Gibson, Commnet's chief revenue officer.

Gibson said Commnet traditionally has operated mobile networks in rural locations in order to provide roaming services to wireless users who might be passing through. Under that model, big network operators like AT&T and Verizon would pay Commnet roaming fees in order to make sure their customers had a connection where Commnet offered services and they didn't.

However, that strategy slowly fell apart as those big network operators expanded their networks into the rural locations where Commnet operated. T-Mobile has made that kind of rural expansion a key part of its overall business case in recent years.

Figure 1: (Source: Backyard Productions/Alamy Stock Photo)

In response, Commnet refocused on supporting those expansions rather than attempting to prevent them. The company offered space on its cell towers for the radios of incoming network operators, alongside backhaul transport services across Commnet's fiber backbone. The company also offered managed services such as installing and maintaining the radios of the big, incoming network operators.

"We're making it easier for them to expand their native network into rural areas," Gibson explained. "We're really an enablement company."

A focus on glass and steel

Commnet's strategy falls under the purview of ATN International, based in Beverly, Massachusetts. ATN operates wireless and fiber networks in rural locations throughout the continental United States, the Caribbean, Alaska and elsewhere. Commnet is one of a handful of ATN subsidiaries; others include Choice Wireless (providing mobile services in the Southwestern US); Alaska Communications (delivering telecom services in the North); and Viya (a communications provider in the US Virgin Islands).

Roughly a year ago, ATN embarked on a strategy it calls "glass and steel," which calls for it to focus on building cell towers (the steel) and fiber networks (the glass) in rural locations, rather than providing wireless services.

"Big picture, ATN is investing significantly in a 'glass and steel' expansion strategy with fiber broadband and towers (including backhaul), and is pivoting away from the legacy wireless wholesale business. As ATN invests in these objectives, capex will remain elevated the next two years," according to the financial analysts at Raymond James.

The analysts expect ATN's financials to remain sluggish amid that investment, but to pick up in the coming years as the company begins to profit from its investments.

ATN isn't the only company shifting from wireless to fiber. For example, longtime fixed wireless network operator Rise Broadband appears to be making a similar move following an investment into the company by GI Partners.

Driving such activities are US government subsidiaries intended for fiber networks in rural areas.

A bet on Tarana

Gibson, with Commnet, clarified that the company isn't getting out of the wireless business entirely. Although it might not be focused on mobile roaming services anymore, it is currently investing in an upgrade to its existing fixed wireless business with new equipment from vendor Tarana Wireless.

"We're heavily invested in next-generation fixed wireless," Gibson said. He said that Commnet has so far upgraded 20 tower sites with Tarana equipment, with another 30-40 sites targeted for such upgrades this year.

Gibson said Commnet provides fixed wireless access (FWA) services starting at around $55 per month. He said Tarana's equipment routinely supports speeds of around 100 Mbit/s and in some cases up to 300-400 Mbit/s.

"We've been pleased with the throughput and the reach," he said, acknowledging that FWA speeds are generally affected by the distance between customers and the broadcasting tower.

Gibson declined to say how many FWA and mobile customers Commnet counts.

Commnet isn't alone in pursuing a renewed fixed wireless strategy with equipment from upstart Tarana. Other companies that have either tested or deployed the vendor's offerings include Rural Telecommunications of America (RTA), Bluespan, VGI, Nextlink, Redzone Wireless and others.

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— Mike Dano, Editorial Director, 5G & Mobile Strategies, Light Reading | @mikeddano