Wednesday, May 24, 2006

Rural Cellphone Firms Pinched by Larger Carriers

Paul Davidson writes in USA Today:

Rural cellphone carriers say their bigger national competitors are squeezing them out of the wireless market by charging them exorbitant roaming rates or by refusing to allow them to roam at all.

The hardships have forced dozens of rural carriers to sell their businesses to larger regional or national rivals the past three years, says Jessica Bridges, who heads the Rural Telecommunications Group, a small-carrier association.

"A whole bunch of these little guys have been selling out," she says. "They just cannot compete in their markets."

The trend diminishes wireless coverage, she says, because the remaining big carriers serving the countryside often neglect sparsely populated pockets, leaving them without any cellphone service.

More here.

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