Regional carriers must modernize networks, secure spectrum, and use AI to stay competitive in 5G era

Why regional carriers are at a crossroads

U.S. regional carriers are being pushed to accelerate investments in network modernization and spectrum access to remain competitive with nationwide operators. Tim Donovan, president and CEO of the Competitive Carriers Association (CCA), frames the situation as a decisive period: carriers that fail to upgrade their technology and secure the right spectrum risk falling behind.

Technical path: move to 5G standalone

A core recommendation is completing the move to 5G standalone (5G SA). Unlike non-standalone deployments that rely on existing 4G cores, 5G SA uses a dedicated 5G core. That change enables lower latency, stronger automation, and more advanced service capabilities. It also aligns with early 6G planning. Donovan argues carriers that adopt these developments will be better positioned over the next three to five years.

Regional carriers operate with tighter budgets and smaller teams. They face cost pressure when vendors require nonstandard equipment or fragmented band classes. Custom gear and a lack of scale can push prices up and slow deployments for smaller operators. These capital constraints make strategic choices on timing and vendor selection particularly important for regional providers.

Spectrum access and policy considerations

Spectrum access is a central issue. Donovan called for fair chances in future auctions and suggested a review of whether existing support mechanisms such as bidding credits are effective. He also pointed to policy programs including the Universal Service Fund and the Broadband Equity, Access, and Deployment (BEAD) program, noting that policymakers must consider the post-build phase — how networks will be operated and sustained after initial funding and construction.

Operational efficiency: AI, automation, and virtualization

Market focus: underserved and rural opportunities

Regional carriers can remain credible challengers by balancing modernization, spectrum access, and cost control. The article emphasizes opportunities in underserved and rural markets where carriers can leverage existing assets — towers, fiber backhaul, and field teams — and new service models like fixed wireless. Success depends on disciplined investment decisions and practical adoption of automation.

Although 6G commercialization is years away, planning has already begun. Completing 5G SA and building automation capabilities today sets regional carriers up to participate in 6G-era services and requirements. Donovan's message is practical: carriers that keep pace technologically and manage costs will be better placed to compete as the industry evolves.