T-Mobile shortchanges customers it deems unprofitable, claims consulting firm
Engineering firm says AT&T and T-Mobile misuse federal funds, leaving a gap in service for rural customers.
AT&T and T-Mobile divert funds meant for rural Fixed Wireless Access (FWA) or 5G home internet deployment to urban areas, claims consulting firm Cell Tower Solutions. The company reverse engineers communication sites and found that carriers misuse federal grants.
Cell Tower Solutions tells us that carriers take federal grants and exemptions to build sites in rural areas, but redirect the majority of the funding to urban and suburban markets. T-Mobile is said to be the biggest offender.
The issue is that FWA requires a lot of closely spaced sites, but since rural areas aren't densely populated, this isn't profitable for carriers. Consequently, they allegedly build a few sites in rural areas and funnel the remaining funds intended for rural deployment to urban markets.
FWA is also a costly proposition for carriers, who can drive more revenue per GB from cellphone plans. They continue to provide the service only in hopes of luring FWA customers to mobile services.
Cell Tower Solutions also argues that while 5G data might be fast enough for smartphones, the signals cannot penetrate well enough to provide reliable internet connectivity to homes and businesses. Carriers have saved hundreds of millions of dollars in taxes by insisting that mobile wireless is the same as home broadband, despite that not being the case.
The actual and advertised speeds can vary significantly, and the experience can degrade when too many users join. This is why T-Mobile maintains a waitlist, which Cell Tower Solutions says was created after customer complaints.
Carriers use the excess capacity on their 5G networks to beam internet to homes and businesses. While it's not as fast as wired internet, it can be the only choice in some areas and is also more affordable.
In short, carriers, particularly AT&T and T-Mobile, are claiming federal grants and tax exemptions aimed at the expansion of internet coverage in rural areas to serve urban areas. As a result, rural customers remain underserved.
In the third quarter, T-Mobile added 506,000 5G internet customers, up 22 percent from the same time last year. T-Mobile leads the FWA market and also offers the fastest median download speeds, according to Ookla.
According to a Recon Analytics survey, 44 percent of Americans would prefer FWA over fiber and cable options if they had to switch. So even though FWA may have its limitations, the average customer doesn't seem to mind. Power users are another story, though.
The bigger story here is, of course, that AT&T and T-Mobile are spending funds allocated for rural broadband expansion to expand their urban coverage. T-Mobile's Chief Broadband Officer Allan Samson recently said that most of its FWA customers are in big cities, but it now appears that's because it refuses to serve rural customers.
Tracking how the money is spent is tricky, and carriers have been accused of using lobbyists to influence legislation. This is apparently why they have been able to get away with improper use of funds.
FWA was expected to bridge the internet accessibility divide between rural and urban areas. The Federal Communications Commission (FCC) needs to step in to ensure rapid deployment.
That said, the situation may improve in the future. T-Mobile aims to target 12 million FWA subscribers by 2028, and its current strategy of using fallow spectrum is most applicable in rural areas where it has spectrum and towers, but excess capacity. That's assuming that the economics improve in future, otherwise, rural areas will continue to be an afterthought for carriers, even as they continue to claim otherwise.
T-Mobile was supposed to expand rural FWA coverage, but didn't
Cell Tower Solutions tells us that carriers take federal grants and exemptions to build sites in rural areas, but redirect the majority of the funding to urban and suburban markets. T-Mobile is said to be the biggest offender.
FWA is also a costly proposition for carriers, who can drive more revenue per GB from cellphone plans. They continue to provide the service only in hopes of luring FWA customers to mobile services.
The problem with the rural model is the profitability just isn’t there.
Walt Woodard, Vice President Cell Tower Solutions, November 2025
Cell Tower Solutions also argues that while 5G data might be fast enough for smartphones, the signals cannot penetrate well enough to provide reliable internet connectivity to homes and businesses. Carriers have saved hundreds of millions of dollars in taxes by insisting that mobile wireless is the same as home broadband, despite that not being the case.
The actual and advertised speeds can vary significantly, and the experience can degrade when too many users join. This is why T-Mobile maintains a waitlist, which Cell Tower Solutions says was created after customer complaints.
They just don’t want to make the investment, but these companies have taken federal grants and exemptions for the express purpose of doing so.
Walt Woodard, Vice President Cell Tower Solutions, November 2025
In short, carriers, particularly AT&T and T-Mobile, are claiming federal grants and tax exemptions aimed at the expansion of internet coverage in rural areas to serve urban areas. As a result, rural customers remain underserved.
T-Mobile continues attracting 5G internet customers
In the third quarter, T-Mobile added 506,000 5G internet customers, up 22 percent from the same time last year. T-Mobile leads the FWA market and also offers the fastest median download speeds, according to Ookla.
The bigger story here is, of course, that AT&T and T-Mobile are spending funds allocated for rural broadband expansion to expand their urban coverage. T-Mobile's Chief Broadband Officer Allan Samson recently said that most of its FWA customers are in big cities, but it now appears that's because it refuses to serve rural customers.
Tracking how the money is spent is tricky, and carriers have been accused of using lobbyists to influence legislation. This is apparently why they have been able to get away with improper use of funds.
Digital divide continues
FWA was expected to bridge the internet accessibility divide between rural and urban areas. The Federal Communications Commission (FCC) needs to step in to ensure rapid deployment.
We have reached out to T-Mobile for comment and will update the article if we hear back.
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