A consulting firm alleges T-Mobile unfairly disadvantages customers considered less profitable.

T-Mobile's rural fixed wireless access (FWA) expansion may have fallen short of expectations.

Cell Tower Solutions claims that mobile companies often divert federal subsidies and exemptions intended for rural cell site construction to urban areas, with T-Mobile allegedly being the most significant offender.

FWA requires numerous closely spaced sites, which are not financially viable for carriers in sparsely populated rural areas. As a result, they are said to build a limited number of rural sites and redirect the remaining funds to urban markets.

FWA is expensive for carriers, who generate more revenue per gigabyte from mobile plans. They supposedly offer the service mainly to attract FWA users to mobile services.

Cell Tower Solutions also suggests that 5G data speeds, while adequate for phones, lack the signal penetration needed for reliable home and business internet. By classifying mobile wireless as equivalent to home broadband, carriers have reportedly saved significant amounts in taxes, despite the differences.

Actual and advertised speeds can vary greatly, with performance declining as more users connect. This has led T-Mobile to implement a waitlist, which Cell Tower Solutions believes was created due to customer complaints.

Carriers utilize extra capacity on their 5G networks to transmit internet to residences and businesses. Although it is slower than wired internet, it can be the only option in certain locations and is also more economical.

Cell Tower Solutions states that companies are unwilling to invest, despite having received federal subsidies and exemptions specifically for this purpose.

In summary, it is argued that AT&T and T-Mobile are utilizing federal funds and tax breaks meant to broaden internet access in rural areas to instead serve urban areas, which leaves rural customers underserved.

T-Mobile is still gaining 5G internet subscribers.

In the third quarter, T-Mobile added 506,000 5G internet subscribers, a 22% increase year-over-year. According to Ookla, T-Mobile is the FWA leader and provides the fastest median download speeds.

According to a Recon Analytics survey, 44% of Americans would choose FWA over fiber and cable if they had to switch. Despite its drawbacks, most customers seem satisfied, though power users may feel differently.

The central issue is that AT&T and T-Mobile are reportedly using funds earmarked for rural broadband expansion to improve their urban coverage. T-Mobile's Chief Broadband Officer, Allan Samson, recently noted that the majority of its FWA customers reside in major cities, which suggests a reluctance to serve rural areas.

Tracking the allocation of funds is challenging, and carriers have been accused of using lobbyists to sway legislation, which has allegedly allowed them to misuse funds.

FWA was intended to reduce the digital gap between rural and urban areas. The FCC may need to intervene to ensure faster implementation.

However, the situation could improve in the future. T-Mobile intends to reach 12 million FWA subscribers by 2028, and its current strategy of utilizing available spectrum is most suited to rural areas where it possesses spectrum and towers, along with spare capacity. This assumes that the economics will improve, otherwise rural areas will remain a lower priority for carriers, despite their claims to the contrary.

We have contacted T-Mobile for comment and will update the article if we receive a response.