Bluegrass Cellular takes Verizon Wireless up on 700 MHz offer

Kentucky-based rural wireless operator Bluegrass Cellular said it has taken Verizon Wireless (VZ) up on its offer to partner with smaller operators in an attempt to broaden the deployment of LTE services using 700 MHz spectrum.
Bluegrass said it has entered into an agreement with the nation’s largest operator to participate in the LTE in Rural America program, which Verizon Wireless launched earlier this year.
Under the agreement, Verizon Wireless will lease upper C-block 700 MHz wireless spectrum in the Bluegrass Cellular service areas where Verizon Wireless has not constructed a network. Using the leased spectrum, Bluegrass Cellular said it will construct and operate a 4G LTE network in central Kentucky serving Bluegrass Cellular customers, Verizon Wireless customers and customers of other LTE in Rural America participants. In addition, Bluegrass Cellular customers will have access to Verizon Wireless’ 4G LTE network throughout the United States.
“As a rural wireless carrier we take great pride in our ability to provide voice and 3G advanced data services at service levels that exceed many urban areas,” said Ron Smith, president of Bluegrass Cellular. “However, without partnerships such as the LTE in Rural America program, our ability to provide services outside our network is limited. Cooperation within the wireless industry is critical to overcome our shared challenges.”
Verizon Wireless’ 700 MHz plans have rubbed some rural operators the wrong way with some questioning the carrier’s device compatibility requirements as well as concerns over potential roaming agreements.
Verizon Wireless spent nearly $10 billion during the 700 MHz spectrum auction in 2008 for licenses covering virtually all of the United States. The carrier filled out those coverage holes earlier this year when it acquired an additional license covering Alaska.
Verizon Wireless announced last month that it plans to launch LTE services in 38 markets covering more than 100 million potential customers and dozens of airport locations by the end of the year on its way to covering more than 285 million pops by the end of 2013.
Other small operators have turned to the federal government’s Rural Utilities Service Broadband Initiative Program to fund their next-generation network plans. Utopian Wireless announced earlier this year that it was awarded millions of dollars in funds to help support the deployment of a WiMAX network using 2.5 GHz spectrum in eight states.