Federal grants and tax exemptions designed to enhance rural internet connectivity are reportedly being diverted by major carriers, according to consulting firm Cell Tower Solutions. Their investigation suggests that T-Mobile and AT&T are channeling funds meant for rural Fixed Wireless Access (FWA) and 5G home internet deployment into expanding urban network coverage instead.
Rural Broadband Expansion Falls Short as Profitability Concerns Rise
T-Mobile stands out as the primary company accused of deprioritizing rural broadband rollout. Walt Woodard, Vice President of Cell Tower Solutions, noted in November 2025, "The challenge with deploying rural networks is the lack of profitability, causing carriers to hesitate on investments despite receiving federal grants geared specifically for rural coverage."
To manage demand, T-Mobile maintains a waitlist for their FWA service, a system reportedly established following customer complaints. The company's 5G networks possess excess capacity, which could be utilized to provide internet access in underserved rural areas. Although 5G FWA does not match the speeds of wired internet, it remains an affordable and sometimes exclusive option for rural homes and businesses.
Woodard emphasized, "While these companies have accepted federal support expressly to boost rural internet deployment, many are reluctant to fully commit the necessary investments."
Discrepancy Between Rural Promise and Urban Expansion
Despite the concerns about rural deployment, T-Mobile continues to grow its 5G home internet customer base, adding 506,000 new users—a 22% increase compared to the previous year. The carrier leads the FWA market and offers the fastest median download speeds, according to Ookla metrics.
Interestingly, T-Mobile's Chief Broadband Officer Allan Samson confirmed that the majority of its FWA customers reside in major urban areas. This aligns with the accusations that the carrier selectively focuses on profitable urban markets while neglecting rural communities.
Rural FWA Coverage Survey
Current poll results: 50% say coverage is lacking, 50% say it is great, 0% moderate. (Votes: 2)
The Digital Divide Persists
T-Mobile has set a goal to reach 12 million FWA subscribers by 2028. Their plan relies heavily on utilizing unused spectrum, which makes the most sense for rural areas where spectrum and towers exist but demand is low. However, Woodard warns that unless economics shift favorably, rural deployment will remain minimal, and these communities will continue to be underserved despite claims otherwise.
The publication has reached out to T-Mobile for comment and will provide updates if a response is received.
