Pioneer, Indigo tap out of U.S. wireless market amid changes to roaming market

Pioneer Cellular in Oklahoma and Indigo Wireless in Pennsylvania have decided to exit the US wireless industry. They are the latest small wireless network operators to do so.

The operators’ decisions likely reflect the increasing pressures that have challenged the nation’s small wireless network operators to compete with giant, nationwide wireless providers like AT&T, Verizon and T-Mobile. Those challenges range from a tightening competitive environment to encroaching competition from big network operators, 5G upgrade costs, unexpected expenses and an uncertain economic outlook.

Further, it clearly signals the maturation of an industry that used to span hundreds of regional wireless network operators, each catering to its own distinct coverage area. Such operators typically generated revenues from not only their own subscribers, but also other providers, both big and small, paying roaming fees to use networks in locations where they had none of their own.

However, as T-Mobile, AT&T and Verizon expand their networks, the roaming revenues are drying up. While many of America’s smaller operators are disappearing through consolidation – think Alltel or more recently Bluegrass Cellular – increasingly, they’re simply shutting down.

‘We have made the business decision’

According to reports, Pioneer Cellular disclosed on its website earlier this year that it would shut down its cellular operations.

“For 70 years, Pioneer has been proudly serving our customers and businesses with the best communication tools to keep them connected with the people, communities and information that matters most,” the company said. “We have made the business decision to discontinue our cellular operations by this summer.”

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