Trade Association Warns Wireless Market Structure Threatens National Security
NATE calls for an immediate response.
WASHINGTON, July 29, 2025 – The nation’s wireless infrastructure industry is at risk due to a monopolistic market structure that undercuts contractors, according to a new report by NATE–The Communications Infrastructure Contractors Association.
“We find compelling evidence that the current market structure is failing to sustain the skilled workforce necessary to build and maintain critical wireless infrastructure,” the report said. “The result is a growing risk to national security, public safety, and the future viability of wireless innovation in the United States.”
The report by consultants Paroma Sanyal, Yong Paek, Coleman Bazelon, and Angela Gunn at The Brattle Group blamed the market failure on the concentrated buying power of major mobile network operators–Verizon, T-Mobile, and AT&T–which reportedly dominate more than 97 percent of the market.
“These MNOs act as concentrated buyers in a market of hundreds of small infrastructure contractors, creating a classic monopsony structure where buyers have market power,” NATE stated. “The Brattle Survey reveals that MNOs impose rigid, non-negotiable matrix pricing agreements that fail to cover the actual costs of labor, equipment, and region-specific deployment conditions.”
Nearly 80 percent of NATE members surveyed in July 2025 said MNO pricing does not cover their operational costs, and 96 percent reported that pricing fails to account for regional challenges like local labor, terrain, or weather factors.
Contractors are also facing growing financial pressure from uncompensated costs passed down by MNOs. The report found that 98 percent of contractors pay for required third-party programs, and 84 percent cited increased training costs.
“Delayed payments and extended payment terms exacerbate financial pressure, with many contractors forced to operate at a loss for these services simply to retain workers and preserve client relationships,” the report said.
The wireless infrastructure workforce has shrunk significantly over the past three years. According to the report, 54 percent of respondents reduced employees.
NATE argued that the decline in trained and skilled tower climbers and contractors makes the U.S. increasingly vulnerable, warning that the industry may lack the institutional knowledge to respond to emergencies and maintain reliable communication systems.
The trade association urged policymakers to act swiftly.
“Without corrective action—whether through policy, regulation, or industry reform—the U.S. faces long-term vulnerabilities in its communications infrastructure, which may be difficult and costly to reverse once institutional knowledge is lost,” NATE concluded.
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