By smoke 
In Featured News by Wireless EstimatorJanuary 23, 2025
Today, NATE: The Communications Infrastructure Contractors Association released an open letter addressing critical challenges facing the wireless contracting industry. As the association celebrates its 30th anniversary, it simultaneously confronts one of its most turbulent eras. While benefiting from the tireless efforts of contractors and small businesses to build and maintain the nation’s communications infrastructure, the wireless industry, primarily directed by an oligarchy of three carriers and others, has also imposed untenable conditions threatening to dismantle the ecosystem supporting it. These conditions include unfair pricing models, excessive bureaucracy, delayed payments, and burdensome compliance requirements, all of which have caused many contractors to shutter their businesses and pushed others to the brink of closure.
In the open letter below, NATE takes a bold stand, spotlighting how the current environment impacts contractors and America’s communications networks’ long-term health and security. The association emphasizes that “take it or leave it” pricing models, extended payment terms, and the proliferation of costly administrative platforms disproportionately burden small and mid-sized businesses. These contractors, once the backbone of wireless innovation and expansion, now face financial instability, reduced safety standards, and an industry climate prioritizing cost-cutting over collaboration and quality.
NATE’s forceful letter, written by NATE President and CEO Todd Schlekeway, offers more than just critique—it provides a roadmap for progress. By urging wireless carriers to revisit outdated models, engage in meaningful collaboration, and address inequities in pricing and agreements, NATE envisions a healthier, more sustainable ecosystem. The association reaffirms its commitment to fostering solutions but warns of the consequences of inaction, including public scrutiny and a weakened contractor community. As the wireless industry stands at this critical juncture, NATE’s call to action serves as both a wake-up call and a rallying cry for reform.
Wireless Estimator will continue to provide ongoing coverage of the industry’s response to NATE’s stance, hoping that carriers will take meaningful steps to address these challenges. Adjustments in key areas are essential to ensure contractors can sustain their vital role in safely building and maintaining America’s networks.
An Open Letter to the Wireless Industry
In 2025, NATE: The Communications Infrastructure Contractors Association is proud to celebrate 30 years as a trade organization. We represent a diverse group of member companies, mostly small businesses operating across the communications tower, wireless, broadband, and broadcast sectors. These companies play a vital role in constructing, installing, servicing, and maintaining America’s communications infrastructure and next-generation networks. In fact, it is very likely that a NATE member company and its dedicated technicians are behind the wireless, broadband, or broadcast connectivity you are currently experiencing in your home or business.
This year also marks my 13th year as President & CEO of NATE, and I am honored to continue serving an industry that has undergone significant transformation. Over the years, I have gained invaluable insight into the dynamics of the marketplace—both the challenges and the opportunities that shape the future. Through daily interactions with industry employers and employees nationwide, I stay connected to the pulse of what is happening in the sector.
However, as we begin 2025, it is important to address some of the pressing issues affecting our industry. These challenges, driven by actions from some of the top wireless carriers, are causing frustration among stakeholders across the wireless and communications infrastructure chain. I want to take a moment to highlight some of these issues that are increasingly concerning for vendors and contractors. These are the proud businesses, small and mid-size operations, that have successfully partnered with the carriers to build out their networks but are now faced with closing their businesses due to a carrier climate that unreasonably interferes with their ability to maintain profitability.
Carrier Pricing Models
The current “take it or leave it” matrix or unit pricing used by wireless carriers is a significant challenge. These pricing models, which are often far below industry standards, do not reflect the true cost of doing business safely and effectively deploying communication sites. This matrix pricing cost structure model, which despite record setting inflation over the last 4 years, had significant pricing reductions in the last versions.
Contractors, who once assessed jobs based on the time and crew required, now face unit pricing models that fail to account for site-specific complexities such as mobilization costs for remote or difficult-to-access locations. This has led to rates that are unsustainable, with some pricing falling so low that it barely covers hard costs.
As a result, qualified contractors are struggling to maintain profitability, while the industry sees a rise in lower tier “fly-by-night” contractors who may compromise network security and workforce safety. To ensure a healthy contractor ecosystem and the security of this critical infrastructure, it is critical that wireless carriers revisit their pricing structures to align with current market realities and be more open to negotiating fair terms with their vendor pool in order to promote fair competition.
Turf Vendor Models
The widespread use of the “turf vendor” model has introduced a number of challenges, including increased bureaucracy, reduced pricing to the self-performing companies, and more compliance burdens for contractors. While the model was intended to streamline operations, it has had unintended negative effects, especially in terms of cost and worker safety. A thoughtful review and potential reform of this model would benefit the entire wireless ecosystem, ensuring that the industry remains both efficient and safe for all stakeholders and that networks are kept secure.
Payment Terms and Delays
Contractors and vendors frequently voice concerns about the extended payment terms imposed by carriers. What was once a standard 30-day payment window has now ballooned to 60, 90 days, or longer.
These delays are compounded by increasingly complex closeout requirements and additional troubleshooting responsibilities added to contractors’ workloads without corresponding adjustments in compensation. Contractors are left covering payroll and overhead costs for months before receiving payment, placing significant financial strain on small businesses – the majority of which are America’s contractors that build and maintain the country’s telecommunications networks.
Payment is often contingent on the completion of closeout packages, which can be delayed for reasons beyond the contractor’s control. If the payment terms are not bad enough, contractors and vendors who count wireless carriers as customers are also too often required to take a deducted payment amount from a carrier mandated third party payment platform to get paid. These payment practices are placing a strain on small businesses, and it’s important for the industry to address these terms to support a healthier cash flow for contractors, and to promote competition.
Onboarding Platform Fees
The use of third-party onboarding platforms has become a standard requirement for contractors to work with major wireless carriers. Unfortunately, contractors are often required to pay annual fees to these platforms, despite being the ones fulfilling the work. These platforms, along with additional compliance and certification requirements, can consume hundreds of hours annually for contractors, adding to operational costs. Contractors must also deal with redundant requests for information already uploaded to these systems, further wasting time and resources.
This “pay to play” model is burdensome and unfair to small business contractors. If these platforms are to remain a requirement, it would be more equitable for the wireless carriers to cover the associated costs imposed by their administrative requirements mandating the use of platforms required only to promote the carriers’ convenience.
Equipment Storage Without Compensation
Another practice that is becoming more concerning is the requirement for contractors to store carrier equipment at their facilities for extended periods without compensation. This requirement exacerbates cash flow challenges for contractors, who are forced to absorb storage costs and delayed projects. In some cases, equipment remains stored for months with no project timeline provided, tying up valuable space and resources. Contractors should be compensated for the carrier’s mandates that we store their equipment. We hope to see this practice re-evaluated soon.
Equipment and Material Handling Challenges
Contractors are increasingly facing unreasonable conditions when it comes to equipment and material handling requirements. For example, the use of cranes on site—a critical necessity for many projects—is often subject to a pass-through percentage of 5% or less. This pass-through rate fails to cover not only the administrative costs associated with arranging and managing crane services but also the added liability and related mitigation expenses contractors must assume. Furthermore, Turf Vendors are now mandating that contractors procure additional materials exclusively from specific vendors. This practice introduces unabsorbed handling costs that cannot be passed through to the consumers of our services, such as receiving, storage, and distribution, resulting in a net financial loss for the contractor.
One-Sided Master Service Agreements
Master service agreements are slanted in favor of carrier interests and transfer all liability along with scores of uncompensated mandates to the contractor. The agreements are offered as take-it-or-leave-it with no possibility of negotiated changes. Contractors should have a voice in negotiating these agreements and competitive pricing models should take into account the costs associated with transferring liability and responsibility to the contractor.
There are other challenges, but these are among the most pressing. If not addressed, they could undermine the strength of the contractor community, our ability to remain competitive, and the quality of wireless networks across the country.
A Path Forward
As a solutions-oriented leader, I believe these issues can be resolved through collaboration. Over the past several years, NATE has engaged in conversations with wireless carrier executives, urging them to address the challenges facing the contractor community. Unfortunately, despite our repeated efforts, progress has been slow.
This lack of progress has led some to question whether the industry is sustainable in its current form. Without urgent action, the support infrastructure for all wireless carriers, tower owners, and smaller operators could cease to exist for the reasons discussed here, jeopardizing network maintenance upgrades, and security.
NATE is committed to working with wireless carriers to create a fairer, more supportive environment for contractors in 2025. We believe that by working together, we can bring about meaningful change that benefits everyone in the ecosystem. However, if these issues are not addressed, it is likely that public scrutiny will continue to grow, and the drumbeat for reform will only get louder.
Todd Schlekeway serves as the President & CEO of NATE: The Communications Infrastructure Contractors Association. He can be reached via e-mail at [email protected].