With 5G networks delivering faster download speeds and low latency, the industry may soon see new applications and services that take advantage of the greater bandwidth. However, right now, carriers are struggling to find enough people to sell the services and build new networks.
Major players such as T-Mobile, Verizon and AT&T are launching 5G into as many markets as possible as quickly as possible. The question is, will they be able to muster enough telecom workers to deliver on widely publicized predictions about the sea-level changes in the works.
If There’s a Labor Shortage, Why Are Wireless Operators Laying Off Workers?
All of the major wireless operators have conducted large layoffs to cut costs, partly to pay for the expensive 5G buildout. At the same time, these companies are scrambling to attract employees with the expertise needed to get the 5G infrastructure up and running. However, carriers say they also need trained workers to climb towers, sell the new services and troubleshoot problems for end-users.
Despite the apparent shortage, thousands of telecom workers have lost their jobs:
In 2018 Verizon restructured, offering buyout plans to more than 10,000 employees. The company aimed to cut $10 billion from its cost to free up capital for its 5G rollout.
Similarly, AT&T let go of many seasoned workers in 2020 to cut costs by $6 billion.
T-Mobile cut many Sprint workers when it bought the company, but now says it plans to create 5,000 new jobs in small towns across the nation. This initiative includes adding new stores in suburban and remote towns and cities. T-Mobile also closed hundreds of stores shortly after the 2020 merger.
The major carriers may have conducted these layoffs to shift resources toward 5G expansion. However, now that the infrastructure is largely in place, the industry requires skilled workers to bring in additional revenue and keep the new networks working efficiently.
Telecommunications Skilled Workforce Act
This bill, introduced and squashed in 2020, has re-emerged in the Senate. If passed, it would allocate money to states to create training programs for telecommunications workers. This could help fill the gap created by rapidly expanding 5G technology and traditional telecom roles and skills.
A CWA Executive Says It Isn’t So
In an odd twist to this emerging story, the president of the Communication Workers of America, a union representing thousands of telecom workers, says that there simply is no shortage of workers in the industry.
Christopher Shelton has denied that there is a labor shortage in the industry in interviews and testimony to Congress. Shelton, who's worked in the telecom industry since 1968, refers to the shortage as misinformation. The CWA has 700,000 members working in the public and private sectors. Shelton says that many thousands of skilled workers have been laid off. However, nonunion companies say there are no qualified workers. Further, he points to declining wages in the industry as a disincentive for former workers to return to telecom jobs.
What Skills Are Missing?
According to SHRM, there are a number of impediments to growing the telecom workforce required for 5G technology, including the following:
Lack of awareness that these jobs exist
Lack of training programs at technical schools and community colleges
An older workforce reluctant to take on new roles
Lack trained and willing technicians ready to work at high heights
One thing is for sure, there's growing pressure to complete the 5G rollout and to create the infrastructure needed in underserved communities and rule areas. The industry is likely to face challenges attracting and keeping skilled workers for the foreseeable future. This creates opportunities for those who need a job or who would like to switch careers.
Contact Valicom today to learn more about issues facing the telecom industry and how we’re working hard to find solutions for our clients in the changing environment.
ABOUT THE AUTHOR: NANCY PECKHAM
Nancy Peckham is the Founder and President of Valicom Corporation, a leading telecom expense management and consulting firm in Madison, Wisconsin. Nancy launched the organization as one of the very few women in technology, seeing the gap in services and the opportunity to fulfill the client’s unique needs while leveling the telecom playing field. She has spearheaded Valicom’s evolving services, including a web-based TEM platform that tracks all IT assets and processes multi-level invoice approval for bill payment. To learn more, visit www.valicomcorp.com.