Building Bridges: Expanding the Impact with Cooperation

Laura WithersDirector of Communications

NTCA-The Rural Broadband Associationlwithers@ntca.org

#RuralIsCool

A Tale of Two Rural Americas

• Blue - Over 1,000 small businesses (RLECs) in most rural areas

– <5% of U.S. population and 40% of U.S. landmass

– Approx. 7 locations/sq. mi.

• White - Mix of urban/suburban/exurban/rural in “Price Cap” areas

– 95% of U.S. population

– 60% of U.S. landmass

– 50% of rural America (most of unserved America)

• Deploying broadband is:

– Expensive – can someone share the cost?

– Competitive – is that in your DNA?

– Technical – do you have expertise in-house?

– All-consuming – could it distract you?

Why Partner?

Why Partner?• Regulation!

– FCC/State Voice & ETC obligations

– Form 477 broadband reports

– CPNI (voice and broadband for now)

– CALEA law enforcement obligations

– Net neutrality?

Both….want to serve their local communities

Need much better access to data, own and maintain critical infrastructure

+ =

Need new areas of growth, have telecommunications assets and skills

Electrics/Municipalities

Telcos Both

Need help marketing new services after operating in a relatively stable market or no market at all

+ =

Need new areas of growth, have the marketing assets and skills operating in a competitive environment

Electrics/Municipalities

Telcos Both

Both….want to find new sources of revenue and improve services

Both….want to create a better future for rural America

Need to find new lines of business but don’t want to manage

+ =

Need to find new lines of business and new customers and have capacity to grow

Electrics/Municipalities

Telcos Both

Partnership Can Take Various Forms

Marketing/ Operating Partnership• Someone owns it, someone else

runs or sells it

Joint Venture• More skin in the game for

both

• Leverage your strengths, assets

Merger• Not likely

• How do you merge culture, boards?

Vendor Relationship• Come and go

• Each arrangement is based on the business plans and needs of the partners

• There is no right or wrong way – and no template

• Get to know each other and count on support from the national cooperatives to help guide your efforts

Know Before You GO1. Rural telcos are doing a great job but their job is

not done, and sometimes they need help.

2. Don’t be inefficient and overbuild existing networks.

3. Partnerships are ONE tool in the toolkit.

4. If you don’t do it, someone else might.

www.PartnersInBroadband.com