Enventis Sale Illustrates Rural Telco Dilemma
Another acquisition by regional telco Consolidated Communications, which now is acquiring Enventis Corporation, formerly HickoryTech, illustrates the pattern of “growth by acquisition” for Consolidated Communications and other regional telcos that formerly primarily earned their revenues from telecom services, mostly voice, sold to rural consumers.
In recent years, leading regional telcos that formerly could have rightly been called “rural telcos” have grown not just by acquiring assets, but by changing the nature of their businesses, becoming largely suppliers of services sold to business customers.
In most cases, such transformations have been accomplished through acquisitions, especially of service provider operations that historically have focused on business customers.
Almost by definition, that strategy cannot work for all rural telcos. An acquisition strategy requires access to capital, plus geographical proximity, management expertise and reasonable existing scale.
Windstream an…
In recent years, leading regional telcos that formerly could have rightly been called “rural telcos” have grown not just by acquiring assets, but by changing the nature of their businesses, becoming largely suppliers of services sold to business customers.
In most cases, such transformations have been accomplished through acquisitions, especially of service provider operations that historically have focused on business customers.
Almost by definition, that strategy cannot work for all rural telcos. An acquisition strategy requires access to capital, plus geographical proximity, management expertise and reasonable existing scale.
Windstream an…