More than ever, success for independent telecom providers depends on strength in numbers. The rush to broadband has shifted the industry away from its traditional focus on voice and forced community based companies not only to adopt a whole new outlook about the services they offer but also find ways to deliver them more efficiently and economically.
As we move along the path to the all-IP network, new technologies and advanced services will generate unfamiliar regulatory and policy priorities. We're learning, often with some difficulty, that consumers' fascination with broadband means that the old way of looking at revenue and expenses doesn't cut it anymore. If independent companies and cooperatives expect to take advantage of emerging opportunities in 2012 and beyond, they have to understand that they must do it together. As they do, they'll also find that the old rules no longer apply: The monopoly way of thinking, entitlement, "guaranteed" rate of return - whatever you call it - are gone, replaced by economies of scale, combining resources, and forging management partnerships as the industry's current watchwords.
Even as broadband and IP technology take root in the marketplace, competition remains the 500-lb. gorilla in the room. In many ways, broadband represents merely the latest "opportunity" to meet customer demands and to fit your products and services to the markets you serve. Thus, while policies and priorities shift, perhaps leaving us to twist in the wind, competition offers another way out. If we develop and adopt innovative business plans and strategies, we are better positioned to deliver what customers want, at prices they can abide. You may no longer be the "only" game in town, but given your track record, you likely remain the "best" choice. Thus, you still hold your future in your hands.
To remain at the wheel and maintain control, you must recognize and adapt to the new rules of the road. Independent providers must "man up" all facets of operations - network planning and enhancements, back-office systems and billing, management practices, customer services, marketing, et al. I can't emphasize it too much: Providing quality, value-added services is not enough today; you must "do it all" and do it more efficiently and more economically than you ever have before. If you don't, the transition will have at least one undesired outcome: the end of rural America's ability to depend on community based telecom providers for access to the advanced services that promote participation and prosperity in the national economy.
For 50 years, JSI has focused on clients' long-term success and profitability, and we certainly see no reason to shift that focus now. Indeed, recent events have reinforced our commitment to look past the quick-and-easy fix to seek more meaningful resolution. For JSI, the immediate effect of the Rush to Broadband has been to clearly illustrate that we can't stand still, that we must extend our reach to ensure our resources match up with client needs. Our long partnership with independents also makes us uniquely aware of exactly what America stands to lose if it forgets what these companies mean to their communities ... the service commitments that established and strengthened their community connections, as a telecom resource, a vital business partner, and an economic development advocate. Looking to the next 50 years, we intend no less a commitment on our part to help clients protect and build on those strengths.
Leo Staurulakis
Executive Vice President
