Telergee: Rural Telecom Margins Decline, But Network Investment Increases

Declining margins are an ongoing issue for small rural telecommunication companies, as new data from the Telergee Alliance of accounting firms reminds us. The average small telecommunication company saw margins drop 1.7 percent between 2013 and 2014, despite a 2.1 percent increase in average revenues, according to the 2015 Telergee Benchmarking Study.

Telergee firms specialize in rural telecommunications and for years have compiled financial data from clients annually in an anonymous manner. 2015’s study was based on responses from 197 companies -- a substantial portion of the nation’s 800 or so small rural telecommunication companies. Despite financial challenges, however, rural telecommunication companies are showing signs that they are more willing to invest in their networks than they have been in recent years, noted Chris Skidmore, senior manager in the communications and media practice at Moss Adams LLP.