Independent Show: Small Cable Companies Are Bullish on Rural Broadband Expansion

Rural broadband was a hot topic for the opening session at the Independent Show, an event put on by cable industry organizations ACA Connects and the National Cable Television Cooperative (NCTC) aimed at smaller cable providers. “It’s something everybody realizes they need to do but traditional finances don’t work,” commented Todd Shurz, President and CEO of IN-based cable and broadband provider Schurz Communications, in reference to the higher costs of deploying broadband in rural areas. “You really need partnerships.” Schurz’s approach toward potential partners is to explain that Schurz can be a headend and backhaul provider, minimizing the investment that the partner must make to offer multi-play services. “You put resources into upgrading your local network and we will do the hand-off,” Schurz tells potential partners, who also may want Schurz to handle tasks such as billing. Different executives did not express enthusiasm around Connect America Fund (CAF) money. "We don't carry debt and the government, surprisngly, doesn't like that," observed one executive. Schurz, however, sees an opportunity to benefit indirectly from state funding programs through a partnership with two electric cooperatives.