Rural Telecom Economics: Telergee Report Finds Revenues Up, Profits Down

The average small rural telecommunications company saw revenues increase in 2016 but profitability declined in comparison with the previous year, according to the latest Telergee Benchmark Study.

The extensive and detailed rural telecommunications economics report is compiled annually by The Telergee Alliance, a group of accounting firms that specialize in rural telecom. The 2017 report is based on financial data from 172 small telcos – a substantial portion of the 800 or so small telcos nationwide. On average, small rural telcos saw revenues increase 2.8 percent between 2015 and 2016, according to the Telergee study. Yet operating income dropped an average of 3.9 percent. The results are not surprising, as telcos’ regulated revenues are flat or in decline, driving the telcos to pursue unregulated lines of business, many of which have “super thin” margins.