Rural Telecommunications Mergers & Acquisitions: One Iowa Provider Buys Another

In a deal between two broadband and telecommunications operators in rural southeast Iowa, Kalona Cooperative Technology Company (KCTC) acquired Farmers & Merchants Mutual Telephone Company (Famtel).The transaction was about two years in the making. The companies had shared ideas over the years and, in October 2022, the KCTC board of directors signed a letter of intent to acquire Farmtel. Changes and adjustments followed, with final approval given by the KCTC board in April 2023 and Farmtel’s board in May 2023. KCTC said that the acquisition will offer existing customers faster speeds, better prices, enhanced service quality through the combination of staffs, and expanded package options. KCTC said that existing packages will not be changed “without customer contact,” but that some subscribers will have the opportunity to migrate to new plans in the future. Farmtel staff will become employees of KCTC.