Small Rural Telecom Companies Increased Network Investment in 2021

Small independent telecom companies increased rural network investment “slightly” in 2021, according to a new report from accounting firm FORVIS. This was true for companies with annual revenues below $2.5 million and those with revenues exceeding $25 million and for all companies in between. The average rural network investment per line for 2021 was $17,400 per access line for the 168 small rural telecom companies that responded to the 2022 FORVIS Rural Telecommunications Benchmark Study. Rural network investment may have increased, at least in part, because of broadband grants, which were received by 69 of the respondents. In total, the 69 rural telecom companies received $336 million in federal, state and local government broadband grants. Through 2022, the average broadband grant award was $2.5 million, but 11 companies received grants totaling over $10 million each.