M A Y – J U N E 2 0 1 5 SPECIAL BUYERS The Magazine GUIDE of Rural Telco PULLOUT Management What One Video Streaming Service Has Meant for Rural Telecom Providers, Consumers and the Programs They Watch 20 Homegrown Tech Incubators 24 Local and Lovin’ It 28 RTIME Wraps Up in Phoenix RTMay-June2015.FINAL_cc.indd 1 4/27/15 3:37 PM Communications Technology Media Success in today’s fluid telecom environment requires an experienced partner with laser focus and the GVNW ability to execute communication, technology and media strategies that AD result in sustainable growth. PAGE 2 With offices throughout the country and over 4 decades of experience, the GVNW team has the knowledge, resources and expertise to develop growth strategies, improve operations and maximize the organizational effectiveness for your company. RTMay-June2015.FINAL_cc.indd 2 4/27/15 3:08 PM Communications Technology Media Success in today’s fluid telecom environment requires an experienced partner with laser focus and the FINLEY ability to execute communication, technology and media strategies that AD result in sustainable growth. PAGE 3 With offices throughout the country and over 4 decades of experience, the GVNW team has the knowledge, resources and expertise to develop growth strategies, improve operations and maximize the organizational effectiveness for your company. RTMay-June2015.FINAL_cc.indd 3 4/27/15 3:08 PM In Every Issue 6 FROM THE TOP 8 SHORT TAKES 10 #RURALISSOCIAL 12 CONNECTIONS Your Telecom Information Hub By Shirley Bloomfield 14 PERSPECTIVE Targeted Message Yields Greater Upgrade Response By Shannon Sears 37 ADVERTISERS INDEX Departments 16 34 MARKETING MATTERS Rock-Star Sales Strategies THE NETFLIX EFFECT By Christian Hamaker What One Video Streaming Service 39 EXCHANGE Has Meant for Rural Telecom Ryan Atkins Hits the Racetrack While Providers, Consumers Representing #ruraliscool and the Programs They Watch By Laura Withers Small Alaska Co-Op Raises Big Funds for Wounded Vet Streaming services like Netflix rely only on a Ben Lomand Reconnects Van Buren robust broadband connection and a Wi-Fi- County After Fire enabled device to open a flood of video viewing Ritter and iRis Interconnect options for customers, but streaming video has Associate Member Spotlight: been a blessing and curse for operators of rural Recovery & Distribution Services, LLC telco networks. ILLUSTRATION BY SAM FERRO; PHOTOS: BIGSTOCK Publisher: NTCA’s Mission: NTCA–The Rural Broadband NTCA–The Rural Broadband Association Association, an association of small, rural, com- Chief Executive Officer: munity-based communications providers, is dedi- Shirley Bloomfield, [email protected] cated to improving the quality of life in rural Director of Communications: communities through the advocacy of broadband Rural Telecom (ISSN: 0744-2548) Laura Withers, [email protected] and other advanced communications infrastruc- May•June 2015 Editor: ture and services. Bimonthly, Vol. 34, No. 3 Christian Hamaker, [email protected] NTCA represents nearly 900 small, rural, Subscriptions to Rural Telecom are $35 for NTCA– Senior Content Specialist: locally owned and operated telephone coopera- The Rural Broadband Association members; $135 Tennille Shields, [email protected] tives and commercial companies in the United for nonmembers. To order or for questions about a Advertising: States and abroad, as well as state and regional current subscription, email [email protected]. [email protected] telephone associations and companies that are Graphic Design by Ferro+Ferro Graphic Change of address should include recent mailing the suppliers of products and services to the Communication, Arlington, Va. label and new address with ZIP code. small and rural telephone industry. Our readers Printed by Colorcraft, Sterling, Va. are the managers, directors, attorneys and key 4121 Wilson Boulevard, Tenth Floor, Rural Telecom, established in 1981, is the employees of these telephone companies as well Arlington, VA 22203 bimonthly magazine published by NTCA–The as consultants, government officials and tele- Phone: 703-351-2000, Fax: 703-351-2001 Rural Broadband Association, a nonprofit, coop- communications experts. Email address: [email protected] erative corporation formed in 1954 under the Website address: www.ntca.org laws of the District of Columbia. RTMay-June2015.FINAL_cc.indd 4 4/27/15 3:08 PM MORE ONLINE NOWT A ruraltelecom.org Features Experience our digital edition, and get the Rural Telecom app. COUNSELING 20 How Homegrown Tech Incubators Build Local Businesses—With Telcos’ Help By Tara Young When a local telco provides critical development infrastructure, you have the beginnings of a tech incubator—organizations that help new or startup companies develop by providing expertise, workspace or a combination of both. 24 Local and Lovin’ It By Jonah Arellano As big companies get bigger, independent telecom providers continue to promote localism. Hear from NTCA members about how they’ve promoted that message in their marketing materials, and the level of success they’ve experienced with those campaigns. 28 RTIME Recap By Hillary Crowder NTCA–The Rural Broadband Association members basked in the Southwest sun during the Rural Telecom Industry Meeting & EXPO (RTIME) in Phoenix, Ariz. Attendees were treated to educational sessions, keynote speeches and policy updates, but the meeting also offered exciting events beyond the Phoenix Convention Center. >> Buyers Guide This year’s look at the products and services your telco needs are highlighted in several categories: billing, broadband, cloud computing, engineering, equipment, financial, insurance, IPTV/video, law, network/long-distance, operations and wireless. NTCA Board of Directors, General Counsel General Counsel Don Richards and Chief Executive Officer Chief Executive Officer Shirley Bloomfield President: James M. Dauby The Editorial Purpose of Rural Telecom is Vice President: Doug Boone Editorial, advertising and subscription offices: threefold: to inform readers of public policy Secretary/Treasurer: William P. Hegmann Periodicals postage is paid at Arlington, Va., issues affecting the industry; to provide insight Central Region and at additional mailing offices. Postmaster, on developing businesses and technology; and to Commercial: Doug Boone send address changes to “Rural Telecom,” share expertise and experience on management, Cooperative: Ron Hinds 4121 Wilson Boulevard, Suite 1000, Arlington, marketing and customer service. North Central Region VA 22203-1801. Commercial: John Klatt Invitation to Contributors—Please email Cooperative: Kevin Beyer ([email protected]) or fax (703-351-2088) an It is illegal under federal law to send facsimile Northeast Region outline a of proposed article to the managing editor. advertisements without first obtaining the Commercial: Mark Bahnson All articles should be prepared according to our express written consent of all recipients. The Cooperative: James M. Dauby writer’s guidelines, available on NTCA’s website. inclusion of fax numbers any place in this Northwest Region publication does not mean that consent has Statements of Opinion and Fact are the indi- Commercial: Allen R. Hoopes been given to receive facsimile advertisements. vidual views of the authors and not necessarily Cooperative: Mitchell A. Moore the positions of NTCA, its officers, directors, Southeast Region members or staff. Commercial: H. Keith Oliver Cooperative: J. Frederick Johnson © 2015 NTCA–The Rural Broadband Association Southwest Region Commercial: Janet Britton Cooperative: William P. Hegmann RTMay-June2015.FINAL_cc.indd 5 4/27/15 3:08 PM The Thrill of the Chase Back when I worked in the newspaper business, my watch the sequel series.) It was clear that this story— cohorts and I used to lament that in the time it took to of how one video streaming service has changed the write, edit and print the paper, many of the stories we game for video and broadband providers (as well as a had spent so much energy producing had advanced two host of other allied industries)—is far from over. steps. The stories we were pursuing were chang- I’d like to thank the NTCA members who spoke can- ing so quickly that the reports in the morning didly with me and even shared some network data paper were overtaken by developments before showing how Netflix and other streaming services like it the newsprint even hit newsstands. Of course, have affected operational and marketing tactics. As with this was before Twitter, blogs and email alerts many issues affecting rural telecom providers, no one were the rage, but the point stands that chas- company has the same challenges, but one emerging ing an ever-changing story can be thrilling but, theme came into focus: Streaming video is growing in at times, overwhelming. popularity by leaps and bounds, and broadband provid- Such was the case when I launched into the ers both small and large are rightly taking notice. Get article in this issue exploring Netflix’s impact on ready for some more discussion of this thrilling story in rural telecom. Headlines about the behemoth streaming the weeks and months to come. video service were suddenly everywhere. “Netflix Main Cause of TV Ratings Drop.” “Earnings Fuel Netflix Surge.” Laura Withers And my personal favorite, “‘Full House’ Spinoff Headed Director of Communications to Netflix.” (To this day I still have a huge crush on John [email protected] Stamos as Uncle Jesse, and I will be among the first to A Low-Program Diet With the warmer weather comes resolutions to get trim are feeling liberated. What does that mean for your com- and to de-clutter. Maybe you want to drop a few pounds pany and its video play? Can you fatten your customer so you can look good in a bathing suit this summer, or rolls by offering a “lower-program” diet? perhaps you just need an excuse to give your house a In this issue focused on marketing, Laura Withers deep cleaning—followed by a yard sale to get rid investigates “the Netflix effect” and its impact on telcos’ of all the stuff you thought you once needed. network operations, marketing and customer expectations. TV-watching is going the same direction.