Raising Rural Routes

Posted: 10/2003

Raising Rural Routes
Independent Telco Alliances Band Together to Market Carrier Services
By Khali Henderson

Independent telcos and cooperatives serving rural America have long banded together in alliances essentially converging their networks on a statewide basis. This summer, 17 such alliances (see list) have joined forces as an alliance of alliances called the Independent Alliances Telecom Group, or INDATELgroup.

Chartered as a not-for-profit organization in the state of Missouri, the association has a dual purpose encompassing networking and information sharing  not uncommon for trade groups  and also joint national marketing of its members individual networks, which presently cover 15 states primarily in the Midwestern United States.

While many of the alliances already interconnect with one another, such deals are not a primary purpose of this coalition, says Max Huffman, president of the newly chartered group and COO of Missouri Network Alliance. Our goal today is not to be a nationwide provider through interconnects or a buyer or seller of our networks other than on an individual basis, he says. We have been careful to stay strong to our two key purposes  networking/information sharing and joint national marketing and advertising.

In fact, he says the association came out of a meeting with four other alliance executives seeking to share best practices in advancement of their respective businesses.

We spent the better part of a day and a half comparing notes while discussing the nature of our businesses, says Scott Hoffmann, executive director of Wisconsin Independent Network LLC and vice president for INDATELgroup. It was clear to me right from the onset that there was great benefit to me and my efforts to build WINs business to establish a dialogue such as this  with other organziations across the country that are structured similar to WIN. A big plus already has been the networking with my peers in INDATELgroup.

Because the members are not competitors, such information is not viewed as closely guarded intellectual property that it otherwise might be in another circumstance. Thats why this alliance works. We are like organized and we are not competing in the same space with each other, Huffman says, adding plainly, If you dont want to share information, you keep your mouth shut.

Learning from each others experiences  good and bad  on the technological and business fronts is just one of the perks of membership. The other is inclusion in a national marketing campaign wherein members have pooled their monies to fund INDATELgroup ads in trade publications and a presence at industry events. The association will be on hand at this months CompTel 2003 Fall Conference & Expo, for example.

In fact, Huffman says the groups dues are based on the budget for the marketing campaign with each member paying an equal portion. A good two-thirds of us could not advertise nationally without having come together, he says. I spread [the cost] across 17 companies and it becomes cost-effective; its scale.

Created with the assistance of Dallas-based Patrick Beckman Advertising Design Inc., the campaign, which includes a web site and print ads, features the tagline What state is your business in? and a map of the United States with the member networks noted geographically. Huffman says the purpose it to promote respective member networks as an alternative to the incumbent LECs for broadband transport.

The ads target IXCs and wireless carriers seeking access to rural market and backhaul to MSA points of presence over fiber backbones. The only solution you have to get from Kansas City to Chillicothe, Missouri, is SBC, says Huffman, citing an example. In many cases, we [MNA] are the alternative to the large incumbent RBOC.

INDATELgroup is planning its annual meeting for first quarter 2004 at which time the executive board (see inset) will present the results of the 2003 campaign.

Hoffmann adds, I am also optimistic about the joint marketing we are undertaking with the other members of INDATELgroup.