When Internet service providers merge, rural advocates worry services will decline; ISPs say together is better

Broadband companies need to 'stay rooted' in service
communities. (Photo by Ildefonso Polo, Unsplash)

A merger between two broadband companies has some Southern rural communities concerned that service quality will decline, but the companies say joining will improve funding opportunities for 'the most rural places.'

"Two Internet service providers are merging to cover a larger area of Texas, Arkansas and Oklahoma, but an expert in community broadband networks cautions that consolidation can often hurt customer service," reports Kristi Eaton of The Daily Yonder. "The two former companies – 360 Communications of Durant, Oklahoma, and 903 Broadband of Leonard, Texas – were roughly the same size, which means the combination is a doubling in size for both. The merger formed 360 Broadband, with almost 16,000 subscribers and 88 employees across 10,000 square miles and 30 counties: 20 in Oklahoma, six in Texas, and four in Arkansas."

Christopher Mitchell, who runs the Community Broadband Networks program at the Institute for Local Self-Reliance, "is concerned about consolidation and its impact," Eaton writes. "He added, however, that he knows there is a high cost of building and operating compared to many other businesses." Mitchell told Eaton: "And so, if you don't have 5,000 to 10,000 subscribers, it can be hard to be able to grow the network in ways that you would like. And so it's kind of expected, I feel like, for some ISPs to grow through mergers. . . . As they get bigger and bigger, we really worry about their ability to meet all of the local needs."

Drew Beverage, chief strategy officer for 360 Broadband, told Eaton: "At the federal level, at the state level, it makes sense for the two companies to come together to combine resources to be able to play in that arena. And not only provide better customer service. give us better options to be able to go after some of that federal money to build out more resources to build out more rural space. And we're talking about the most rural of towns."

Beverage also encourages communities to emphasize the Affordable Connectivity Program as a way to improve rural internet access. "The program provides a discount of up to $30 per month toward Internet service for eligible households and up to $75 per month for households on qualifying Tribal lands. 360 Broadband will now cover Choctaw and Chickasaw Nations."