Back in 1979 when Leonard May bought Direct Communications, some 320 homes in the Rockland Valley in southeast Idaho were served by the phone company. Today, Direct Communications has more than 6,000 subscribers for telephone service and offers cable TV and Internet services including broadband. In addition to the two Direct Communications companies, Rockland in Idaho and Eagle Mountain in Utah, May also owns companies in Missouri, Oregon, and Washington.

“This is still a small, family run business with the focus on what people want and need,” May acknowledged. “While many things have changed, some things remain the same. The challenge today is knowing what to do even as the technology is changing and the regulatory environment remains uncertain.”

Competition

In addition to regulatory uncertainty and the advance of new technologies, competition in the less rural and more suburban areas is very real. In one of his Utah communities with a younger demographic, a significant number of people choose the lower-cost provider even if service is inferior to his ILEC company. These days competition has many different faces—consumers may choose a wireless provider instead of, rather than in addition to, a wireline provider; cable companies offer TV and Internet services with telephone service as an add-on. Competing in these areas means providing VoIP service and bundling multiple services including video. While video by itself may not be a profitable business, it is a necessary part of bundling to attract new customers and retain current ones.

Partnerships

Direct Communications also sees partnerships as essential to success in today’s environment. They are part of the Syringa Fiber Network in Idaho, a SONET fiber ring connecting communities in southeast Idaho. Last year along with four other independent companies in Idaho, they formed Syringa Wireless, a mobile phone company. Garrin Bott is on the board of Syringa Wireless; he calls this, “A testament to the value that partnerships between local companies can create.” They are currently assessing the potential of IPTV for the area. This year they plan to add IPTV to the services they offer in Utah and Idaho with Oregon to follow in 2009.

Overcoming the digital divide

Two other keys to success are the quality of their employees and the level of financing available to rural telephone companies. Direct Communications—Rockland is within driving distance of Idaho State University, which has a telecommunications technical program. In addition to hiring graduates of this program, the company offers extensive technical training for its employees. Underlying all of this is the network of funding that provides the foundation for upgrading systems and continued building out into even more rural areas. Without funding through various government loan programs and USF, the digital divide would be greater than it already is. “Our customers rely on the services we provide as a means Employees of Direct Communications­—Rocklandto have the life they want to have,” observed Leonard May. “We’re keeping people connected; what people want and need is important to us. We are committed to providing our customers with the best service available.”

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