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Reveille Broadband (Lexington, Texas)

To remain competitive, we had to upgrade some of our small, rural systems and shut down others. It was a matter of survival because we were competing head-to-head against DISH and DIRECTV, and knew Verizon was coming soon. These decisions, particularly the investments, are allowing us to now take market share back from our competitors, and although we're not cash positive, we expect to be soon.

Reveille Broadband currently operates 3 small rural systems. None of them pass more than 600 homes, and in total, we have about 500 video, 250 broadband, and 150 VoIP subscribers. Over the last two years, we've sunk capital into three headends to roll out these advanced services, but also closed four systems, and another one will be shuttered soon. We have five employees.

In deciding which of our systems to shut down, we looked at the amount of money we spent on pole attachments and retransmission consent. For our smallest systems, we were spending a lot on attachments, and we closed them. We also decided to shut down the one system in which we were paying retransmission consent fees.

Although we're having success winning back customers, it's tough to be an independent cable operator serving smaller markets, especially because of escalating programming costs. Of the $45 we receive from our customers per month, we give about $28 to the programmers - leaving us with about $17 to run our business. Fortunately, we made some difficult decisions over the past couple of years that allows us to now and for the immediate future provide our customers with a competitive service at a competitive price.

-Jeff Sullivan Reveille Broadband

 

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