July 1, 2010

2010 Top OPS Awards: Competition Award: Eagle Communications

It’s tough for an independent to compete in an environment that is increasingly populated by large, government-funded predators. But Eagle Communications, under the leadership of CEO Gary Shorman, continues to soar.

Hays, KS-based Eagle, which serves about 18,000 cable customers through 31 systems and 30,000 digital phone/Internet customers, primarily in Kansas and Colorado, has staved off competitors with a diehard commitment to customer service and the communities it serves. It’s a formula that’s again being put to the test. World Telecom, which thus far has received the largest loan/grant in the first round of the Agriculture Department’s Rural Utilities Service funding – $101 million – moves into Eagle territory this summer.

"Our biggest challenge is intervention by outside entities and rules that favor government-funded or quasi government-funded entities that put companies our size – with fewer than 300 employees – at a competitive disadvantage," Shorman says. "We have to work hard to see what’s coming around the corner and make sure what we do is smart and effective. We have to make the right decision and do the right thing for our customers, because no one’s got our back."

The effort does not go unnoticed. "It’s challenging enough to deliver advanced telecommunication services in rural communities with a shrinking population, and on top of that, face government subsidies that create what’s oftentimes an uneven playing field," says John Federico, President of the Kansas Cable Telecommunications Association. "It makes you really appreciate the fine job Gary and his team are doing."

Although Eagle lacks a government safety net, it has a secret weapon of sorts. Its 230 employees own 65% of the company. That’s why Eagle’s employee-owners work harder to satisfy customer needs. "As things get more complicated, customers need more help," Shorman says. "We’re here to be able to do that."

Thus far Eagle has invested some $20 million in its communities. "They’re really a company that’s of the communities they serve," says Lisa Schoenthaler, VP of Association Affairs in NCTA’s office of rural/small systems. "And they’ve invested their own private risk capital to build their business and compete against other, government-subsidized providers."

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