Farmers & Merchants Mutual Telephone Company (Famtel) has been acquired by Kalona Cooperative Technology Company (KCTC).
KCTC was first established as Kalona Mutual Switchboard Company in 1905. The service provider began providing Gigabit fiber optics to the entire Washington County area last year.
Rural Telecommunications Mergers and Acquisitions: One Iowa Provider Buys Another
The development of this partnership began many years ago as friendship and the sharing of ideas. The first letter of intent was then signed by the KCTC board of directors in October 2022.
The KCTC Board of Directors approved the final version in April 2023, and the Farmtel Board of Directors approved it on May 12, 2023, after numerous revisions and modifications. According to the KCTC website, “the remaining time is in the hands of the FCC and awaiting approval.”
It took almost two years to complete the transaction, and Farmtel employees will join KCTC as employees. The KCTC brand will remain an integral part of the expanded business.
According to the KCTC website, “for our existing customers, this will provide the opportunity to improve speeds and prices, improve quality of service with combined staffing, and expand plan options.” This will also provide many opportunities for potential customers, as the combination of our resources will provide many opportunities for growth.
Regarding monthly billing, the company said: “Your billing will be the same for now and over the coming months the branding on invoices and appearance will change. Our staff will do their best to keep all our customers informed of changes, when and what to expect. No price changes will occur without contact with the customer.
According to KCTC, some customers may upgrade to new plans in the future, but existing plans will not be changed.
The website stated: “Existing plans and prices will not change without customer contact. With this acquisition, we will have more resources available in our plans and pricing, allowing us to offer certain plans the ability to migrate to new plans.
The KCTC website also highlighted the benefits of this acquisition for customers. They said: “The benefits of this acquisition for our customers are enormous.
Growth and expansion will provide our customers with a multitude of benefits such as improved network performance, expanded coverage and access to many new services.
In Iowa, KCTC isn’t the only broadband provider making progress. Mediacom Communications, for example, announced last month that it had completed two projects to extend fiber optics to the isolated communities of Rutland and Williams, Iowa, near Fort Dodge.
KCTC board member Atlee Yoder said in a video statement that “Farmtel really fits us in terms of geography. [and] in terms of communities served.
He added, “KCTC leaders provide a tremendous service within the community at large because they have the pulse of what is happening within the community because they live in the community. »
Another board member, Jeremy Kuenster, said cross-training between the two companies would be possible.
Kuenster said: “We hope to do things on a much larger scale with the combination of the two companies, with the beautification of cities and the ability to extend our fiber optics and offer customers the services and quality of service they will get. appreciate,”
He added: “We may have the opportunity to further expand our services in the Mount Pleasant market. »
KCTC also explained the purpose of the acquisition on its website: “By combining our entities, we truly improve our footprint and the impact we can have on the communities we serve.
The combination of our staff and their talents allows us to provide more services over an even larger coverage area. This will benefit staff, current customers and future customers! »
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