Colorado Cooperative Looks Back on Two Decades as Rural Broadband Pioneer

Although broadband today stands as a recognized essential utility service—nearly on par with electricity and telephone—that wasn’t the case 20 years ago when Southeast Colorado Power Association (SECPA) based in La Junta, Colorado, identified high-speed Internet access as an important, but unmet community need. So vital, in fact, that in 1998 the electric distribution cooperative created Southeast Communications (SECOM) to tackle it. 

“Early on, we saw broadband as an emerging necessity and did not want our service territory to fall on the wrong side of the digital divide,” explains Jack Johnston, SECPA CEO.

A wholly owned for-profit subsidiary, SECOM maintains 1,600 miles of fiber across southeastern Colorado along with 130 fixed wireless towers, serving more than 7,000 residential, business and enterprise customers with a variety of voice, Internet and data services.

Balancing Geography with Growth

Like most electric cooperatives, SECPA members are spread over a wide region—just two customers per mile of line in some areas. That led SECOM to take a somewhat unique path with its business plan: marrying organic expansion with strategic acquisitions and an initial focus on wholesale and institutional customers. These efforts were fortified with a financial approach that balances growth with cash flow and profits—and a lot of perseverance.

“SECOM has not strived to necessarily be all things to all consumers,” Johnston says. “We emphasize being flexible and dynamic, and aim to deliver quality service coupled with strong customer support at a competitive price. We’ve used acquisitions to create economies of scale and ensure that we are adequately staffed to handle our rapid growth trend.”

He adds: “Since 2015, we’ve concentrated our three major acquisitions on fixed wireless companies as a way to become the premier provider within our marketplace. We believe fixed wireless remains a desirable stop-gap technology to future fiber customers and has advanced to the point where it may be a long-term solution for those living in more remote locations.”

Are You Ready for Competition?

Since its inception, SECOM has evolved to meet increasing demand for broadband bandwidth and speed. According to Johnston, that has only been possible by understanding that a for-profit business must be managed very differently than a not-for-profit cooperative. “Zero in on your market opportunities and finance most of your business model within the shortest possible timeline. Strive for positive cash flow before profitability and equity growth.”

Over the years, CFC and NCSC financed several SECPA and SECOM broadband-related projects. For electric cooperatives considering entering the telecommunications industry, Johnston advises: “Be certain you have the stomach for a competitive marketplace. The startup years can be very scary, especially when looking at monthly and annual financials. Even in the best of times it can be a rollercoaster ride. Patience, fortitude and stamina over the long term are keys.”