Rural Broadband Operations Benchmarking Report

Small rural broadband providers are seeing average customer lifetime value (CLV) of just over $5,000, according to a new report from the National Rural Telecommunications Cooperative (NRTC). The report is based on a survey of NRTC’s rural broadband provider members. The survey had 84 respondents, including traditional telecom providers as well as electric cooperatives that offer broadband. About one-quarter of respondents have less than 2,000 subscribers, while another quarter have more than 15,000 subscribers. Other interesting provider metrics include:

• 100% of respondents offer broadband internet service.
• 91% offer voice service.
• 32% offer video service.
• Average revenue per user is $74 monthly.
• Customer acquisition cost is $135.
• Average churn is 0.9% but is lower for higher-speed tiers and higher for lower-speed tiers.