But in the country, companies are lucky to have two or three. Most of Garden Valley's service area, for example, averages 2.7 households per mile of wire. The population density of United's area averages about one per square mile. In the far west of United's region, the average is half a household per square mile, according to Carlson. Worse, the rural population is in decline, which explains why U S West has left to concentrate its efforts in profitable metropolitan centers.
Cooperatives have no such luxury.
It's in their charters to serve all the customers in their areas, regardless of cost. To be sure, some receive federal subsidies, but neither United nor Garden Valley sees much of this money since both keep costs below the national average. Subsidies kick in only when the cost of laying phone lines rises above average. One answer is to expand the customer base, as United did. It bought Turtle Mountain Communications Co. to create a service area of 12,000 customers.