Beaver Creek Cooperative Telephone Co. and Canby Telcom have joined together to share executive management services. Paul Hauer, who has served as president of BCT for the past five years, became president of both companies, including Canby Telcom subsidiary Mt. Angel Telephone Co., on Aug. 1.

“This new structure, similar to an organization that serves multiple companies in Kentucky, Tennessee and Alabama, will save both companies money while preparing for the ongoing changes in the regulatory environment and market,” said Hauer, who already has been working with Canby Telcom and Mt. Angel Telephone Co. during the past two years as their interim chief financial officer, while maintaining his duties as president of BCT.

This shared structure will take form as Keith Galitz, Canby Telcom’s current president for nearly 10 years, retires Aug. 15. BCT and Canby Telcom will contract with CBS for Hauer’s services to reduce the overall operating costs for each company.

Tangee Summerhill-Bishop, spokeswoman for BCT, said that both companies will pay 45 percent, while CBS will pay 10 percent of Hauer’s salary. She declined to comment on a new salary amount, but noted that customers could come into her office and view financial documents.

The companies have planned this joint structure for more than a year to continue the concept of cooperative sharing of accounting and human resources between both of the companies for the greater benefit of each company’s cooperative members.

“The telecommunications industry is undergoing rapid change, and small, independent, cooperative telephone companies are struggling to survive,” Hauer said. “Customers are abandoning landlines for mobile, and the once lucrative cable TV market is becoming increasingly fragmented. In addition, the Federal Communications Commission is altering the rates and methods by which companies are reimbursed for services.”

As part of the new joint structure, each company hopes to continue to maintain its own identity and position within its community while leveraging the services of CBS employees for greater economies of scale. Hauer expects CBS will be able to offer additional services to its respective members, as well as other small telephone companies throughout the area.

Hauer is president and manager of Consolidated Business Services LLC, a joint venture between BCT, Canby Telcom and Stayton Cooperative Telephone Co., which formed in September 2012. SCTC will not use Hauer’s executive management services since Don Lawrence will continue to serve as president.

Contract Publishing

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