BEYOND SELF-IMPOSED BORDERS

Thirty-six years of being a successful, but mostly local, telecom billing company suddenly wasn't enough for Willmar, Minn.-based Midwest Data. Two years ago, the company decided it had a lot to offer telcos beyond the borders of its home state. After branching out to Iowa and Colorado recently, the little biller that could, did, and is looking for more. Now, the company is implementing a five-year plan to more than double its size.

Midwest Data is a service bureau billing provider that offers the whole shebang: billing for multiple services, printing, inserting, mailing and selective marketing. And, said general manager, Glenn Miller, “It doesn't matter who a company is using for their billing, we can handle their statement fulfillment process. We'll help them with the bill design, layout and production. We even handle full CABS billing as an outsourced service.”

Miller said its competitors probably have taken Midwest for granted, thinking it is strictly Minnesota-based. “They didn't have to worry about us anywhere else, but now maybe they'll be looking over their shoulder,” he said.

Midwest got a jump on expansion last quarter by signing a number of out-of-state telephone companies. Atkins Telephone Co. of Atkins, Iowa, signed a service bureau billing contract in October that includes integrated financial software, payroll services and stock management software.

Midwest also completed deployments at three Colorado companies: Roggen Cooperative Telephone in Roggen, Peetz Cooperative Telephone in Peetz and Agate Mutual Telephone in Agate.

“After branching out to Colorado, we don't feel anything is out of reach,” Miller said. He added that for now the company will concentrate on opportunities “in the heartland of America.” However, Midwest is in some discussions with companies on both coasts. The company's sweet spot is service providers with 10,000 to 15,000 access lines.

“We have a strong and loyal customer base here at home, but the number of rural ILECs in our size range lying outside of Minnesota is a real opportunity,” Miller said. “We expect to be very strong in the upper Midwest states — Minnesota and the four surrounding it — then we will selectively and strategically branch out as we have in Colorado.”