Brian Murphy, COO of Akron-based First Communications, is the first to admit his company’s growth record is an anomaly in its industry right now.
“The telecom industry is in such a shambles,” says Murphy.
He attributes his company’s success to its ability to grow revenue from its existing customer base by offering an expanding menu of products, and focusing on customer retention.
“We don’t always focus on top-line growth, but the retention of customers in the long run,” he says.
First Communications was created in 1998 after Akron-based utility FirstEnergy, along with several other investors, bought an interest in its precursor, BN1 Communications.
Locally-owned BN1 was founded in 1984 after the divestiture of AT&T. The small carrier grew by marketing long-distance services through organizations including the Ohio Auto Dealers, Tampa Builders Exchange and the Association of Indiana Counties. This unique growth strategy differed from other carriers because the company marketed its products with the endorsements of these groups, rather than investing in traditional advertising.
In 1998, FirstEnergy brought additional assets to the telecom provider, renamed First Communications, including physical and real estate services, marketing, and the collective knowledge and guidance of the company’s management team. Murphy, who had worked for FirstEnergy, was tapped to run the new company, and as COO reports directly to the board of directors.
First Communications also had, and has, the benefit of access to FirstEnergy’s customer base. Over the last four years, it has grown from a long-distance provider to a full-service telecommunications company offering toll-free service, conference calling packages, calling cards, Internet access, and dedicated and private line services including frame relay, virtual private networks and point to point connections.
Today, it has about 50,000 residential and commercial customers and employs 90 in its offices in Akron, Indianapolis and Chicago. Over the last four years, it has grown its revenue by an average of 13.8 percent a year. How to reach: First Communications, (330) 762-4900
