Warwick Valley Telephone Co. to remain independent

Warwick - Contrary to some earlier unconfirmed reports and other rumors, WVT Communications, formerly known as the Warwick Valley Telephone Company, recently announced that it will remain independent, as it has for more than 104 years. A company spokesperson reported that the decision came after an extensive review of WVT’s strategic options by the Board of Directors with the assistance of its financial advisor. Almost a year ago, a story in Business Week was titled, “Will a small operator hang up its phones.” The article reported that Joshua Eudowe, a spokesperson for Santa Monica Partners Asset Management, an investment partnership that owns stock in Warwick Valley Telephone, argued that the shares would be more valuable if Warwick Valley Telephone sold its phone business and operated purely as an investment firm. The company has a 7.5 percent interest in the highly profitable Orange County Poughkeepsie Limited Partnership (OCP), a wholesale provider of wireless minutes. In response to the article, Herb Gareiss, president and chief executive officer of WVT Communications, explained that Warwick Valley Telephone is heavily regulated by government agencies and not always free to make spur of the moment business decisions. He admitted that all options have always been on the table and that Warwick Valley Telephone had hired an outside investment firm to explore strategic alternatives. However, according to this most recent announcement, WVT will continue to serve the local community with telecommunications products and services including high-speed Internet, digital television, wireless and traditional telephone. The announcement also stated that the company is making strides to control costs by automating accounting and operating systems, staff downsizing and migrating to next-generation switching platforms. Additional plans for 2007 include developing the company’s sales and marketing capacities, increasing efficiency, reducing the time necessary to get products and services to market, increasing operating revenue, and staying on the cutting edge of technology. “We look forward to working with the company’s management team and employees to provide significant value and innovative services that the marketplace demands,” said Chairman Wisner H. Buckbee. In a separate report issued by Reuters News Service on Nov. 17, Michael Cutler, WVT’s chief financial officer and vice president, announced that he would resign effective Dec. 1, to pursue other business interests.