- NCTC is commercializing an AI platform for small and mid-sized operators after running pilots with three member companies
- The co-op has invested several million dollars upfront so members can access vetted AI use cases
- Borelli said members see AI as essential, but many need help overcoming resource constraints and building confidence
The AI race is already well underway at the largest network operators. But for smaller broadband providers, the questions are often more basic: Do we have the resources for this? Where is it on our list of priorities? Where do we even start?
Lou Borelli is CEO of NCTC, a cooperative comprised of cable operators, ILECS, CLECs and other independent broadband and pay-TV service providers. Borelli told Fierce its 640 or so members increasingly view AI as a “must do, not a nice to have,” but are balancing it against other priorities, including BEAD-funded builds, daily operations and broader margin pressure.
“They really have a challenge to balance how do I develop my AI program while I’m trying to do everything else?” Borelli said. “That’s where I think you get into a lack of resources, which is really people, as well as a balance sheet [so] they can afford to make those kinds of bets.”
That resource gap is a hole NCTC is trying to fill. Borelli told Fierce Network the cooperative is standing up an AI platform that will allow members to deploy tested use cases from vetted vendors without having to front the capital themselves. It first announced the platform in July but is now preparing to take it into commercial operation in the coming weeks, Borelli said.
“This is a way for the second- and third-tier operators to remain competitive, to remain essential,” Borelli said. “Everybody’s under margin pressure … and we’re doing our part to see how we can make our members more efficient, hopefully make them more productive, more profitable.”
NCTC has put “several million” dollars into the effort, Borelli said. Members will not have to contribute upfront capital, but the co-op plans to charge through a subscription and usage-based formula.
Borelli said the platform will initially offer four use cases, including voice and text AI chatbot tools, predictive network management and tools aimed at reducing truck rolls. But the goal is to expand that ecosystem with both more vendors and applications.
This isn't the first time NCTC has stepped up to give small and rural players an edge. In recent years, the co-op also built a turnkey video streaming solution and teamed with AT&T to deliver a white-label MVNO option for its members.
Bridging the AI resource gap
NCTC’s board authorized four AI pilots with three small member companies earlier this year. The outcome was strong enough that the board approved a full platform investment. EY helped NCTC build the platform, and the co-op is now hiring staff and moving into commercialization.
One operator from the trial group is expected to move onto the commercial platform within the next few weeks, Borelli said. NCTC also has a pipeline of other members waiting to engage, but confidence levels vary. That’s why the pilot phase was so important for broader adoption.
“They like me. They like my staff, but they’d rather hear from people that are actually their peers,” Borelli said. “Members want to hear from members who look and act and sound like them.”
The move lands as rural broadband providers are still trying to turn broad AI interest into concrete strategies. A recent survey of 132 rural operators found 56% feel behind as AI adoption accelerates. The same survey found top barriers included lack of internal skills or confidence and uncertainty about vendors and tools.
Ultimately, NCTC is not trying to put its members on the bleeding edge of AI. It is trying to help them become fast followers with practical tools that can improve customer service, network operations and field efficiency, Borelli said.
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