NCTC issues $2 million in capital credits to members
In 2006, the board of directors of North Central Telephone Cooperative, Inc. (NCTC) decided to distribute capital credits to members for the first time in the cooperative’s history.
NCTC is a cooperative, which means that its members are the owners of the organization. In exchange for their annual contributions, NCTC members can use the money they contribute to provide advanced telecommunications services or to make a new technological advancement possible in the future. Profits that are not reinvested in improvements are distributed to the organization’s members as capital credits.
They are held in trust until the NCTC Board of Directors determines that the cooperative is in a position to make the payments to its members.
As part of its ongoing network modernization, NCTC has upgraded its entire network to a cutting-edge fiber-optic solution, which provides members with access to some of the fastest and most highly sought after internet speeds available anywhere in the world.
When it came to beginning fiber deployment, the NCTC Board of Directors and management were proactive, ensuring that the cooperative would eventually become a 100-percent fiber network and be able to resume issuing capital credits.
“It has taken 14 years to build an all-fiber network,” said Glen Hardcastle, chairman of the NCTC Board of Directors. This year, we were finally able to complete that task. It’s gratifying to be a part of something so significant, especially after years of dedication and perseverance.” In terms of fiber deployment, our cooperative is ahead of the majority of large, national corporations. According to what we have said numerous times, if it were simple, everyone would be doing it.”
Members of the NCTC can take advantage of world-class internet access at a time when many areas in both Tennessee and Kentucky still lack reliable internet service.
Despite the fact that the cooperative is in better financial shape than it has been in several years, NCTC President and CEO Johnny McClanahan expressed his delight with the board’s decision to issue capital credits once more.
According to McClanahan, “I am grateful that the board of directors felt it necessary to issue capital credits this year.” Our members are benefiting from the years of effort we have put into upgrading our network.
The last capital credits were issued for the partial year of 1988, which was the last time they were issued. This specific capital credit payment will be made for the remaining months of 1988 and 1989, as well as for the remainder of 1990.
As NCTC celebrates its 70th anniversary, McClanahan said, “we can think of no better way to honor our members than by issuing the capital credits they deserve and the profit generated by a financially sound cooperative.”
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