NCTC Issues $2 Million in Capital Credits to Members
The board of directors for North Central Telephone Cooperative, Inc. (NCTC) voted to distribute capital credits to members for the first time since 2006. NCTC is a cooperative, which means it is owned by its members. Each year, the money members invested in NCTC is used to provide advanced telecommunications services, or to make a new technology possible in the future. Profits not invested in improvements is allocated to its members as capital credits. These funds are held in trust until the NCTC Board of Directors determine that the cooperative is in a financially positive position to distribute the payments to its members.
Since 2007, NCTC has been upgrading its entire network to a state-of-the-art fiber optic solution, which allows members to have access to the fastest and most highly demanded internet speeds available anywhere in the world. The NCTC board of directors and management was proactive in beginning its fiber deployment so that the cooperative could eventually be a 100% fiber network and begin issuing capital credits again. “It has taken 14 years to build an all-fiber network. We finally completed that task this year, and it is exciting to be able to witness such a huge accomplishment after all these years of hard work. Our cooperative is ahead of most large, national companies in fiber deployment. As we have stated many times—if it were easy, everyone would be doing it,” said NCTC Board Chairman Glen Hardcastle. At a time when both Tennessee and Kentucky have many areas that still lack reliable internet service NCTC members can experience world class internet use.
NCTC President and CEO Johnny McClanahan is pleased with the board’s decision to issue capital credits again as the cooperative is more financially sound than it has been in several years. “I’m thankful that the board of directors saw fit to issue capital credits this year. We have been working to upgrade our network for years, and it is paying off for our members,” said McClanahan. The last capital credits were issued for the partial year 1988. This specific capital credit payment will be issued for the remainder of 1988 and 1989. McClanahan said, “With this being NCTC’s 70th anniversary, we cannot think of a better way to celebrate our members than by issuing the capital credits they deserve and the profit generated by a stable cooperative.”