The Richland-Grant Telephone Cooperative, Inc. is customer owned, customer governed, with customer benefits!
Rural telephone cooperatives were established to provide service in sparsely populated areas where telephone companies thought they couldn’t make a profit. They are operated by boards of directors elected by local members (customers).
Capital credits – Your stake in the cooperative
Capital credits are one of many advantages to belonging to a cooperative. Any surplus beyond the cooperative’s limited return on investment and the costs of operating the business are returned to members in proportion to their spending (patronage) on services or products, including. . . Local and/or long distance calling , voice mail, optional calling features like caller ID, Internet – dial-up and DSL and Digital TV to name only a few. The more business a member does with the cooperative, the greater the amount of credits that are earned. For example, when you choose our new digital TV service over satellite or dish TV you benefit by receiving more patronage – something you will not get from other providers.
Please review our capital credit cycle:
Customer/members buy/subscribe to our products and services.
The cooperative uses sales revenue to pay it's bills (expenses).
At the end of the year, revenue minus expenses equals net margins.
Margins are allocated to the members and become capital credits.
The cooperative retains the capital credits to use to operate the company.
The Board of Directors determines the amount of annual capital credit retirement.
Capital credits are returned to the members by check.