About Your Cooperative > Cooperative News

Please watch this page for news and in-depth information about important developments and upcoming events at FTC, your cooperative. We intend to use this part of our website to communicate with members about the Annual Meeting, your capital credits, FTC’s local and community activities throughout the year, and other significant cooperative happenings.

Community Based Telecom Providers

Community based telecom providers, such as Farmers Telecommunications Cooperative, maintain a simple philosophy: to provide a variety of quality services, at affordable rates, to the residents and businesses we serve. Precisely because we are "community based," FTC operates with the strong conviction that we serve not just "customers," but neighbors and friends.

Did You Know?

"Consumers in all regions of the Nation, including low-income consumers and those in rural, insular, and high cost areas, should have access to telecommunications and information services, including interexchange services and advanced services, that are reasonably comparable to those services provided in urban areas and that are available at rates that are reasonably comparable to rates charged for similar services in urban areas."

— Section 254 (b)(3), Telecommunications Act of 1996

Millions of Americans depend on community based telecom providers to connect to their neighbors … and the world. True pioneers, independent companies and cooperatives have connected the most economically and geographically demanding rural areas and have played a leading role in extending technological innovation to all corners of the U.S., all the while remaining dedicated to offering customer-focused, high-quality service. Moreover, they have forged partnerships with their communities to secure the economic future of their areas, as well as that of the individual residents and businesses to whom they bring service.

Through the years, community based telecom providers have gone well beyond plain old telephone service, ensuring that their customers and local economy have access to all telecom offers. In addition to their longstanding position as rural America’s telecom foundation, community based providers serve as the link to the information economy for millions of consumers.

• Community based telecom providers serve approximately 8 percent (13 million-14 million) of the telephone access lines in the U.S., but cover almost 40% of the land area.

• The customer density in areas served by community based telecom providers averages about 19 access lines per square mile, compared with 128 lines per square mile for larger carriers. In Alabama, cooperatives serve the most sparsely populated regions of the state, with an average of less than 8 customers per mile.

• Community based telecom providers generally serve areas with limited local calling scopes: 70%-80% of their customers can reach less than 5,000 other subscribers with a local call. In non-rural areas, 70% of customers can reach more than 25,000 lines with a local call. As a result, 85% of non-rural carriers’ customer usage is local (non-toll), compared to 68% for community based telecom providers.

• Despite the demographic and financial obstacles they face, community based telecom providers offer their customers a similar array of basic service choices as available in urban markets. More than 90% provide custom calling features, such as call waiting and call forwarding; almost 90% offer equal access (i.e., long-distance choice); and, almost three-quarters offer advanced calling features, such as caller ID.

• On average, 81% of community based provider lines are residential (generally producing less revenue), compared with 73% for non-rural carriers. Substantial revenue-producing business customers are similarly skewed: Less than 13% of rural provider business lines are more lucrative, multi-line businesses.

• Community based providers are rural America’s telecom link to the information economy. All Alabama community based telecom providers offer toll-free, local access to the Internet in their areas, and more than 80% offer toll-free, dial-up access to the Internet, at average rates of less than $20 per month for unlimited use. In most cases, this dial-up service was the communities’ first opportunity to access the Internet without having to incur toll charges for the calls.

• More than half of these companies offer high-speed Internet access services to their residential customers, and more than 60% to local businesses. Most use digital subscriber line (DSL) technologies, while some offer cable modems to bring high-speed capacity to their areas. More than 90% plan to make high-speed broadband access available to the majority of their customers by the end of 2003.

• Total per-line equipment investment for community based telecom providers averages more than $5,000, compared with approximately $2,850 for non-rural carriers; the range for total per-line equipment investment for community based providers is $1,400 to $40,500, far greater than the $1,570-$4,350 range for non-rural carriers.

• More than half of community based telecom providers offer cellular, PCS, or other type of wireless services. More than 60% provide their communities — many, for the first time — with affordable access to video programming through cable TV, direct broadcast satellite (DBS), and even wireless technology.

• Service quality has become a glaring sore point for many large telecom companies serving urban markets. According to the Federal Communications Commission, the number of customers who report they are dissatisfied with the quality of their local phone service has risen from 10% in 1997 to more than 20% in 2002. By contrast, in some states, community based telecom providers note trouble reports of less than 3%.

• More than 90% of community based telecom providers give significant support to local and regional development programs. Some 85% offer educational programs to help local schools take full advantage of advanced technologies and services.

• Alabama cooperative employees and Board members serve in key civic, cultural, and church roles in their communities, and they directly impact their local and regional economies by more than $57 million annually. Nearly 75% of community based telecom providers, including Farmers Telecommunications Cooperative, are engaged in or planning e-commerce activities. Almost two-thirds of company executives or managers participate in their local chamber of commerce or other economic development organizations.

For rural towns and communities, telecom connection is critical. High speed Internet access, broadband and wireless, entertainment and video, and other advanced service applications have become the staples of the global economy. Despite lingering perceptions that may obscure their oft-demonstrated expertise, community based telecom providers are already planning, deploying, and providing these services to help ensure success for their areas and their customers.