About Us

Mission Statement

Federated Telephone provides the best communications services at a fair price; employing modern technology and up-to-date services; offering people choices to be successful and enhance their quality of life.

Woman on a laptop sitting next to a girl on an iPad and a young boy on a cellphone

Board of Directors

The 7-member Board of Directors of Federated Telephone Cooperative consists of one member from each district and meets on a monthly basis to discuss the many aspects of the telecommunications industry. A Director is elected by all members of the cooperative to serve for a term of three years.

District #1: Chokio-Alberta
Lucas deNeui

District #2: Odessa
Tim Danielson,

District #3: Correll & Appleton
Lynn Swenson

District #5: Morris
Nancy Taffe,
Vice President

District #6: Milan & Big Bend
Jon Hanson

District #7: Hancock
Dennis Schroeder

District #4: Holloway & Danvers
Dan Smith,

Capital Credits

Capital Credits

As a local telephone subscriber, you are automatically a member/owner of Federated Telephone Cooperative. Your cooperative’s mission is to provide the best communication services at a fair price; offering people choices to be successful and enhance their quality of life. *Currently membership excludes Big Stone & Swift County Border-to-Border grant areas.


Easy to join; there is nothing you need to do other than sign up and use communication services provided by Federated Telephone Cooperative. As a local telephone subscriber, you are automatically an owner in a great company! *Currently membership excludes Big Stone & Swift County Border-to-Border grant areas.

Federated Rewards

Each year you will receive a Capital Credit Account Statement highlighting your capital credits that have been allocated. The balance on your statement is yours and over time this money will be paid to you! The Board of Directors determines the schedule for returning capital credits.


Once the operating costs and reinvestments in your cooperative have been met, the Federated Telephone Cooperative Board of Directors allocates the remaining money to the members in the form of “Capital Credits.” The amount allocated varies year to year.

Federated Rewards FAQ

The amount returned is based on how much business you do with the cooperative. The more services you use in a given year and the more long-distance calls you place, makes your share of the profit greater.

In order to operate the business, capital credits remain with the cooperative for a certain amount of time before they are returned to the members. Rural cooperatives, like any other business, must have the money on hand to provide current operating funds and to invest in facilities and new technology.
The members have agreed through the cooperative's Bylaws to use the margins to stabilize operations for the cooperative. The Bylaws also stipulate the refund of capital credits based on the financial condition of the cooperative as determined by the Board of Directors.

Big name telephone companies have a main goal to make money. That’s why most of it ends up in their pockets and not in yours! On the other hand, Federated is a Cooperative, which means that our customers are members and "owners" of the company. Surplus dollars are refunded to you when approved by the Board of Directors. Take a look at the amount of business you do with Federated Telephone. How much are you spending with other companies? Is the other company really giving you a better deal?

Fiber Optic High Speed Internet

What is fiber?

Fiber optics are long thin strands of pure glass about the diameter of a human hair.

What are the benefits of Fiber?

Fiber optics carry voice, video and data signals at speeds as much as 20 times faster than copper cables. Fiber optic cables are lighter in weight, more flexible and less vulnerable to glitches or interference. Using laser generated pulses of light, fiber provides clearer phone conversations and TV signals along with quicker Internet transmissions. Plus voice and data transmissions over fiber are more secure than when they are sent over other connections.

How does Federated compare to the competition?

Federated Telephone Cooperative members are owners of the cooperative and receive capital credit dividends based on their patronage with their cooperative. All members have a 100% dedicated fiber connection all the way to their home or office. This means your telephone conversations are on a private connection and your Internet service isn't shared with your neighbors.