Golden Belt Telephone Association, Inc. - Page 4

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          certified areas granted by the State Corporation Commission of              
          Kansas (KCC).  As a cooperative corporation, petitioner operates            
          at cost by allocating to its members any net margins in the form            
          of capital credits each year.  During the taxable years,                    
          petitioner provided telephone service to approximately 3,500                
          members, who were located across approximately 2,300 square miles           
          of central and western Kansas.                                              
               The billing and collection services (B & C services) consist           
          of the following:                                                           
               a.  Recording.  Petitioner records data with respect to                
          members' long-distance calls, such as the date and time when the            
          call is made, the destination of the call, and the duration of              
          the call.                                                                   
               b.  Billing and Collection.  Petitioner sends a single                 
          monthly telephone bill to each member that includes charges for             
          both local and long-distance calls.  Upon collection of such                
          charges, it remits to the interexchange carrier an appropriate              
          portion of the amount paid for long-distance calls.  In the event           
          that one of petitioner's members fails to make payment on its               
          long-distance telephone bill, petitioner is permitted to                    
          disconnect the telephone service of the nonpaying member under              
          rules of the KCC.                                                           
               c.  Inquiry.  Petitioner answers inquiries from its members            
          with respect to long-distance calls, and resolves questions and             
          concerns regarding their long-distance telephone bills, calls,              
          and services.                                                               



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Last modified: May 25, 2011