Goldfield Telephone Company: Over 100 years of history and still growing

by Les Houser

Reprinted from the Wright County Monitor, Clarion, Iowa – April 9, 2009

April 09, 2009 - The Goldfield Telephone Company has truly come a long way from its start with crank telephones and a central switchboard. Now into their second hundred years, the conversation during a typical business day might be about wireless communication or even fiber optics. The future is bright and nearly limitless as they continue to provide the best customer service possible.

"I assumed I'd be here four or five years and then move on," said General Manager Darrell Seaba, who is also President of Goldfield Telecom. "Now I'm in my 37th year with the company."

The Goldfield Telephone Company was established in March of 1903 by a few stockholders with a capital stock price fixed at $10,000. Dan M. Stevens was the first President. Committees were soon appointed to buy the switchboard and phones, rent a building for the exchange and hire a phone installer and lineman.

The operator was "on duty" from mid-April until mid-October between the hours of 6 a.m. until 10 p.m. only. The rest of the year the hours were set at 7 a.m. until 9 p.m.

By 1915, there were 450 phones in daily use in the system. Several years later, a proposed 24-hour service plan was submitted to the patrons for a vote and was approved. Telephones were rented for $1.25 per month in 1929, with a 25-cent discount if paid on or before the 15th of the month. Installation costs were just one dollar.

Each farm line served from ten to twelve customers, and each farm had its own ring so they knew when it was their call. The "party line" system also meant that you could listen in on other people's calls, but being caught at that could mean losing your phone. It became customary for the operator to make a general ring so that everyone could hear about special sale prices at the grocery store. This was done on Wednesdays and Saturdays, which is when farmers brought cream and eggs into town and did their shopping. Another general ring might be to announce the day's cattle and hog prices.

A new switchboard was purchased in 1936 for $1,587. The tax records for 1943 showed there were 82.36 miles of line in the system.

The switch to the rotary dial phones began in 1956, taking much planning and preparation. The much anticipated moment finally arrived on the morning of June 4, 1957 when the ring was issued to rural subscribers telling them to cut the jumper wire. The old magneto sets were then removed, and according to the company history everything went very smoothly.

An Extended Area Service stockholder and subscriber meeting was held in November of 1965. A plan was presented to upgrade the company, with one-party service extended to all 532 subscribers. The rate was set at $5.50 for residents, and $9 for businesses, and included toll free service to Eagle Grove and Clarion.

In 1966, plans and work began on a buried cable system. The 140 miles of buried one-party cable went into service in the summer of 1967. All phones in the system were changed over to touchtone in 1979.

The early 80's brought more big changes to the company. They acquired the cable TV franchise from Iowa Rural Communications and facilities for the city of Goldfield in August of 1981, with the system built and in operation by the fall of 1982. At that same time, the company began selling phone systems to people outside of the Goldfield service area.

The year 1983 brought the incorporation of Goldfield Communications Services, a completely owned subsidiary of the Goldfield Telephone Company. A new building was constructed at 536 North Main, which is the present headquarters of the company.

On March 31, 1987, the cut-over occurred for the new Northern Telecom DMS-10 digital switchboard. In 1990, the company became an investor, with other local area telephone companies, in US West cellular service which has since become Verizon. This was for RSA #10, a six county service area. They received a franchise to provide cable TV service for Woolstock in the fall of 1990, and added Badger shortly after. Since 1997, Goldfield Access Network has served the cities of Clarion, Eagle Grove and Humboldt with Internet service and support. In 2007, they added Renwick to that list and then in 2008 purchased an existing cable TV service there.

Just within the last year and a half, North Central Wireless became another division of Goldfield Communications. It serves both Wright and Humboldt counties. "We have 11 tower sites between the two counties," said Seaba. "We now have several i wireless access points in the area, in conjunction with i wireless service throughout Iowa." i wireless is a T-Mobile affiliate.

In a new steel building at 611 North Main is the Goldfield Telecom company started by Seaba in 1993. Goldfield Telephone holds a minority interest in that company, which has a national sales organization for Internet equipment and all related items. "We have sales of over $25 million a year, and employ 35 sales people in several states and major cities," said Seaba. "We sell to independent telephone companies throughout the U.S."

Their latest venture is into the fiber optic world. "We have already run it to the Industrial Park in Clarion, and would eventually like to provide it to the rest of the city along with Goldfield, Eagle Grove, Humboldt and Renwick," said Seaba. "Phone, data and video can all be offered with fiber optic."

"The money is earmarked already, by the government, for broadband expansion projects," said Massingill. "Now they're too busy coming up with the rules to get the money disbursed." It offers nearly unlimited band width, and the company plans to grow that part of the business as the demand grows. "Nearly everything will come over your computer someday," said Massingill.

According to Seaba, the slow down in the nation's economy has not really been felt as bad by them. "We don't notice it as much," said Seaba. "We deal with smaller independents so that helps. Things have slowed down, but we still have good business."

Starting from humble beginnings, Goldfield Telephone Company has grown to be a major player on the local business scene and in helping connect Wright County and surrounding area to the rest of the world.

Reprinted from the Wright County Monitor, Clarion, Iowa – April 9, 2009