The rise of radio broadcasting didn't completely supplant telephone-based entertainment systems--sometimes the two technologies were combined. In an isolated region like Fredonia, Kansas there were few nearby radio stations, and the cost of a radio receiver capable of picking up distant stations was prohibitive for many families. In the system reviewed in this article, a central radio receiver was used to pick up a standard radio station program, which was then retransmitted to subscribers, over a mixture of regular and special phone lines. Only a few scattered systems like this were ever built in the United States, although "rediffusion" systems were more common in Europe. In the United States, this practice of combining over-the-air reception with wire-based retransmission wouldn't become common until it was used to redistribute television signals, via Community Antenna and cable, in the 1950s and 1960s.
Telephony, December 16, 1922, page 20:

Kansas  Company  Uses  Radio  as  a  Developer  of  Revenue.
By J. A. Gustafson, Manager, Fredonia Telephone Co., Fredonia, Kans.

    When the radio fever began sweeping the country, telephone men naturally became interested.
    Some saw in it possibilities of using it as an auxiliary to increase their revenues--but most telephone managers could not see exactly where the wire telephone service could be combined with the receiving of radio broadcasting and bring in a financial return. However, it was the natural thing for them to experiment and endeavor to attain the reputation of being "the local authority" on things radio as well as telephonic--for "who knows what will develop."
    Here is a story by a Kansas manager telling how he has turned his radio receiving set into a revenue developer. Undoubtedly other managers are utilizing radio as a revenue producer--and many others should, either as a source of increased personal income for themselves, through the sale of radio equipment, or for their companies through the use of its facilities.
    Mr. Gustafson will answer questions as to his experiences in the working of his plan--but let's hear from the others who are also experimenting to find the answer to the question--"How can the telephone man profit from radio?"

    No doubt many telephone men are wondering what effect the radio will have on the telephone business.
    We have added a radio receiving set to our central office equipment and furnish radio service to our subscribers. This service is furnished over cable pairs that would otherwise be idle.
    To furnish this service we use a standard radio receiving set and three stages of amplification. A circuit is furnished to the subscriber at a monthly rental for the circuit only, and the subscriber buys his own loud-speaker or receivers.
    A daily newspaper and the county farm bureau have special circuits and receive the markets several times each day. We are paid well for the use of our circuits and for the labor connected with it for furnishing this service and have not missed a market on account of weather conditions for two months. Our charges are not made for radio markets, only for the labor and regular telephone equipment used. The farm bureau uses our toll lines to give these markets to other towns in the county. This gives us some toll business.
    Loud speakers are located in drug stores, news stands, candy kitchens, restaurants, offices and residences. We tune in the daily afternoon concerts and evening concerts. We make no promises as to the service we will furnish, but tune in when receiving conditions are good. All who have the service are well pleased and would not want to see it discontinued.
    The chief operators and supervisors as well as bookkeepers know how to tune in. It requires only a little of their time. After having tuned in a station, they can leave the set and go on with their regular work.
    The rental received from cable pairs, that would otherwise be idle, makes it a paying proposition for us. We have 5-cent slot stations at the hotels and we have been repaid for this service.
    We also have a connection on our switchboard and upon request subscribers can have their telephones connected. We can connect on the multiples as many as there are cord circuits to spare on the switchboard. We sometimes use an idle position for this. At the present time we make no charge for this switchboard connection. From the requests we have for these connections, we think that with a five-cent charge we would have considerable demand for this service.
    Radio service furnished by the telephone companies will reach a large number of homes where the people do not feel able to invest in a radio set. Where a crystal set can be used, this would not apply. We are over 150 miles from a broadcasting station of any size. Our service is also practical for hotels, restaurants, drug stores, etc., where they do not have time to use a receiving set, but desire to get the concerts for the benefit of their customers.
    All standard makes of radio sets and tubes are sold with a license to be used for amateur or experimental use only. There might be a legal question as to our right to use these sets for commercial purposes, therefore we do not make a charge for the radio broadcasting received,--only for the regular telephone equipment used in connection with the stations.
    Wired radio is practical, and will no doubt in the near future play a large part in furnishing commercial telephone service and distributing broadcasting programs.
    Connections to our stations and switchboard are made as shown in the diagram.
connections diagram