CTC Receives Loan to Construct Fiber Optic Network

CTC is constructing a Fiber Optic network to our rural Cooperative members which will cover over 7,160 homes and 795 businesses. To learn more about this new Fiber Optic build out and information on Capital Credits please see the attached letter from CTC below.

Dear CTC Member:

The CTC Board of Directors would like to share some great news with you, the members! The USDA Rural Utilities Service has granted CTC a $49.5 million dollar loan to bring a new, stateof-the-art fiber optic network to its rural communities. This construction project will eventually connect over 7,900 member’s homes and businesses with over 1,500 miles of fiber optic cableover the next 5-7 years. When completed, this new fiber optic network will greatly improve the quality and type of services each member will be able to receive. It will also provide the additional capacity to offer enhanced Internet and TV services to meet the demands and needs of our members now and well into the future.

During the construction of this new fiber optic network, significant resources will be needed to complete this project. Your CTC Board of Directors has closely evaluated the required investment and has deemed it necessary to temporarily withhold capital credit payments during the construction period. This project is truly positioning CTC for decades to come, for the delivery of advanced Internet and telecom services to you, our members.

Consolidated Telecommunications Company (CTC) is organized as a cooperative, owned by its members. As a cooperative CTC does not earn profits; instead, any income over and above the cost of doing business during a given year is considered "margins”. At the end of the year these margins are allocated to each member of the cooperative based upon the amount of usage they had during that year. Each member's annual credit allocation is accumulated and totaled over the period of time that the member continues to receive service.

Margins are treated as capital contributed by the membership to the cooperative to help reduce the cost of borrowing money. CTC retains members' capital credits as equity as the Cooperative's lending institutions require a certain level of equity. CTC is current in retiring capital credits through 1992, with partials having been retired in 1993.

The good news is, this fiber optic construction project will continue to keep CTC on the leading edge in offering the services that you, our members want and need. Please feel free to contact usif you have any questions.

Thank you for your continued support!

Sincerely,
Consolidated Telecommunications Company

Edward “Bud” Swecker
President