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HomeMy WebLinkAbout2006Annual Report.pdf~, - (/;., do(:::/;1 ,/ ), ~) C::"1: '0 ;p ": ./. ~ .ri' , /)(-x '"' ANNUAL REPO R T ~~J,0 cAM- Cambridge Telephone Company NAME PO Box 88, Cambridge, ID 83610 ADDRESS TO TH E IDAHO PUBLIC UTiliTIES COMMISSION FOR THE YEAR ENDED December 31, 2006 ~ig~~JJDg 1155 Kelly Johnson Blvd. Suite 303 Colorado Springs, CO 80920 Phone: 719.599.3664 Fax: 719.599.7059 wwwkiesling.com ACCOUNT ANT'S COMPILATION REPORT The Board of Directors Cambridge Telephone Company, Inc. PO Box 88 Cambridge, Idaho 83610 We have compiled the accompanying balance sheets of Cambridge Telephone Company, Inc. as of December 2006 and 2005 , and the related income and retained earnings statement for the year ended December 31 2006, included in the accompanying prescribed form , in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. We have also compiled the supplementary information, except for pages 1 , 18, 19, and 20. Our compilation was limited to presenting in the form prescribed by the Idaho Public Utilities Commission information that is the representation of management. We have not audited or reviewed the financial statements referred to above and, accordingly; do not express an opinion or any other form of assurance on them. These financial statements and the supplementary information are presented in accordance with the requirements of the Idaho Public Utilities Commission, which differ from generally accepted accounting principles. Accordingly, the financial statements and supplementary information are not designed for those who are not informed about such differences. The information contained on pages 1 , 18, 19 , and 20 has not been audited, reviewed, or compiled by us and, accordingly, we assume no responsibility for that information. Colorado Springs, CO April 16, 2007 LL/J Kiesling Associates LLP Kiesling Consulting LLC Kiesling Investment Management LLC ANNUAL REPORT OF SMALL TELEPHONE COMPANIES TO THE IDAHO PUBLIC UTILITIES COMMISSION FOR THE YEAR ENDING DECEMBER 31, 2006 COMPANY INFORMATION Exact name of utility: Cambridge Telephone Company, Inc. Address of principal office: O. Box 69, Cambridge, ID 83610 Telephone Number (Area Code 208 ) 257-3314 Cities or towns served: Cambridge, Council, Indian Valley, Cuprum, Lowman Name and title of officer having custody of the general corporate books of account: Richard Wiggins, General Manager/President Address of office where corporate books are kept and phone number: O. Box 88, 130 Superior Street, Cambridge, ID 83610, (208) 257-3314 Organized under the laws of the State of: Idaho Date of organization: 1966 Form of organization (proprietorship, association, corporation): If a Subchapter S Corporation, please specify: N/A Name and address of controlling company, if any: N/A Corporation Names of affiliated companies. Give address and description of business: CTC Construction , Inc. O. Box 88 , Cambridge, ID 83610-Construction Services; CTC Telecom, Inc., P.O. Box 69, Cambridge, ID 83610-Telecommunications , Internet and Wireless (CLEC) OFFICERS Report below the title, name and office address of each general officer of the utility at the end of the year. If there were any changes during the year, show the name, title, and address of the previous officer and the date of change. Secreta /Treasurer Name Richard Wi ins Kermit Wi ins Kristie Kanad Address O. Box 88, Cambridge, ID 83610 O. Box 88, Cambridge, ID 83610 O. Box 353, Cambridge, ID 83610 Title President Vice President Rev 3/02 Page 1 See Accountant's Compilation Report DIRECTORS List the name of each person who was a member of the Board of Directors at any given time during the year: (Fees related to meetings only. Term Expired or Current Term Name and Address Kermit Wiggins Indefinite O. Box 88 , Cambridg , ID 83610 Richard Wiggins Indefinite O. Box 88, Cambridg , ID 83610 Joana Wiggins Indefinite O. Box 88, Cambridg , ID 83610 Will Expire Meetings Attended This year Fees Paid During Year Name of Chairman of the Board: Kermit Wi ins Name of Secretary (or Clerk) of Board: Kristie Kanad Number of Meetings of the Board during the year: MANAGERS List the name of each person who performed management duties for the Company during the year, and the total wages and bonuses paid to those persons: (Do not include Director fees in these amounts. Name Title Wages and Bonuses Paid Richard Wiggins Kermit Wiggins Kristie Kanady Jerry Piper President Vice President Secretary/Treasurer Assistant Manager 131,787 001 486 370 Rev 3/02 Page 2 See Accountant's Compilation Report NOTES TO THE FINANCIAL STATEMENTS Please provide important information such as changes in accounting or depreciation practices, extensions or additions to the system; disposal of any substantial portion of the property of the utility; reorganization, mergers, or consolidations with other companies; leases executed; other contracts or agreements entered into; changes made in articles of incorporation or amendments; the occurrence of contingency losses or gains. 1 In 1998, CTC Telecom, Inc. (CTC), a wholly-owned subsidiary of Cambridge Telephone Company, was incorporated , with an initial investment of $100,000. CTC operates as a Competitive Local Exchange Carrier in the state of Idaho. Additional capital investments of $900 000 have been made through December 31 , 2006. In April, 1999, CTC secured a loan from CoBank, ACB in the amount of $1 ,700 000, of which 038.648 was advanced as of December 31 2006. The loan is secured by a Leasehold Deed of Trust and Security Agreement covering all real and personal property. In addition , the loan is secured by Personal Guarantee of Payment Agreements by certain shareholders of Cambridge Telephone Company, and Pledge Agreements for stock of Cambridge Telephone Company owned by certain shareholders. An additional loan from CoBank, ACB of $800,000 was arranged for in 2001 , of which $432,334 was advanced as of December 31 2006. 2 Cambridge Telephone Company (Pledgor) is a member of Syringa Networks, LLC , an Idaho Limited Liability Company- In 2002, as security for an extension of credit by Rural Telephone Finance Cooperative, a South Dakota cooperative association (Lender) to Syringa Networks , LLC (Borrower), in the principal amount of up to $30,000,000, Pledgor executed and delivered to lender a Pledge and Security Agreement and a Guarantee Agreement. Under these agreements Pledgor has pledged and granted a security interest in its 7% interest in Borrower as collateral for Borrower obligations under its loan agreement with Lender, and has agreed to guarantee up to 100 000 of Borrower s principal payment obligations under the loan agreement. Pledgor investment in Borrower as of December 31 , 2006 was $805,151. (See Note 4) 3 In 2003, the Company received approval from the Rural Utilities Service (RUS) for new loans from RUS and the Rural Telephone Bank (RTB) in the total amount of $17 143 950. The loans were approved by the Idaho Public Utilities Commission by Order No. 29399 dated December 10, 2003. The loans were finalized in 2004 , and notes dated April 4, 2004 in the total amount of $17 143,950 were issued. Funds totaling $7 021 690 were advanced, and $6 878 375 were unpaid under these loans through December 31 , 2006. From these advances, $2,437 712 was used in 2004 to refinance the balance of the loan from CoBank, ACB. 4 In 2005, in accordance with Emerging Issues Task Force Issue 03-, Cambridge Telephone Company (Company) began accounting for its 7.29% ownership in Syringa Networks , LLC (Syringa) under the equity method of accounting. Previously, the Company had used the cost method of accounting for Syringa. This change resulted in a retroactive recognition of cumulative equity loss in Syringa of $11 ,494 through December 31 2004, and equity income for the years ended December 31 2005 of $54 796 and 2006 of $146 762. Rev 3/02 Page 3 See Accountant's Compilation Report NOTES TO THE FINANCIAL STATEMENTS Please provide important information such as changes in accounting or depreciation practices extensions or additions to the system; disposal of any substantial portion of the property of the utility; reorganization, mergers, or consolidations with other companies; leases executed; other contracts or agreements entered into; changes made in articles of incorporation or amendments; the occurrence of contingency losses or gains. 5 During 2006, the Company, through its 100% owned subsidiary CTC Telecom, made a prior period adjustment to reclassify $21 375 of payments received in 2005 out of 2005 net income and into a deferred revenue account to be recognized over 10 years, the expected life of the assets. Had this reclassification not been made, 2005 net income (loss) would have been reduced by $21 375 net of tax of $7 550. Prior year balance sheet accounts were adjusted to reflect this prior period adjustment Rev 3/02 Page 3 A See Accountant's Compilation Report BALANCE SHEETAssets and Other Debits Balance Balance Increase Beginning at End Title of Account of Year of Year (Decrease) Current Assets 1120 Cash and Equivalents 1130 Cash 268 206)474) 1140 Special Cash Deposits 269 247 263 222 994 1150 Working Cash Advances 1160 Temporary Investments 1180 Telecommunications Accts. Receivable 196 661 206 225 564 1181 Accts. Rec. Allow. -Telecommunications 1190 Other Accounts Receivable 382 267 626 010 243 743 1191 Accounts Receivable Allow. - Other 1200 Notes Receivable 713 919 794) 1201 Notes Receivable Allowance 1210 Interest & Dividends Receivable 6,406 007 399) 1220 Material and Supplies 143 177 111 996 (31 181) 1280 Prepayments 1290 Prepaid Rents 1300 Prepaid Taxes 661 017 (71 644) 1310 Prepaid Insurance 181 181) 1320 Prepaid Directory Expenses 1330 Other Prepayments 919 194 275 1350 Other Current Assets Noncurrent Assets 1401 Investment in Affiliated Companies (100 831)(139,406)(38 575) 1402 Investment in Nonaffiliated Companies 583 883 827,400 243 517 1406 Nonregulated Investments 209 992 197 227 (12 765) 1407 Unamortized Debt Issuance Expense 546 275 (271) 1408 Sinking Funds 1410 Other Noncurrent Assets 583 526 (11 057) 1438 Deferred Maintenance & Retirements 1439 Deferred Charges 1,470 470 1500 Other Jurisdiction Assets - Net Property, Plant and Equipment 2001 Telecommunications Plants in Service 022 890 713 222 690 332 2002 Prop. Held for Future Telecom. Use 2003 Telecom. Plant under Constr. - Short Term 359 301 464 898 105 597 2004 Telecom. Plant under Constr. - Long Term 2005 Telecom. Plant Adjustment 2006 Nonoperating Plant 2007 Goodwill 691 657 691 657 Depreciation and Amortization Accounts 3100 Accumulated Depreciated (10 243 278)(10 288 277)(44 999) 3200 Accum. Depre. - Held for Future Use 3300 Accumulated Depreciation - Nonoperating 3400 Accumulated Amortization - Tangible 3410 Accum. Amort. - Capitalized Leases 3420 Accum. Amort. - Leasehold Improvements 3500 Accumulated Amortization - Intangible 3600 Accumulated Amortization - Other TOTAL ASSETS 541 735 837,417 295 682 Rev 3/02 Page 4 See Accountant'Compilation Report BALANCE SHEET Liabilities & Stockholders' Equity Balance Balance Increase Beginning at End Title of Account of Year of Year (Decrease) Current Liabilities 4010 Accounts Payable 602 236 241 554 (360 682) 4020 Notes Payable 281 349 (281 349) 4030 Advance Billings and Payments 93,469 177 292) 4040 Customer Deposits 830 815 015) 4050 Current Maturities - Long -Term Debt 370 800 786 300 415 500 4060 Current Maturities - Capital leases 4070 Income Taxes - Accrued 4080 Other Taxes - Accrued 156 195 961) 4100 Net Current Defer. Oper. Income Taxes (56 907)(56 932)(25) 4110 Net Current Defer. Nonoper. Income Taxes 4120 Other Accrued Liabilities 731 108 547 816 4130 Other Current Liabilities Long-Term Debt 4210 Funded Debt 694,460 971 010 276 550 4220 Premium on Long-Term Debt 4230 Discount on Long-Term Debt 4240 Reacquired Debt 4250 Obligations Under Capital Leases 4260 Advances from Affiliated Companies 4270 Other Long-Term Debt Other Liabilities & Deferred Credits 4310 Other Long-Term Liabilities 4320 Una mort. Opere Invest Tax Credits - Net 186 978 152 947 (34 031) 4330 Unamort. Nonoper. Invest Tax Credits - Net 4340 Net Noncurrent Defer. Opere Income Taxes (11 603)137 868 149,471 4350 Net Noncur. Defer. Nonoper. Income Taxes 154 251 168 976 725 4360 Other Deferred Credits 136 023 587 (37,436) 4370 Other Juris. Liab. & Def. Credits - Net Stockholders' Equity 4510 Capital Stock 000 000 4520 Additional Paid-In Capital 4530 Treasury Stock (12 511)(12 511) 4540 Other Capital 4550 Retained Earnings 945 473 097 884 152,411 TOTAL LIAB. & OTHER CREDITS 541 735 837,417 295 682 Rev 3/02 Page 5 See Accountant's Compilation Report AN A L Y S I S O F T E L E C O M M U N I C A T I O N S P L A N T I N S E R V I C E TO T A L C o m p a n y B a s i s Ba l a n c e Be g i n n i n g of Y e a r An a l y s i s o f T e l e c o m m u n i c a t i o n s P l a n t i n S e r v i c e 21 1 1 la n d 21 1 2 Mo t o r V e h i c l e s 21 1 3 Ai r c r a f t 21 1 4 Sp e c i a l P u r p o s e V e h i c l e s 21 1 5 Ga r a g e W o r k E q u i p m e n t 21 1 6 Ot h e r W o r k E q u i p m e n t 21 2 1 Bu i l d i n g s 21 2 2 Fu r n i t u r e 21 2 3 Of f i c e E q u i p m e n t 21 2 4 Ge n e r a l P u r p o s e C o m p u t e r s 22 1 1 An a l o g E l e c t r o n i c S w i t c h i n g 22 1 2 Di g i t a l E l e c t r o n i c S w i t c h i n g 22 1 5 E l e c t r o - Me c h a n i c a l S w i t c h i n g 22 2 0 Op e r a t o r S y s t e m s 22 3 1 Ra d i o S y s t e m s 22 3 2 Ci r c u i t E q u i p m e n t 23 1 1 St a t i o n A p p a r a t u s 23 2 1 Cu s t o m e r P r e m i s e s W i r i n g 23 4 1 la r g e P r i v a t e B r a n c h Ex c h a n g e s 23 5 1 Pu b l i c T e l e p h o n e T e r m i n a l E q u i p m e n t 23 6 2 Ot h e r T e r m i n a l E q u i p m e n t 24 1 1 Po l e s 24 2 1 Ae r i a l C a b l e 24 2 2 Un d e r g r o u n d C a b l e 24 2 3 Bu r i e d C a b l e 24 2 4 Su b m a r i n e C a b l e 24 2 6 In t r a b u i l d i n g N e t w o r k C a b l e 24 3 1 Ae r i a l W i r e 24 4 1 Co n d u i t S y s t e m s 26 8 1 Ca p i t a l l e a s e s 26 8 2 le a s e h o l d I m p r o v e m e n t s 26 9 0 In t a n g i b l e s TO T A L P L A N T A C C O U N T S Re v 3 / 0 2 59 1 97 2 11 1 57 1 82 4 22 0 19 , 83 1 39 5 95 5 86 6 35 3 12 4 76 1 8, 4 2 5 18 6 30 8 98 4 50 9 , 07 5 71 2 66 8 83 5 45 2 75 0 10 2 30 2 53 7 62 3 76 0 88 8 66 2 25 5 00 4 35 9 11 3 , 86 0 02 2 89 0 Ad d i t i o n s Du r i n g y e a r 14 2 80 3 96 8 96 0 79 5 34 4 Pa g e 6 Pl a n t Re t i r e d or S o l d (6 5 , 4 5 5 ) (8 6 84 0 ) (2 9 81 1 ) 08 8 ) 29 5 ) (2 9 93 0 ) (3 5 3 66 5 ) (4 5 2 , 00 4 ) (7 9 92 4 ) 10 5 01 2 ) Tr a n s f e r s an d Ad j u s t m e n t s 69 3 ) 69 5 00 2 ) Se e A c c o u n t a n t ' s c o m p i l a t i o n R e p o r t Ba l a n c e En d of Y e a r 10 2 30 2 61 4 97 1 61 6 , 70 3 81 4 24 0 26 2 40 , 92 4 10 3 25 6 90 1 93 4 51 1 78 7 67 6 , 27 6 76 0 88 8 66 2 14 0 03 8 35 9 11 3 86 0 71 3 22 2 An a l y s i s o f T e l e c o m m u n i c a t i o n s P l a n t i n S e r v i c e 21 1 1 La n d 21 1 2 Mo t o r V e h i c l e s 21 1 3 Ai r c r a f t 21 1 4 Sp e c i a l P u r p o s e V e h i c l e s 21 1 5 Ga r a g e W o r k E q u i p m e n t 21 1 6 Ot h e r W o r k E q u i p m e n t 21 2 1 Bu i l d i n g s 21 2 2 Fu r n i t u r e 21 2 3 Of f i c e E q u i p m e n t 21 2 4 Ge n e r a l P u r p o s e C o m p u t e r s 22 1 1 An a l o g E l e c t r o n i c S w i t c h i n g 22 1 2 Di g i t a l E l e c t r o n i c S w i t c h i n g 22 1 5 E l e c t r o - Me c h a n i c a l S w i t c h i n g 22 2 0 Op e r a t o r S y s t e m s 22 3 1 Ra d i o S y s t e m s 22 3 2 Ci r c u i t E q u i p m e n t 23 1 1 St a t i o n A p p a r a t u s 23 2 1 Cu s t o m e r P r e m i s e s W i r i n g 23 4 1 La r g e P r i v a t e B r a n c h E x c h a n g e s 23 5 1 Pu b l i c T e l e p h o n e T e r m i n a l E q u i p m e n t 23 6 2 Ot h e r T e r m i n a l E q u i p m e n t 24 1 1 Po l e s 24 2 1 Ae r i a l C a b l e 24 2 2 Un d e r g r o u n d C a b l e 24 2 3 Bu r i e d C a b l e 24 2 4 Su b m a r i n e C a b l e 24 2 6 In t r a b u i l d i n g N e t w o r k C a b l e 24 3 1 Ae r i a l W i r e 24 4 1 Co n d u i t S y s t e m s 26 8 1 Ca p i t a l L e a s e s 26 8 2 Le a s e h o l d I m p r o v e m e n t s 26 9 0 In t a n g i b l e s TO T A L P L A N T A C C O U N T S Re v 3 / 0 2 AN A L Y S I S O F T E L E C O M M U N I C A T I O N S P L A N T A C C O U N T S ID A H O O p e r a t i o n s O n l y Ba l a n c e Be g i n n i n g of Y e a r Ad d i t i o n s Du r i n g Y e a r Pl a n t Re t i r e d or S o l d SA M E A S T O T A L C O M P A N Y Tr a n s f e r s an d Ad j u s t m e n t s Ba l a n c e En d of Y e a r Pa g e 7 Se e A c c o u n t a n t ' s c o m p i l a t i o n R e p o r t AN A L Y S I S O F E N T R I E S I N A C C U M U L A T E D D E P R E C I A T I O N Ac c o u n t 3 1 0 0 TO T A L C o m p a n y B a s i s Ba l a n c e Cr e d i t s Re t i r e m e n t s Ba l a n c e Be g m n i n g De p r e c i a t i o n Du r i n g an d En d of Y e a r Ra t e Ye a r Ad j u s t m e n t s of Y e a r An a l y s i s o f E n t r i e s i n A c c u m u l a t e d D e p r e c i a t i o n 21 1 2 Mo t o r V e h i c l e s 38 4 , 4 0 0 25 . 00 % 13 6 76 1 (4 6 95 5 ) 47 4 20 6 21 1 3 Ai r c r a f t 21 1 4 Sp e c i a l P u r p o s e V e h i c l e s 21 1 5 Ga r a g e W o r k E q u i p m e n t 21 1 6 Ot h e r W o r k E q u i p m e n t 30 4 54 9 12 . 50 % 94 2 (4 9 30 2 ) 33 3 18 9 21 2 1 Bu i l d i n g s 91 2 27 8 00 % 78 4 (2 9 81 1 ) 93 7 25 1 21 2 2 Fu r n i t u r e 39 5 08 8 ) 39 4 21 2 3 Of f i c e E q u i p m e n t 86 6 6, 4 2 5 29 5 ) 99 6 21 2 4 Ge n e r a l P u r p o s e C o m p u t e r s 11 8 84 7 20 . 00 % 03 9 (2 9 93 0 ) 10 2 95 6 22 1 1 An a l o g E l e c t r o n i c S w i t c h i n g 22 1 2 Di g i t a l E l e c t r o n i c S w i t c h i n g 04 2 24 0 12 . 00 % 24 4 16 4 (3 5 3 66 5 ) 93 2 73 9 22 1 5 El e c t r o - Me c h a n i c a l S w i t c h i n g 22 2 0 Op e r a t o r S y s t e m s 22 3 1 Ra d i o S y s t e m s 50 9 07 4 12 . 00 % 68 8 51 1 76 2 22 3 2 Ci r c u i t E q u i p m e n t 93 8 82 6 10 . 00 % 10 0 33 5 (4 5 2 00 3 ) 58 7 15 8 23 1 1 St a t i o n A p p a r a t u s 23 2 1 Cu s t o m e r P r e m i s e s W i r i n g 23 4 1 La r g e P r i v a t e B r a n c h E x c h a n g e s 23 5 1 Pu b l i c T e l e p h o n e T e r m i n a l E q u i p m e n t 76 0 76 0 23 6 2 Ot h e r T e r m i n a l E q u i p m e n t 24 1 1 Po l e s 88 8 50 % 88 8 24 2 1 Ae r i a l C a b l e 50 % 24 2 2 Un d e r g r o u n d C a b l e 47 9 50 % 44 8 92 7 24 2 3 Bu r i e d C a b l e 88 4 , 4 2 1 50 % 44 6 72 3 (8 0 22 7 ) 25 0 91 7 24 2 4 Su b m a r i n e C a b l e 24 2 6 In t r a b u i l d i n g N e t w o r k C a b l e 15 9 50 % 47 8 63 7 24 3 1 Ae r i a l W i r e 24 4 1 Co n d u i t S y s t e m s 09 6 50 % 7, 4 0 1 57 , 4 9 7 TO T A L 24 3 27 8 09 4 27 5 04 9 27 6 ) 28 8 27 7 Pl e a s e l i s t i n d i v i d u a l d e p r e c i a t i o n r a t e f o r e a c h a c c o u n t . Re v 3 / 0 2 Pa g e 8 Se e A c c o u n t a n t ' s C o m p i l a t i o n R e p o r t AN A L Y S I S O F E N T R I E S I N A C C U M U L A T E D D E P R E C I A T I O N Ac c o u n t 3 1 0 0 An a l y s i s o f E n t r i e s i n A c c u m u l a t e d D e p r e c i a t i o n 21 1 2 M o t o r V e h i c l e s 21 1 3 A i r c r a f t 21 1 4 S p e c i a l P u r p o s e V e h i c l e s 21 1 5 G a r a g e W o r k E q u i p m e n t 21 1 6 O t h e r W o r k E q u i p m e n t 21 2 1 B u i l d i n g s 21 2 2 F u r n i t u r e 21 2 3 O f f i c e E q u i p m e n t 21 2 4 G e n e r a l P u r p o s e C o m p u t e r s 22 1 1 A n a l o g E l e c t r o n i c S w i t c h i n g 22 1 2 D i g i t a l E l e c t r o n i c S w i t c h i n g 22 1 5 E l e c t r o - Me c h a n i c a l S w i t c h i n g 22 2 0 O p e r a t o r S y s t e m s 22 3 1 R a d i o S y s t e m s 22 3 2 C i r c u i t E q u i p m e n t 23 1 1 S t a t i o n A p p a r a t u s 23 2 1 C u s t o m e r P r e m i s e s W i r i n g 23 4 1 L a r g e P r i v a t e B r a n c h E x c h a n g e s 23 5 1 P u b l i c T e l e p h o n e T e r m i n a l E q u i p m e n t 23 6 2 O t h e r T e r m i n a l E q u i p m e n t 24 1 1 P o l e s 24 2 1 A e r i a l C a b l e 24 2 2 U n d e r g r o u n d C a b l e 24 2 3 B u r i e d C a b l e 24 2 4 S u b m a r i n e C a b l e 24 2 6 I n t r a b u i l d i n g N e t w o r k C a b l e 24 3 1 A e r i a l W i r e 24 4 1 C o n d u i t S y s t e m s TO T A L Pl e a s e l i s t i n d i v i d u a l d e p r e c i a t i o n r a t e f o r e a c h a c c o u n t Re v 3 / 0 2 ID A H O O p e r a t i o n s O n l y Ba l a n c e Be g i n n i n g of Y e a r De p r e c i a t i o n Ra t e Cr e d i t s Du r i n g Ye a r SA M E A S T O T A L C O M P A N Y Pa g e 9 Re t i r e m e n t s an d Ad j u s t m e n t s Se e A c c o u n t a n t ' s C o m p i l a t i o n R e p o r t Ba l a n c e En d of Y e a r INVESTMENTS Report below the investments in Accounts 1401 , 1402 and 1406. Identify each investment as to the account in which included. Minor amounts in Account 1406 may be grouped by classes. Description CTC Telecom , Inc. Cash value life insurance Date AcQuired 1998 Book Cost of Investments Disposed of This year Book Cost of Investments Held at d of Year (139,406) 588 970 34,497 224 975 805 151 170 661 Coins Land Syringa Netwo rks, LLC CoBank equity uried cable-leased to Syringa Networks, LLC NRTC Totals Various 2000-2004 1999-2004 197 227 146 885 221 RECEIVABLES Itemize amounts show in Accounts 1180, 1190 and 1200. For notes receivable list each note separately and include the maturity date and interest rate. Minor amounts in Account 1210 may be combined. Name of Company Due from customers Interexchange carriers CTC Telecom, Inc CTC Construction Other R. & B, Crocket, 8., due 2018 Amount at End of YearNotes Accountseceivable Receivable 206 225 182 388 259 123 850 649 919 Totals 919 832 235 Rev 3/02 Page 10 See Accountant's Compilation Report NOTES PAYABLE For Notes Payable, list each note separately and include the maturity date and interest rate. Name of Creditor NONE Interest RateDate of Note Totals ACCOUNTS PAYABLE Report below all Accounts Payable amounting to more than $100. Name of Creditor NECA Due Date Else Construction Company Lite Communications Idaho Optic Transport Association T ekelec Taxes, 911 billing Computer Technology, Inc. Various other vendors Totals See Accountant's Compilation Report Rev 3/02 Page 11 Face Amount Amount 000 002 981 940 285 884 389 073 241 554 LO N G - T E R M D E B T Ac c o u n t s 4 2 1 0 , 4 2 4 0 , 4 2 5 0 , 4 2 6 0 , 4 2 7 0 a n d 4 3 1 0 Li s t t h e r e q u i r e d d a t a f o r e a c h o b l i g a t i o n i n c l u d e d i n t h e s e a c c o u n t s , g r o u p i n g t h e m b y a c c o u n t n u m b e r a n d s h o w i n g t o t a l s f o r e a c h a c c o u n t . rf a n y o b l i g a t i o n s m a t u r e s e r i a l l y o r o t h e r w i s e a t v a r i o u s d a t e s , g i v e p a r t i c u l a r s i n a n o t e , Da t e Da t e Fa c t Pr e m i u m / D i s c o u n t Cl a s s & S e r i e s Am o u n t Ou t s t a n d i n g Ye a r of O b l i q a t i o n Is s u e Ma t u r i t y Au t h o r i z e d Ye a r - En d To t a l Am o r t i z e d RU S N o t e s 19 7 7 20 1 2 97 5 00 0 27 0 20 1 RU S N o t e s va r i o u s va r i o u s 93 2 00 0 94 1 29 4 RU S N o t e s 19 8 5 20 5 0 81 8 37 9 63 0 , 4 8 0 RU S N o t e s 20 0 4 va r i o u s 59 6 00 0 87 8 37 5 RT B N o t e 20 0 4 20 1 9 37 9 00 0 We l l s F a r g o 20 0 4 20 0 9 88 6 96 0 In t e r e s t f o r y e a r Ra t e Am o u n t De t a i l No t Av a i l a b l e va r i o u s Le s s c u r r e n t m a t u r i t i e s (7 8 6 30 0 ) To t a l 97 1 01 0 33 4 11 3 Re v 3 / 0 2 Pa g e 1 2 Se e A c c o u n t a n t ' s C o m p i l a t i o n R e p o r t CAPITAL STOCK Report below the particulars called for concerning common and preferred stock at end of year designating separate series of any general class. Show totals separately for common and preferred. For each class of preferred stock, show the dividend rate and whether dividends are cumulative or noncumulative. Show details in a footnote of capital stock sold during the year, Include number of shares consideration received , premium or discount, and expenses incurred. Class & Series of Stock Common stock Number of Shares Authorized Par Value per Share Outstanding per Balance SheetShares Amount 000 000 000 Rev 3/02 Page 13 See Accountant's Compilation Report INCOME & RETAINED EARNINGS STATEMENT Item Total Company Idaho Only Total Operating Income (from page 15) Total Operating Expenses (from page 17) 7100 Other Operating Income and Expense 7210 Operating Investment Tax Credits-Net 7220 Operating Federal Income Taxes 7230 Operating State and Local Income Taxes 7240 Operating Other Taxes 7250 Provision for Deferred Operating Income Taxes-Net7200 Operating Taxes (Total) 7310 Dividend Income 7320 Interest Income 7330 Income from Sinking and Other Funds 7340 Allowance for Funds Used During Construction 7350 Gains/Losses from the Disposition of Certain Property 7360 Other Nonoperating Income 7370 Special Charges7300 Nonoperating Income and Expense 7410 Nonoperating Investment Tax Credits-Net 7420 Nonoperating Federal Income Taxes 7430 Nonoperating State and Local Income Taxes 7440 Nonoperating Other Taxes 7450 Provision for Deferred Nonoperating Income Taxes-Net7400 Nonoperating Taxes 7510 Interest on Funded Debt 7520 Interest Expense-Capital Leases 7530 Amortization of Debt Issuance Expense 7540 Other Interest Deductions7500 Interest and Related Items 7610 Extraordinary Income Credits 7620 Extraordinary Income Charges 7630 Current Income Tax Effect of Extraordinary Items-Net 7640 Provision for Deferred Income Tax Effect of Extraordinary Items-Net7600 Extraordinary Items 7910 Income Effect of Jurisdictional Ratemaking Differences-Net 7990 Nonregulated Net Income AMOUNT TRANSFERRED TO RETAINED EARNINGS Rev 3/02 612 366 163 154 030) 644 195 24,480 289 114 305 053 121 594 (14 567) 138,499 254 254 334 113 271 533 356 917 160 152,411 Page 14 See Accountant's Compilation Report Same as total company OPERATING REVENUES Item Total Company Idaho Only Local Network Services Revenues 5001 Basic Area Revenue 5002 Optional Extended Area Revenue 5003 Cellular Mobile Revenue 5004 Other Mobile Services Revenue 5010 Public Telephone Revenue 5040 Local Private Line Revenue 5050 Customer Premises Revenue 5060 Other Local Exchange Revenue 5069 Other Local Exchange Settlements Network Access Services Revenues 5081 End User Revenue (SLC) 5082 Switched Access Revenue (Interstate) 5083 Special Access Revenue 5084 State Access Revenue (Intrastate) Long Distance Network Services Revenues 5100 Long Distance Message Revenue - All Miscellaneous Revenues 5230 Directory Revenue 5240 Rent Revenue 5250 Corporate Operations Revenue 5261 Special Billing Arrangements Revenue 5262 Customer Operations Revenue 5263 Plant Operations Revenue 5264 Other Incidental Regulated Revenue 5269 Other Revenue Settlements 5270 Carrier Billing & Collection Revenue Uncollectible Revenues 5301 Uncollectible Revenue - Telecommunications 5302 Uncollectible Revenue - Other TOTAL OPERATING REVENUES Please identify the following revenues: NECA USF $468,490 675 010 864 469,418 187 502 768 089 667 332 926 740 516 635 612 366 . To what account were they booked? State USF $167 380 . To what account were they booked? Rev 3/02 Page 15 \'5 compila1ion ReportSee Accoun,an Same as total company 5069. 5084. OPERATING REVENUES Item Total Company Idaho Only Plant Specific Operations Expense 6110 Network Support Expenses 6112 Motor Vehicle Expense 6113 Aircraft Expense 6114 Special Purpose Vehicles Expense 6115 Garage Work Equipment Expense 6116 Other Work Equipment Expense 6120 General Support Expenses 6121 Land and Building Expenses 6122 Furniture and Artworks Expense 6123 Office Equipment Expense 6124 General Purpose Computers Expense 6210 Central Office Switching Expenses 6211 Analog Electronic Expense 6212 Digital Electronic Expense 6215 Electro-Mechanical Expense 6220 Operators System Expense 6230 Central Office Transmission Expenses 6231 Radio Systems Expense 6232 Circuit Equipment Expense 6310 Information Origination/Termination Expense 6311 Station Apparatus Expense 6341 Large Private Branch Exchange Expense 6351 Public Telephone Terminal Equipment Expense 6362 Other Terminal Equipment Expense 6410 Cable and Wire Facilities Expenses 6411 Pole Expense 6421 Aerial Cable Expense 6422 Underground Cable Expense 6423 Buried Cable Expense 6424 Submarine Cable Expense 6425 Deep Sea Cable Expense 6426 Intrabuilding Network Cable Expense 6431 Aerial Wire Expense 6441 Conduit Systems Expense TOTAL PLANT SPECIFIC OPERATIONS EXPENSE Rev 3/02 585 277 132 584 207 574 527 640 697 250 946 237 535 Page 16 See Accountant's compilation Report Same as total company Item OPERATING REVENUES Total Company Idaho Only Plant Nonspecific Operations Expense 6510 Other Property/Plant/Equipment Expenses 6511 Property Held for Future Telecomm. Use Expenses 6512 Provisioning Expense 6530 Network Operations Expense 6531 Power Expense 6532 Network Administration Expense 6533 Testing Expense 6534 Plant Operations Administration Expense 6535 Engineering Expense 6540 Access Expense 6560 Depreciation and Amortization Expenses 6561 Depreciation Expense-Telecom, Plant in Service 6562 Depreciation Expense-Property Held for Future Use 6563 Amortization Expense - Tangible 6564 Amortization Expense - Intangible 6565 Amortization Expense - Other Total Plant Nonspecific Operations Expenses Customer Operations Expense 6610 Marketing 6611 Product Management 6612 Sales 6613 Product Advertising 6620 Services 6621 Call Completion Services 6622 Number Services 6623 Customer Services Total Customer Operations Expense Corporate Operations Expense 6710 Executive and Planning 6711 Executive 6712 Planning 6720 General and Administrative 6721 Accounting and Finance 6722 External Relations 6723 Human Resources 6724 Information Management 6725 Legal 6726 Procurement 6727 Research and Development 6728 Other General and Administrative 6790 Provision for Uncollectible Notes Receivable Total Corporate Operations Expense TOTAL OPERATING EXPENSES Rev 3/02 503 658 18,467 905 094 275 140 808 335 825 154 066 169 256 308 737 183 690 381 121 116 626 615 555 163 154 Page 17 See Accountant's compilation Report Same as total company CE N T R A L O F F I C E D A T A as o f D e c e m b e r 3 1 , 2 0 0 6 ( u n l e s s o t h e r w i s e i n d i c a t e d ) Na m e o f C e n t r a l O f f i c e : Co u n c i l Pr e f i x ( e s ) : 25 3 Ce n t r a l O f f i c e S w i t c h Ty p e : DC O - RL S & T e k e l e c T 7 0 0 0 Ch e c k a l l t h a t a p p l y : St a n d A l o n e Ho s t Re m o t e L Ch e c k o n e : Di g i t a l L An a l o g - Ac c e s s L i n e C a p a c i t y De s i g n : 18 9 0 & 2 2 0 8 In s t a l l e d / E q u i p p e d : 17 1 0 & 1 5 3 6 Cl a s s i f i c a t i o n o f C u s t o m e r A c c e s s Mu l t i - Li n e Pa r t y Re s i d e n c e Si n gl e L i n e Mu l t i - Pa r t y Pa r t y 83 5 80 9 Be g i n n i n g o f Y e a r Ne w C o n n e c t s Di s c o n n e c t s En d o f Y e a r Fo r e i g n E x c h a n g e : Di a l T o n e f r o m t h i s C . Di a l T o n e f r o m a n o t h e r C . Cu s t o m C a l l i n g : Nu m b e r o f c u s t o m e r s w i t h a t l e a s t o n e f e a t u r e : - 4 4 1 To t a l n u m b e r o f f e a t u r e s s u b s c r i b e d to : . - f . L Re v 3 / 0 2 Ch e c k o n e : El e c t r o n i c L El e c t r o - Me c h a n i c a l Ot h e r : Ac c e s s L i n e s i n U s e Cu s t o m e r L i n e s : 10 2 8 (I n c l u d e C e n t r e x , P A L , S e m i - Pu b . Pu b l i c T e l e p h o n e Li n e s ~ Co m p a n y O f f i c i a l Li n e s ~ Co m p a n y T e s t Li n e s ~ Bu s i n e s s Mu l t i - Si n g l e L i n e To t a l Su b t o t a l Ce n t r e x Li n e Mu l t i - Su b t o t a l Re s i d e n c e Re s i d e n c e N. A R . Pa r t y Pa r t y Pa r t y Bu s i n e s s & B u s i n e s s 83 5 21 2 21 2 10 4 7 10 5 80 9 21 9 21 9 10 2 8 Di r e c t o r y L i s t i n g s : Nu m b e r o f C u s t o m e r s w i t h N o n p u b l i s h e d o r No n l i s t e d : ~ Pa g e 1 8 S e e A c c o u n t a n t ' s C o m p i l a t i o n R e p o r t CE N T R A L O F F I C E DA T A as o f D e c e m b e r 3 1 , 2 0 0 6 ( u n l e s s o t h e r w i s e i n d i c a t e d ) Na m e o f C e n t r a l O f f i c e : In d i a n V a l l e Pr e f i x ( e s ) : 25 6 Ce n t r a l O f f i c e S w i t c h Ty p e : DL C Ch e c k a l l t h a t a p p l y : St a n d A l o n e Ho s t Re m o t e L Ch e c k o n e : Di g i t a l L An a 1 0 9 - Ch e c k o n e : El e c t r o n i c L El e c t r o - Me c h a n i c a l Oth e r : Ca l i x d i q i t a l s u b s c r i b e r c a r r i e r ( 3 0 3 i n t e r f a c e t o C o u n c i l ) Ac c e s s L i n e C a p a c i t y De s i g n : 12 0 0 Ac c e s s L i n e s i n U s e Cu s t o m e r L i n e s : 17 3 (I n c l u d e C e n t r e x , P A L , S e m i - Pu b , In s t a l l e d / E q u i p p e d : 2 8 8 Pu b l i c T e l e p h o n e Li n e s - L Co m p a n y O f f i c i a l Li n e s - L Co m p a n y T e s t Li n e s - L Cl a s s i f i c a t i o n o f C u s t o m e r A c c e s s Be g i n n i n g o f Y e a r Ne w C o n n e c t s Di s c o n n e c t s En d o f Y e a r Pa r t y 15 7 16 1 Bu s i n e s s Mu l t i - Si n g l e L i n e To t a l Su b t o t a l Ce n t r e x Li n e Mu l t i - Su b t o t a l Re s i d e n c e Re s i d e n c e N. A . R . pa r t y pa r t y Pa r t y Bu s i n e s s & B u s i n e s s 15 7 16 8 16 1 17 3 Mu l t i - Li n e Pa r t y Re s i d e n c e Si n g l e L i n e Mu l t i - Pa r t y Fo r e i g n E x c h a n g e : Di a l T o n e f r o m t h i s C , Di a l T o n e f r o m a n o t h e r C . Di r e c t o r y L i s t i n g s : Nu m b e r o f C u s t o m e r s w i t h N o n p u b l i s h e d o r N o n l i s t e d : Cu s t o m C a l l i n g : Nu m b e r o f c u s t o m e r s w i t h a t l e a s t o n e f e a t u r e : To t a l n u m b e r o f f e a t u r e s s u b s c r i b e d to : - 1 L Re v 3 / 0 2 Se e A c c o u n t a n t ' s C o m p i l a t i o n R e p B" , g e 1 8 CE N T R A L O F F I C E DA T A as o f D e c e m b e r 3 1 , 2 0 0 6 ( u n l e s s o t h e r w i s e i n d i c a t e d ) Na m e o f C e n t r a l O f f i c e : Ca m b r i d Pr e f i x ( e s ) : 25 7 Ce n t r a l O f f i c e S w i t c h Ty p e : DC O A N D T E K E L E C T 7 0 0 0 Ch e c k a l l t h a t a p p l y : St a n d A l o n e Ho s t . l L Re m o t e Ch e c k o n e : Di g i t a l . l L An a l o g - Ch e c k o n e : El e c t r o n i c . l L El e c t r o - Me c h a n i c a l Ot h e r : Ac c e s s L i n e C a p a c i t y De s i g n : 10 8 0 & 1 5 3 6 Ac c e s s L i n e s i n U s e Cu s t o m e r L i n e s : 49 4 (I n c l u d e C e n t r e x , P A L , S e m i - Pu b . In s t a l l e d / E q u i p p e d : 81 0 & 7 6 8 Pu b l i c T e l e p h o n e L i n e s Co m p a n y O f f i c i a l Li n e s ~ Co m p a n y T e s t Li n e s ~ Cl a s s i f i c a t i o n o f C u s t o m e r A c c e s s Be g i n n i n g o f Y e a r Ne w C o n n e c t s Di s c o n n e c t s En d o f Y e a r Pa r t y 41 7 39 6 Bu s i n e s s Mu l t i - Si n g l e L i n e To t a l Su b t o t a l Ce n t r e x Li n e Mu l t i - Su b t o t a l Re s i d e n c e Re s i d e n c e N. A . R . pa r t y pa r t y Pa r t y Bu s i n e s s & B u s i n e s s 41 7 10 6 10 6 52 3 39 6 49 4 Mu l t i - Li n e Pa r t y Re s i d e n c e Si n g l e L i n e Mu l t i - Pa r t y Fo r e i g n E x c h a n g e : Di a l T o n e f r o m t h i s C . Di a l T o n e f r o m a n o t h e r C . Di r e c t o r y L i s t i n g s : Nu m b e r o f C u s t o m e r s w i t h N o n p u b l i s h e d o r No n l i s t e d : ~ Cu s t o m C a l l i n g : Nu m b e r o f c u s t o m e r s w i t h a t l e a s t o n e f e a t u r e : 21 8 To t a l n u m b e r o f f e a t u r e s s u b s c r i b e d to : - - - 1 L Re v 3 / 0 2 Se e A c c o u n t a n t ' s C o m p i l a t i o n R e p o r t Pa g e 1 8 CE N T R A L O F F I C E DA T A as o f D e c e m b e r 3 1 , 2 0 0 6 ( u n l e s s o t h e r w i s e i n d i c a t e d ) Na m e o f C e n t r a l O f f i c e : ru m Pr e f i x ( e s ) : 25 8 Ce n t r a l O f f i c e S w i t c h Ty p e : DC O - RL G Ch e c k a l l t h a t a p p l y : St a n d A l o n e Ho s t Re m o t e L Ch e c k o n e : Di g i t a l L An a l o g - Ch e c k o n e : El e c t r o n i c L El e c t r o - Me c h a n i c a l Ot h e r : Ac c e s s L i n e C a p a c i t y De s i g n : 9 0 Ac c e s s L i n e s i n U s e Cu s t o m e r L i n e s : (I n c l u d e C e n t r e x , P A L , S e m i - Pu b , In s t a l l e d / E q u i p p e d : 9 0 Pu b l i c T e l e p h o n e Li n e s - L - Co m p a n y O f f i c i a l Li n e s - - L Co m p a n y T e s t Li n e s - L Cl a s s i f i c a t i o n o f C u s t o m e r A c c e s s Be g i n n i n g o f Y e a r Ne w C o n n e c t s Di s c o n n e c t s En d o f Y e a r Pa r t y Bu s i n e s s Mu l t i - Si n g l e L i n e To t a l Su b t o t a l Ce n t r e x Li n e Mu l t i - Su b t o t a l Re s i d e n c e Re s i d e n c e N. A . R . Pa r t y Pa r t y Pa r t y Bu s i n e s s & B u s i n e s s Mu l t i - Li n e Pa r t y Re s i d e n c e Si n g l e L i n e Mu l t i - Pa r t y Fo r e i g n E x c h a n g e : Di a l T o n e f r o m t h i s C . Di a l T o n e f r o m a n o t h e r C . Di r e c t o r y L i s t i n g s : Nu m b e r o f C u s t o m e r s w i t h N o n p u b l i s h e d o r No n l i s t e d : 2 - C' - ' t i t o m c a l l i n g ; Nu m b e r o f c u s t o m e r s w i t h a t l e a s t o n e f e a t u r e : 1 3 To t a l n u m b e r o f f e a t u r e s s u b s c r i b e d to : ~ Re v 3 / 0 2 Pa g e 1 8 Se e A c c o u n t a n t ' s C o m p i l a t i o n R e p o l t CE N T R A L O F F I C E DA T A as o f D e c e m b e r 3 1 , 2 0 0 6 ( u n l e s s o t h e r w i s e i n d i c a t e d ) Na m e o f C e n t r a l O f f i c e : Lo w m a n Pr e f i x ( e s ) : 25 9 Ce n t r a l O f f i c e S w i t c h Ty p e : Te k e l e c T 7 0 0 0 Ch e c k a l l t h a t a p p l y : St a n d A l o n e Ho s t . l L - Re m o t e . l L Ch e c k o n e : Di g i t a l . l L An a l o g - Ch e c k o n e : El e c t r o n ic . l L El e c t r o - Me c h a n i c a l Ot h e r : Ac c e s s L i n e C a p a c i t y De s i g n : 94 4 Ac c e s s L i n e s i n U s e Cu s t o m e r L i n e s : 26 6 (I n c l u d e C e n t r e x , P A L , S e m i - Pu b . In s t a l l e d / E q u i p p e d : 4 1 6 Pu b l i c T e l e p h o n e Li n e s - L Co m p a n y O f f i c i a l Li n e s ~ Co m p a n y T e s t Li n e s - L Cl a s s i f i c a t i o n o f C u s t o m e r A c c e s s Be g i n n i n g o f Y e a r Ne w C o n n e c t s Di s c o n n e c t s En d o f Y e a r Pa r t y 22 9 23 0 Bu s i n e s s Mu l t i - Si n g l e L i n e To t a l Su b t o t a l Ce n t r e x Li n e Mu l t i - Su b t o t a l Re s i d e n c e Re s i d e n c e N. A . R . Pa r t y pa r t y Pa r t y Bu s i n e s s & B u s i n e s s 22 9 26 6 23 0 26 6 Mu l t i - Li n e Pa r t y Re s i d e n c e Si n g l e L i n e Mu l t i - Pa r t y Fo r e i g n E x c h a n g e : Di a l T o n e f r o m t h i s C . Di a l T o n e f r o m a n o t h e r C . Di r e c t o r y L i s t i n g s : Nu m b e r o f C u s t o m e r s w i t h N o n p u b l i s h e d o r N o n l i s t e d : CL i s t o r n C a l l i n g : Nu m b e r o f c u s t o m e r s w i t h a t l e a s t o n e f e a t u r e : 6 2 To t a l n u m b e r o f f e a t u r e s s u b s c r i b e d to : ~ Re v 3 / 0 2 Se e A c c o u n t a n t ' s C o m p i l a t i o n R e p o r t Pa g e 1 8 Lo c a l E x c h a n g e 25 3 25 6 25 7 25 8 25 9 Re v 3 / 0 2 NU M B E R O F C A L L S C O M P L E T E D B Y C U S T O M E R S D U R I N G ( Y e a r ) 20 0 6 Av e r a g e # Lo c a l C a l l s To l l C a l l s O r i q i n a t e d ( T o t a l o f a l l C a r r i e r s ) of C u s t o m e r Nu m b e r Av g . / Av g . / Li n e s i n U s e (1 0 0 0 s ) Li n e In t r a s t a t e In t e r s t a t e To t a l Li n e 10 2 8 28 7 34 8 56 5 97 2 85 3 32 0 83 0 17 3 74 4 66 0 11 1 , 4 0 4 64 4 49 4 33 9 21 4 76 4 31 0 10 3 62 8 11 8 51 6 63 4 44 2 20 6 21 5 65 , 67 0 88 5 61 5 Pa g e 1 9 Se e A c c o u n t a n t ' s C o m p i l a t i o n R e p o r t ANNUAL REPORT FOR SMALL TELEPHONE COMPANIES YEAR ENDED DECEMBER 31 2006. CUSTOMER RELATIONS RULES COMPLIANCE Rule IDAPA 31.21.01.603 Rule IDAPA 31.41.01,105 Please provide copies of: Summary of Customer Relations Rules for Telephone Corporations Idaho Telephone Solicitation Act Notification Method of Notification: Mailed separately to customers Yes~ No Included in directory Yes No~ Date of notification 5/1/06 Alternate method of notification N/A Rule IDAPA 31.41,01.403. Record of Complaints: Number received by Company Category of complaints (if known): Deposit Disputes Charges on Bill Denial/T ermination Quality or Availability of Service Carrier Selection/Assignment Miscellaneous Rev 3/02 Page 20 See Accountant's Compilation Report CERTIFICATE State of Idaho ) ss County of Washington , the undersigned RICHARD WIGGINS and of the CAMBRIDGE TELEPHONE COMPANY, INC.utility, on our oath do severally say that the foregoing return has been prepared under our direction, from the original books, papers, and records of said utility; that we have carefully examined same, and declare the same to be a correct statement of the business affairs of said utility for the period covered by the return in respect to each and every matter and thing therein set forth , to the best of our knowledge, information and belief.k?~-' S (Chief Officer) ~~c C- (Officer in Charge of A~counts) ,/1,+11 Subscribed and Sworn to Before Me this day of April , (Year)2007 Notary Public ANN E. BRAUN NOTARY PUBLIC STATE OF IDAHO My Commission expires ~,(Year) c2.DIJ Rev 3/02 gd k/excel/j ne Ison/ an u I rpts/tela n n ual rpt Page 21 See Accountant's Compilation Report Wh a t i f a D e p o s i t i s r e q u i r e d ? If w e r e q u i r e a d e p o s i t o r d e n y y o u s e r v i c e , y o u m a y re q u e s t a w r i t t e n e x p l a n a t i o n a n d w i l l b e g i v e n a c h a n c e to d i s c u s s t h a t d e c i s i o n w i t h u s . yo u p a y a d e p o s i t yo u h a v e t h e r i g h t t o a r e c e i p t . I n t e r e s t w i l l b e p a i d f r o m t h e d R t e t h e J . e p o s i t i s t a k e n a n d u n t i l re f u n d e d o r ap p l i e d , D e p o s i t s , w i t h i n t e r e s t , w i l l b e r e f u n d e d pr o m p t l y w h e n y o u m a i n t a i n g o o d c r e d i t ( o r t w e l v e co n s e c u t i v e m o n t h s . I f a d e p o s i t i s r e q u i r e d , y o u ha v ! . ! tw o a l t e r n a t i v e s a v a i l a b l e , Y o u c a n e i t h e r p a y t h e de p o s i t i n c a s h o r p r e s e n t EI gu a r a n t e e f r o m a t h i r d pa r t y , Th e a m o u n t o f t h e d e p o s i t s h a l l n o t e x c e e d t w o (2 ) mo n t h s c h a r g e s f o r b a s i c l o c a l t e l e p h o n e s e r v i c e p l u s tw o ( 2 ) m o n t h s e s t i m a t e d o r a v e r a g e c h a r g e s f o r l o n g dis t a n c e s e r v i c e . Gu a r a n t e e i n L i e u o f D e p o s i t yo u c a n n o t p a y t h e d e p o s i t , w e w i l l a c c e p t a gt l a r a . n t e e h o r n a n o t b e r c u s t o m e r w h o h a s t w e l v e mo n t h s o f g o o d c r e d i t . T h e th i r d pa r t y m u s t gt l a r a n t e e a n d is ua b l e f o r a n a m o W 1 t e q u a l t o t h e de p o s i t t h a t w o u l d o t h e r w i s e b e r e q u i r e d . T h e gu a r a n t o r i s r e l e a s e d f r o m t h i s o b l i g a t i o n w h e n yo u h a v e e s t a b l i s h e d g o o d c r e d i t . Co m p l a i n t P r o c e d m e Yo u ma y , at a . n y t i m e , f i l e a c o m p J a i n t a n d r e q u e s t a co n f e r e n c e w i t h u s . A f t e r w e r e c e i ve a c o m p l a i n t , w e wi l l s t a r t a n u w e s t i g a t i o n i m m e d i a t e l y , T h e re s u l t s wi l l gi v e n t o y o u a n d y o u w i l l b e g i v e n t h e o p p o r t u n i t y to d i s c u s s t h e r e s u l t s . I f y o u a r e s t i l l d i s s a t i s f i e d , a co m p l a i n t m a y b e t a k e n t o t h e I d a h o P u b l i c U t i l i t i e s Co m m i s s i o n f o r r e v i e w . S e r v i c e w i l l n o t b e t u r n e d o f f du r i n g a n y p a r t o f t h i s c o m p l a i n t p r o c e d u r e I F A L L UN D I S P U T E D B I L L S A R E P A I D , Im p o r t a n t N o t i c e C o n c e r n i n g P u r c h a s e of G o o d s a n d S e r v i c e s b y T e l e p h o n e Yo u h a v e i m p o r t a n t r i g h t s u n d e r t h e I d a h o T e l e p h o n e So l i c i t a t i o n A c t . U n d e r t h i s A c t , i t i s i l l e g a l ( o r p e r s o n s at t e m p t i n g t o s e l l y o u g o o d s o r s e r v i c e s b y t e l e p h o n e (t e l e p h o n e s o l i c i t o r s ) : . T o in t i m i d a t e o r h a r a s s y o u i n co n n e c l i o f 1 w i t h t h e at t e m p t e d s a l e , .I I I T o r e f u s e t o h a n g u p a n d f r e e y o u r t e l e p h c l n e IL n c im m e d i a t e l y o n c e y o u r e q u e s t t h e m t o d o so , . T o m i s s t a t e th e p r i c e , q u a l i t y , o r a v a i l a b i l i t y o f g o o d s or s e r v i c e s , o r t o f a i l t o r e v e a J a J i m a t e r i a l t e r m s re l a l i n e t o t h e s a l e o f g o o d s o r s e r v i c e s , . T o a d v e r t i s e , r e p r e s e n t o r i m p l y t h a t t h e y h a v e t h e en d o r s e m e n t or al l Y g o v e r n m e n t o f f i c e o r a g e n c y wh e n t h e y d o n o t . . T o a d v e r t i s t ! , r e p r e s e n t o r i m p l y l h a l l h e y h a v e a va l i d r e g i s t r a t i o n n u m b e r w i t h t h e Al t o r n E ! y G e n e r a l wh e n t h e y d o n o t . . T o u s e a n y u n f a i r me t h o d o f c o m p e t i t i o n o r u n f a i r o r de c e p t i v e p r a c t i c e , An y p e r s o n n o t y e t 1 8 y e a r s o l d w h o p u r c h a s e s go o d s o r s e r v i c e s p u r s u a n t t o 0 t e l e p h o n e so l i c i t a t i o n m a y c a n c e l t h e p u r c h a s e w i t h i n a re a s o n a b l e t i m e a f t e r t h e . pu r c h a s e i s m a d e . N o pa r e n t o r l e g a l g u a r d i a n h a v i n g c u s t o d y o f a pe r s o n n o t y e t 1 8 ye a r s ol d i s l i a b l e f o r t h e pu r c h a s e o f g o o d s o r s e r v i c e s b y a p e r s o n n o t y e t 18 y e a r s o l d p u r s u a n t t o t e l e p h o n e s o l i c i t a t i o n . Wh e n y o u a g r e e t o p u r c h a s e g o o d s o r s e r v i c e s ov e r t h e t e l e p h o n e , y o u m a y h a v e a r i g h t t o re c o n s i d e r a n d ca n , c e l y o u r ag r e e m e n t f o r t h r e e bu s i n e s s d a y s a f t e r r e c e i v i n g a w r i t t e n co n f i r m a t i o n o f t h e s a l e . A p e r s o n w h o s e r i g h t s a r c v i o l a t e d b y t e l e p h o n e so l i c i t o r s m a y h a v e t h e r i ~ h t 10 d e c l a r e a c o n t r a c t of p u r c h a s e n u l l a n d v o i d o r i n v o k e o t h e r re m e d i e s u n d e r t h e I d a h o C o n s u m e r P r o t e c t i o n Ac t . If y o u b e l i e v e t h a t a t e l e p h o n e s o l i c i t o r hi J S d o n e an y w u a w f u l a c t s , y o u m a y c o n t a c t t h e A t t o r n e y Ge n e r a l ' s o f f i c e f o r a s s i s t a n c e a n d i n f o r m a t i o n a t : 80 0 - 43 2 - 35 4 5 ( t o l l f r e e ) o r 33 4 - 2 4 2 4 ( B o i s e a r e a ) Id a h o T e l e c o m m u n i c a t i o n s Re l a y S e r v i c e Th e I d a h o T e l e c o m m u n i c a t i o n s R e l a y Se r v i c e al l o w s i n d i v i d u a l s w i t h a s p e e c h a n d / o r h e a r i n g di s a b i l i t y a n d h e a r i n g i n d i v i d u a l s t o CO l l U l l u n i c i l l e vi a t h e t e l e p h o n e . Ca l l s ma y b e i n i t i a t e d b y e i t h e r te x t t e l e p h o n e o r v o i c e c u s t o m e r s , T w e n t y - fo u r ho U I s a da y an d s e v e n d a y s a w e e k , t h e I d a h o Td e c o l l U 1 1 U r U c i l t i o n s R e l a y S e r v i c e is re a d y t o . p r o v i d e y o u w i t h e f f i c i e n t , c o n f i d e n t i a l co m m u n i c a t i o n s s e r v i c e s . I f y o u w o u l d l i k e m o r e in f o r m a t i o n a b o u t t h e I d a h o T e l e c o m m u n i c a t i o n s Re l a y S e r v i c e , p l e a s e c a U 1 - 80 0 - 36 8 - 61 8 5 ( V o i c e o r TT ) , or a s o f O c t o b e r 1 , 2 0 0 1 , b y d i a l i n g 7 1 1 . Th e R e s i d e n t i a l S e r v i c e Th i s i s u s u m m a r y o r t h e I d a h o P u b l i c U t i l i t y Co m m i s s i o n s r u l e s a n d r e g u l a t i o n s r e g n r d i n e cu s t o m e r r e l a t i o n s , It i s i n l e n J e u f o r y o u r i n f o r m a t i u n o n l y , W c ho p e i l wi l l m a k e y o l l a w a r e o f y o u r r i g h t s a s d er c T e l e c o m cu s t o m e r a m I w i l l b e t t e r ac q u ; J i n t y o u w i t h s o m e o f ou r o p e r a t i n g p r o c e u u r e s . Th i s is o n l y a s u m m a r y , Sh o u l d y o u n e e d d e t a i l e d i n f o r m a t i o n , t h e er e Te l e c o m o f f i c e h u s a c o p y o f t h e c o m p l e t e r u l e s av a i l a b l e f o r y o u r lI s e . P l e u s e c o n t a c t u s i f y o u hi J V C qu e s t i o n s . To A c c e s s t h e R e l a y T o l l - Fr e e D i a l : , - ~. . , . Q c - 80 0 - 37 7 - 35 2 9 ( T T ) Se e A c c c : . : : ~ := . : - ~ . :: _ - . . un j l e p o . 80 0 - 37 7 - 13 6 3 ( V o i c e ) 71 1 ( A f t e r O c t o b e r 1 20 0 1 ) J~ - _ _ - CU S T O M E R I J I L L I N G I N F O R M A T I O N Th e c h i U g e f o r m o n t h l y l o c a l t e l e p h o n e s e r v i c e i s bi l l e d o n e m o n t h i n a d v a n c e . A l l c h a r g e s fo r l o n g di s t a n c e , m e s s a g e u n i t s , i n s t a l l a t i o n a n d c h a n g e s Ln s e r v i c e o n fi l e a t t h e t i m e t h e b i l i i s p r i n t e d w i l l be s h o w n o n y o u r c u r r e n t b i l l , RU L E S F O R T E R M I N A T I O N O F S E R V I C E CT C Te 1 p . c o m m u s t f o l l o w s t r i n g e n t g u i d e l i n e s be f o r e t e r m i n a t i n g b a s i c l o c a l t e l e p h o n e s e r v i c e Ba s i c l o c a l s e r v i c e c a n n o t b e t e r m i n a t e d f o r f a i l u r e to p a y J o n g d i s t a n c e c h a r g e s o w e d t o o t h e r co m p a n i e s , w h i c h m a y a p p e a r o n er c T e l e c o m mo n t h l y b i l l , i f m e a s u r e s t o p r e v e n t a c c e s s t o t h e ot h e r c o m p a n i e s ' s e r v i c e s a r e a v a i l a b l e , W h e t h e r su c h m e a s u r e s ( l I e a v a i l a b l e d e p e n d s u p o n t h e ty p e o f er c T e l e o m e q u i p m e n t se r v i n g t h e cu s t o m e r . Ba s i c l o c a l t e l e p h o n e s e r v i c e c a n n o t b e te r m i n a t e d i f y o u l e t u s k n o w t h a t y o u d i s p u an y c h a r g e s o n y o u r t e l e p h o n e b i l l u n t i l t h e dis p u t e is re s o l v e d , b u t y o u m u s t c o n t i n u e t o p a y th e u n d i s p u t e d p a r t s o f t h e b i l l . Te l e p h o n e s e r v i c e c a n b e d i s c o n n e c t e d w i t h pr o p e r n o t i f i c a t i o n f o r o n e o f t h e f o l l o w i n g re a s o n s : . N o t pa y i n ( ' , u n d i s p u t e d d e l i n q u e n t ch a r g e s o r p a y i n g a d e l i n q u e n t b i l l w i t h a c h e c k n o t h o n o r e d b y t h e ba n k . ;I F c J l u r e t o m a k e a s e c u r i t y d e p o s l l o r f a i l u r e t o pr o v i d e a d e p o s i t g u a r a n t e e . . M i s r e p r e s e n t a t i o n o f id e n t i t y t o r e c e i v e s e r v i c e , . F a i l u r e to a b i d e b y t h e t e r m s o f a p a y m p . n t ar r a n g e m e n t . !! I n t e n t i o n a l l y w a s t i n g o r i n t e r f e r i n g w i t h s e r v i c e th r o u g h i m p r o p e r e q u i p m e n t o r o t h e r w i s e , . F a i l u r e to a p p l y fo r se r v i c e w i t h t h e t e l e p h o n e co m p a n y , PR O P E R N O T I F I C A T I O N Se r v i c e c a n n o t b e d i s c o n n e c t e d w i t h o u t f i r s t no t i f y i r l g y o u i n w r i t i n g a t l e a s t s e v e n ( 7 ) d a y s i n ad v a n c e . W e m u s t d i l i g e n t l y c r y t o no t i f y y o u i n pe r s o n o r b y t e l e p h o n e 2 4 hO L l r s b e f o r e di s c o n n e c t i n g s e r v i c e . O n l y 2 4 h o u r n o t i c e w i I l bp . gi v e n Lf y o u p a y a b i l l wi t h a n i n s u f f i c i e n t f u n d s ch e c k i n o r d e r t o a v o i d t e r m i n a t i o n , o r a s t i l e in i t i a l p a y m e n t o f a p a y m e n t a r r a n g e m e n t , o r i f YO L l d o n o t ma k e a n l n i t i a l p a y m e n t a c c o r d i n g t o a pa y m e n t a r r a n g e m e n t . Re s t r i c t i o n s o n T e r m i n a t i o n s Yo u r t e l e p h o n e s e r v i c e c a n n o t b e d i s c o n n e c t e d if : . A pa s t d u e b a l a n c e i s l e s s t h a n $ 5 0 , 00 o r f o r t w o ( 2 ) mo n t h s s e r v i c e , w h i c h e v e r i s s m a l l e r . /I Y o u a r e b e i n g c h a r g e d f o r a n o t h e r c u s t o m e r s b i l l (u n l e s s y o u h a v e a l e g a l o b l i g a t i o n t o p a y t h e o t h e r cu s t o m e r s b i l l o r y o u a r e b e i n g c h o q ~ e d f o r on y o t h e r cl a s s o f s e r v i c e ) , . . Yo u ( a i l t o p a y f o r p u r c h a s e o f s e r v i c e s s u c h a s t h e fo l l o w i n g : - D i r e c t o r y a d v e r t i s i n g , - S e r v i c e s n o l p r o v i d e d b y C T C Te l C ? c o m e v e n th o u g h th e y m a y b e b i l l e d w i t h C T C T e l e c o m s e r v i c e s ( e , g . 90 0 c h a r g e s , o p e r a t o r c h a r g e s f r o m a n o t h e r co m p a n y ) , - E C J u i p m e n t p a y m e n t s . - I n s i d e w i r e m a i n t e n a n c e , - W r i t t e n g u a r a n t e e f o r a n o t h e r c u s t o m e r , - L o n g d i s t a n c e c h a r g e s b y o t h e r c o m p a n i e s , i f ca n b l o c k a c c e s s t o t h e o t h e r c o m p o n i e s ' s e r v i c C ' . s , Yo u r t e l e p h o n e s e r v i c e ,1 : J n b e di s c o n n e c t e d b e t w e e n th e h o u r s o f 8 : 0 0 a . m u n d 4 : 0 0 p , m" M o n d a y t h r o u g h Th u r s d a y , a n d b e f o r e n o o n . o n F r i d a y . S e r v i c e c a n n o t b e tu r n e d of f af t e r n o o n o n F r i d a y s , w e e k e n d s , l e g a l l y re c o g n i z e d I d a h o h o l i d a y s , o r a f t e r n o o n a n y d a y b e f o r e a l e g a l l y r e c o g n i z e d da h o h o l i d a y . Te r m i n a t i o n W i t h o u t N o t i f i c a t i o n CT C T e l e co m , . a n t e r m i n a t e s e r v i c e w i t h o u t no t i f i c a t i o n o n l y u n d e r t h e f i v e f o l l o w i n g c o n d i t i o n s : . A d a n g e r o u s o r ha z O l r d o u s c o n d i t i o n e x i s t s , Se r v i c e wa s ob t a i n e d w i t h o u t a u t h o r i z a t i o n o r kn o w l e d g e o f t h e t e l e p h o n e c o m p a n y . . B y o r d e r of a n y c o u r t , t h e P u b l i c U t i l i t i e s Co m m i s s i o n , o r a n y o t h e r i l u t h o r i z e d p u b l i c au t h o r i t y . If w e he l V e d i l i g e n t 1 y t r i e d t o n o t i f y yo u b u t h a v e be e n u n s u c c e s s f u l i n o u r a t t e m p t s t o c o n t a c t y o u . II ! Y o u h a v e m i s r e p r e s e n t e e ! y o u r id e n t i t y , h a v e in a d e q u a t e s e c u r i t y w i t h t h e c o m p a n y , a n d h a v e a n ou t s t a n d i n g b i l l e x c e e d i n g $ 1 0 0 . 00 . PA Y M E N T A R R A N G E M E N T S / PA R T I A L P A Y M E N T S j D I S P U T E D C H A R G E S If y o u c a n n o t p a y t h e e n t i r e b i l l , p a y m e n t ar r a n g e m e n t s c a n b e m a d e w i t h u s t o p a y p a r t o f t h e am o u n t i m m e d i a t e l y a n d t h e r e m a i n d e r i n i n s t a l l m e n t s , A p a y m e n t s c h e d u l e w i l l b e d e v e l o p e d t h a t i s in d i v i d u a l l y t a i l o r e d t o y o u r n e e d ' an d a b i l i t y t o p a y , If y o u c a n n o t p a y a b i l l i n f u l l , o r i f y o u d i s p u t e a po r t i o n o f t h e c h a r g e s , y o u m a y t e l l u s h o w t o a p p l y yo u r p a r t i a l p a y m e n t t o c h a r g e s f o r l o c a l se r v i c e , l o n g di s t a n c e a n d o t h e r s e r v i c e s , W h e n y o u m a k e p a r t i a l pa y m e n t s w i t h o u t d i r e c t i n g h o w t h e y a r e t o b e a p p l i e d we a u t o m a t i c a l l y p r o r a t e y o u r p a y m e n t a m o n g a l l , , . .. .. yo u h e l v e n o t n u t i f i e d u s o f t h e d i s p u t e ) . I f y o u W i J l l l l o av o i d d i s c o n o P . c l i o n o f y o u r l o c a l s e r v i c e , i t i s w i s e t o di r e c t t h a t y o u r pO ! r l i a l p a y m e n t f i r s t b e e l p p l i c d t o t h e ch a r g e s f o r t h a i s e r v i c e , UN A U T H O R I Z E D C H A N G E T O AN O T H E R L O N G D I S T A N C E C A R R I E R Th e F e d e r a l C o m m u n i c a t i o n s C o m m i s s i o n h a s re v i s e d t h e e x i s t i n ~ r u l e s r e l a t e d t o a u t h o r i z a t i o n a n d ve r i f i c a t i o n f o r c h a n g e s i n p r e f e r r e d l o n g d i s t a n c e pr o v i d e r s . I f y o u h a v e b e e n s l a m m e d ( u n a u t h o r i z e d ch a n g e of yo u r l o n g d i s t a n c e c a r r i e r ) y o u m a y b e ab s o l v e d f r o m p a y i n g u n p a i d c h a r g e s f o r 3 0 d a y s a f t e r an u n a u t h o r i z 8 d c h a n g e , T h e F C C r u l e s p r o h i b i t C T C Te l e c o m f r o m v e r i f y i n g c a r r i e r c h a n g e s s u b m i t t e d b y lo n g d i s t a n c e c a r r i e r s , I f y o u d o n o t c u r r e n t l y h a v e a pr e f t - ' . r r e d c a r r i e r f r e e z e , y o u IT l I I Y c h o o s e t h i s op t i o n t o el i m i n a t e a n u n a u t h o r i z e d c h a n g e of yo u r l o n g d i s t a n c e ca r r i e r . I f y o u d o h a v e a p r e f e r r e d c a r r i e r f r e e z e a n d wa n t 1 0 c h a n g ! ! y o u r c a r r i e r , y o u m u s t c a l l o u r o f f i c e o r gi v e w r i t t e n n o t i c e t o l i f t a n y p r c f \ ? r r e d c a r r i e r fr e e z e , I f yo u h a v e a n y q u e s t i o n s a b o u t t h e s e n e w r u l e s y o u ma y co n t a c t o u r h u s i n e s s o f f i c e , ME D I C A L E M E R G E N C I E S , Yo u ( an d e l a y t e r m i n a t i o n o f s e r v i c e f o r 3 0 d A Y s b y ob t a i n i n g a c e r t i f i c a t e ( r o m a d o c t o r o r p u b l i c h e a l t h of f i c i a l s t a l i n g t h a t a m e d i c a l e m e r g e n c y e x i s t s o r w o u l d be a g ~ a v a t e d i f y o u r p h o n e s e r v i c e w e r e d i s c o n n e c t e d . A s e c o n d e x t e n s i o n m a y b e g r a n t e d i f a n o t h e r c e r t i f i c a t e is p r e s e n t e d , P a y m e n t a r r a n g e m e n t s m u s t b e m a d e he f o r e t h e 3 0 - d a y e x p i r a t i o n d a t e , T h e c e r t i ( i c a t e m u s t be s i g n e d b y t h e p e r s o n d i a g n o s i n g t h e m e d i c a l co n d i t i o n a n d m u s t f1 C l J l 1 e t h e pe r s o n a f ( e c t p d , " - rx : RU L E S F O R D E P O S I T We m a y a s k y o u t o p a y a d e p o s i t i f i ' I d e p o s i t i s re q u i r e d , A d e p o s i t i s r e q u i r e d o n l y i f : . Y o u h a v e n o t pa i d a n u n d i s p u t e d b i l l w i t h An y te l e p h o n e c o m p a n y f o r s e r v i c e r e c e i v e d i n t h e p a s ! fo u r y e a r s , II Y o u r s e r v i c e II ' a s t ! ! r m i n a t e d l o r on e o f t h e (0 1 1 0 1 1 ' in g re a s o n s : Ii N o n p a y m e n t o f a n y u n d i s p u t e d t l e l i n q u l ' n t bi l l s , 1: 1 Mi s r e p r e s e n t a t i o n o f y o u r i d e n t i t y f o r t h e p u r p o s e o f ob t a i n i n g t e l e p h o n e s e r v i c e . .. F a i l u r e 1 0 p a y f o r da m a g e s c a t l s e d b y np . g l i b e n c e . ' II O b t u i n i n g o r u s i n g s e r v i c e w i t h o u t a u t h o r i z a t i o n , . Y o u fi l e b a n k r u p t c y , . Y Ol l d o n o t h a v e v e r i f i a b l e p r e v i o u s t e l e p h o n e se r v i c e a n d d o n o t p a s s o b j e c t i v e c r e d i t s c r e e n , II I Y o u p r o v i d e m a t e r i a l l y f a l s e i n f u r m a t i o n o n y o u r ap p J i c a \ i o n . . Y o u re q u e s t s e r v i c e a t a r e s i J e n c e w h e r e OJ fo m 1 e r cu s t o m e r s t i l l r e s i d e s a n d a b a J a n c e i s p a s t d u e o r s t i l l ow i n g o n t h e f o r m e r c u s t o m e r s b i l l . ~ ; ,C : : ( 20 0 5 F O R M I I N P U T M A S T E R CO M P A N Y N A M E : C a m b r i d g e T e l e p h o n e C o m p a n y , I n c . Fo r T h e Y e a r E n d e d : D e c e m b e r 3 1 , 2 0 0 5 Se p e r a t e d R e s u l t s o f I d a h o O p e r a t i o n s To t a l I d a h o In t e r s t a t e O p e r a t i o n In t r a s t a t e O p e r a t i o n Op e r a t i o n s MT S & W A T S TO l l P l S MT S & W A T S TO l l P l S FC C A c c o u n t a n d No t e LI n e Su b j e c t T o Sw i t c h e d Sp e c i a l Sw i t c h e d Sp e c i a l lo c a l De s c r i p t i o n No . No . Se p a r a t i o n s Ac c e s s Ac c e s s To t a l Ac c e s s Ac c e s s EA S (o t h e r ) To t a l SU M M A R Y Op e r a t i n g R e v e n u e s 50 X X l o c a l - Bil l e d (1 ) 33 4 22 7 13 3 4 2 2 6 . 33 4 , 22 7 EA S B i l l e d (1 ) EA S S e t t l e m e n t (1 ) 50 8 X A c c e s s - Sl C ( E n d U s e r ) (2 ) 19 3 17 7 19 3 1 7 7 19 3 17 7 Sw i t c h e d ( T S + N T S ) (2 ) 82 5 20 0 16 9 0 3 7 0 . 69 0 37 0 13 4 8 2 9 . 13 4 82 9 Sp e c i a l (2 ) 14 2 23 2 11 0 0 9 9 11 0 09 9 32 1 3 3 13 3 51 X X T o l l - Me s s a g e (3 a ) Pr i v a t e L i n e (3 b ) Se t t l e m e n t (3 c ) 52 X X M i s c , - Bil l i n g & C o l l e c t i o n (4 ) 10 , Dir e c t o r y A d v e r t i s i n g 11 , 00 9 90 0 8 . 00 9 Op e r a t i n g R e n t s 12 , 82 8 98 2 8 82 8 Ot h e r M i s c , 13 , 86 , 4 5 3 86 4 5 2 . 86 , 4 5 3 53 0 X l e s s : Un c o l l e c t i b l e R e v , ( - ) 14 , 19 4 19 4 19 4 To t a l R e v e n u e s 15 , 60 0 36 3 88 3 56 8 11 0 09 9 99 3 , 66 7 13 4 , 85 2 13 3 43 9 71 0 60 6 69 6 Op e r a t i n g E x p e n s e s 61 X X - 64 X X P l a n t S p e c i f i c O o e r . (5 a ) 16 , 82 1 76 7 33 5 27 3 64 0 36 6 , 91 3 18 6 , 12 9 42 4 89 4 23 4 , 4 0 7 45 4 85 4 65 X X P l a n t N o n s p e c i f i c O p e r a t i o n s (5 a ) 17 , 41 , 07 3 94 2 73 9 30 , 68 1 24 8 24 0 55 9 34 5 39 2 65 6 X D e p r e c i a t i o n & A m o r t i z a t i o n (5 a ) 18 , 06 9 , 14 3 48 4 5 9 2 26 7 8 6 51 1 , 37 8 21 9 , 67 7 31 9 35 9 30 6 , 4 1 0 55 7 , 76 5 66 X X C u s t o m e r O p e r a t i o n s (5 a \ 19 . 18 4 73 6 66 , 27 1 96 6 67 , 23 7 55 , 42 3 58 4 61 , 4 9 2 11 7 49 9 67 X X C o r p o r a t e O o e r a t i o n s 15 a \ 20 , 56 7 38 5 25 1 68 4 16 , 31 2 26 7 , 99 6 12 7 , 04 8 55 6 86 8 15 4 91 7 29 9 38 9 Ot h e r O p e r a t i n g (5 a ) 21 , To t a l E x p e n s e s (5 a ) 22 . 68 4 , 10 4 16 7 , 76 2 44 3 24 4 , 20 5 59 2 52 5 12 3 68 0 76 2 57 1 43 9 , 89 9 Op e r a t i n g T a x e s : (6 ) 72 4 0 G e n e r a l Ta x e s 23 , 72 3 0 S t a t e / l o c a l l n c , T a x (C u r r e n t ) 24 . 11 0 57 1 3 38 7 10 0 29 1 5 12 6 30 4 36 6 5 01 0 72 2 0 F e d e r a l In c o m e T a x ( C u r r e n t ) 25 . 50 8 41 1 8 5 27 8 9 97 4 21 0 1 4 91 0 21 9 1 26 4 1 9 53 4 72 5 0 N e t De f e r r e d I n c o m e T a x e s 26 , 33 1 35 0 0 7 23 7 1 37 8 17 8 6 2 77 3 18 6 2 22 4 5 6 95 3 72 1 0 N e t In v e s t m e n t T a x C r e d i t s 27 , To t a l T a x e s 28 , 27 , 28 7 89 1 80 5 69 6 06 7 26 3 63 3 62 8 59 1 Ne t O p e r a t i n g I n c o m e 29 , 88 8 97 2 70 3 91 5 32 , 85 1 73 6 76 6 -4 6 3 74 0 74 7 60 , 31 3 66 9 51 1 15 2 , 20 6 Pa g e 1 o f 8 SU M M A R Y ( c o n t i n u e d ) Av e r a g e R a t e B a s e 20 0 1 Te l e c o m , P l a n t i n S e r v i c e 15 b ) 60 4 , 38 6 80 6 09 4 65 0 79 4 7, 4 5 6 , 88 8 73 9 23 3 21 1 23 2 49 1 65 8 70 5 37 5 14 7 , 4 9 8 20 0 5 Pl a n t A c q u i s i t i o n A d j u s t m e n t 31 0 0 Le s s : A c c u m u l a t e d D e a r . 15 c ) 99 3 56 1 81 7 82 8 37 6 01 4 19 3 , 84 2 11 4 13 0 12 7 , 94 8 25 8 07 9 29 9 56 2 79 9 71 9 34 x x - 36 x x A c c u m u l a t e d A m o r t ( - ) (5 ) 41 0 0 - 43 4 0 A c c u m . De f e r r e d T a x ( - ) 40 , 4 5 9 16 5 8 4 15 8 6 17 0 91 1 1 51 5 11 9 8 11 4 6 5 28 9 12 2 0 Ma t e r i a l s a n d S u p p l i e s 11 0 6 8 9 40 1 3 0 24 3 5 56 5 28 5 0 9 13 0 7 18 0 9 36 4 9 9 12 4 Eq u a l A c c e s s E q u i p m e n t (7 ) Ot h e r R a t e B a s e 58 6 58 3 24 2 7 0 8 21 9 8 7 26 4 69 5 13 2 9 5 1 71 7 4 16 5 8 3 16 5 1 8 0 32 1 , 88 8 To t a l A v e r a g e R a t e B a s e 26 7 63 8 25 4 , 52 0 29 7 61 6 55 2 13 6 77 7 45 2 25 0 25 0 77 3 59 6 02 7 71 5 50 2 Pa g e 2 o f 8 PL A N T I N S E R V I C E D E T A I L 21 X X G e n e r a l S u p p o r t F a c i l i t i e s 98 6 , 87 8 22 4 31 3 11 7 06 8 34 1 38 1 67 2 63 1 99 8 44 2 84 6 , 4 2 6 64 5 , 4 9 7 22 X X C e n t r a l O f f i c e E q u i p m e n t : CA T 1 - 0p e r a t o r S y s t e m s CA T 2 , Ta n d e m S w i t c h i n g ( A l l o c , CA T 2 - Ta n d e m S w i t c h i n g ( A s s i g n , CA T 3 - Lo c a l S w i t c h i n g 31 1 32 4 11 1 4 6 2 5 11 4 , 62 5 19 6 6 9 9 19 6 69 9 CA T 4 , 12 - Ex c h , T r u n k ( J o i n t U s e ) 26 0 51 3 26 0 5 1 3 26 0 , 51 3 CA T 4 . 12 , Ex c h , T r u n k ( O e d , U s e ) 13 6 21 7 13 2 3 0 7 13 2 30 7 39 1 0 91 0 CA T 4 , 13 - Su b s c r . L i n e ( J o i n t U s e ) 26 7 , 85 1 31 4 6 7 9 60 9 0 32 0 76 9 31 4 6 7 9 30 4 5 62 9 3 5 8 94 7 08 2 CA T 4 . 13 - Su b s c r . L i n e ( O e d , U s e ) CA T 4 , 23 - IX T r u n k ( J o i n t U s e ) 10 , 15 4 , 81 7 76 2 9 4 1 21 2 2 8 78 4 16 9 35 7 9 1 1 12 7 3 7 37 0 , 64 8 CA T 4 . 23 - IX T r u n k C k t ( O e d , U s e ) 11 , 23 2 37 2 18 1 9 6 0 18 1 96 0 50 4 1 2 41 2 CA T 4 , 3 - Ho s t / R e m o t e T r u n k C k t 12 , 52 1 66 0 22 3 5 3 1 22 3 53 1 14 4 7 9 2 15 3 3 3 7 29 8 12 9 Ot h e r C O E 13 , To t a l C O E 14 , 88 4 75 4 41 5 77 6 34 1 58 5 75 7 , 36 1 81 7 , 38 2 10 4 26 0 51 3 97 9 39 4 12 7 , 39 3 23 X X I n f o r m a t i o n O r l g . /T e r m . E q u i p m e n t : CA T 1 - Re g u l a t e d C P E 15 , Ot h e r l O T 16 , To t a l l O T 17 , 24 X X C a b l e & W i r e F a c i l i t i e s : CA T 1 , 3- S u b s c r i b e r L i n e ( C o m m o n ) 18 . 65 6 02 0 14 0 3 8 1 8 27 1 6 6 1, 4 3 0 98 4 14 0 3 8 1 8 13 5 8 3 28 0 7 6 3 5 22 5 03 6 CA T 1 . 1 , Su b s c r i b e r L i n e ( O e d , 19 , CA T 2 - Ex c h , T r u n k ( J o i n t U s e ) 20 , 14 2 70 3 14 2 7 0 3 14 2 , 70 3 CA T 2 e Ex c h , T r u n k ( O e d , U s e ) 21 , 84 2 44 1 6 7 16 7 15 6 7 5 67 5 CA T 3 - IX T r u n k ( J o i n t U s e ) 22 , 2,4 7 7 98 0 16 5 7 3 4 2 21 3 6 2 67 8 70 4 77 7 4 9 1 21 7 8 5 79 9 27 6 CA T 3 - IX T r u n k ( O e d . U s e ) 23 , 15 1 53 6 99 4 4 7 99 , 4 4 7 52 0 8 9 08 9 CA T 4 - Ho s t / R e m o t e T r u n k 24 , 24 4 67 6 10 4 8 4 4 10 4 84 4 67 9 1 2 71 9 2 0 13 9 83 2 Ot h e r C & W F 25 . To t a l C & W F 26 , 73 2 75 7 16 6 00 4 19 2 , 14 2 35 8 , 14 6 24 9 , 22 1 10 3 , 13 2 14 2 70 3 87 9 , 55 5 37 4 61 1 26 X X O t h e r A s s e t s : Ca p i t a l L e a s e s 27 , Le a s e h o l d I m p r o v e m e n t s 28 , In t a n g i b l e s 29 . To t a l O t h e r A s s e t s 30 , To t a l T e l e c o m , P l a n t i n S e r v i c e (5 b ) 31 , 16 , 60 4 38 9 80 6 , 09 3 65 0 79 5 45 6 , 88 8 73 9 23 4 21 1 23 4 49 1 , 65 8 70 5 37 5 14 7 , 50 1 Pa g e 3 o f 8 De p r e c i a t i o n & A m o r t i z a t i o n Ac c u m u l a t e d D e p r e c i a t i o n D e t a i l 31 1 X G e n e r a l S u p p o r t F a c i l i t i e s 54 1 79 4 63 1 9 7 7 60 4 2 9 69 2 40 6 34 7 2 0 5 19 6 1 4 -4 5 6 5 3 -4 3 6 9 1 6 84 9 38 8 31 2 X C e n t r a l Of f i c e S w i t c h i n g 11 0 06 1 94 3 5 5 2 94 3 55 2 16 6 5 0 9 16 6 50 9 31 2 X Op e r a t o r S y s t e m s 31 2 X Ce n t r a l O f f i c e T r a n s m i s s i o n 2, 4 2 9 62 0 88 4 6 7 0 23 2 2 4 8 11 6 91 8 55 5 7 4 8 -4 7 6 6 4 17 7 1 2 6 53 2 1 6 4 31 2 70 2 31 3 X In f o r m a t i o n O r i g , rr e r m , E q u i p , 31 4 X C a b l e & W i r e Fa c i l i t i e s 91 2 08 7 13 5 7 6 3 0 83 3 3 7 1,4 4 0 96 7 12 1 1 1 7 7 60 6 7 0 35 3 0 0 21 6 3 9 7 3 47 1 12 0 To t a l A c c u m u l a t e d D e p r e c i a t i o n (5 c ) 99 3 56 2 81 7 82 9 37 6 , 01 4 -4 , 19 3 84 3 11 4 , 13 0 12 7 94 8 25 8 , 07 9 29 9 56 2 79 9 71 9 Ac c u m u l a t e d A m o r t i z a t i o n D e t a i l 34 1 0 Ca p i t a l L e a s e s 34 2 0 Le a s e h o l d I m p r o v e m e n t s 35 0 0 In t a n g i b l e s 10 , 36 0 0 A c q u i s i t i o n Ad j u s t m e n t 11 . To t a l A c c u m u l a t e d A m o r t i z a t i o n (5 c ) 12 . Pa g e 4 o f 8 OP E R A T I N G E X P E N S E D E T A I L 61 X X . 64 X X P l a n t S p e c i f i c O p e r a t i o n s 61 1 0 - 20 G e n e r a l S u p p o r t F a c i l i t i e s 17 3 , 85 3 71 2 6 2 68 1 4 07 6 39 1 5 1 22 1 2 51 4 8 49 2 6 6 77 7 62 1 X Ce n t r a l O f f i c e S w i t c h i n g 15 6 , 19 6 77 2 4 7 10 9 2 3 88 , 17 0 26 1 3 7 22 4 2 83 3 0 31 3 1 7 02 6 62 2 0 Op e r a t o r S y s t e m s 62 3 X Ce n t r a l O f f i c e T r a n s m i s s i o n 35 1 31 8 2 5 45 0 0 36 , 32 5 10 7 6 8 92 4 34 3 2 12 9 0 2 02 6 63 X X In f o r m a t i o n O r i g J T e r m , E q u i p , 64 X X Ca b l e & W i r e F a c i l i t i e s 42 7 36 8 15 4 9 3 9 94 0 3 16 4 34 2 11 0 0 7 4 50 4 7 69 8 4 14 0 9 2 1 26 3 , 02 6 To t a l P l a n t S p e c i f i c (5 a ) 82 1 76 8 33 5 , 27 3 64 0 36 6 91 3 18 6 13 0 10 , 42 5 89 4 23 4 40 6 45 4 85 5 65 X X P l a n t N o n s p e c i f i c O p e r a t i o n s (8 ) 65 1 2 Pr o v i s i o n i n g 65 3 X Ne t w o r k O p e r a t i o n s 66 3 77 3 2 73 9 47 1 42 4 6 24 0 55 9 53 4 5 10 , 39 2 65 4 0 Ac c e s s P a i d t o L E C s (9 ) 10 , 21 0 22 2 1 0 22 , 21 0 To t a l P l a n t N o n s p e c i f i c (5 a ) 11 , 41 , 07 3 94 2 73 9 68 1 24 8 24 0 55 9 34 5 39 2 65 6 X D e p r e c i a t i o n & A m o r t i z a t i o n (6 ) 65 6 1 Ge n e r a l S u p p o r t F a c i l i t i e s 12 , 23 9 36 0 98 1 1 3 93 6 2 10 7 , 4 9 5 53 9 0 3 30 4 5 70 6 7 67 8 3 0 13 1 66 5 65 6 1 Ce n t r a l O f f i c e S w i t c h i n g 13 , 17 9 70 6 15 2 7 5 0 15 2 75 0 26 9 5 6 26 , 95 6 65 6 1 Op e r a t o r S y s t e m s 14 , 65 6 1 Ce n t r a l O f f i c e T r a n s m i s s i o n 15 , 10 6 64 9 39 5 6 1 10 3 8 6 94 7 24 8 5 2 21 3 1 79 2 1 23 7 9 8 70 2 65 6 1 In f o r m a t i o n O r i g J T e r m , E q u i p , 16 . 65 6 1 Ca b l e & W i r e F a c i l i t i e s 17 , 54 1 42 9 19 4 1 6 8 70 1 9 20 1 16 7 14 0 9 2 2 31 4 3 63 5 1 16 7 8 2 6 34 0 , 24 2 65 6 3 Ca p i t a l L e a s e s 18 . 65 6 3 Le a s e h o l d I m p r o v e m e n t s 19 , 65 6 4 In t a n g i b l e s 20 , 65 6 5 Ac q u i s i t i o n A d j u s t m e n t 21 , To t a l D e p r e c i a t i o n & A m o r t i z a t i o n (5 a ) 22 , 06 9 , 14 4 48 4 , 59 2 78 7 51 1 37 9 21 9 67 7 31 9 35 9 30 6 , 41 0 55 7 76 5 Pa g e 5 o f 6 OP E R A T I N G E X P E N S E ( c o n t i n u e d ) 66 X X C u s t o m e r O p e r a t i o n s 66 1 X Ma r k e t i n g 10 , 98 9 41 6 9 96 6 13 5 20 9 5 58 4 31 7 5 85 4 66 2 X Op e r a t o r S e r v i c e s 43 1 43 1 43 1 66 2 X Di r e c t o r y P u b l i s h i n g - Al p h a , 84 9 28 4 4 84 4 18 4 2 41 6 3 00 5 66 2 X Di r e c t o r y P u b l i s h i n g - Cla s s i f i e d 66 2 X Dir e c t o r y P u b l i s h i n g , Fo r e i g n 66 2 3 Se r v i c e O r d e r P r o c . En d U s e r 28 , 62 9 11 6 4 6 11 , 64 6 91 9 16 0 6 4 98 3 66 2 3 Pa y m e n t & C o l l e c t i o n - En d U s e r 21 , 4 7 2 58 4 5 84 5 58 9 5 97 3 2 62 7 66 2 3 Bi l l i n g I n q u i r y - En d U s e r 21 , 4 7 2 58 4 7 84 7 58 9 5 97 3 0 62 5 66 2 3 Se r v i c e O r d e r P r o c , CX R 66 2 3 Pa y m e n t & C o l l e c t i o n - CX R 10 , 66 2 3 Bi l l i n g I n q u i r y - CX R 11 , 66 2 3 Co i n A d m i n i s t r a t i o n 12 , 66 2 3 Re v . A c c t g , To l l T i c k e t P r o c , 13 , 66 2 3 Re v . A c c t g , Lo c a l M e s s . P r o c , 14 , 85 4 26 6 1 66 1 71 9 3 19 3 66 2 3 Re v . A c c t g , Ot h e r B i l l & C o i L 15 , 85 9 15 4 6 7 15 , 4 6 7 18 1 9 6 18 1 9 6 39 2 66 2 3 Re v , A c c t g , SL C B i l l i n g 16 , 72 9 27 2 9 72 9 66 2 3 Re v , A c c t g , CX R B & C (9 ) 17 , 77 9 13 3 8 9 38 9 13 3 9 0 39 0 66 2 3 B & C A m t s P a i d t o L E C s (9 ) 18 , 66 2 3 Ot h e r C u s t o m e r S e r v i c e 19 , 67 5 16 7 5 67 5 To t a l C u s t o m e r O p e r a t i o n s (5 a ) 20 , 18 4 , 73 8 27 2 96 6 23 8 42 5 58 4 49 1 11 7 , 50 0 67 X X Co r p o r a t e O p e r a t i o n s : 67 1 X Ex e c u t i v e & P l a n n i n g 21 . 26 1 , 83 8 10 3 9 3 9 81 5 8 11 2 09 7 63 5 4 4 27 7 9 59 3 6 77 4 8 2 14 9 74 1 67 2 X Ge n e r a l & A d m i n i s t r a t i v e 22 , 30 5 , 54 8 14 7 7 4 6 81 5 3 15 5 89 9 63 5 0 5 27 7 7 59 3 2 77 4 3 5 14 9 64 9 67 2 8 EA S S e t t l e m e n t E x p e n s e 23 , To t a l C o r p o r a t e O p e r a t i o n s (5 a ) 24 , 56 7 , 38 6 25 1 68 5 31 1 26 7 99 6 12 7 04 9 55 6 11 , 86 8 15 4 91 7 29 9 39 0 -- - - Ot h e r O p e r a t i n g E x p e n s e s : Eq u a l A c c e s s P r o v i s i o n (1 0 ) 25 , Un i v e r s a l S e r v i c e F u n d (1 1 ) 26 . -- - Li f e l i n e C o n n e c t i o n A s s i s t a n c e (1 2 ) 27 , To t a l O t h e r (5 a ) 28 , To t a l O p e r a t i n a E x p e n s e s (5 a ) 29 , 68 4 10 9 16 7 , 76 4 44 3 24 4 , 20 7 59 2 , 52 9 12 4 68 0 76 2 56 9 43 9 90 2 Pa g e 6 o f 8 OP E R A T I N G T A X E S D E T A I L 72 4 0 G e n e r a l T a x e s 72 4 0 Pr o p e r t y 51 0 21 1 1 4 20 1 9 13 3 11 6 0 0 65 5 15 2 5 14 5 9 7 37 7 72 4 0 Gr o s s R e c e i p t s 72 4 0 PU C F e e 72 4 0 Fr a n c h i s e F e e s 72 4 0 Ot h e r 72 2 72 2 72 2 To t a l G e n e r a l T a x e s 52 , 23 2 83 6 01 9 23 , 85 5 60 0 65 5 52 5 59 7 37 7 72 X X In c o m e T a x e s ( C a l c u l a t e d ) Ne t I n c o m e B e f o r e S I T & F I T (1 3 ) 86 4 02 2 69 3 , 96 8 63 7 72 5 60 5 46 9 27 7 35 4 20 5 66 2 , 54 4 13 8 , 4 1 7 Le s s F i x e d C h a r g e s ( - ) 19 2 48 5 86 5 3 1 79 7 4 50 5 47 0 8 4 24 2 6 67 3 6 41 7 3 4 98 0 Su b t o t a l ( l i n e s 7 - (1 4 ) 67 1 53 7 60 7 43 7 66 3 63 1 10 0 51 6 36 1 92 8 94 1 62 0 81 0 43 7 Ot h e r S I T B a s e A d d / O e d , ( + - ) (1 5 ) 10 , SI T T a x a b l e I n c . ( l i n e s 9 + - 10 ) 11 , 67 1 53 7 60 7 , 43 7 23 , 66 3 63 1 10 0 51 6 36 1 92 8 62 0 81 0 40 , 43 7 72 3 0 S I T - Cu r r e n t la t 8% ) (1 6 ) 12 , 15 8 48 , 59 5 89 3 50 , 4 8 8 30 9 31 4 66 5 67 0 Ot h e r F I T B a s e A d d / O e d , ( + - ) (1 7 ) 13 , FI T T a x a b l e I n c . ( l i n e s 9 - 12 + - 13 ) 14 , 61 2 37 9 55 8 84 2 77 0 58 0 , 61 2 -4 7 5 05 2 61 4 57 1 14 5 70 7 Gr o s s F I T 15 , 23 1 30 9 19 0 00 6 40 2 19 7 , 4 0 8 16 1 51 8 22 9 19 4 18 9 90 1 72 1 0 P C l a i m e d I T C ( - ) 16 , Su r t a x E l i m i n a t i o n ( - ) 17 , 72 2 0 F I T - Cu r r e n t ( l i n e s 1 5 - 16 - 17 ) (1 8 ) 18 , 23 1 30 9 19 0 00 6 40 2 19 7 40 8 16 1 , 51 8 22 9 19 4 , 18 9 33 , 90 1 Pa g e 7 o f 8 20 0 5 F O R M I I N P U T M A S T E R ' Fo r T h e Y e a r E n d e d : D e c e m b e r 3 1 20 0 5 CO M P A N Y N A M E : C a m b r i d g e T e l e p h o n e C o m p a n y , I n c . Se p e r a t e d R e s u l t s o f I d a h o O p e r a t i o n s To t a l I d a h o In t r a s t a t e Op e r a t i o n Op e r a t i o n s De s c r i p t i o n No t e Li n e Su b j e c t T o In t e r s t a t e In t r a s t a t e No . No . Se p a r a t i o n s To l l To l l EA S Lo c a l ( O t h e r ) Se p a r a t i o n P a r a m e t e r s (1 9 ) Pl a n t SL U M i n u t e s o f U s e ( M O U ) SL U F a c t o r 00 0 0 0 0 32 1 3 8 20 8 1 6 47 0 4 6 Ba s e S P F - J a n u a r y 1 00 0 0 0 0 Ba s e S P F - D e c e m b e r 3 1 00 0 0 0 0 Cu r r e n t C o m p o s i t e S P F (2 0 ) 00 0 0 0 0 19 9 6 W e i g h t e d D E M 00 0 0 0 0 19 9 6 U n w e i g h t e d D E M 32 9 2 4 9 32 9 2 4 9 Cu r r e n t C A T 3 D i a l E q u i p m e n t M i n u t e s (2 1 ) Cu r r e n t C o m p o s i t e D E M F a c t o r 00 0 0 0 0 Ex c h a n g e T r u n k - J o i n t U s e M O U (2 2 ) 10 . Ho s U R e m o t e M O U K i l o m e t e r s (2 3 ) 11 , Eq u a l A c c e s s M O U (2 4 ) 12 , Op e r a t o r S t a n d a r d W o r k S e c o n d s (2 5 ) 13 , Ta n d e m S w i t c h i n g M O U (2 6 ) 14 , IX C o n v e r s a t i o n M O U 15 , IX C o n v e r s a t i o n M i n u t e K i l o m e t e r s 16 , Ot h e r P a r a m e t e r s Ac c e s s L i n e s 17 , 20 4 4 Un s e p a r a t e d L o o p C o s t ~ 1 1 , 1 R O R (2 7 ) 18 . Gr o s s B i l l e d R e v e n u e s Ma r k e t i n g A l l o c a t i o n B a s i s (2 8 a ) 19 . Pa y m e n t & C o l l e c t i o n - En d U s e r (2 8 b ) 20 , 08 2 27 5 29 4 6 6 1 29 7 1 5 0 49 0 4 6 4 Pa y m e n t & C o l l e c t i o n - CX R (2 8 c ) 21 , Se r v i c e O r d e r C o n t a c t s Se r v i c e O r d e r P r o c . En d U s e r (2 9 a ) 22 . 19 9 17 1 4 35 1 61 3 4 Se r v i c e O r d e r P r o c . CX R (2 9 b ) 23 , Bi l l i n g I n q u i r y C o n t a c t s Bil l i n g I n q u i r y - En d U s e r (3 0 a ) 24 , 08 2 27 5 29 4 6 6 1 29 7 1 5 0 49 0 4 6 4 Bil l i n g I n q u i r y - CX R (3 0 b ) 25 , SP + R C T o l l M e s s a g e s (3 1 ) 26 , 44 7 61 7 12 0 8 9 4 32 6 7 2 3 EA S / L o c a l M e s s a g e s ( M s g . P r o c , 27 , BIG 3 ' E x p e n s e F a c t o r - Me s s a g e (3 2 ) 28 , 39 6 9 5 8 24 2 6 8 4 02 2 6 7 1 29 5 9 1 8 PL S & S p e c i a l A c c e s s 29 , 03 1 1 5 8 00 6 1 2 Op e r a t o r S e r v i c e s E x p e n s e - F a c t o r 30 , Ac c e s s M i n u t e s o f U s e ( E n d O f f i c e ) 31 . 32 5 , 73 6 88 2 3 9 4 4 25 0 1 7 9 2 Pa g e 8 o f 8 41 2 6 1 2 0 0 7 Ca m b r i d g e T e l e p h o n e C o m p a n y , I n c , Stu d y A r e a : 4 7 2 2 1 5 Stu d y Y e a r : 2 0 0 5 RE V E N U E R E Q U I R E M E N T S U M M A R Y S-1 IN T E R S T A T E IN T R A S T A T E I . LO C A L TO T A L In t e r L A T A In t r a L A T A In t e r L A T A In t r a L A T A EA S Use r Ot h e r CO M P A N Y MS G MS G MS G De f i n e d LI N E DE S C R I P T I O N SO U R C E la ) (b ) (c ) (d ) Ie ) Ih ) Ii ) Ik ) 1 N e t T e l e c o m P l a n t S- 2 Ln 4 6 26 7 64 0 25 4 51 9 29 7 61 7 39 0 25 6 38 7 19 7 25 1 25 0 77 3 59 6 , 02 6 2 R a t e B a s e A d j u s t m e n t # 1 Re c o r d s 3 R a t e B a s e A d j u s t m e n t # 2 Re c o r d s 4 R a t e B a s e A d j u s t m e n t # 3 Re c o r d s 5 R A T E B A S E Ln 1 - 2. A 26 7 64 0 25 4 51 9 29 7 61 7 39 0 , 25 6 38 7 19 7 25 1 25 0 , 77 3 59 6 , 02 6 6 R a t e o f R e t u r n Re c o r d s 9.4 7 0 9 % 11 , 25 0 0 % 11 . 2 5 0 0 % 11 , 25 0 0 % 11 . 2 5 0 0 % 77 0 0 % 77 0 0 % 77 0 0 % 77 0 0 % 77 0 0 % 77 0 0 % 77 0 0 % 7 R E T U R N O N R A T E B A S E Ln 5 ' 68 8 31 0 36 6 13 3 48 2 32 3 10 7 78 5 09 0 48 5 12 4 01 1 8 R e t u r n A d j u s t m e n t # 1 Re c o r d s 9 R e t u r n A d j u s t m e n t # 2 Re c o r d s 10 N E T R E T U R N Ln 7 - 8 . . 68 8 31 0 36 6 13 3 33 . 4 8 2 32 3 10 7 78 5 09 0 48 5 12 4 01 1 11 F i x e d C h a r g e s S-1 0 Ln 2 4 '9 2 48 6 53 1 97 4 43 7 64 7 42 6 73 6 73 4 12 A m o r t i z a t i o n o f E x c e s s D e f T a x e s S-1 0 Ln 4 7 13 C a p i t a l ; z e d P a y r o l l T a x e s S-1 0 Ln 5 0 14 D e p r e c i a t i o n A d j u s t m e n t S-1 0 Ln 5 3 15 F I T A J l o w a n c e s / D i s a l i o w a n c e s S-1 4 , Ln 2 2 In c A d j A l l o c o n 2 0 0 1 S-1 0 Ln 5 9 + 6 0 In c A d j A l l o c o n B i g 3 E x p S-1 0 , Ln 6 1 + 6 2 18 T o t a l M i s c I n c A d j u s t m e n t S-1 0 Ln 6 3 19 A F T E R T A X I N C O M E No t e 1 49 5 82 4 27 9 60 2 50 8 88 6 13 8 66 4 12 , 74 9 27 7 20 S l a t e I n c o m e T a x Ln 5 1 32 8 37 , 96 7 46 4 70 0 66 0 63 3 1. 7 3 1 21 S t a t e I T C A m o r t i z a t i o n S-1 0 Ln 4 5 22 N e t F e d e r a l l n e a m e T a x Ln 4 2 25 5 . 4 2 4 14 4 03 7 14 1 24 4 64 7 40 3 56 8 42 , 38 5 23 F e d e r a l l T C A m o r t ; z a t i o n S- 1 0 Ln 4 4 24 O p e r a t i n g E x p e n s e s & T a x e s S-3 Ln 1 7 76 1 62 5 20 0 81 6 79 , 19 0 84 8 51 4 94 1 02 7 61 , 7 3 5 78 4 , 06 7 25 N o n o p e r a t i n g E x p e n s e s S- 1 0 , Ln 1 7 + 1 8 26 U n c o l l e c t i b l e s S- 1 0 Ln 5 7 27 O t h e r A d j u s 1 m e n l s ( N e t R R ) Re c o r d s 28 N E T R E V E N U E R E Q U I R E M E N T Ln I 0 + 2 0 . . 26 - 2 7 77 2 68 7 74 8 95 4 12 9 27 7 13 8 11 6 66 9 03 2 15 3 51 9 96 1 , 63 6 29 G r o s s R e c e i p t s T a x No t e 2 30 7 3 4 0 A l w F d s U s e d O u r C o n s t r S- 1 0 Ln 1 5 94 2 11 , 86 3 13 4 05 4 46 3 36 8 85 7 20 2 31 R E V E N U E R E Q U I R E M E N T Ln 2 8 + 2 9 - 3 0 74 3 74 5 73 7 09 1 12 8 14 2 13 7 06 2 66 3 56 9 78 4 66 2 95 3 . 4 3 5 32 D i s t r i b u t i o n o f L i n e 3 ( Ln 3 1 1 3 1 10 0 , 00 0 0 % 46 , 39 9 8 % 3.4 2 2 8 % 66 1 1 % 17 , n4 7 % 95 5 8 % 36 8 3 % 25 . 4 6 7 4 % IN C O M E T A X E S 33 N e t R e l u r n Ln 1 0 68 8 31 0 36 6 , 13 3 33 , 4 8 2 32 3 10 7 78 5 09 0 48 5 12 4 , 01 1 34 F i x e d C h a r g e s Ln 1 1 19 2 48 6 53 1 97 4 43 7 64 7 2,4 2 6 73 6 41 , 73 4 35 A m o r t i z a t i o n o f E x c e s s D e f e r r e d T a x e s Ln 1 2 36 C a p i t a l i z e d P a y r o l l T a x e s Ln 1 3 37 D e p r e c i a t i o n A d j u s 1 m e n t Ln 1 4 38 F I T A l l o w a n c e s / D i s a l l o w a n c e s Ln 1 5 In c A d j A l l o c o n 2 0 0 1 Ln 1 6 In c A d j A l l o c o n B i g 3 E x p Ln 1 7 41 F e d e r a l l T C A m o r t ; z a t i o n S- 1 0 Ln 4 4 To t a l l n e a m e A d j u s t m e n t s Ln 3 4 + 3 8 . . 19 2 48 6 53 1 97 4 10 , 4 3 7 64 7 2.4 2 6 6, 7 3 6 41 , 7 3 4 43 F e d e r a l T a x a b l e I n c o m e Ln 3 3 - 4 2 G r o s s U p 75 1 24 8 42 3 64 0 64 9 13 1 10 7 78 4 08 6 31 6 12 4 , 66 2 44 F e d e r a l l n e a m e T a x 34 , 00 0 0 % 25 5 , 42 4 14 4 03 7 14 1 24 4 36 , 64 7 2,4 0 3 56 8 42 , 38 5 45 F e d e r a l S u r - Ta x A l l o c a t i o n Re c o r d s 42 N e t F e d e r a l l n e a m e T a x Ln 4 4 - 4 5 - 4 1 25 5 42 4 14 4 03 7 14 1 24 4 64 7 40 3 56 8 38 5 43 N e t R e t u r n Ln 3 3 68 8 , 31 0 36 6 13 3 33 , 4 8 2 32 3 10 7 78 5 09 0 48 5 12 4 01 1 44 F i x e d C h a r g e s Ln 3 4 19 2 , 4 8 6 53 1 97 4 10 , 4 3 7 64 7 2,4 2 6 73 6 73 4 45 O t h e r S I T A d j u s t m e n t s Re c o r d s 46 F e d e r a l l n e a m e T a x Ln 4 4 25 5 42 4 14 4 , 03 7 14 1 24 4 64 7 2, 4 0 3 56 8 38 5 47 S t a t e T a x a b l e I n c o m e Ln 4 3 - 4 6 G r o s s U p 81 8 57 6 46 1 60 7 11 2 32 , 83 1 11 7 , 44 4 7. 7 0 0 21 , 04 8 13 5 83 5 48 S t a t e I n c o m e T a x 22 5 0 % 32 8 37 , 96 7 46 4 70 0 66 0 63 3 73 1 17 2 49 S t a t e S u r - Ta x A l l o c a t i o n Re c o r d s 50 S t a t e I T C A m o r t i z a t i o n S-1 0 Ln 4 5 51 N e t S t a t e I n c o m e T a x Ln 4 8 - 4 9 - 5 0 67 , 32 8 37 , 96 7 46 4 70 0 66 0 63 3 73 1 Pr o p r i e t a r y I n f o r m a t i o n Mo s s A d a m s , L L P 1 o f 2 3 4/2 6 / 2 0 0 7 Ca m b r K J g e T e l e p h o n e C o m p a n y , I n e , Stu d y A r e a : 4 7 2 2 1 5 St u d y Y e a r 2 0 0 5 SE P A R A T E D T E L E C O M M U N I C A T I O N S P L A N T SU M M A R Y S-2 ,. , IN T E R S T A T E T O L L IN T R A S T A T E T O L L LO C A L TO T A L In t e r L A T A In t r a L A T A In t e r L A T A In t r a L A T A EA S Us e r Ot h e r CO M P A N Y MS G MS G MS G MS G De f i n e d LI N E DE S C R I P T I O N SO U R C E (a ) (b ) (c ) (d ) (e ) (g ) (h ) (i) (k ) (I ) 12 1 1 0 L a n d & S u p p o r t A s s e t s S- 4 Ln 1 3 98 6 87 8 22 4 31 3 11 7 06 8 10 8 81 5 56 3 , 81 6 99 8 44 2 84 6 . 4 2 6 22 2 1 0 C O E - S w f i e h i n g S- 5 Ln 3 6 31 1 32 4 11 4 62 5 19 6 69 9 3 2 2 2 0 C O E - O p e r a t o r S- 5 Ln 2 3 4 2 2 3 0 C O E - Tr a n s m i s s i o n S- 5 Ln 7 6 57 3 . 4 3 0 30 1 15 2 34 1 58 5 15 1 69 5 66 5 . 68 6 10 3 26 0 . 51 3 76 2 69 5 52 3 1 0 I n f o O r i g f T e r m E q u i p S- 6 Ln 1 1 62 4 1 0 C & W F S- 7 Ln 4 2 73 2 75 5 16 6 00 3 19 2 14 1 34 4 . 4 0 5 90 4 81 6 10 3 13 2 14 2 70 3 87 9 55 5 To t a l C O E , l O T , C & W F Ln 2 . . 61 7 50 9 58 1 78 0 53 3 72 6 49 6 10 0 57 0 50 2 17 3 23 5 40 3 21 6 85 8 94 9 Di s t r i b u h o n o f L i n e 7 Ln 7 / 7 a 10 0 . 00 0 0 % 40 , 98 9 7 % 91 9 4 % 64 3 1 % 18 . 8 7 6 4 % 27 2 1 % 96 1 0 % 28 , 33 8 1 % 9 E q u a l A c c e s s - I n v e s t m e n t S- 9 Ln 2 2 10 2 6 8 0 T a n g i b l e A s s e t s S- 8 , Ln 3 1 11 T E L E C O M P L TI N SV C - E X C L 2 6 9 0 Ln 1 + 7 + 9 + 1 0 16 , 60 4 38 7 80 6 09 4 65 0 , 7 9 4 6O 4 . 91 5 13 4 , 31 8 21 1 , 23 2 4g ' 65 8 70 5 , 37 5 12 D i s t r i b u t i o n 0 1 L i n e 1 1 Ln 1 1 / 1 1 a 10 0 . 00 0 0 % 40 , 98 9 7 % 91 9 4 % 64 3 1 % 18 , 87 6 4 % 27 2 1 % 96 1 0 % 28 . 33 8 1 % 13 2 6 9 0 I n t a n g i b l e A s s e t s S- 8 , Ln 3 5 14 2 0 0 1 T E L E C O M P L A N T I N S V C Ln 1 1 + 1 3 16 , 60 4 38 7 80 6 09 4 65 0 , 7 9 4 6O 4 . 91 5 13 4 , 31 8 21 1 , 23 2 49 1 65 8 70 5 37 5 Di s t r i b u t i o n o f L i n e 1 4 Ln 1 4 / 1 4 a 10 0 . 00 0 0 % 40 , 98 9 7 % 9'9 4 % 64 3 1 % 18 , 87 6 4 % 27 2 1 % 96 1 0 % 28 , 33 8 1 % 16 2 1 1 0 L a n d A s s e t s S- 4 , Ln 1 2 17 2 0 0 1 T P I S x i L a n d Ln 1 4 - 1 6 60 4 , 38 7 80 6 09 4 65 0 79 4 60 4 91 5 13 4 31 8 21 1 23 2 49 1 65 8 70 5 37 5 Di s t r i b u t i o n o f L i n e 1 7 Ln 1 7 1 1 7 a 10 0 , 00 0 0 % 40 , 98 9 7 % 91 9 4 % 64 3 1 % 18 , 87 6 4 % 27 2 1 % 96 1 0 % 28 , 33 8 1 % 19 2 0 0 2 P r o p H i d F u t T e l e c o m U s e S- 9 Ln 6 20 2 0 0 3 P l a n t U n d e r C o n s t r u c t i o n S- 9 Ln 1 0 45 3 96 4 18 6 07 8 79 3 53 8 69 2 77 5 44 2 12 8 64 5 21 2 0 0 5 T e l e c o m P l a n t A d j u s t m e n t S- 9 , Ln 1 4 22 T O T A L T E L E C O M P L A N T Ln 1 4 + 1 9 . . 05 8 35 1 99 2 , 17 2 86 8 58 7 62 1 . 4 5 4 22 0 , 01 1 21 7 00 7 5O S , 10 0 83 4 02 0 23 1 2 2 0 M a t e r i a ~ a n d S u p p l i e s S- 9 Ln 2 0 11 0 68 9 13 0 2.4 3 5 35 5 14 4 30 7 80 9 49 9 24 1 5 0 0 O t h e r J u r i s A s s e t s - N e t S- 1 5 Ln 1 4 25 3 1 0 0 A c c u m u l a t e d D e p r e c i a t i o n S- 1 5 Ln 2 8 99 3 55 1 81 7 , 82 8 37 5 01 4 23 9 12 2 87 5 00 8 12 7 , 94 8 25 8 07 9 29 9 56 2 26 E q u a l A c c e s s - A c c u m D e p r e c i a t i o n S- 9 Ln 2 4 27 3 2 0 0 A c e D e p - H l d f o r F u t U s e S- 1 5 Ln 3 0 28 3 4 0 0 A c c u m A m o r t - Ta n g i b l e S- 1 5 Ln 3 1 . . 29 3 5 0 0 A c c u m A m o r t - In t a n g i b l e S- 1 5 Ln 3 3 30 3 6 0 0 A c c u m A m o r t - O t h e r S- 1 5 Ln 3 4 31 4 1 0 0 N e t C u r D e f O p l n e T a x e s S- 1 5 Ln 4 6 32 4 3 4 0 N o n e u r D e l O p e r I n e T a x S- 1 5 Ln 6 6 45 9 16 , 58 4 58 6 47 4 63 7 51 5 19 8 46 5 33 E q u a l A c c e s s - D e l e r r e d O p e r I n e T a x e s S- 9 Ln 2 5 34 4 3 6 0 O t h e r D e f e r r e d C r e d O s - N e t S- 1 5 Ln 6 7 35 4 3 7 0 O t h e r J u r L i a b & D e l C r e d i t s - N e t S- 1 5 , Ln 6 9 36 N E T T E L E C O M P L A N T Ln 2 2 + 2 " - 2 4 . . 13 5 02 0 19 7 89 0 29 3 42 3 38 5 22 3 36 1 50 9 85 2 24 7 63 2 55 9 49 1 37 D i s t r i b u t i o n 0 1 L i n e 3 6 Ln 3 6 1 3 6 a 10 0 , 00 0 0 % 44 , 81 9 6 % 11 2 4 % 39 9 1 % 19 . 08 2 1 % 25 9 3 % 3.4 7 0 7 % 21 . 85 6 9 % 38 1 4 0 2 R u r a l T e l B a n k S t o c k S- 9 Ln 1 6 39 C a s h W o r ~ n g C a p i t a l S- 9 Ln 2 1 13 7 43 2 60 2 38 3 20 8 59 6 1.4 6 0 28 3 37 , 89 9 40 E q u a l A c c e s s - U n a m o r t ~ e d E x p e n s e s S- 9 Ln 2 6 41 I n v e s t m e n t A l l o w / D i s a l l o w S- 9 Ln 3 1 42 A c c u m D e p r l A m o r t A l l o w / D i s a l l o w F S- 1 5 Ln 7 2 43 4 0 4 0 C u s t o m e r D e p o s i t s S- 1 5 Ln 3 7 81 2 97 2 18 9 17 5 90 8 14 2 36 4 44 4 3 1 0 O t h e r L o n g - Te r m U a b , S- 1 5 Ln 5 7 45 O t h e r T e l e c o m P I A d j u s t Re c o r d s 46 N E T T E L E C O M P L T & O T H R A T E B A S E I T E M S A+ B . . F+ H G + H ) 26 7 64 0 25 4 51 9 29 7 61 7 39 0 , 25 6 38 7 19 7 25 1 26 0 77 3 59 6 02 6 47 D i s t r i b u t i o n 0 1 L i n e 4 6 Ln 4 6 1 4 6 a 10 0 , 00 0 0 % 44 , 78 1 0 % 09 5 1 % 36 9 8 % 19 , 08 7 3 % 25 5 6 % 3.4 5 0 5 % 21 . 96 0 7 % Pr o p r i e t a r y I n f o r m a t i o n Mo s s A d a m s , L L P 20 1 2 3 41 2 6 / 2 0 0 7 Ca m b r i d g e T e l e p h o n e C o m p a n y , I n c , Stu d y A r e a : 4n 2 1 5 Stu d y Y e a r : 2 0 0 5 SE P A R A T E D E X P E N S E S U M M A R Y 50 3 IN T E R S T A T E TO L L IN T R A S T A T E T O L L LO C A L TO T A L In t e r L A T A In t r a L A T A In t e r L A T A In t r a L A T A EA S Us e r Oth e r CO M P A N Y MS G MS G MS G MS G De f i n e d LI N E DE S C R I P T I O N SO U R C E (a ) (b ) (c ) (d ) (e ) (g ) (h ) (I) (k ) (I) 1 P ~ S p e c E x p A c c t s 6 2 1 0 62 2 0 62 3 0 , 63 1 0 64 1 0 5o 1 1 Ln 3 0 64 7 91 4 26 4 . 01 1 82 6 23 . 7 0 4 12 3 . 27 4 21 2 74 6 18 5 . 14 1 3 P I N o n s p e c A c c o u n t 6 5 3 0 5o 1 2 Ln 1 9 88 3 73 2 73 9 68 7 56 1 24 0 55 9 34 5 4 C u s t O p e r A c c t s 6 6 1 0 66 2 0 5o 1 3 Ln 5 7 18 4 73 6 27 1 96 6 90 3 52 0 58 4 61 , 49 2 5 T O T A L B I G T H R E E E X P E N S E S Ln 2 . . 4 85 1 , 51 3 33 8 , 01 5 53 1 32 . 2 9 4 17 4 . 35 5 03 7 30 4 25 1 , 97 8 6 D i s t r i b u t i o n o f L i n e 5 Ln 5 l 5 a 10 0 , 00 0 0 % 39 , 69 5 8 % 11 5 8 % 79 2 5 % 20 . 4 7 5 9 % 06 1 2 % 26 7 1 % 29 , 59 1 8 % 7 P l a n t S p e c i f i c E x p e n s e s 5o 1 1 Ln 3 1 82 1 76 6 33 5 27 3 64 0 30 . 03 7 15 6 , 09 2 10 , 4 2 4 89 4 23 4 40 7 8 P l a n t N o n s p e c i f i c E x p e n s e s 5o 1 2 , Ln 4 4 11 0 21 7 51 4 53 4 52 6 34 . 29 1 18 9 . 63 4 55 9 91 8 31 1 , 75 5 9 C u s t o m e r O p e r a t i o n s E x p e n s e s 5o 1 3 Ln 5 7 18 4 . 7 3 6 27 1 96 6 90 3 52 0 58 4 49 2 10 C o r p o r a t e O p e r a t i o n s E x p e n s e s 5o 1 4 Ln 1 6 56 7 38 8 25 1 68 4 31 2 19 . 85 4 10 7 , 19 4 55 6 11 , 86 8 15 4 91 7 11 7 3 0 0 C o n " i b u t i o n s 5o 1 0 Ln 1 6 19 4 17 6 72 4 88 2 76 0 24 7 52 7 87 9 12 T O T A L O P E R A T I N G E X P E N S E S Ln 7 . . 1 1 70 9 . 29 9 17 8 , 93 8 77 . 16 8 96 7 50 5 20 0 25 , 37 0 20 7 76 9 . 4 5 0 13 O p e r a t i n g T a x e s 5o 1 4 , Ln 2 6 23 2 83 6 01 9 87 7 72 3 65 5 52 5 59 7 14 E q u a l A c c e s s E x p e n s e s 5o 1 4 Ln 3 5 15 E x p e n s e A ~ o w a n c e s i D i s a l i o w a n c e s 5o 1 4 Ln 4 0 16 5 2 4 0 R e n t R e v e n u e s 5o 1 0 Ln 4 3 17 T O T A L O P E R A T I N G E X P & TA X E S Ln 1 2 + 1 3 . . 15 - 1 6 76 1 62 5 20 0 81 6 19 0 84 8 51 4 94 1 02 7 61 , 73 5 78 4 06 7 18 D i s t r i b u t i o n o f L i n e 1 7 Ln 1 7 1 1 7 a 10 0 , 00 0 0 % 43 . 4 8 2 2 % 88 7 5 % 3. 4 3 4 5 % 18 , 64 6 3 % 94 2 4 % 23 5 5 % 28 , 39 1 5 % 19 T o t a l D e p r & A m o " 5o 1 2 Ln 4 3 06 9 , 14 4 48 4 59 2 78 6 60 3 18 8 07 4 31 9 23 , 35 9 30 6 . 4 1 0 20 F i x e d C h a r g e s 5o 1 0 Ln 2 4 19 2 48 8 88 . 53 1 97 4 10 . 4 3 7 36 . 64 7 2.4 2 6 73 6 41 . 7 3 4 21 T o t a l O p e r a t i n g R e v e n u e 5o 1 4 Ln 3 3 22 T o t a l O p e r a t i n g E x p e n s e & T a x . . Ln 1 7 76 1 62 5 20 0 81 6 79 , 19 0 94 . 84 8 51 4 , 94 1 02 7 73 5 78 4 . 06 7 23 U n c o ~ e c t i b l e s 5o 1 0 Ln 5 7 24 F i x e d C h a r g e s Ln 2 0 19 2 , 48 8 53 1 97 4 10 . 4 3 7 36 , 64 7 42 6 73 6 73 4 25 I n c o m e A d j u s t m e n t s 5o 1 0 Ln 6 3 26 N e t I n c o m e Ln 2 1 . . 2 5 95 4 11 1 ) 28 7 , 34 8 ) (8 7 16 4 ) (1 0 5 28 5 ) (5 5 1 58 8 ) (2 8 . 4 5 3 ) (6 8 . 4 n ) (6 2 5 . 50 2 ) 27 D i s t r i b u t i o n o f L i n e 2 6 Ln 2 6 i 2 6 a 10 0 . 00 0 0 % 43 . 5 7 8 2 % 95 0 6 % 56 4 0 % 18 , 67 1 9 % 96 3 2 % 31 7 8 % 27 . 96 4 3 % 28 T O T A L C A S H O P E R E X P E N S E S Ln 1 7 + 1 6 - 1 9 + 2 0 88 4 96 7 80 2 75 5 37 8 68 1 36 5 51 5 13 3 11 2 51 9 , 39 2 29 D i s t r i b u t i o n o f L i n e 2 8 Ln 2 8 1 2 8 a 10 0 , 00 0 0 % 42 , 58 7 2 % 20 3 1 % 80 2 8 % 19 , 39 1 0 % 06 8 1 % 39 3 3 % 27 . 55 4 4 % IN C O M E T A X CA L C U L A T I O N 31 O t h e r O p e r a t i n g I n c o m e 5o 1 4 Ln 3 2 32 A F U D C 5o 1 0 Ln 1 5 94 2 11 , 86 3 13 4 05 4 46 3 36 6 85 7 20 2 33 O p e r a t i n g R e v e n u e 5o 1 4 Ln 3 3 - L n 3 1 34 U n c o l l e c t i b l e R e v e n u e 5o 1 0 Ln 5 7 34 I n c o m e E f f e c t J u r i s d i c t i o n a l D i f f e r e n c e 5o 1 0 Ln 6 0 34 I R S I n c o m e A d j u s t m e n t 5o 1 0 Ln 6 2 35 T O T A L R E V E N U E & O T H E R I N C O M E Ln 3 1 . . 94 2 88 3 13 4 05 4 5.4 6 3 36 8 85 7 20 2 36 C o n t r i b u t i o n s 5o 1 0 Ln 1 6 19 4 11 , 17 6 72 4 BB 2 75 0 24 7 52 7 B7 9 37 O p e r a t i n g E x p e n s e s Ln 1 2 - Ln 1 1 68 4 10 5 16 7 76 3 44 3 92 , OB 5 50 0 44 0 12 3 65 0 76 2 , 57 1 3B O p e r a t i n 9 T a x e s 5o 1 4 Ln 2 6 23 2 83 6 01 9 87 7 65 5 52 5 59 7 39 F i x e d C h a r g e s 5o 1 0 Ln 2 4 19 2 48 8 88 , 53 1 97 4 10 . 4 3 7 36 . 64 7 2. 4 2 6 73 6 41 . 7 3 4 40 T O T A L O P E R A T I N G E X P E N S E S Ln 3 6 . . 95 4 01 7 28 7 , 30 5 16 0 10 5 28 0 55 1 57 0 28 . 4 5 2 66 , 46 8 82 5 , 78 1 41 S t a t e T a x a b l e I n c o m e Ln 3 5 - L n 4 0 (2 , 92 5 07 5 ) 27 5 44 2 ) (8 8 02 6 ) (1 0 4 22 5 ) (5 4 6 10 7 ) (2 8 , 08 4 ) (6 7 61 1 ) (8 1 7 58 0 ) 42 S t a t e I n c o m e T a x 22 5 0 % (2 4 0 58 7 ) (1 0 4 . 90 5 ) (7 . 07 6 ) 57 3 ) (4 4 , 91 7 ) (2 . 31 0 ) (5 . 56 1 ) (6 7 . 24 6 ) 43 F e d e r a l T a x a b l e I n c o m e Ln 3 5 - L n 4 0 92 5 , 07 5 ) 27 5 , 4 4 2 ) (8 8 , 02 6 ) (1 0 4 22 5 ) (5 4 6 10 7 ) (2 8 08 4 ) (6 7 , 61 1 ) (8 1 7 58 0 ) 44 S t a t e I n c o m e T a x Ln 4 2 (2 4 0 5B 7 ) (1 D 4 90 5 ) (7 , 07 6 ) 57 3 ) (4 4 91 7 ) 31 0 ) (5 , 56 1 ) (6 7 , 24 6 ) 45 N e t F e d e r a l T a x a b l e I n " , m e Ln 4 3 - L n 4 4 (2 , 68 4 48 B ) 17 0 53 7 ) (7 B 95 0 ) (9 5 , B5 3 ) (5 0 1 19 0 ) (2 5 . 7 7 4 ) (6 2 05 0 ) (7 5 0 . 33 4 ) 46 F e d e r a l l n " , m e T a x 34 , 00 0 0 % (9 1 2 n6 ) (3 9 7 , 9B 3 ) (2 6 84 3 ) (3 2 52 2 ) (1 7 0 . 4 0 5 ) 76 3 ) (2 1 09 7 ) (2 5 5 11 3 ) 47 A m o r t z a t i o n o f I n v e s t m e n t T a x C r e d i t 5o 1 0 Ln 4 4 /9 1 2 . 13 9 7 , /2 6 /3 2 , 11 7 0 . 4 0 /2 1 , /2 5 5 4B F e d e r a l l n " , m e T a x Ln 4 6 - L n 4 7 Pro p r i e t a r y I n / o r m a t i o n Mo s s A d a m s , L L P 3 o f 2 3 41 2 6 / 2 0 0 7 Ca m b r i d g e T e l e p h o n e C o m p a n y , I n c , Stu d y A r e a : 4 7 2 2 1 5 St u d y Y e a r 2 0 0 5 GE N E R A L S U P P O R T F A C I L I T I E S S-4 IN T E R S T A T E T O L L IN T R A S T A T E T O L L LO C A L TO T A L In t e r L A T A In t r a L A T A In t e r L A T A In t r a L A T A EA S Us e r Ot h e r CO M P A N Y MS G MS G MS G MS G De f i n e d LI N E DE S C R I P T I O N SO U R C E (a ) (b ) (c ) (d ) (e ) (g ) (h ) (il (k ) (I ) SE P A R A T I O N S F A C T O R S 1 C a r r i e r C l a s s i f i c a t i o n Re c o r d s 2 B i g T h r e e E x p e n s e s D i s t r S-3 , Ln 6 10 0 , 00 0 0 % 39 , 69 5 8 % 11 5 8 % 79 2 5 % 20 . 4 7 5 9 % 06 1 2 % 26 7 1 % 29 , 59 1 8 % 3 T o t a l C O E , l O T , C & W F D i s t r S-2 Ln 8 10 0 , 00 0 0 % 40 , 98 9 7 % 91 9 4 % 3.6 4 3 1 % 18 , 87 6 4 % 1.2 7 2 1 % 96 1 0 % 28 , 33 8 1 % LA N D & S U P P O R T AS S E T S S E P A R A T I O N 4 2 1 1 0 L a n d & S u p p o r t A s s e ' " Su p p a r t A s s e l s - J o i n t x l G S F - B & C No t e 1 98 6 . 87 8 22 4 31 3 11 7 , 06 8 10 8 81 5 56 3 81 6 37 , 99 8 44 2 84 6 . 4 2 6 Ge n e r a l S u p p a r t F a c i l i t i e s - B & C No t e 1 Di r e c t A s s i g n m e n t Di r e c t To t a l S u p p a r t A s s e t s Ln 5 , . 98 6 87 8 22 4 31 3 11 7 06 8 10 8 81 5 56 3 , 81 6 37 , 99 8 44 2 84 6 . 4 2 6 Di s t r i b u t i o n a t L i n e 8 Ln B l 8 a 10 0 , 00 0 0 % 40 , 98 9 7 % 91 9 4 % 64 3 1 % 18 , 87 6 4 % 27 2 1 % 96 1 0 % 28 , 33 8 1 % La n d No t e 1 Di r e c t A s s i g n m e n t Dir e c t To t a l L a n d Ln 1 0 . . 13 T O T A L L A N D & S U P P O R T A S S E T S Ln 8 + 1 2 98 6 87 8 22 4 31 3 11 7 06 8 10 8 . 81 5 56 3 81 6 99 8 44 2 84 6 , 4 2 6 14 D i s t r i b u t i o n a t L i n e 1 3 Ln 1 3 1 1 3 a 10 0 , 00 0 0 % 40 , 98 9 7 % 91 9 4 % 64 3 1 % 18 , 87 6 4 % 27 2 1 % 96 1 0 % 28 , 33 8 1 % No t e 1 : I f C a r r i e r C l a s s i f i c a t o n = A , t h e n If C a r r i e r C l a s s i f i c a t o n = B , t h e n Ln 5 a 2, L n 6 a , L n 1 0 a ' 2 Ln 5 a , L n 6 a , L n 1 0 a Pr o p r i e t a r y I n f o r m a t i o n Mo s s A d a m s , L L P 4 o f 2 3 Ca m b r i d g e T e l e p h o n e C o m p a n y , I n c , Stu d y A r e a : 4 7 2 2 1 5 Stu d y Y e a r . 2 0 0 5 DE S C R I P T I O N SE P A R A T I O N S F A C T O R S W& N S Pc t - S w i t c h b o a r d s W& N S Pe t - Di r e c t o r y A s s i s t a n c e 3 S u b U n e M O U P c t 4 S O B T o l l M O U P c t W& N S Pc t - TS P S O p e r P o s l l i o n 6 R e a l P r o c e s s o r T i m e P c t - RT A 7 R e a l P r o c e s s o r T i m e P c t - TS P S 6 R E L M O U ' s - T a n d e m S w i t c h i n g 9 T r a n s M e a s u r e d O E M P c t CO E C A T E G O R I E S 1 - 3 S E P A R A T I O N 10 2 2 2 0 O p e r a t o r S y s t e m s 11 C a l 1 - 0p e r a t o r S y s t e m s 12 L o c To I L D S A DS B , an d 13 Tra f f i c S w i t c h b o a r d s 14 Au x - O i r e c t A s s i s t 15 A u x - In t e r c e p t 16 Jt E x c h & T o l l S O B 17 TS P S - O p e r P o s i t i o n 16 TS P S - R T A 19 TS P S - O t h e r 20 Dir e c t A s s i g n m e n t 21 To t a l C a t 1 22 Dis t r i b u t i o n at Lin e 2 1 23 T O T A L C O E - O P E R A T O R 24 D i s t r i b u t i o n at Li n e 2 3 LI N E 25 2 2 1 0 C e n t r a l O f f i c e S w i t c h i n g 26 Ca t 2 - Ta n d e m S w i t c h i n g 27 Dir e c t A s s i g n m e n t 28 To t a l C a t 2 29 Di s t r i b u t i o n o f L i n e 2 8 31 Ca t 3 - L o c a l S w i t c h i n g - T S 32 Ca t 3 - L o c a l S w i t c h i n g - N T S 33 Dir e c t A s s i g n m e n t 34 To t a l C a t 3 35 Di s t r i b u t i o n at Lin e 3 4 36 T O T A L C O E - S W I T C H I N G 37 D i s t r i b u t i o n at Li n e 3 6 Pro p , i e t a r y I n f o r m a t i o n SO U R C E Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Ln 1 3 a Ln 1 4 a Ln 1 5 a Ln 1 6 a Ln 1 7 a Ln 1 8 a Ln 1 9 a Dir e c t Ln 1 3 . . Ln 2 1 1 2 1 a Ln 2 1 Ln 2 3 / 2 3 a Ln 2 6 a Dir e c t Ln 2 6 . . Ln 2 8 1 2 8 a Ln 3 1 a Ln 3 2 a Di r e c t Ln 3 1 . . 3 3 Ln 3 4 / 3 4 a Ln 2 8 + 3 4 Ln 3 6 / 3 6 a CE N T R A L O F F I C E E Q U I P M E N T TO T A L CO M P A N Y (a l 10 0 , 00 0 0 % 10 0 , 00 0 0 % 31 1 32 4 31 1 32 4 10 0 , 00 0 0 % 31 1 32 4 10 0 , 00 0 0 % IN T E R S T A T E T O L L In t e r L A T A MS G (b l (c l "" . 32 , '3 8 0 % :; , 85 , 00 0 0 % ;/ : 11 4 iH m ; g l ( f x ~ . 11 4 , 62 5 85 , 00 0 0 % 11 4 , 62 5 85 , 00 0 0 % In t r a L A T A MS G (d l (e ) :: \ :: . . . Mo s s A d a m s , L L P In t e r L A T A MS G 10 (g l :: : i 65 3 0 ~T . ; . ,' " :. : " :,. : , IN T R A S T A T E T O L L In t r a L A T A MS G (h ) (i l - . 20 1 6 3 0 i' ,; : , ii : - c ;: i ' :/ " ' ; . ':: ' :: i : : "," " ; -c - S- 5 Sh e e t 1 0 1 3 LO C A L EA S Us e r De f i n e d (k l 41 2 6 / 2 0 0 7 Oth e r (II 47 , 04 6 0 % 15 , 00 0 0 % 19 6 69 9 19 6 , 69 9 15 , 00 0 0 % 19 6 , 69 9 15 , 00 0 0 % 50 t 2 3 41 2 6 / 2 0 0 7 Ca m b r i d g e T e l e p h o n e C o m p a n y , I n c . St u d y A r e a : 4 7 2 2 1 5 Stu d y Y e a r : 2 0 0 5 8- 5 Sh e e 1 2 0 1 3 LO C A L CE N T R A L O F F I C E E Q U I P M E N T IN T R A S T A T E T O L L IN T E R S T A T E T O L L Ot h e r EA S Us e r De f t n e d (k ) In t . . L A T A MS G (h ) (i ) TO T A L CO M P A N Y (a ) (g ) (I ) SE P A R A T I O N S F A C T O R S Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s 38 W 8 L i n e 39 E x T r k W B 40 R E L M O U ' s - E x c h a n g e T r u n k 41 G r o s s A l l o c a t o r ( T r a n s S P F j 42 C O E C a t 4 , 21 - Fu r n t o O t I l e r s p c t 43 1 n t e r e x c h a e T r k W B CO E C A T E G O R Y 4 S E P A R A T I O N 44 2 2 3 0 C e n t r a l O f f i c e - T r a n s m i s s i o n 45 Ca t 4 , Ex d l a n g e C i r c u l i 46 4 , 11 W i d e b a n d - L i n e 47 Di r e c t A s s i g n m e n t 48 4 . 12 E x c h T r u n k - EA S 49 E x T r k x J W B - Ba s i c 50 E x T r k x J W B - Ba s i c D A 51 Ex T r k W B 52 E x c h T r k W B - Dir e c t A s s i g n m e n t 53 4 , 13 E x L i n e x J W B 54 Jo i n t M S G 55 PL & L o c a l 56 Di r e c t A s s i g n m e n t - B a s i d S p e c i a l 50 . 00 0 0 % 10 0 . 0 0 0 0 % L/ 1 4 6 a Dir e c t Dir e c t Ln 4 9 a Dir e c t Ln 5 1 a Dir e c t 13 6 21 7 26 0 51 3 26 0 51 3 i" , : ;'i " . :" ; \ : ; ; : : .: : :: : : ,'; ; - ..: i ; ~ 62 9 35 8 25 8 71 6 13 4 Ln 5 4 b ' Ln 5 4 c . . i Dir e c t Ca t 4 . 2 - ln t e r e x c h a n g e 21 F u r n t o O t h e r s 22 W i d e b a n d Jo i n t M S G Di r e c t A s s i g n m e n t Z; ; , J: " : ~ ; ; : ? ; " : ; ) f f eY : !: : : ' :, : ~ : :f , I': i n ; ~ ~ , j f z ; ) 7 , : E E i " 2 : ; : '8 ' m : , , ! ; J : ; ( ; ... - c o ,;i . il ~ : : : ' :~ : : :H i : !;, . . : Ln 5 8 a Ln 6 0 a Dir e c t Dir e c t 50 , 4 1 2 18 1 96 0 IN T E R S T A T E T O L L IN T R A S T A T E T O L L Jo i n t In t e r L A T A In t r a L A T A In t e r L A T A In t r a L A T A EA S MS G 06 7 1.2 5 8 71 6 09 0 04 5 TO T A L CO M P A N Y SO U R C E LI N E DE S C R I P T I O N AS S I G N M E N T O F C O E C A T 4 , 63 C O E C a t 4 , 13 W o r ~ n g L o o p s 54 C O E C a t 4 , 13 A s s n e d I n v e s t 08 2 26 7 , 85 1 Re c o r d s No t e 1 60 8 , No t e 1 : C o s t p e r l o o p = 60 1 2 3 Mo s s A d a m s , L L P Pro p r i e t a r y I n f o r m a t i o n Ca m b r i d g e T e l e p h o n e C o m p a n y , I n c . Stu d y A r e a : 4 7 2 2 1 5 Stu d y Y e a r : 2 0 0 5 SE P A R A T I O N S F A C T O R S 65 C o n v e " , a t i o n M i n u t e s P c t 66 H o s U R e m o t e M O U M i l e s P c t CO E C A T E G O R Y 4 S E P A R A T I O N C o n t 4.2 3 A l l O t h e r Jo i n t M S G . T W X & L o c a l Di r e c t A s s i g n m e n t - N o n a c c e s s Ca t 4 . "-H o s U R e m o t e M S G Jo i n t ( x l W A T S ) WA T S Di r e c t A s s i g n m e n t To t a l C a t 4 76 T O T A L c a E - TR A N S M I S S I O N 77 D i s t r i b u t i o n o f L i n e 7 6 78 T O T A L C E N T R A L O F F I C E E Q U I P 79 D i s t r i b u t i o n 0 1 L i n e 7 8 DE S C R I P T I O N AS S G N M E N T O F C O E C A T 4 , 80 C O E C a t 4 , 23 T e r m s - -J o i n t M e s s a g e T o t a l T e r m i n a t i o n s 81 C O E C a t 4 , 23 - T e r m s 82 -J o i n t M e s s e T o t a l A l l o c a t e d I n v e s t m e n t LI N E No t e 1 : C o s t p e r t e r m i n a t i o n = Pro p r i e t a r y I n f o r m a t i o n CE N T R A L O F F I C E E Q U I P M E N T IN T E R S T A T E T O L L TO T A L In t e r L A T A CO M P A N Y MS G (a ) (b ) Re c o r d s 10 0 . 00 0 0 % 68 . 06 8 0 % Re c o r d s 10 0 . 00 0 0 % 42 . 85 0 0 % Ln 8 2 ' 12 0 85 2 76 2 . 94 1 Ln 8 2 c . . 33 , 96 5 Di r e c t Ln 7 2 a 52 1 66 0 22 3 53 1 Di r e c t Di r e c t Ln 4 6 . . 62 " ; 7 . . 57 3 43 0 30 1 15 2 34 1 58 5 Ln 7 5 57 3 . 4 3 0 1.3 0 1 15 2 34 1 58 5 Ln 7 6 / 7 6 a 10 0 , 00 0 0 % 36 . 4 1 1 8 % 55 9 0 % Ln 2 3 + 3 6 + 7 6 88 4 , 75 4 2.4 1 5 , 7 7 7 34 1 58 5 Ln 7 8 / 7 8 a 10 0 . 0 0 0 0 % 49 . 4 5 5 5 % 99 2 9 % IN T R A S T A T E T O L L 13 7 . 27 1 22 0 , 64 0 $0 5 Sh e e t 3 0 f 3 LO C A L EA S Us e r De f i n e d (0 ) 41 2 6 1 2 0 0 7 ath e r (I ) 29 . 39 4 0 % 15 3 33 7 78 2 69 5 78 2 . 69 5 21 . 90 3 2 % 97 9 39 4 20 . 05 0 0 % SO U R C E TO T A L CO M P A N Y (a ) Re c o r d s No t e 1 No t e 1 24 5 , 54 4 14 0 24 8 , :c ' i: : ' eK , . 15 1 69 5 66 5 68 6 10 3 26 0 51 3 66 5 , 68 6 70 . 10 3 26 0 51 3 18 , 62 8 8 % 96 1 8 % 29 0 3 % 66 5 68 6 10 3 26 0 51 3 13 , 62 7 8 % 43 5 1 % 33 3 2 % 15 1 , 69 5 24 5 1 % 15 1 69 5 10 5 5 % 27 2 26 4 15 4 81 7 12 0 85 2 Mo s s A d a m s , L L P (I ) 70 f 2 3 Ca m b , i d g e T e l e p h o n e C o m p a n y , I n c , St u d y A , e a : 4 7 2 2 1 5 St u d y Y e a r : 2 0 0 5 LIN E DE S C R I P T I O N SE P A R A T I O N S F A C T O R S 1 G r o s s A l l o c a t o r ( T r a n s S P F I 2 R E L M O U ' s - C o i n l e s s P u b T e l lO T E Q U I P M E N T S E P A R A T I O N 32 3 1 0 I n l o O r i g l T e r m E q u i p Ca t 1 - O t h e r l O T Co i n l s P u b T e l E q Di, e c t A s s i g n m e n t To t a l C a t e g o r y 1 Dis t , i b u h o n o f L i n e 7 Ca t 2 - Cu s t P r e m E q u i p Dis t r i b u t i o n 0 1 L i n e 11 T O T A L I N F O O R I G I T E R M E Q U I P 12 D i s t r i b u t i o n 0 1 L i n e 1 1 Pro p r i e t a r y I n f o r m a t i o n SO U R C E Re c o r d s Re c o r d s 1I 1 4 a 1I 1 5 a " 2 Dir e c t 1I 1 4 , , 1I 1 7 / 7 a Dir e c t 1I 1 9 / 9 a Ln 7 + 9 Ln 1 1 / 1 1 a IN F O R M A T I O N OR I G I N / T E R M E Q U I P M E N T TO T A L CO M P A N Y (a ) 10 0 , 00 0 0 % 25 , 00 0 0 % IN T E R S T A T E T O L L (c ) IN T R A S T A T E T O L L S-6 LO C A L Us e r De f i n e d (k ) ;, , j ; ' c ( ! \ c : ic ; '~ : ; : . i\; ; L f : ' ~ ' ; ':: : T X : ; , . ! " :L : ; ; ; : ; , :': ' : : : ,i I ; ; : : : : : : : ; . :: ' . . . , ~/ : ' ;; L: ~ " ,, : ~ , ;~ ' :,, " :,, : : ; ;: ' ::2 , : : , ' :: : , ; : : r j : , : Y ; " !,; c J ; : , Mo s s A d a m s , L L P 4/2 6 1 2 0 0 7 Ot h e r (I ) 50 , 00 0 0 % 80 1 2 3 Ca m b r i d g e T e l e p h o n e C o m p a n y , I n e , St u d y A r e a : 4 7 2 2 1 5 St u d y Y e a r : 2 0 0 5 SE P A R A T I O N S F A C T O R S 1 G r o s s A l l o c a t o r p c t ( T r a n s S P F ) 2 R E L M O U ' s - E x c h a n g e T r u n k 3W 8 L i n e 4 M O U P c t - Ex T r k W 8 C& W F C A T 1 - 2 S E P A R A T I O N 52 4 1 0 C a b l e & W i r e F a d l i t i e s 6 C a l 1 - Ex c h L i n e x N V 8 7 1 . 1I n l r a P L & W A T S 1. 2 l m e r P L & W A T S 9 1 , 3J o i n t ~ U s e d 10 Dir e e t A s s i g n m e n t 11 To t a l C a t e g o , \ , 1 Ca t 2 - W8 & E x c h T r u n k Ex T r k - j o i n t m e s s a g e Ex T r k - EA S Ex L i n e W 8 W8 L i n e W8 T r u n k W8 T r u n k D A To t a l C a t e g o , \ , 2 LI N E DE S C R I P T I O N AS S I G N M E N T O F C & W F C A T 20 C & W F C a t 1 W o r k i n g L o o p s 21 D i s t r i b u t i o n o f L i n e 2 1 22 C a t 1 - Ex L i n e x N V 8 No t e 1 : C c n ; t p e r l o o p = Pr o p r i e t a , \ , I n l o r m a t i o n Re c o r d s Re c o r d s Re c o r d s Re c o r d s Ln 2 2 e . . Ln 2 2 e . . Ln 2 2 b " Dir e c t Ln U O Ln 1 3 a Di, e c t Ln 1 5 a Dir e c t Ln 1 7 a Dir e c t Re c o r d s Ln 2 0 / 2 0 a Ln 2 2 a SO U R C E TO T A L CO M P A N Y (a ) 10 0 . 00 0 0 % 58 3 27 . 16 6 61 5 27 1 65 6 02 0 SO U R C E 71 6 . 62 8 2 CA 8 L E A N D W I R E F A C I L I T I E S IN T E R S T A T E T O L L In t e r L A T A MS G (b ) (e ) In t e r L A T A MS G 25 , 00 0 0 % 40 3 81 8 16 8 - : j \ : ;~ ; ; : : IN T E R S T A T E T O L L IN T R A S T A T E T O L L Jo i n t In t e r L A T A In t r a L A T A In t e r L A T A In l l a L A T A EA S MS G (b ) (e ) (d ) (e ) (g ) 08 7 99 , 27 9 5 % 0.4 8 0 3 % 24 0 2 % 61 5 27 1 16 6 58 3 Mo s s A d a m s , L L P IN T R A S T A T E T O L L 67 5 Us e r De f i n e d (h ) Oth e r (i ) 8- 7 Sh e e t 1 0 1 2 LO C A L EA S Us e r De f i n e d 14 2 . 70 3 14 2 . 7 0 3 4/ 2 / ; / 2 0 0 7 Ot h e r (I ) SO , OO O O % 80 7 83 5 90 1 2 3 Ca m b r i d g e T e l e p h o n e C o m p a n y , I n c , Stu d y A r e a : 4 7 2 2 1 5 Stu d y Y e a r : 2 0 0 5 SE P A R A T I O N S F A C T O R S 23 I n t e r e x c h a n g e T r k W B 24 C M M P c t - IX x N - I B 25 C & W F T W X C o n n e c t M i n M i l e s P c t - 26 C & W F T W X C o n n e c t M i n M i l e s P c t - R m t 27 H " , U R e m o t e M O U M i l e s p c t C& W F C A T 3 - 4 S E P A R A T I O N Ca t 3 - l n t e r e x c h a n g e C & W F WB P L - D i r e c t A s s i g n m e n t WB - J o i n t M e s s a g e Jo i n t M S G x N - I B , T W X & L o c a l x N - I B Jo i n t T W X - Jo i n t T W X - Rm t Dir e c t A s s i g n m e n t - N o n a c c e s s To t a l C a t e g o r y 3 Ca t 4 - H o s U R e m o t e C & W F Jo i n t ( x N - I A T S ) WA T S Di r e c t A s s i g n m e n t To t a l C a t e g o r y 4 42 T O T A L C A B L E & WI R E F A C I L I T I E S 43 D i s t r i b u t i o n o f L i n e 4 2 DE S C R I P T I O N AS S I G N M E N T O F C & W F C A T 44 E q u i v I X C i r c M i l e s - M S G 45 - PL , TW X & L o c a l 46 D i s t r i b u t i o n o f L i n e 4 4 47 D i s t r i b u t i o n o f L i n e 4 5 48 C a t 3 - A I I O t h e r x N - I ~ M S G 49 - TW X & L o c a l LI N E No t e 1 : C o s t p e r c i r c u i t m i l e = P,o p r i e t a r y I n f o r m a t i o n Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Di r e c t Ln 3 0 a Ln 4 8 b " Ln 4 9 c . . Ln 4 9 j " 2 5 Ln 4 9 , , " 2 6 Di r e c t Ln 2 8 . . Ln 3 8 a Di r e c t Di r e c t Ln 3 8 . . 4 0 Ln 1 1 + 1 9 + 3 6 + 4 1 Ln 4 2 / 4 2 a SO U R C E Re c o r d s Re c o r d s Ln 4 4 / 4 4 a Ln 4 5 / 4 4 a Ln 4 8 a Ln 4 8 a " CA B L E A N D W I R E FA C I L I T I E S TO T A L CO M P A N Y (a ) In t e r L A T A MS G (b ) (c ) 10 0 , 00 0 0 % 10 0 , 00 0 0 % 10 0 , 00 0 0 % 10 0 , 00 0 0 % 15 1 53 6 2, 4 3 4 83 2 43 , 14 7 62 9 51 5 65 7 34 2 24 4 67 7 10 4 84 4 24 4 67 7 10 4 84 4 73 2 75 5 16 6 00 3 10 0 , 00 0 0 % 36 , 25 4 3 % TO T A L Jo i n t M S G CO M P A N Y Ex c l T W X 10 0 , 00 0 0 % 2, 4 7 7 , 97 9 58 , IN T E R S T A T E T O L L 44 7 12 0 80 8 29 8 19 4 13 1 13 1 19 2 14 1 20 0 2 % 34 4 , 4 0 5 94 3 8 % IN T E R S T A T E T O L L In t e r In t r a LA T A LA T A IN T R A S T A T E T O L L In t e r In t r a LA T A LA T A M", s A d a m s , L L P IN T R A S T A T E T O L L (g ) In t r a L A T A MS G (h ) (i) 19 , 68 5 0 % 19 , 68 5 0 % 26 , 88 5 0 % 47 9 29 7 78 1 ( ; ; ' 1 ( " ,, : ;; ; 65 . 7 8 1 90 4 , 81 6 21 , 81 2 3 % 10 3 13 2 19 1 0 % EA S Us e r De f i n e d Oth e r 52 , 08 9 87 4 Jt M S G T W X In t e r t o l l 4/2 6 1 2 0 0 7 8- 7 Sh e e t 2 0 ' 2 LO C A L EA S Us e r Ot h e r De f i n e d (k ) (I ) 29 , 39 4 0 % 71 , 92 0 71 , 92 0 14 2 70 3 63 4 1 % 87 9 55 5 32 , 97 4 2 % Re m o t e 10 o f 2 3 4/ 2 6 / 2 0 0 7 Ca m M d g e T e l e p h o n e C o m p a n y , I n e , Stu d y A r e a : 4 7 2 2 1 5 Stu d y Y e a r 2 0 0 5 AM O R T I Z A B L E A S S E T S S- B -c : - IN T E R S T A T E T O L L IN T R A S T A T E T O L L LO C A L TO T A L In t e r L A T A In t r a L A T A In t e r L A T A In t r a L A T A EA S Us e r Oth e r CO M P A N Y MS G MS G MS G MS G De f i n e d LIN E DE S C R I P T I O N SO U R C E (a ) (b ) (e ) (d ) (e ) (g ) (h i (i) Ii ) (k l (I ) SE P A R A T I O N S F A C T O R S 1 L a n d & S u p p o r t A s s e t s D i s t r S- 4 Ln 1 4 10 0 . 00 0 0 % 40 , 98 9 7 % 91 9 4 % 64 3 1 % 18 , 87 6 4 % 27 2 1 % 96 1 0 % 28 , 33 8 1 % 22 2 1 0 C O E - S w i t c h D i s t r 5-5 Ln 3 7 10 0 . 00 0 0 % 85 , 00 0 0 % 15 , 00 0 0 % 3 2 2 2 0 C O E - O p e r a t o r S y s t e m s D i s t r 5-5 Ln 2 4 42 2 3 0 C O E - Tr a n s m i s s i o n D i s t r S- 5 Ln 7 7 10 0 . 00 0 0 % 36 , 4 1 1 8 % 55 9 0 % 24 5 1 % 18 , 62 8 8 % 96 1 8 % 29 0 3 % 21 , 90 3 2 % 52 3 1 0 1 0 T D i s t r S- B Ln 1 2 62 4 1 0 C & W F D i s t r 5-7 Ln 4 3 10 0 . 00 0 0 % 36 . 2 5 4 3 % 20 0 2 % 94 3 8 % 21 , 81 2 3 % 18 1 0 % 63 4 1 % 32 . 97 4 2 " 1 0 72 0 0 1 T P I S 5-2 Ln 8 10 0 . 00 0 0 % 40 , 98 9 7 % 91 9 4 % 64 3 1 % 18 , 87 6 4 % 27 2 1 % 96 1 0 % 28 , 33 8 1 % 82 0 0 1 T P I S i n e l 2 6 8 0 5-2 Ln 1 1 10 0 . 00 0 0 % 40 , 98 9 7 % 91 9 4 % 64 3 1 % 18 , 87 6 4 % 27 2 1 % 96 1 0 % 28 , 33 8 1 % TA N G I B L E A S S E T S - C A P I T A L LE A S E S S E P 9 2 6 8 0 T a n g i b l e A s s e t s - C a p , a l L e a s e s 21 1 0 L a n d & S u p t A s s e t s Ln 1 0 a 22 1 0 C O E - Sw i t c h i n g Ln 1 1 a =0 C O E - Op e r a t o r Ln 1 2 a 22 3 0 C O E - T r a n s m i s s i o n Ln 1 3 a 23 1 0 l O T Ln 1 4 a 24 1 0 C & W F Ln 1 5 a No t d a s s i f i e d b y a c c o u n t Ln 1 6 a Dir e c t A s s i g n m e n t Dir e c t 18 T O T A L C A P I T A L LE A S E S Ln 1 0 . . 19 D i s t r i b u t i o n o f L i n e 1 8 Ln 1 B 1 1 8 a TA N G I B L E A S S E T S - L E A S E H L D IM P R O V E S E P 20 2 6 8 0 T a n g i b l e A s s e t s - L e a s e h l d I m p r o v e 21 1 0 L a n d & S u p t A s s e t s Ln 2 1 a 22 1 0 C O E - S w i t e h i n g Ln 2 2 a 22 2 0 C a E - Op e r a t o r Ln 2 3 a 22 3 0 C O E - Tr a n s m i s s i o n Ln 2 4 a 23 1 0 l O T Ln 2 5 a 24 1 0 C & W F Ln W a No t c l a s s i f i e d b y a c c o u n t Ln 2 7 a Di r e c t A s s i g n m e n t Dir e c t 29 T O T A L L E A S E H O L D I M P R O V E M E N T S Ln 2 L 2 8 30 D i s t r i b u t i o n o f L i n e 2 9 Ln 2 9 / 2 9 a 31 T O T A L T A N G I B L E AS S E T S Ln 1 8 + 2 9 32 D i s t r i b u t i o n o f L i n e 3 1 Ln 3 1 1 3 1 a IN T A N G I B L E AS S E T S S E P A R A T I O N 33 2 6 9 0 I n t a n g i b l e A s s e t s Ln 3 3 a Di r e c t A s s i g n m e n t Dir e c t 35 T O T A L I N T A N G I B L E AS S E T S Ln 3 3 . , 36 D i s t r i b u t i o n o f L i n e 3 5 Ln 3 5 / 3 5 a Pro p r i e t a r y I n f o r m a t i o n Mo s s A d a m s . L L P 11 o f 2 3 Ca m b r i d g e T e l e p h o n e C o m p a n y , I n c , Si u d y A r e a : 4 7 2 2 1 5 Sl u d y Y e a r 2 0 0 5 DE S C R I P T I D N SE P A R A T I O N S F A C T O R S 1 2 0 0 1 T P I S D I s i r 22 4 1 0 C & W F D I s t r 3 E u a l A c c . . . M O U p c t OT H E R A C C O U N T S S E P A R A T I O N 42 0 0 2 P r o p H i d F u l T e l e c o m U s e Dir e c t A s s i g n m e n t 6 T O T A L P R O P H L D F U T T E L E C O M U S E 7 D i s t r i b u t i o n o f U n e 6 LIN E 8 2 0 0 3 P ~ U n d e ' C o n s l r Dir e c t A s s l g n m e n l 10 T O T A L P L T U N D E R C O N S T R 11 D i s t r i b u t i o n o f U n e 1 0 12 2 0 0 5 T e l e c o m P l a n l A d j u s l 13 Dir e c t A s s i g n m e n t 14 T O T A L T E L E C O M P L A N T AD J U S T 15 D I s I , l b u t l o n o f U n e 1 4 MIS C A C C O U N T S S E P A R A T I O N 16 1 4 0 2 C l a s s B R T B S l a c k 17 1 4 3 8 D e f e r r e d C h a ' g . . 18 1 2 2 0 M a t e , ' a l & S u p l x l C P E 19 Di' e c t A s s i g n m e n t 20 T O T A L M A T E R I A L S AN D S U P P L I E S 21 C a s h W o r ~ n C a i l a l EQ U A L A C C E S S I N V E S T M E N T SE P A R A T I O N 22 E q u a l A c c e s s G r o s s I n v . . l m e n l 23 E q u a l A c c e s s G r o s s I n v e s t m e n t - D A 24 Ac c u m D e p r e c i a t i o n 25 De f e r r e d D p e r I n c T a x . . 26 Un a m o r t ; , : e d E x p e n s e s 27 T O T A L N E T E Q U A L A C C E S S I N V E S T M E N T 28 D l s l r i b u t i o n o f U n e 2 7 IN V E S T A L L O W I D I S A L L O W SE P A R A T I O N 29 I n v e s t m e n t A l l o w / D i s a l l o w a n c e s 30 Di r e c t A s s i g n m e n l 31 T O T A L I N V E S T A L L O W I D I S A L L O W A N C E S P'o p r i e l a r y I n f o r m a t i o n SO U R C E S- 2 Ln 1 5 S- 7 Ln 4 3 Re c o r d s Ln 4 a Dir e c t Ln 4 . . Ln 6 l 6 a Ln 8 a Dir e c t Ln 8 . . Ln 1 0 / 1 0 a Ln 1 2 a Dir e c t Ln 1 2 . . Ln 1 4 / 1 4 a Ln 1 6 a Ln 1 7 a Ln 1 8 a Dir e c t Ln 1 8 . . CW C Ln 2 2 a Dir e c t Ln 2 4 a Ln 2 5 a Ln 2 6 a Ln 2 2 - 24 - 2 5 + 2 6 Ln 2 7 / 2 7 a Ln 2 9 a Dir e c t Ln 2 9 . . TE L E C O M M U N I C A T I O N S P L A N T - O T H E R A C C O U N T S TO T A L CO M P A N Y (a ) 10 0 . 00 0 0 % 10 0 , 00 0 0 % 10 0 , 00 0 0 % 45 3 96 4 45 3 96 4 10 0 , 00 0 0 % IN T E R S T A T E T O L L In l e r L A T A MS G (b l (c l 40 , 98 9 7 % 3 . 91 9 4 % 36 , 25 4 3 % 2 , 20 0 2 % 98 , 00 9 0 % , . ., . . - , 18 6 07 8 79 3 In t r a L A T A MS G (d l (e ) IN T R A S T A T E T O L L In t e r L A T A In t r a L A T A MS G MS G (g ) (h ) (i ) 64 3 1 % 18 , 87 6 4 % 27 2 1 % 94 3 8 % 21 , 81 2 3 % 18 1 9 % 99 1 0 % 53 8 53 8 64 3 1 % 69 2 85 , 69 2 18 , 87 6 4 % 77 5 1. 2 7 2 1 % EA S (j)96 1 0 % 63 4 1 % 5.7 7 5 44 2 96 1 0 % S- 9 LO C A L Us e r De f i n e d (k ) 13 . 4 4 2 4/ 2 6 / 2 0 0 7 Ot h e r (I ) 28 , 33 6 1 % 32 , 97 4 2 % 12 8 , 64 5 12 8 64 5 28 , 33 8 1 % 11 0 68 9 40 , 13 0 2.4 3 5 36 5 14 4 30 7 80 9 49 9 11 0 68 9 13 0 2.4 3 5 36 5 14 4 30 7 80 9 49 9 13 7 43 2 60 2 38 3 20 8 59 6 1. 4 6 0 28 3 37 , 89 9 18 6 07 8 40 , 98 9 7 % 79 3 91 9 4 % Mo s s A d a m s , L L P 12 0 f 2 3 Ca m b r i d g e T e l e p h o n e C o m p a n y , I n c . Stu d y A r e a : 4 7 2 2 1 5 Stu d y Y e a r . 2 0 0 5 DE S C R I P T I O N SE P A R A T I O N S F A C T O R S 1 2 0 0 1 T P I S D i s t r 2 2 0 0 3 P U C - P c t 3 C o r p O p e r E x p e n s e s D i s t r 4 2 6 8 0 C a p " a l L e a s e s D i s t r 5 N e t T e l e c o m P l a n t D i s t r e x c I 4 0 4 0 . 4 3 1 0 6 2 1 1 0 S u p p o r t A s s e t s D i s t r 72 2 1 0 C O E - S w i t c h i n g D i s t r 8 2 2 2 0 C O E - O p e r a t o r D i s t r 9 2 2 3 0 c a E - Tr a n s m i s s i o n D i s t r 10 2 3 1 0 l O T D i s t r 11 2 4 1 0 C & W F D i s t r 12 C O E . l O T . C & W F 13 B i T h r e e E x o e n s e s D i s t r OT H E R I N C O M E S E P A R A T I O N 14 7 3 0 0 N o n o p e r I n c & E x p e n s e s 15 A I w Fd s U s e d O u r C o n s t r 16 Co n t r i b u t i o n s 17 Ab a n d o n e d C o n s u u c t i o n 18 Oth e r N o n o p e r a t i n g E x p e n s e LIN E 19 F i x e d C h a r g e s 20 In t e r e s t o n C a p i t a l L e a s e s 21 Fix e d C h a r g e s E x c l C a p " a l L e a s e s 22 Am o r t i z a t i o n 0 1 D e b ! D i s c o u n t 23 Oth e r I n t e r e s t 24 T O T A L F I X E D C H A R G E S 25 5 2 4 0 R e n t R e v e n u e s 26 Su p p o r t A s s e t s 27 CO E - S w i t c h i n g 28 CO E - O p e r a t o r 29 C O E - Tr a n s m i s s i o n 30 In f o O r i g f T e r m E q u i p 31 C& W F 32 No t C l a s s i f i e d b y A c c t 33 U N B U N D L E D N E T W O R K E L E M E N T S 34 C & W F - U n b u n d l e d L o o p 35 Op e r a t o r S y s t e m s 36 Ta n d e m S w i t c h i n g 37 Lo c a l S w i t c h i n g 38 Tr a n s p o r t T e r m i n a t i o n 39 Tr a n s p o r t F a d l i t y 40 SS 7 41 O S S 42 Di r e c t A s s i g n m e n t 43 T O T A L R E N T R E V E N U E S IN C O M E T A X AD J U S T M E N T S S E P A R A T I O N S 44 I T C A m o r t ~ a t i o n - F e d e r a l 45 I T C A m o r t i z a t i o n - S t a t e 46 T O T A L I T C A M O R T I Z A T I O N 47 A m o r t i z a t i o n o f E x c e s s D e f T a x e s 48 C a p i t a l ~ e d P a y r o l l T a x e s 49 Dir e c t A s s i g n m e n t 50 T O T A L C A P I T A L I Z E D PA Y R O L L T A X E S 51 D e p r e c i a t i o n A d j u s t m e n t s 52 Dir e c t A s s i g n m e n t 53 T O T A L D E P R E C I A T I O N AD J U S T M E N T S 54 U n c o l l e c t i b l e s - J o i n t M e s s a g e 55 U n c o l l e c t i b l . . - E n d U s e r C C L 56 U n c o l l e c t i b l . . - In t e r e x c h a n g e C a n i e r 57 T O T A L U N C O L L E C T I B L E S 58 M i s c I n c A d j u s t m e n t s 59 In c A d j A l i c e o n 2 0 0 1 60 In c A d j A l i c e o n 2 0 0 1 - D i r e c t A s s i g n m e n t 61 In c A d j A l i c e o n B i g 3 E x p 62 In c A d j A l i c e o n B i g 3 E x p - D i r e c t As s i g n m e n t 63 T O T A L M I S C I N C A D J U S T M E N T S Pro p r i e t a r y I n t o r m a t i o n SO U R C E S-2 Ln 1 5 S-g Ln 1 1 S-1 4 Ln 1 7 S-8 lo 1 9 S-2 . lo 3 7 S-4 lo 9 S-5 lo 3 7 S-5 lo 2 4 S-5 Ln 7 7 S-6 lo 1 2 S-7 lo 4 3 S-2 lo 8 S-3 . Ln 6 Ln 1 5 a Ln 1 6 a Ln 1 7 a Dir e c t Ln 2 0 a Ln 2 1 a lo 2 2 a lo 2 3 a Ln 2 0 . . Ln 2 6 a Ln 2 7 a lo 2 8 a Ln 2 9 a Ln 3 0 a Ln 3 1 a lo 3 2 a 1. D i r e c t S-5 lo 4 1 ' L n 3 4 S-5 lo 2 4 ' L n 3 5 S-5 lo 2 9 ' L n 3 6 S-5 Ln 3 4 ' L n 3 7 S-5 lo 6 5 ' L n 3 8 S-5 lo 6 5 ' L n 3 g S-5 , lo 7 5 ' L n 4 0 Ln 4 1 a Dir e c t Ln 2 6 . . 4 2 lo 4 4 a lo 4 5 a lo 4 4 . . lo 4 7 a lo 4 8 a Dir e c t lo 4 8 . . 4 9 Ln 5 1 a Dir e c t Ln 5 1 . . 5 2 Dir e c t Dir e c t Dir e c t lo 5 4 . . Ln 5 9 a Dir e c t lo 6 1 a Dir e c t lo 5 9 . . CE R T A I N I N C O M E AC C O U N T S A N D A D J U S T M E N T S TO T A L CO M P A N Y (a ) 10 0 . 00 0 0 % 10 0 . 00 0 0 % 10 0 . 00 0 0 % 10 0 , 00 0 0 % 10 0 , 00 0 0 % 10 0 . 00 0 0 % 10 0 . 00 0 0 % 10 0 , 00 0 0 % 10 0 . 00 0 0 % 10 0 . 00 0 0 % In t e r L A T A MS G (b ) (c ) 40 . 98 9 7 % 40 . 98 9 7 % 44 . 35 8 6 % 44 . 95 4 6 % 40 . 98 9 7 % 85 . 00 0 0 % 36 . 4 1 1 8 % 36 . 25 4 3 % 40 . 98 9 7 % 39 . 69 5 8 % 94 2 19 4 '9 2 33 5 15 1 19 2 , 4 8 6 11 . 86 3 11 . 17 6 86 . 4 6 3 86 . 53 1 IN T E R S T A T E T O L L 91 9 4 % 91 9 4 % 87 4 9 % 14 2 6 % 91 9 4 % 55 9 0 % 20 0 2 % 91 9 4 % 11 5 8 % In t r a L A T A MS G (d ) (e ) 13 4 72 4 " ' . ' , ,.. ' , , ' " :. c " , "" . -,, " C ; r . . , 96 8 97 4 Mo o s A d a m s , L L P IN T R A S T A T E T O L L 'C C ' In t e r L A T A In t r a L A T A MS G PL MS G 10 g) (h ) (I ) 64 3 1 % 64 3 1 % 49 9 3 % 18 . 87 6 4 % 18 . 87 6 4 % 18 . 89 2 7 % 5.4 2 2 0 % 64 3 1 % 19 . 03 9 0 % 18 . 87 6 4 % 24 5 1 % 18 . 62 8 8 % 94 3 8 % 64 3 1 % 79 2 5 % 21 . 81 2 3 % 18 . 87 6 4 % 20 . 4 7 5 9 % 05 4 88 2 27 2 1 % 27 2 1 % 97 9 2 % 26 0 5 % 27 2 1 % 96 1 8 % 18 1 0 % 27 2 1 % 06 1 2 % ;'? : ~ i : i ' : : : : ' ::7 ~ : ;: : ' :: : Y 2 ; : i " c : : : ' . ::" 'f? ' ?: : ' : 46 3 76 0 10 , 4 2 8 10 , 4 3 7 36 , 61 9 64 7 EA S 96 1 0 % 96 1 0 % 09 1 8 % 49 9 6 % 96 1 0 % 29 0 3 % 63 4 1 % 96 1 0 % 26 7 1 % 36 8 24 7 S- 1 0 LO C A L . Us e r De f i n e d (k ) ::' ;i; i l i j l ; ' :;: G j ; : ~iS : : : : : : : : : j ! 85 7 52 7 42 4 42 6 73 1 73 6 41 2 6 / 2 0 0 7 Oth e r (I ) 28 . 33 8 1 % 28 . 33 8 1 % 27 . 30 3 7 % 21 , 68 1 7 % 28 . 33 8 1 % 15 , 00 0 0 % 21 , 90 3 2 % 32 . 97 4 2 % 28 . 33 8 1 % 29 . 59 1 8 % 20 2 87 9 70 1 41 , 7 3 4 13 0 t 2 3 4I 1 f J / 2 0 0 7 Ca m b r i d g e T e l e p h o n e C o m p a n y . I n c . Stu d y A r e a : 4 7 2 2 1 5 St u d y Y e a r 2 0 0 5 PlA N T S P E C I F I C E X P E N S E S 5- 1 1 IN T E R S T A T E T O L L IN T R A S T A T E T O L L LO C A L TO T A L In t e r l A T A In t r a l A T A In t e r l A T A In t r a l A T A EA S Us e r Ot h e r CO M P A N Y MS G MS G MS G MS G De f i n e d LI N E DE S C R I P T I O N SO U R C E (a ) (b ) (c ) (d ) (e ) (g ) (h ) (i) Ii) (k ) (I ) SE P A R A T I O N S F A C T O R S 1 2 1 1 0 L a n d & S u p t A s s t s D i s t r $- 4 Ln 1 4 10 0 , 00 0 0 % 40 . 98 9 7 % 91 9 4 % 64 3 1 % 18 , 87 6 4 % 27 2 1 % 96 1 0 % 28 , 33 8 1 % 2 T o t a l C O E D i s t r + E A D i s t r 5- 5 , Ln 7 9 i n d E A 10 0 . 0 0 0 0 % 49 , 4 5 5 5 % 99 2 9 % 10 5 5 % 13 . 6 2 7 8 % 1,4 3 5 1 % 33 3 2 % 20 , 05 0 0 % 32 3 1 0 l O T C a t 1 - O t h e r D i s t r $- 6 Ln 8 42 3 1 0 l O T C a t 2 - C P E D i s t r $- 6 Ln 1 0 52 4 1 0 C & W F D i s t r 5- 7 Ln 4 3 10 0 , 00 0 0 % 38 , 25 4 3 % 2.2 0 0 2 % 94 3 8 % 21 , 81 2 3 % 18 1 0 % 63 4 1 % 32 , 97 4 2 % PlA N T S P E C I F I C E X P E N S E S S E P A R A T I O N 66 1 1 0 N e t w o r k S u p p o r t E x p e n s e s Ln 6 a 10 , 4 2 9 27 5 40 9 38 0 96 9 13 3 30 9 95 5 Dir e c t A s s i g n m e n t Di r e c t 8 T O T A L N E T W O R K S U P P O R T E X P E N S E S Ln 6 . . 7 10 , 4 2 9 27 5 40 9 38 0 96 9 13 3 30 9 95 5 9 6 1 2 0 G e n e r a l S u p p o r t E x p e n s e s Ln 9 a 16 3 , 4 2 3 98 7 40 5 95 4 84 8 07 9 83 9 31 1 Dir e c t A s s i g n m e n t Dir e c t 11 T O T A L G E N E R A L S U P P O R T E X P E N S E S Ln 9 . . 16 3 42 3 66 . 98 7 6, 4 0 5 95 4 30 , 84 8 07 9 83 9 46 , 31 1 12 6 2 1 0 C O E S w i t c h i n g E x p e n s e s Ln 1 2 a 15 6 , 19 6 77 , 24 7 92 3 85 1 28 6 24 2 33 0 31 7 Dir e c t A s s i g n m e n t Dir e c t 14 T O T A L C O E S W I T C H I N G E X P E N S E S Ln 1 2 . . 15 6 , 19 6 24 7 10 , 92 3 85 1 21 , 28 6 24 2 33 0 31 , 31 7 15 6 2 2 0 C O E O p e r a t o r S y s t e m s E x p e n s e s Ln 1 5 a Dir e c t A s s i g n m e n t Dir e c t 17 T O T A L C O E O P E R A T O R S Y S E X P E N S E S Ln 1 5 . . 18 6 2 3 0 C O E T r a n s m i s s i o n E x p e n s e s Ln 1 8 a 35 0 82 5 50 0 99 8 77 0 92 4 43 2 12 , 90 2 Dir e c t A s s i g n m e n t Dir e c t 20 T O T A L C O E T R A N S M I S S I O N E X P E N S E S Ln 1 8 . . 35 0 82 5 50 0 99 8 77 0 92 4 3,4 3 2 90 2 21 T O T A L C O E E X P E N S E S Ln 1 4 + 1 7 + 2 0 22 0 54 6 10 9 07 2 15 , 4 2 3 84 9 30 , 05 6 16 5 76 2 44 , 21 9 22 6 3 1 0 l O T E q u i p E x p e n s e s Ca t 1 - O t h e r l O T E q E x p e n s e s Ln 2 3 a Ca t 2 - Cu s t P r e m E q u i p E x p Ln 2 4 a Dir e c t A s s i g n m e n t Dir e c t 26 T O T A L l O T E X P E N S E S Ln 2 3 . . 27 6 4 1 0 C & W F E x p e n s e s Ln 2 7 a 42 7 36 8 15 4 . 93 9 9, 4 0 3 16 . 85 5 93 , 21 9 04 7 98 4 14 0 , 92 1 Dir e c t A s s i g n m e n t Dir e c t 29 T O T A L C & W F E X P E N S E S Ln 2 7 . . 42 7 , 36 8 15 4 , 93 9 40 3 16 , 85 5 21 9 04 7 98 4 14 0 92 1 30 P ~ S p e c E x p ) T / 6 1 1 0 61 2 0 Ln 2 1 + 2 6 + 2 9 64 7 91 4 26 4 01 1 24 , 82 6 70 4 12 3 27 4 21 2 74 6 18 5 14 1 31 T O T A L P L A N T S P E C O P E R E X P Ln 8 + 1 1 + 3 0 82 1 76 6 33 5 . 27 3 64 0 30 . 03 7 15 6 , 09 2 10 , 4 2 4 89 4 23 4 , 4 0 7 32 D i s t r i b u t i o n 0 1 L i n e 3 1 Ln 3 1 / 3 1 a 10 0 , 00 0 0 % 40 . 79 9 1 % 85 0 2 % 65 5 2 % 18 . 99 4 6 % 26 8 5 % 90 7 6 % 28 . 52 4 8 % Pro p r i e t a r y I n f o r m a t i o n M," , s A d a m s , L L P 14 0 1 2 3 41 2 6 / 2 0 0 7 Ca m b r i d g e T e l e p h o n e C o m p a n y , I n e , Stu d y A r e a : 4 7 2 2 1 5 Stu d y Y e a r : 2 0 0 5 PL A N T N O N S P E C I F I C E X P E N S E S 8-1 2 -- c - IN T E R S T A T E T O L L IN T R A S T A T E T O L L LO C A L TO T A L In l e r L A T A In t " L A T A In t e r L A T A In " a L A T A EA S Us e r Ot h e r CO M P A N Y MS G MS G MS G MS G De f i n e d LI N E DE S C R I P T I O N SO U R C E (a l (b ) (e ) (d l le i (g ) Ih l (i) Ik l (I ) SE P A R A T I O N S F A C T O R S 1 2 0 0 1 T P I S D i s t r 8- 2 Ln 1 5 10 0 , 00 0 0 % 40 , 98 9 7 % 91 9 4 % 64 3 1 % 18 , 87 6 4 % 27 2 1 % 96 1 0 % 28 , 33 8 1 % 2 T o l a l C O E , l O T , C & W F D i s t r 8- 2 Ln 7 + 9 10 0 , 00 0 0 % 40 , 98 9 7 % 91 9 4 % 64 3 1 % 18 , 87 6 4 % 1.2 7 2 1 % 96 1 0 % 28 , 33 8 1 % 3 2 1 1 0 S u p p o r t A s s e t s D i s t r Ln 9 10 0 , 00 0 0 % 40 , 98 9 7 % 91 9 4 % 64 3 1 % 18 , 87 6 4 % 27 2 1 % 96 t O % 28 , 33 8 1 % 4 2 2 1 0 C O E - S w n e h i n g D i s t r 8- 1 5 Ln 4 9 10 0 , 00 0 0 % 85 , 00 0 0 % 15 , 00 0 0 % 5 2 2 2 0 C O E - O p e r a t o r D i s t r 8- 5 Ln 2 4 62 2 3 0 c a E - Tr a n s m i s s i o n D i s t r 8- 5 Ln 7 7 10 0 , 00 0 0 % 38 . 4 1 1 8 % 55 9 0 % 24 5 1 % 18 , 62 8 8 % 96 1 8 % 29 0 3 % 21 , 90 3 2 % 7 2 3 1 0 l O T D i s t r S- 6 Ln 1 2 8 2 4 1 0 C & W F D i s l r 8- 7 Ln 4 3 10 0 , 00 0 0 % 36 , 25 4 3 % 20 0 2 % 94 3 8 % 21 , 81 2 3 % 18 1 0 % 63 4 1 % 32 , 97 4 2 % 9 2 0 0 2 P r o p H i d F I T e l U s e D i s t r 8- 9 , Ln 7 10 2 6 8 0 C a p U a l L e a s e s D i s t r S- B Ln 1 9 11 2 6 8 0 L e a s e h o l d I m p r o v e m e n t s D i s t r S- B Ln 3 0 12 2 6 9 0 I n t a n g i b l e A s s e t s D i s t r S- B Ln 3 6 13 2 0 0 5 T e l e c o m P ~ A d ' u S l m e n t 8- 9 Ln 1 5 PL A N T N O N S P E C I F I C E X P S E P A R A T I O N 14 6 5 1 0 O t h P r o p P l a n t & E q E x p Ln 1 4 a Di r e c t A s s i g n m e n t Di r e c t 16 T O T A L O T H P R O P P L A N T & E O E X P Ln 1 4 . . 17 6 5 3 0 N e t w o r k O p e r a t i o n s E x p Ln 1 7 a 86 3 73 2 73 9 68 7 56 1 24 0 55 9 34 5 Di r e c t A s s ~ n m e n t Di r e c t 19 T O T A L N E T W O R K O P E R A T I O N S EX P Ln 1 7 . . 18 , 86 3 7.7 3 2 73 9 68 7 56 1 24 0 55 9 34 5 20 6 5 4 0 A c c e s s E x p e n s e s Ac c e s s E x p e n s e x l F e d e r a l S u p p o r t Di r e c t Fe d e r a l S u p p o r t Di r e c t 22 , 21 0 21 0 23 T O T A L A C C E S S E X P E N S E S Ln 2 1 . . 22 , 21 0 21 0 24 6 5 6 0 D e p r a n d A m o r t E x p e n s e s De p r - S u p p o r t A s s e t s Ln 2 5 a 23 9 36 0 11 3 38 2 6, 7 2 0 18 3 04 5 08 7 83 0 De p r - S u p p o r t A s s e t s - D i r e c t A s s i g n m e n t Di r e c t De p r - C O E - S w n c h i n g Ln 2 7 a 17 9 , 7 0 6 15 2 , 7 5 0 95 6 De p r - C O E - S w n c h i n g - D i r e c t A s s i g n m e n t Di r e c t De p r - C O E - O p e r a t o r Ln 2 9 a De p r - C O E - O p e r a t o r - D i r e c t A s s i g n m e n t Di r e c t De p r - C O E - Tra n s m i s s i o n Ln 3 1 a 10 8 64 9 39 , 56 1 38 6 61 2 24 0 13 1 92 1 79 6 De p r - C O E - Tr a n s m i s s i o n - D i r e c t A s s i g n m e n t Di r e c t De p r - In f o O r i g l T e n n E q u i p Ln 3 3 a De p r - In f o O r ~ l T e n n E q u i p - D i r e c t A s s i g n m e n t Di r e c t De p r - C a b l e & W i r e F a d l ~ i e s Ln 3 5 a De p r - C a b l e & W i r e F a d l ~ i e s - D i r e c t A s s i g n m e n t Di r e c t 54 1 42 9 19 4 16 8 01 9 27 1 12 0 65 1 14 3 35 1 18 7 82 6 De p r - Pr o p H i d F t T e l U s e Ln 3 7 a Am o r t - Ca p ~ a l L e a s e s Ln 3 8 a Am o r t - Le a s e h o l d I m p r o v e m e n t s Ln 3 9 a Am o r t - In t a n g i ~ e A s s e t s Ln 4 0 a Am o r t - Ot h e r Ln 4 1 a Am o r t - Di r e c t A s s i g n m e n t Di r e c t 43 T O T A L D E P R & A M O R T E X P E N S E S Ln 2 5 . . 4 1 06 9 , 14 4 48 4 , 59 2 76 6 60 3 18 6 07 4 31 9 23 , 35 9 30 6 . 4 1 0 44 T O T A L P L A N T N O N S P E C O P E R E X P Ln 1 6 + 1 9 + 2 3 + 4 3 11 0 21 7 51 4 53 4 27 , 52 6 34 , 29 1 18 9 , 63 4 55 9 91 8 31 1 , 75 5 45 D i s t r i b u t i o n o f L i n e 3 9 Ln 4 4 / 4 4 a 10 0 , 00 0 0 % 46 , 34 5 4 % 2.4 7 9 3 % 06 8 6 % 17 , 06 0 8 % 77 1 0 % 15 4 3 % 28 , 08 0 6 % Pr o p r i e t a r y I n f o r m a t i o n Mo s s A d a m s , L L P 15 0 1 2 3 Ca m b r i d g e T e l e p h o n e C o m p a n y , I n c , Stu d y A r e a : 4 7 2 2 1 5 Stu d y Y e a r : 2 0 0 5 DE S C R I P T I O N SE P A R A T I O N S F A C T O R S 1 M a r k e t i n g e x p e n s e f a c t o r 2 W S W 5 - T e l O p e r S v c s 3 S u b s c r i b e r L i n e M O U 4 E U S e r v i c e O r d e r C c n l a c t s 5 E U B i l l e d R e v e n u e i n c l C C l 6 E U B i l l e d I n q u i l y C o n t a c t s 7 I X S v c O r d P r o c C o n t a c t s 8 I X B i l l e d R e v e n u e 9 I X B i l l l n q C o n t a c t s 10 P u b l i c I n t e r e s t P a s t a t i o n R e v e n u e MA R K E T I N G E X P E N S E S S E P A R A T I O N 11 6 6 1 0 M a r k e t i n g E x p e n s e s 12 Di r e c t A s s i g n m e n t 13 T O T A L M A R K E T I N G EX P E N S E S SE R V I C E S E X P E N S E S S E P A R A T I O N 14 6 6 2 0 S e r v i c e s E x p e n s . . 15 Te l e p h O n e O p e r a t o r S e r v i c e : 16 Te l O p e r a t o r S v c 17 Dir e c t A s s i g n m e n t 18 To t a l T e l O p e r S V c E x p LIN E Pu ~ i s h e d D i , . c t L i s t i n g s : Cl a s s i f i e d TW X Al p h a Fo r e i g n To t a l P u ~ D i r e c t L i s t All O t h e r : Ca t 1 - LB O E E U S V c O r d P r o c Pr e s u b s c r i p t i o n Oth e r Ca t 1 - LB O E E U P m t & C o l CI I - O t h . , Ca t 1 - LB O E E U B i I I l n q CI I Oth e r Ca t 1 - lB O E I X S v c O r d P r c e Ca t 1 - LB O E I X P m ! & Co l Ca t 1 - lB O E I X B i l l l n q Ca t 1 - LB O E C n C o l & A d m i n To t a l C a t 1 - lB O E Pr o p r i e t a ' ) ' I n f o r m a t i o n SO U R C E Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Re c o r d s Ln 1 1 a Dir e c t Ln 1 1 . . 1 2 Ln 1 6 a Dir e c t Ln 1 6 . . Dir e c t Dir e c t Ln 2 2 a Dir e c t Ln 2 0 . . Dir e c t ln 2 8 a Dir e c t ln 2 9 a Dir e c t Ln 3 2 a ln 3 5 a ln 3 6 a ln 3 7 a ln 3 8 a Ln 2 6 . . CU S T O M E R O P E R A T I O N S E X P E N S E S IN T E R S T A T E T O l l TO T A L In t e r L A T A In l r a L A T A CO M P A N Y MS G MS G (a ) (b ) (c ) (d ) 10 0 , 00 0 0 % 37 , 93 4 7 % 10 0 , 00 0 0 % 32 , 13 6 0 % 10 0 , 00 0 0 % 20 , 90 4 5 % 10 0 , 00 0 0 % 27 , 22 2 2 % 10 0 , 00 0 0 % 27 , 22 9 0 % 10 0 , 00 0 0 % 33 , 33 3 3 % 10 0 , 00 0 0 % 33 , 33 3 3 % 10 0 , 00 0 0 % 33 , 33 3 3 % 98 9 16 9 96 6 98 9 16 9 96 6 43 1 43 1 84 9 84 9 IN T R A S T A T E T O L L 5- 1 3 Sh e e t 1 o f 2 lO C A L In t e r L A T A MS G 10 (g ) In l r a L A T A MS G (h i (i ) 19 , 06 1 2 % 20 , 16 3 0 % 27 9 4 % 25 , 43 2 4 % 25 , 43 3 6 % 33 , 33 3 3 % 33 , 33 3 3 % 33 , 33 3 3 % 09 5 09 5 Us e r De f i n e d (k l EA S 65 3 0 % 02 0 9 % 01 9 4 % 33 , 33 3 3 % 33 , 33 3 3 % 33 , 33 3 3 % 58 4 58 4 15 7 47 2 ~:~ ; ~ : ~ E j " ~" L U " ' " ; ' - ' ~ ' ", i ' : ; ; L ; :j ; : ; J ; ; ? ; : : : ! ; E j d Ll~ ; : 5Z 1 X i ) , !I , ! ; , ~C ; ) c ' ; \ ~ " ' : ; ~ ! ! ! : ;; ; ; 21 . 4 7 2 84 5 X;; \ ~ I , 0 : : , ; ' ; ; ; ' 21 . 4 7 2 84 7 57 2 33 7 Mo s s A d a m s , l L P 86 8 84 1 41 2 6 / 2 0 0 7 Oth e r (I) 28 , 89 2 2 % 47 , 04 6 0 % 74 , 81 6 1 % 45 , 32 4 5 % 45 , 31 8 0 % 17 5 17 5 43 1 43 1 16 3 16 3 52 7 16 0 1 2 3 41 2 6 1 2 0 0 7 Ca m b r i d g e T e l e p h o n e C o m p a n y , I n c . Stu d y A r e a : 4 7 2 2 1 5 Stu d y Y e a r . 2 0 0 5 CU S T O M E R O P E R A T I O N S E X P E N S E S $- 1 3 Sh e e t 2 0 1 2 IN T E R S T A T E T O L L -- c - IN T R A S T A T E T O L L LO C A L TO T A L In t e r L A T A In t r a L A T A In t e r L A T A In t r a L A T A EA S Us e r Oth e r CO M P A N Y MS G MS G MS G MS G De f i n e d LI N E DE S C R I P T I O N SO U R C E (a ) (b l (c ) (d l (e ) (g ) (h ) (i) (" I (I) SE P A R A T I O N S F A C T O R S ,,' 40 R e l a f i v e T o l l & L o c a l M s g s p c t Re c o r d s 10 0 , 00 0 0 % ~. ~ ~ ~ ~ ~ , ~~ 6 ~ ~ ~ ; i : . ~~ . ~ ~ ~ ~ , 41 C A B S P c t Re c o r d s 10 0 , 00 0 0 % SE R V I C E S E X P S E P A R A T I O N C O N T ' D Ca t 2 - CS E M s g P r o c 66 1 , . .: , .: " " Jo i n t M e s s a g e Ln 4 2 a 65 4 28 3 91 0 Di r e c t A s s i g n m e n t Dir e c t Ca t 2 - CS E O t h e r 8 & C Di r e c t A s s i 9 n m e n t Dir e c t 85 9 46 7 19 6 19 6 En d U s e r C o m m o n L i n e Dir e c t 72 9 72 9 Ca t 2 - CS E C A B S Ln 4 8 a 77 8 38 9 69 5 69 5 To t a l C a t 2 - C S E Ln 4 2 . . 22 0 24 6 97 7 80 0 19 6 To t a l A l l O t h e r C a t 1 & 2 Ln 3 9 + 4 9 16 2 79 2 57 . 58 4 84 5 64 1 72 3 Di s t r i b u t i o n 0 1 L i n e Ln 5 0 / 5 0 a 10 0 . 0D O O % 35 . 37 2 5 % 81 9 D % 26 , 8D 7 6 % 33 . 0D D 8 % Ca t 3 - A I I O t h e r C S E Ln 5 2 a Ca t 3 - D i r e c t A s s i g n m e n t Dir e c t 67 5 67 5 To t a i A l i O t h e r C a t 3 Ln 5 2 . . 67 5 67 5 To t a l A l l O t h e r - C a t 1 . Ln 5 0 + 5 4 16 4 , 4 6 7 59 , 25 9 84 5 43 . 64 1 72 3 56 T O T A L S E R V I C E S E X P E N S E S Ln 1 8 + 2 4 + 5 5 17 3 , 74 7 1D 3 9D 3 45 , 4 2 5 31 7 57 T O T A L C U S T O M E R O P E R E X P E N S E S Ln 1 3 + 5 6 18 4 73 6 27 1 96 6 9D 3 47 . 52 D 58 4 49 2 Di s t r i b u t i o n 0 1 L i n e Ln 5 7 / 5 7 a 1D D . DO O D % 35 , 87 3 5 % 52 3 1 % 4. 2 7 7 9 % 25 , 72 3 D % 31 6 3 % 33 . 28 6 2 % Pr o p r i e t a r y I n f o r m a t i o n Mo s s A d a m s , L L P 17 0 1 2 3 4/2 6 / 2 0 0 7 Ca m b r i d g e T e l e p h o n e C o m p a n y , I n c , Stu d y A r e a : 4 7 2 2 1 5 Stu d y Y e a r 2 0 0 5 CO R P O P E R A T I O N S , T A X E S , & E Q U A L A C C E S S E X P E N S E S 5- 1 4 IN T E R S T A T E T O L L IN T R A S T A T E T O L L LO C A L TO T A L In t e r L A T A In t r a L A T A In l e r L A T A In t r a L A T A EA S Use r Oth e r CO M P A N Y MS G MS G MS G MS G Oe f i n e d LI N E DE S C R I P T I O N SO U R C E (a l (b l (c ) (d l (e l (g ) (h i (i) IJ I (k l II) SE P A R A T I O N S F A C T O R S 1 B i g T h r e e E x p e n s e s D i s t r S- 3 Ln 6 10 0 , 00 0 0 % 39 , 69 5 8 % 11 5 8 % 79 2 5 % 20 . 4 7 5 9 % 06 1 2 % 26 7 1 % 29 , 59 1 8 % 2 2 0 0 1 T P I S D i s t r 5- 2 Ln 1 5 10 0 , 00 0 0 % 40 , 98 9 7 % 91 9 4 % 64 3 1 % 18 , 87 6 4 % 27 2 1 % 96 1 0 % 28 , 33 8 1 % 3 E q u a l A c c e s s I n v e s t D i s t r 5- 9 Ln 2 8 4 N e t T e l e c o m P l a n t D i s t r e x d 1 2 2 0 , E A 5- 2 , Ln 3 7 10 0 , 00 0 0 % 44 , 95 4 6 % 14 2 6 % 5. 4 2 2 0 % 19 , 03 9 0 % 26 0 5 % 3.4 9 9 6 % 21 , 68 1 7 % 5 I n c o m e T a x D i s t r i b u t i o n 5- 3 , L n 2 7 10 0 , 00 0 0 % 43 , 57 8 2 " 1 0 95 0 6 % 58 4 0 % 18 , 67 1 9 % 96 3 2 % 31 7 8 % 27 , 95 4 3 % CO R P O R A T E O P E R E X P S E P A R A T I O N S 66 7 1 0 E x e c & P l a n n i n g E x p e n s e s ," . EA S Di r e c t i7 : 4 B: i AJ I O t h e r Ln 8 a 26 1 83 8 10 3 , 93 9 15 8 93 0 61 4 77 9 93 6 Di r e c t A s s i g n m e n t Di r e c t 10 T O T A L E X E C & P L A N N I N G EX P E N S E S Ln 7 . . 9 26 1 83 8 10 3 93 9 15 8 93 0 81 4 77 9 93 6 77 , 48 2 11 6 7 2 0 G e n l a n d A d m i n E x p e n s e s EA S Di r e c t All O t h e r Ln 1 3 a 26 1 67 7 10 3 87 5 15 3 92 4 53 , 58 ' 77 7 93 2 77 , 4 3 5 Di r e c t A s s i g n m e n t Di r e c t 43 , 87 1 87 1 15 T O T A L G E N ' L & A D M I N E X P E N S E S Ln 1 2 . . 30 5 , 54 8 14 7 , 74 6 15 3 92 4 58 1 77 7 93 2 77 , 4 3 5 16 T O T A L C O R P O R A T E O P E R E X P E N S E S Ln 1 0 + 1 5 56 7 38 6 25 1 88 4 31 2 85 4 10 7 , 19 4 55 6 11 , 88 8 15 4 91 7 17 D i s t r i b U 1 i o n o f L i n e 1 6 Ln 1 6 / 1 6 a 10 0 , 00 0 0 % 44 , 35 8 8 % 87 4 9 % 3. 4 9 9 3 % 18 , 89 2 7 % 97 9 2 " 1 0 09 1 8 % 27 , 30 3 7 % OP E R A T I N G T A X E S S E P A R A T I O N S 18 7 2 0 0 O p e r a t i n g T a x e s ( A c t u a l ) Fe d e r a l I n c o m e T a x e s Ln 1 9 a 10 7 , 61 8 89 8 17 5 83 8 09 4 03 7 2,4 9 4 08 4 Sta t e & L o c a l I n c o m e T a x e s Ln 2 0 a OP F E D , S T A T E , L O C A L T A X E S - C W C 10 7 81 8 89 8 17 5 83 6 09 4 03 7 49 4 30 , 08 4 22 F I T A l l o w a n c e s / D i s a l l o w a n c e s Ln 2 2 a Op e r a l i n g T a x e s - P r o p e r t y Ln 2 3 a 51 0 21 . 11 4 01 9 87 7 72 3 65 5 52 5 59 7 Op e r a l i n g T a x e s - O t h e r Ln 2 4 a Op e r a t i n g T a x e s - D i r e c t A s s i g n m e n t Dir e c t 72 2 72 2 26 T O T A L O P E R T A X E S x I F I T , SI T Ln 2 3 . . 23 2 83 6 01 9 87 7 72 3 65 5 52 5 59 7 OP E R A T i N G R E V E N U E S E P A R A T I O N S 27 5 0 0 0 B a s i c L o c a l R e v e n u e Dir e c t 28 5 0 8 0 I n t e r s t a t e A c c e s s / E n d U s e r R e v e n u e Dir e c t 29 5 0 8 4 S t a t e A c c e s s / E n d U s e r R e v e n u e Dir e c t 30 5 1 0 0 L o n g D i s t a n c e M e s s a g e R e v e n u e Dir e c t 31 5 2 0 0 M i s c e l l a n e o u s O p e r a t i n g R e v e n u e Dir e c t 32 7 1 0 0 O t h e r O p e r a t i n g I n c o m e Dir e c t 33 T O T A L O P E R A T I N G R E V E N U E Ln 2 7 . . EQ U A L A C C E S S E X P E N S E S S E P A R A T I O N 34 E q u a l A c c e s s E x p e n s e s Ln 3 4 a 35 T O T A L E Q U A L A C C E S S E X P E N S E S Ln 3 4 . . AL L O W A N C E S A N D D I S A L L O W A N C E S 36 E x p e n s e A l l o w a n c e s / D i s a l l o w a n c e s In t e r e s t o n C u s t o m e r D e p e s ' s Ln 3 7 a Oth e r I n t e r e s t D e d u c t i o n Ln 3 7 a Dir e c t A s s i g n m e n t Dir e c t 40 T O T A L E X P E N S E A L L O W / D I S A L L O W A N C E S Ln 3 7 . . No t e 1 : F I T a n d S I T C a l c u l a t e d o n t h e 5 - 1 Pr o p r i e l a r y I n f o r m a l i o n Mo s s A d a m s , L L P 18 0 1 2 3 41 2 6 / 2 0 0 7 Ca m b r i d g e T e l e p h O n e C o m p a n y , I n c , St u d y A r e a : 4 7 2 2 1 5 St u d y Y e a r ' 2 0 0 5 RE S E R V E S & D E F E R R A L S S- 1 5 Sh e e t 1 0 1 2 IN T E R S T A T E T O L L IN T R A S T A T E T O L L LO C A L TO T A L In t e r L A T A In t r a L A T A In t e r L A T A In t r a L A T A EA S Us e ! Oth e r CO M P A N Y MS G MS G MS G MS G De f i n e d LI N E DE S C R I P T I O N SO U R C E (a ) (b ) (c ) (d ) (e ) (g ) (h ) (i) (j ) (k ) (I ) SE P A R A T I O N S F A C T O R S 12 1 1 0 S u p p o r t A s s e t s D i s t r S- 4 Ln 9 10 0 , 00 0 0 % 40 . 96 9 7 % 91 9 4 % 64 3 1 % 18 , 87 6 4 % 27 2 1 % 96 1 0 % 28 , 33 8 1 % 22 2 1 0 C O E - S w i t c h i n g , i n c l . E A D i s t r S- 5 Ln 3 7 + S - 9 , Ln 2 6 10 0 , 00 0 0 % 85 . 00 0 0 % 15 . 00 0 0 % 3 2 2 2 0 C O E - O p e r a t o r D i s t r S- 5 Ln 2 4 4 2 2 3 0 c a E - Tr a n s m i s s i o n D i s t r S- 5 Ln 7 7 10 0 , 00 0 0 % 36 . 4 1 1 8 % 55 9 0 % 24 5 1 % 18 , 62 8 8 % 96 1 8 % 29 0 3 % 21 , 90 3 2 % 52 3 1 0 l O T D i s t r S- 6 Ln 1 2 6 2 4 1 0 C & W F D i s t r S- 7 Ln 4 3 10 0 , 00 0 0 % 36 . 25 4 3 % 2.2 0 0 2 % 94 3 8 % 21 , 81 2 3 % 18 1 0 % 63 4 1 % 32 , 97 4 2 % 7 2 0 0 1 T P I S x l L a n d S- 2 Ln 1 8 10 0 . 00 0 0 % 40 . 98 9 7 % 91 9 4 % 64 3 1 % 18 . 87 6 4 % 27 2 1 % 96 1 0 % 28 . 33 8 1 % 8 G e n e r a l S u p p o r t . C a E , l O T , C & W F S- 2 Ln 1 + 8 10 0 . 00 0 0 % 40 . 98 9 7 % 91 9 4 % 64 3 1 % 16 , 87 6 4 % 27 2 1 % 96 1 0 % 28 , 33 8 1 % 92 0 0 2 P r o p H i d F t r T e l U s e D i s t r S- 9 Ln 7 10 2 6 8 0 C a p t i a l L e a s e s D i s t r S- 8 Ln 1 9 11 2 6 8 0 L e a s e h o l d I m p r o v e m e n t s S- 8 Ln 3 0 12 2 6 9 0 I n t a n g i b l e A s s e t s D i s t r S- 8 Ln 3 6 13 2 0 0 5 T e l e c o m P ~ A d u s t m e n l S- 9 Ln 1 5 RE S E R V E S & D E F E R R A L S S E P A R A T I O N 14 1 5 0 0 O t h e r J u r i s A s s e t s - Ne t Dir e c t 15 3 1 0 0 A c c u m D e p r - Te l P ~ i n S v c Su p p o r t A s s e t s Ln 1 6 a 54 1 79 4 63 1 97 7 60 . 4 2 9 16 9 29 1 . 03 6 19 , 61 4 65 3 43 6 91 6 Su p p o r t A s s e t s - D i r e c t A s s i g n m e n t Dir e c t CO E - S w i t c l 1 i n g Ln 1 8 a 11 0 06 1 94 3 55 2 15 6 , 50 9 Ca E - S . . . . ; t c h i n g - D i r e c t A s s i g n m e n t Dir e c t CO E - O p e r a t o r Ln 2 0 a Ca E - O p e r a t o r - D i r e c t A s s i g n m e n t Dir e c t ca E - Tr a n s m i s s i o n Ln 2 2 a 2.4 2 9 62 1 88 4 67 0 23 2 24 8 10 3 . 14 0 45 2 , 60 8 56 4 17 7 , 12 6 53 2 16 4 Ca E - T r a n s m i s s i o n - D i r e c t A s s i g n m e n t Dir e c t In f o O r i g f T e r m E q u i p Ln 2 4 a In f o O r i g f T e r m E q u i p - D i r e c t A s s i g n m e n t Dir e c t C& W F Ln 2 6 a C& W F - D i r e c t A s s i g n m e n t Dir e c t 91 2 08 6 35 7 63 0 33 7 79 , 81 3 13 1 , 36 4 67 0 30 0 16 3 97 3 28 T O T A L A C C U M U L A T E D DE P R E C I A T I O N Ln 1 6 . . 99 3 56 1 81 7 82 8 37 6 01 4 23 9 , 12 2 87 5 00 8 12 7 , 94 8 25 8 07 9 29 9 56 2 29 3 2 0 0 A c c u m D e p r P r o p e r t y H e l d Fo r F u t u r e T e l e c o m U s e Ln 3 0 a 31 3 4 0 0 A c o u m A m o r t - C a p ~ a l L e a s e s Ln 3 1 a 32 3 4 0 0 A c c u m A m o r t - L e a s e h o l d Im p r o v e m e n t s Ln 3 2 a 33 3 5 0 0 A c o u m A m o r t - In t a n g i b l e Ln 3 3 a 34 3 6 0 0 A c o u m A m o r t - O t h e r Ln 3 4 a 35 4 0 4 0 C u s l o m e r D e p o s i t s Ln 3 5 a 81 2 97 2 18 9 17 5 90 8 14 2 36 4 Dir e c t A s s i g n m e n t Dir e c t 37 T O T A L C U S T O M E R D E P O S I T S Ln 3 5 . . 81 2 97 2 18 9 17 5 90 8 14 2 36 4 38 4 1 0 0 N e t C u r D e l O p I n c T a x e s Su p p o r t A s s e t s Ln 3 9 a CO E - S w i t c l 1 i n g Ln 4 0 a CO E - O p e r a t o r Ln 4 1 a Ca E - Tr a n s m i s s i o n Ln 4 2 a In f o O r i g f T e r m E q u i p Ln 4 3 a C& W F Ln 4 4 a No t C l a s s i f i e d b y A c c t Ln 4 5 a 46 T O T A L N E T C U R D E F O P I N C T A X E S Ln 3 9 , .4 5 Pr o p r i e t a " I n f o r m a t i o n Mo s s A d a m s , L L P 19 0 1 2 3 41 2 6 / 2 0 0 7 Ca m b r ; d g e T e l e p h o n e C o m p a n y , I n c , Si u d y A r e a : 4 n 2 1 5 St u d y Y e a r 2 0 0 5 RE S E R V E S & D E F E R R A L S S-1 5 Sh e e t 2 o 1 2 IN T E R S T A T E T O L L IN T R A S T A T E T O L L LO C A L TO T A L In l e r l A T A In l r a l A T A In l e r l A T A In t r a l A T A EA S Us e r Ot h e r CO M P A N Y MS G MS G MS G MS G De f i n e d LI N E DE S C R I P T I O N SO U R C E la ) Ib l Ic ) (d l (e l (g l (h i (i) Ik l (I) SE P A R A T I O N S F A C T O R S 47 B i g T h r e e E x p e n s e s D i s l r S- 3 Ln 6 10 0 , 00 0 0 % 39 . 69 5 8 % 11 5 8 % 79 2 5 % 20 , 4 7 5 9 % 06 1 2 % 26 7 1 % 29 . 59 1 8 % 48 2 1 1 0 S u p p o r t A s s , " , D i s l r S- 4 lo 9 10 0 , 00 0 0 % 40 . 98 9 7 % 91 9 4 % 64 3 1 % 18 , 87 6 4 % 1.2 7 2 1 % 96 1 0 % 28 , 33 8 1 % 49 2 2 1 0 C O E - S w i t c h i n g D i s l r S- 1 5 Ln 2 10 0 , 00 0 0 % 85 . 00 0 0 % 15 , 00 0 0 % 50 2 2 2 0 C O E - O p e r a t o r D i s 1 r S- 6 Ln 2 4 51 2 2 3 0 C O E - Tr a n s m i s s i o n D i s 1 r S- 5 lo 7 7 10 0 , 00 0 0 % 36 , 4 1 1 8 % 55 9 0 % 24 5 1 % 18 , 62 8 8 % 96 1 8 % 29 0 3 % 21 , 90 3 2 % 52 2 3 1 0 l O T D i s 1 r S- 6 lo 1 2 53 2 4 1 0 C & W F D i s t r S- 7 lo 4 3 10 0 , 00 0 0 % 36 . 25 4 3 % 20 0 2 % 94 3 8 % 21 , 81 2 3 % 18 1 0 % 63 4 1 % 32 , 97 4 2 % 54 2 0 0 1 T P I S x l L a n d S- 2 lo 1 8 10 0 . 00 0 0 % 40 , 98 9 7 % 91 9 4 % 64 3 1 % 18 , 87 6 4 % 27 2 1 % 96 1 0 % 28 , 33 8 1 % 55 2 0 0 1 T P I S D i " r S- 2 . lo 1 5 10 0 . 00 0 0 % 40 . 98 9 7 % 91 9 4 % 64 3 1 % 18 , 87 6 4 % 2n 1 % 96 1 0 % 28 , 33 8 1 % 56 2 0 0 1 T P I S D i s l r S- 2 lo 1 + 8 10 0 . 00 0 0 % 40 . 98 9 7 % 91 9 4 % 64 3 1 % 18 , 87 6 4 % 1.2 7 2 1 % 96 1 0 % 28 , 33 8 1 % RE S E R V E S & D E F E R R A L S S E P A R A T I O N 57 4 3 1 0 O t h e r L o n g - T e r m L i a b i l i l i e s Ln 5 7 a 58 4 3 4 0 N e t N o n c u r r e n l D e f T a x e s Su p p o r t A s s e ' " Ln 5 9 a CO E - S w i t c h i n 9 lo 6 0 a CO E - O p e r a l o r lo 6 1 a CO E - T r a n s m i s s i o n Ln 6 2 a In 1 0 O r i g l T e r r n E q u i p Ln 6 3 a C& W F Ln 6 4 a No t C l a s s i f i e d b y A c c t Ln 6 5 a 40 , 4 5 9 58 4 58 6 47 4 63 7 51 5 19 8 46 5 66 T O T A L N E T N O N C U R R E N T D E F TA X E S lo 5 9 . . 45 9 58 4 58 6 47 4 63 7 51 5 19 8 11 , 4 6 5 67 4 3 6 0 O t h e r D e f e r r e d C r e d i t s - N e t lo 6 7 a 68 4 3 7 0 O t h e r J u r i s L i a b i i O i e s & D e l e r r e d C r e d i l s - N e l Di r e c t AC C U M D E P R & A M O R T A L L O W / D I S A L L O W 70 A c c u m D e w & A m o r t A J l o v d D i s a l i o w Ln 7 0 a Dir e c t A s s i g n m e n t Di r e c t 72 T O T A L A C C D E P R / A M O R T AL W / D I S A L L O W Ln 7 0 . . ? 1 Pr o p r i e t a r y I n l o r m a t i o n Mo s s A d a m s , L L P 20 0 1 2 3 4/2 6 1 2 0 0 7 Ca m b r i d g e T e l e p h o n e C o m p a n y , I n c . Stu d y A r e a : 4 7 2 2 1 5 Stu d y Y e a r . 2 0 0 5 CA S H W O R K I N G C A P I T A L S-1 6 IN T E R S T A T E T O L L IN T R A S T A T E T O L L LO C A L TO T A L In t e r L A T A In t r a L A T A In t e r L A T A In t r a L A T A EA S Use r Ot h e r CO M P A N Y MS G MS G MS G MS G De n n e d LI N E DE S C R I P T I O N SO U R C E (a ) (b ) (c ) (d ) (e ) (g ) (h ) (i) II I (k ) (I ) CA S H W O R K I N G C A P I T A L 1 P l a n t S p e c , " c E x p e n s e s S- 1 1 Ln 3 1 82 1 76 6 33 5 , 27 3 64 0 03 7 16 6 , 09 2 10 . 4 2 4 89 4 23 4 40 7 2 P l a n t N o n s p e c , " c e x p e x c l d e p r e c i a t i o n & a m o r t ~ a t i o n S- 1 2 , L n 1 6 a 41 . 0 7 3 29 . 94 2 73 9 68 7 56 1 24 0 55 9 34 5 3 C u s t o m e r O p e r a t i o n s E x p e n s e - M a r k e t i n g S- 1 3 , L n 1 3 10 , 98 9 16 9 96 6 09 5 58 4 17 5 4 C u s t o m e r O p e r a t i o n s E x p e n s e - S e r v i c e s S- 1 3 , L n 5 6 17 3 , 74 7 10 3 90 3 45 . 4 2 5 31 7 5 C o r p o r a t e O p e r a t i o n s E x p e n s e S- 1 4 , L n 1 6 56 7 36 6 25 1 , 68 4 31 2 19 . 85 4 10 7 . 19 4 55 6 86 8 15 4 . 91 7 6 E q u a l A c c e s s E x p e n s e S- 1 4 , L n 3 4 7 O t h e r N o n o p e r a t i n g E x p e n s e - C o n O i b u t i o n s S- 1 0 , L n 1 6 19 4 17 6 72 4 68 2 4,7 6 0 24 7 52 7 87 9 8 I n t e r e s t o n C a p i t a l L e a s e s S- 1 0 , L n 2 0 9 F i x e d C h a r g e s e x c l C a p i t a l L e a s e s S- 1 0 , L n 2 1 19 2 , 33 5 66 . 4 6 3 96 8 10 . 4 2 8 61 9 2.4 2 4 73 1 70 1 10 I n t e r e s t o n C u s t o m e r D e p e s i l S S- 1 0 , L n 1 7 11 O t h e r O p e r a t i n g T a x - P r o p e n y S- 1 0 , L n 2 3 51 0 11 4 01 9 87 7 72 3 65 5 52 5 59 7 12 O t h e r O p e r a t i n g T a x - O t h e r S- 1 0 , L n 2 4 13 O t h e r O p e r a t i n g T a x - D i r e c t A s s i g n m e n t S- 1 0 , L n 2 5 72 2 72 2 14 F e d e r a l & S t a t e I n c o m e T a x ( A c t u a l ) S- 1 0 , L n 2 1 10 7 61 8 89 8 17 5 83 6 09 4 03 7 49 4 08 4 To t a l C a s h W o r ~ n g C a p i t a l E x p e n s e s Ln U 4 99 2 . 4 3 4 84 9 58 5 54 7 50 9 38 5 58 0 16 8 60 1 54 9 44 3 16 C a s h W o r ~ n g C a p i t a l F a c t o r Re c o r d s 88 7 7 % 88 7 7 % 88 7 7 % 88 7 7 % 88 7 7 % 88 7 7 % 88 7 7 % 88 7 7 % 88 7 7 % 88 7 7 % 88 7 7 % 17 C a s h W o r ~ n g C a p i t a l Ln 1 5 " L n 1 6 13 7 23 2 51 7 37 7 20 1 55 7 45 8 27 9 37 , 84 4 18 M i n i m u m B a n k B a l a n c e Re c o r d s 19 W o r ~ n g C a s h A d v a n c e s Re c o r d s 20 0 To t a l C a s h W o r ~ n g C a p i t a l 13 7 43 2 60 2 38 3 20 8 26 , 59 6 1. 4 6 0 28 3 89 9 21 D i s t r i b u t i o n 0 1 L i n e 2 0 Ln 2 0 1 2 0 a 10 0 , 00 0 0 % 42 . 64 0 6 % 18 9 4 % 78 9 8 % 19 . 35 2 2 % 06 2 4 % 38 9 1 % 27 . 5 7 6 5 % Pr o p r i e t a r y I n f o r m a t i o n Mo s s A d a m s , L L P 21 0 1 2 3 Ca m b r i d g e T e l e p h o n e C o m p a n y , I n e , SlU d y A r e a : 4 7 2 2 1 5 SlU d y Y e a r : 2 0 0 5 DE S C R I P T I O N 1 A V E R A G E N E T I N V E S T M E N T 2 A S S U M E D R A T E O F R E T U R N F O R E S T I M A T I N G TA X R A T E 3 R E T U R N O N I N V E S T M E N T 4 F I T I N C O M E A D J U S T M E N T (F R O M C O S T S T U D Y ) 5 I N V E S T M E N T T A X CR E D I T A M O R T I Z A T I O N 6 A F T E R T A X I N C O M E B E F O R E TA X C R E D I T S 7 F I T B E F O R E T A X C R E D I T S ( M U S T EQ U A L L N 1 7 ) 6 T A X A B L E I N C O M E 9 F I T O N $ 0 t o $ 5 0 00 0 i ! J ! 1 5 % 10 F I T O N $ 5 0 00 0 t o $ 7 5 00 0 ( Q ) 2 5 % 11 F I T O N $ 7 5 00 0 t o $ 1 0 0 . 00 0 i ! J ! 3 4 % 12 F I T O N $ 1 0 0 00 0 t o $ 3 3 5 00 0 ( Q ) 3 9 % 13 F I T O N $ 3 3 5 00 0 1 0 $ 1 0 00 0 , 00 0 i ! J ! 3 4 % 14 F I T O N $ 1 0 , 00 0 00 0 1 0 $ 1 5 00 0 00 0 ( Q ) 3 5 % 15 F I T O N $ 1 5 00 0 00 0 1 0 $ 1 8 33 3 33 3 ( Q ) 3 8 % 16 F I T O N O V E R $ 1 8 33 3 33 3 ( Q ) 3 5 % 17 T O T A L T A X A B L E IN C O M E / F I T B E F O R E T A X CR E D I T S 18 E F F E C T I V E F I T T A X R A T E Pro p r i e t a r y I n f o r m a t i o n SO U R C E S-1 Ln 1 S-1 Ln 6 Ln 1 a " 2 15 % 25 % 34 % 39 % 34 % 35 % 38 % 35 % LN s 9 . . TA X F O R M Ta x a b l e TO T A L 26 7 64 0 9.4 7 0 9 % 68 8 31 0 19 2 48 6 49 5 82 4 25 5 . 4 2 4 75 1 24 8 00 0 00 0 00 0 23 5 00 0 41 6 24 8 75 1 24 8 IN C O M E T A X TO T A L Su r T a x 50 0 25 0 8. 5 0 0 65 0 14 1 , 52 4 25 5 , 42 4 34 . 00 0 0 % 41 2 6 / 2 0 0 7 S- 1 7 00 0 11 . 75 0 16 . 75 0 10 0 . 00 0 55 0 00 0 Mo s s A d a m s , L L P 22 0 1 2 3 41 2 6 / 2 0 0 7 Ca m b r i d g e T e l e p h o n e C o m p a n y , I n c , Stu d y A r e a : 4 7 2 2 1 5 Stu d y Y e a r 2 0 0 5 DI S T R I B U T I O N RA T I O S F O R R A T E B A S E A N D EX P E N S E S 50 1 8 . . . IN T E R S T A T E T O L L IN T R A S T A T E T O L L LO C A L In t e r L A T A In t r a L A T A In t e r L A T A In t r a L A T A EA S Us e r Oth e r MS G MS G MS G MS G De f i n e d AL L O C A T I O N R A T I O S Ca t e g o r y To t a l Ib ) (c ) Id ) (e ) ,g ) Ih ) c;) (k ) (I) Ca p i t a l I n v e s t m e n t S u m m a r y Ge n e r a l S u p p o r t F a a l r t i e s 21 1 0 10 0 , 00 0 0 % 40 . 98 9 7 % 91 9 4 % 64 3 1 % 18 . 87 6 4 % 27 2 1 % 96 1 0 % 28 , 33 8 1 % CO E S v . i l c h i n g E q u i p m e n t 22 1 0 10 0 , 00 0 0 % 85 . 00 0 0 % 15 , 00 0 0 % Op e r a t o r S y s t e m s E q u i p m e n t 22 2 0 CO E T r a n s m i s s i o n E q u i p m e n t 22 3 0 10 0 . 00 0 0 % 36 . 4 1 1 8 % 55 9 0 % 24 5 1 % 18 . 62 8 8 % 96 1 8 % 29 0 3 % 21 , 90 3 2 % In f o r m a t i o n O r i g l T e r m E q u i p m e n t 23 1 0 Ca ~ e & W i r e F a c i l " e s 24 1 0 10 0 . 00 0 0 % 36 . 25 4 3 % 20 0 2 % 94 3 8 % 21 , 81 2 3 % 18 1 0 % 63 4 1 % 32 , 97 4 2 % Ta n g i b l e A s s e t s 26 8 0 In t a n 9 i b l e A s s e t s 26 9 0 To t a l P l a n t i n S e r v i c e NC 2 0 0 1 10 0 . 00 0 0 % 40 . 98 9 7 % 91 9 4 % 64 3 1 % 18 , 87 6 4 % 27 2 1 % 96 1 0 % 28 , 33 8 1 % Pr o p e r t y H e l d f o r F u t u r e U s e 20 0 2 Pla n t U n d e r C o n s t r u c t i o n 20 0 3 10 0 . 00 0 0 % 40 . 98 9 7 % 91 9 4 % 64 3 1 % 18 , 87 6 4 % 27 2 1 % 96 1 0 % 28 . 33 8 1 % Te l e p h o n e P l a n t A d j u s t m e n t 20 0 5 To t a l P r o p e r t y , P l a n t a n d E q u i p m e n t 10 0 , 00 0 0 % 40 . 98 9 7 % 91 9 4 % 64 3 1 % 18 , 87 6 4 % 27 2 1 % 96 1 0 % 28 . 33 8 1 % Ac c u m u l a l e d D e p r e c i a t i o n - P l a n t i n S e r v i c e 31 0 0 10 0 . 00 0 0 % 38 , 20 2 9 % 76 2 6 % 39 2 8 % 18 , 76 2 2 % 1.2 8 0 3 % 58 2 5 % 33 . 01 6 9 % Ac c u m u l a l e d D e p r e c i a t i o n - P r o p e r t y h e l d f o r F u t u r e U s e ) 32 0 0 Ac c u m u l a t e d A m o r t i z a t i o n - T a n g i b l e P r o p e r t y 34 0 0 Ac c u m u l a l e d A m o r t i z a t i o n - In t a n g i b l e P r o p e r t y 35 0 0 Ac c u m u l a t e d A m o r t i z a t i o n - T e l e p h o n e P l a n t A d j u s t m e n t 36 0 0 De f e r r e d O p e r a t i n g T a x e s 43 4 0 10 0 , 00 0 0 % 40 , 98 9 7 % 91 9 4 % 64 3 1 % 18 , 87 6 4 % 27 2 1 % 96 1 0 % 28 . 33 8 1 % Ot h e r L o n g T e r m L i a b i l i t i e s 43 1 0 Oth e r D e f e r r e d C r e d i t s 43 7 0 Cu s t o m e r D e p e s i l s 10 0 , 00 0 0 % 40 , 98 9 7 % 91 9 4 % 64 3 1 % 18 , 87 6 4 % 27 2 1 % 96 1 0 % 28 . 33 8 1 % Ne t T e l e p h o n e P l a n t 10 0 , 00 0 0 % 44 , 81 9 6 % 11 2 4 % 39 9 1 % 19 . 08 2 1 % 25 9 3 % 3.4 7 0 7 % 21 . 85 6 9 % In v e s t m e n t A l l o w / D i s a l l o w Ac e u m D e p r / A m o r t A l l o w / D i s a l l o w Ma t e r i a l s a n d S u p p l i e s 12 2 0 10 0 , 00 0 0 % 36 . 25 4 3 % 20 0 2 % 94 3 8 % 21 . 81 2 3 % 18 1 0 % 63 4 1 % 32 , 97 4 2 ' % In v e s t m e n t i n N o n a f f i l i a t e d C o m p a n i e s 14 0 2 Eq u a l A c c e s s E q u i p m e n t 14 3 9 Oth e r J u r i s d i c t i o n a l A s s e t s 15 0 0 Ca s h W o r ~ n g C a p i l a l XX X X 10 0 . 00 0 0 % 42 . 64 0 6 % 18 9 4 % 78 9 8 % 19 . 35 2 2 % 06 2 4 % 38 9 1 % 27 . 57 6 5 % Ne t T e l e p h o n e P l a n t . M & S a n d C W C 10 0 . 00 0 0 % 44 . 78 1 0 % 09 5 1 % 36 9 8 % 19 . 08 7 3 % 25 5 6 % 3.4 5 0 5 % 21 , 96 0 7 % Op e r a f l n g Ex p e n . . . an d T a x e . S u m m a ~ Ne t w o r k S u p p o r t 61 1 0 10 0 . 00 0 0 % 40 . 98 9 7 % 91 9 4 % 64 3 1 % 18 . 87 6 4 % 27 2 1 % 96 1 0 % 28 , 33 8 1 % Ge n e r a l S u p p o r t 61 2 0 10 0 . 00 0 0 % 40 . 98 9 7 % 91 9 4 % 64 3 1 % 18 . 87 6 4 % 27 2 1 % 96 1 0 % 28 , 33 8 1 % Ce n t r a l O f f i c e 62 1 0 10 0 . 00 0 0 % 49 . 4 5 5 5 % 99 2 9 % 10 5 5 % 13 , 62 7 8 % 1.4 3 5 1 % 33 3 2 % 20 , 05 0 0 % In f o r m a t i o n O r i g l T e r m 63 1 0 Ca b l e a n d W i r e F a a l i l i e s 64 1 0 10 0 . 00 0 0 % 36 . 25 4 3 % 20 0 2 % 94 3 8 % 21 , 81 2 3 % 18 1 0 % 63 4 1 % 32 , 97 4 2 % Ot h e r P l a n t 65 1 0 Ne t w o r k O p e r a t i o n s 65 3 0 10 0 . 00 0 0 % 40 , 98 9 7 % 91 9 4 % 64 3 1 % 18 . 87 6 4 % 27 2 1 % 96 1 0 % 28 , 33 8 1 % Ac c e s s C h a r g e 65 4 0 Fe d e r a l S u p p o r t 65 4 0 10 0 . 0 0 0 0 % 10 0 , 00 0 0 % Ma r k e t i n g 66 1 0 10 0 , 00 0 0 % 37 , 93 4 7 % 79 4 6 % 19 , 06 1 2 % 31 7 3 % 28 . 89 2 2 % Cu s t o m e r S e r v i c e 66 2 0 10 0 , 00 0 0 % 35 , 87 3 5 % 52 3 1 % 4.2 7 7 9 % 25 . 72 3 0 % 31 6 3 % 33 . 28 6 2 % Co r p o r a t e O p e r a t i o n s - E x e c u t i v e a n d P l a n n i n g 67 1 0 10 0 , 00 0 0 % 39 , 69 5 8 % 11 5 8 % 79 2 5 % 20 . 4 7 5 9 % 06 1 2 % 26 7 1 % 29 . 59 1 8 % Co r p o r a t e O p e r a t i o n s - G e n e r a l a n d A d m i n i s t r a t i v e 67 2 0 10 0 , 00 0 0 % 48 . 35 4 3 % 66 8 4 % 24 8 0 % 17 . 53 5 9 % 90 8 9 % 94 1 6 % 25 , 34 2 9 % Su b t o t a l O p e r a t i o n s E x p e n s e 10 0 . 00 0 0 % 43 . 51 4 5 % 84 8 2 % 3.4 3 1 4 % 18 . 64 6 9 % 93 6 4 % =' 1 . 28 . 4 0 0 3 % De p r e c i a t i o n a n d A m o r t ~ a t i o n 65 6 0 10 0 , 00 0 0 % 45 . 32 5 3 % 50 5 4 % 14 3 0 % 17 . 40 4 0 % 77 8 1 % 18 4 9 % 28 , 65 9 3 % Ot h e r O p e r a t i n g 72 4 0 10 0 . 00 0 0 % 41 , 80 5 4 % 86 5 2 % 59 2 7 % 18 . 61 5 5 % 25 4 6 % 92 0 1 % 27 , 94 6 4 % Eq u a l A c e e s s Fi x e d C h a r g e s 75 0 0 10 0 . 00 0 0 % 44 , 95 4 6 % 14 2 6 % 5.4 2 2 0 % 19 , 03 9 0 % 26 0 5 % 3.4 9 9 6 % 21 , 68 1 7 % Re n t R e v e n u e 52 4 0 To t a l O p e r a t i n g E x p e n s e a n d T a x 10 0 , 00 0 0 % 43 . 4 8 2 2 % 86 7 5 % 3.4 3 4 5 % 18 , 64 6 3 % 94 2 4 % 23 5 5 % 28 . 39 1 5 % No n o p e r a t i n g E x p e n s e 73 7 0 Ab a n d o n e d C o n s t r u c t i o n Co n t r i b u t i o n s 10 0 . 00 0 0 % 44 . 35 8 6 % 87 4 9 % 3.4 9 9 3 % 18 , 89 2 7 % 97 9 2 % 09 1 8 % 27 , 30 3 7 % Oth e r N o n o p e r a t i n g Al l o w a n c e f o r F u n d s U s e d D u r i n g C o n s t r u c t i o n 73 4 0 10 0 , 00 0 0 % 40 , 98 9 7 % 91 9 4 % 84 3 1 % 18 , 87 6 4 % 27 2 1 % 96 1 0 % 28 , 33 8 1 % Ot h e r I n c e m e A d j u s t m e n t s XX X x Pr o p r i e t a r y I n f o r m a t i o n Mo s s A d a m s , L L F 23 o f 2 3