Tele-Topics - 2012 Vol 1 of 4.pdf - Pioneer Telephone Cooperative ...

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2General Managers Report Cont’d...pressure to be drastically reduced or eliminated.At this time, our 2011 unaudited consolidated net income isprojected to be between $15 and $17 million. The majority ofthe consolidated net income can be attributed to our 58% ownershipin the Cellular Network Partnership d/b/a Pioneer Cellular.Of the consolidated totals, Pioneer Telephone’s net incomeis projected to end the year 2011 around $1 million if not less.The projected 2011 net income for the Cellular Network Partnershipis projected to be approximately $38 million. PioneerLong Distance, (PLD), should have a good year with net incomeof approximately $2 million.To put this in perspective, our wholly-owned subsidiaries nowprovide over 60% of our consolidated revenues, which is upfrom 35% just three years ago. This is a tremendous shift in ourrevenue base and is indicative of how our business has changedfrom the “plain old telephone service” of the past to the newwireless and broadband services of the future. While we continueto see tremendous growth in our wireless and broadbandservices through our subsidiary companies, we also continueto see a tremendous decrease in telephone revenues due to a3.5 – 4% decrease in telephone access lines as well as accessminutes or calls terminated on Pioneer Telephone’s network.The Board of Trustees and Management of your Cooperativerecognize the severity of the future changes and trends in theTelecommunications Industry. We also understand the importanceof implementing cost reductions and revenue enhancementsto survive under the new structure. Many telephone companiesincluding Pioneer are facing the burden of placing moreof the cost to provide quality service on to their customers. Asyou are aware, Pioneer Telephone Cooperative and Pioneer LongDistance recently implemented rate increases to help offset decreasingrevenues. These on-going initiatives will help positionthe Cooperative for the uncertain financial future.We continue to see tremendous growth in our wireless andbroadband networks through our subsidiary companies.The Cellular Network Partnership, (CNP), d/b/a Pioneer Cellularis now processing over 2 million text messages a day. Roamingreceivable dollars have increased over 600% in the last 5years, and up over 100% in the last 12 months from data usagealone, while cell subscribers have increased to over 55,000year-to-date.I am also very pleased to report our 4G LTE venture withVerizon Wireless is on schedule to bring 4 th Generation LTEwireless service to Western and Southern Oklahoma. The new4G data technology will complement our existing 100% 3G coverageand has the capability to provide broadband data rates ofbetween 5 – 12 Mb to a 4G device, i.e., a traditional handset, aUSB stick, or a tablet. Our participation in the Verizon WirelessLTE Rural America Program will once again position Pioneer forthe future as wireless technology continues to be a normal partof our lives.As reported in a recent press release, CNP has entered in to adefinitive purchase agreement with Oklahoma 5 L.L.C. d/b/aCellular One to purchase a controlling interest in the assets andoperational control of Cellular One in Western Oklahoma, whichincludes the subscribers, wireless spectrum, network, employeesand retail locations in the communities of Weatherford,Clinton and Elk City. Cellular One currently provides wirelessservices in Beckham, Custer, Dewey, Roger Mills and Washitacounties of Western Oklahoma. This acquisition demonstratesour commitment to expand our wireless business and to improvethe quality of wireless service and coverage available inWestern Oklahoma.At their January, 2012 Board Meeting, your Board of Trusteesapproved a general membership patronage capital credit paymentto be made to the general membership in March of thisyear.This payment is estimated to total $514,461.62. The procedurefor distribution of this year’s general membership paymentwill be the same as in the past several years, wherein a crediton the billing of existing customers will be made for any checksless than $300.00. This credit will be applied to the customer’sregular monthly bill for the month of March, 2012. Paymentsof $300.00 or more will be paid by check instead of credit,and will be mailed around mid-March. Those members whoseservice was connected after 12/31/11 will not be receiving ageneral membership capital payment this year.In consideration of reduction of the distribution cost by 50%or more, and the cost of processing and mailing approximately94,500 checks, the Board of Trustees and Management believethis should prove to be, once again, a very efficient and cost effectivemanner for the distribution of this general membershippayment.The Board of Trustees also approved the continued paymentof capital credited to the estates of deceased patrons. Duringthe past year, Pioneer paid $1,402,846.36 to the estates ofdeceased subscriber/members. Since 1984, Pioneer Telephonehas returned $22,918,235.36 in patronage capital on estatesto its membership.Together, these two patronage distributions total approximately$2,040,638.29 in patronage cash that will be returnedto the Membership for the year 2011. Inclusive of last year’spayments, Pioneer Telephone will have paid a grand total of$44,170,799.29 in general membership and estate patronagecapital cash payments to the Cooperative membership. Theamount of patronage cash returned to the Pioneer Membershipis a huge accomplishment for the Cooperative—an accomplishmentthat you, as a Member, can be very proud of.The Pioneer Board of Trustees and Management of PioneerTelephone are very pleased the Cooperative will again be financiallyable to make a general membership payment of thismagnitude, in addition to the continuation of payment on theestates of deceased members. Pioneer Telephone is owned by
General Managers Report Cont’d...those it serves; and, as a Cooperative, is operated for the mutualbenefit of its members. Your patronage capital is tangibleevidence your Cooperative is working for you.If you have questions about your patronage capital credit account,or need to update your address in our records, pleasecall or write to the Pioneer Telephone Capital Credit Department,(405) 375-0873 or 1-800-650-6116, P.O. Box 539,Kingfisher, Oklahoma, 73750, or you can visit us on the webat www.ptci.com.The Pioneer Marketing Department has the following scheduledduring the first few months of 2012:E-911 and Internet Safety Programs at local schools:February 8 thCanton ElementaryFebruary 15 thLomega ElementaryFebruary 29 thFargo ElementaryMarch 7 thThomas ElementaryRoad Shows:CrescentWatongaComancheThurs., Feb. 16 thThurs., Feb. 23 rdTues., March 13 thAnnual Blood Drive on Wednesday, May 16th in KingfisherWe also recently launched our revitalized wireless website,www.pioneerwireless.com. Please tell your friends and familyand check out the great savings!As you can see, Pioneer Telephone and its wholly-owned subsidiariesare off to a very busy and fast start for the year 2012.All of us at Pioneer look forward to serving you, our membersand customers with the best in broadband telecommunicationsservices available. Again, I want to take this opportunity tothank all of our subscribers, members, customers and friendsfor your business and loyalty during the past year, and extendour best wishes for a safe, prosperous and blessed 2012.Pioneer Cellular to Further Expand itsWestern Oklahoma OperationsCellular Network Partnership d/b/a Pioneer Cellular is pleased to announce thatit has entered into a definitive agreement with Oklahoma 5 L.L.C. d/b/a CellularOneto purchase a controlling interest in the assets and operations of CellularOne inWestern Oklahoma, which includes the subscribers, wireless network and retaillocations in the communities of Weatherford, Clinton and Elk City. CellularOnecurrently provides wireless services in Beckham, Custer, Dewey, Roger Mills andWashita counties of Western Oklahoma.“This acquisition demonstrates the commitment of Pioneer Cellular to expandour wireless business and at the same time our desire to improve the quality ofwireless service and coverage area, not only to the CellularOne customers, butalso to the existing Pioneer Cellular customers,” said Richard Ruhl, Pioneer GeneralManager. “We are excited about the opportunity to deliver Pioneer Cellular’soutstanding 3G CDMA data services and the new, advanced 4G LTE data services tothe customers who live and work in these counties of Western Oklahoma.”The transaction is subject to approval by the Federal Communications Commission(FCC) as well as other customary closing conditions and is expected to closein the first quarter of 2012. Waller Capital Partners, LLC served as the exclusivefinancial advisor to Pioneer Cellular and Media Venture Partners acted as theexclusive financial advisor to CellularOne.PIONEER CELLULAR’S 4G LTE NETWORKTESTING SIGNALS - ALL SYSTEMS GOFirst LTE in Rural America Program ParticipantCompletes LTE Data SessionPioneer Cellular, one of 13 participants in the VerizonWireless LTE in Rural America program, has successfullycompleted end-to-end data testing over its new 4G LTEnetwork in preparation for a commercial launch next springfor customers in central and western Oklahoma. The newPioneer 4G LTE network will enable Pioneer and VerizonWireless customers to enjoy high-speed data services withinPioneer’s coverage area and provide Pioneer customers withaccess to Verizon Wireless’ 4G LTE network throughout theUnited States.Pioneer announced its participation in the LTE in RuralAmerica program last December and during the past yearhas constructed cell towers, laid fiber optic cable, and installednetwork hardware and software, working closely withVerizon Wireless engineers. Pioneer is now testing its newnetwork and trial devices for speed, reliability and ease ofuse.Richard Ruhl, general manager of Pioneer, said, “PioneerCellular’s participation in the Verizon Wireless LTE in RuralAmerica program will benefit our wireless customers as wellas Verizon Wireless’ customers by accelerating the benefitsof high-speed mobile broadband to rural areas where 4G LTEmobility is not available. Partnering with Verizon Wirelesswill help to ensure we are able to address the future needsof the rural communities we serve who have historically notbeen the first to benefit from technologies like 4G LTE.”Pioneer’s 4G LTE network covers more than 260,000 peoplein 21 counties across nearly 17,000 miles of centraland western Oklahoma.Dan Mead, president and CEO of Verizon Wireless, yesterdaysent a congratulatory e-mail to Ruhl, which was deliveredover Pioneer’s 4G LTE network.“This is an important milestone in our LTE in Rural Americaprogram because it demonstrates what can be accomplishedby two companies with the common goal of empowering ruralAmerica,” Mead said. “A robust wireless broadband infrastructureis vital for economic development in rural communities.We are committed to supporting our LTE in RuralAmerica participants so they can bring wireless broadbandto their communities as quickly as possible.”Verizon Wireless announced the LTE in Rural America initiativein June 2010 to bring the benefits of high-speed mobilebroadband to rural areas of the United States whereVerizon Wireless currently does not have a network. Underthe program, Verizon Wireless shares access to its 700 MHzspectrum with rural operators who use their tower and backhaulassets to build a 4G LTE network.To date, 13 rural carriers have leased spectrum covering, intotal, 2.6 million people in rural communities and 85,000square miles in 10 states.3
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Page 6 and 7: District Meeting Voting Information
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Page 12 and 13: NOTICE OFDISTRICT MEETINGFOR DISTRI
Page 14 and 15: 12BUSINESS &RESIDENTIAL• Repairs
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