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ORGANIZATION AND BUSINESS OPERATIONS

12 Months Ended

Dec. 31, 2024

ORGANIZATION AND BUSINESS OPERATIONS

ORGANIZATION AND BUSINESS OPERATIONS

1. ORGANIZATION AND BUSINESS OPERATIONS

The Company is a leading provider of digital infrastructure and communications services with a focus on rural and remote markets in the United States, and internationally, including Bermuda and the Caribbean region.

The Company has developed significant operational expertise and resources that it uses to augment its capabilities in its local markets. With this support, the Company’s operating subsidiaries can improve their quality of service with greater economies of scale and expertise than would typically be available in the size markets the Company operates in. The Company provides management, technical, financial, regulatory, and marketing services to its operating subsidiaries and typically receive a management fee calculated as a percentage of their revenues, which is eliminated in consolidation. The Company also actively evaluates investment opportunities and other strategic transactions, both domestic and international, and generally looks for those that it believes fit its profile of telecommunications businesses in markets while keeping a focus on generating excess operating cash flows over extended periods of time. The Company uses the cash generated from its operations to maintain an appropriate ratio of debt and cash on hand and to re-invest in organic growth, to fund capital expenditures, to return value to its stockholders through dividends or stock repurchases, and to make strategic investments or acquisitions.

For further information about the Company’s financial segments and geographical information about its operating revenues and assets, see Notes 1 and 14 to the Consolidated Financial Statements included in this Report.

As of December 31, 2024, the Company offered the following types of services to its customers:

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Fixed Telecommunications Services. The Company provides fixed data and voice telecommunications services to business and consumer customers. These services include high-speed consumer broadband and high-speed data solutions for businesses. For some markets, fixed services also include video services and revenue derived from support under certain government programs.

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Carrier Telecommunication Services. The Company delivers services to other telecommunications providers including the leasing of critical network infrastructure such as tower and transport facilities, wholesale roaming and long-distance voice services, site maintenance and international long-distance services.

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Mobile Telecommunications Services. The Company offers mobile communications services over its wireless networks and related equipment (such as handsets) to both business and consumer customers.

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Managed Services. The Company provides information technology services such as network, application, infrastructure and hosting services to both its business and consumer customers to complement its fixed telecommunications services in its existing markets.

Through December 31, 2024, the Company has identified two operating segments to manage and review its operations, as well as to support investor presentations of its results. These operating segments are as follows:

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US Telecom. In the United States, the Company offers fixed, carrier, and managed services to business customers and consumers in Alaska and the western United States. In 2024, the Company ceased providing mobility services to retail customers in the western United States.

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International Telecom. In its international markets, the Company offers fixed, carrier, mobility and managed services to customers in Bermuda, the Cayman Islands, Guyana and the US Virgin Islands.

The following chart summarizes the operating activities of the Company’s principal subsidiaries, the segments in which it reported its revenue and the markets it served as of December 31, 2024:


International Telecom					US Telecom
Services		Markets		Tradenames	Services		Markets		Tradenames
Mobility Services		Bermuda, Guyana, US Virgin Islands		One Communications, GTT (1), Viya	Mobility Services		United States (rural markets)		Choice, Choice NTUA Wireless
Fixed Services		Bermuda, Cayman Islands, Guyana, US Virgin Islands		One Communications, Logic, GTT, Viya	Fixed Services		United States		Alaska Communications, Commnet, Choice, Choice NTUA Wireless, Sacred Wind Communications, Ethos Broadband, Deploycom
Carrier Services		Bermuda, Guyana, US Virgin Islands		One Communications, GTT, Viya, Essextel	Carrier Services		United States		Alaska Communications, Commnet, Sacred Wind Communications
Managed Services		Bermuda, Cayman Islands, US Virgin Islands, Guyana		One Communications, Logic, GTT, Viya, Brava, Fireminds (2)	Managed Services		United States		Alaska Communications, Choice

(1)

In 2024, the Company completed a rebranding in Guyana and GTT is now known as One Communications. The Company refers throughout this report to its business in Guyana as “OneGY.”

(2)

In 2024, the Company completed a rebranding of its services offerings to government and large business customers, including those services formally known as Fireminds, which is now known as Brava.