c/^

LOCAL TELEPHONE COMPANY

ANNUAL REPORT

OFTHE

NAME Fusion Cloud Services, LLC(Here show in full the exact corporate, firm or individual name of the respondent)

WwGcMm'i4"w,SFcr*

^

LOCATEDAT 16WCenter, Fayetteville, AR 72701{Here give the location, including street and number o^ the respondent's main business office within the State)

COMPANYff 2739(Here give the APSC-assigned company number)

TOTHE

ARKANSAS PUBLIC SERVICE COMMISSION

COVERING AI^L OPERATIONS

FOR THE YEAR ENDING DECEMBER 31,2019

REPORT TO ARKANSAS PUBLIC SERVICE COMMISSION

LETTER OF TRANSMITTAL

To' Arkansas Public Sen/iceiCommissionPost Office Box 400Little Rock, Arkansas 72203-0400

Submitted herewith is the annual report covering the operation of Fusion Cloud Sen/ices, LLC210 Interstate North Parkway (Company)

of Suite 300, Atlanta, GA ^ for the year ending December 31,2019^ This report is subrnitted in

(Location)accordance with Section 51 of Act 324 of the 1935 Acts of Arkansas.The fotlowing report has been carefuliy examined by me, and »veexecuted,thg/'verifipation given below.

a^L^i^M^̂

VP pf Reg uiatory Cpmpljance(Title)

VERIFICATION

STATE OF

COUNTYOF

I, the undersigned,

) ss.

Fusion Cloud Sen/ices, LLC

i^I!]llSJJ!E!LYE-OLBS2y!3!2D?...£221£!Jance.(Name and ntle)

ofthe

, on my oath do say that the following report has

(Company)been prepared under my direction from the ongina! books, papers, and records of said utilfty: that1havecarefully examined the same, and declare the same a complete and correct statement of the business andaffairs of said utility in respect to each and every matter and thing set forth, to the best of my knowtedge,information, and belief'. and 1 further say that no deductionswere made before stating the gross revenues,and that accounts and figures contained in the foregoing statements embrace all of the financialtransactions for the period in this report

Subscnbe^and y^ to before me th is J^iday of ^^^''_^»L£> /My Ccw^'n^sion ExpTres

^

%;'!FFHAN

-»,202?

REPORT TO ARKANSAS PUBLIC SERVICE COMMISSION

GENERAL INSTRUCTIONS, DEFINITIONS, ETC.

1 Two (2) copies of this report, properly filled out and verified shall be filed with the Utility Division of the Arkansas Public ServiceCommission, Little Rock, Arkansas, on or before the 31st day of March following the close of the calendar year for which the report ismade.

2 The word "respondent" in the following inquiries means the person, firm, association or company in whose behalf the report is made.

3 If any schedule does not apply to the respondent, such fact should be shown on the schedule by the words "not applicable."

4 Except in cases where they are especially authorized, cancellations, arbitrary check marks, and the like must not be used either aspartial or entire answers to inquiries.

5 Reports should be made out by means which result in a permanent record. The copy in all cases shall be made out in permanent blackink or with permanent black typewriter ribbon. Entries of a contrary or opposite character (such as decreases reported in a columnproviding for both increases and decreases) should be shown in red ink or enclosed in parentheses.

6 This report will be scanned in. Please bind with clips only.

Answers to inquiries contained in the following forms must be complete. No answer will be accepted as satisfactory which attempts byreference to any paper, document, or return of previous years or other reports, other than the present report, to make the paper ordocument or portion thereof thus referred to a part of the answer without setting it out. Each report must be complete within itself,

In cases where the schedules provided in this report do not contain sufficient space for the information called for, or if it is otherwisenecessary or desirable, additional statements or schedules may be inserted for the purpose of further explanation of accounts orschedules. They should be legibly made on paper of durable quality and should conform with this form in size of page and width ofmargin. This also applies to all special or unusual entries not provided for in this form. Where information called for herein is not given.state fully the reason for its omission.

Schedules supporting the revenue accounts and furnishing statistics should be so arranged as to effect a division in the operations as t(|those inside and outslde the state.

10 Answers to all inquires may be in even dollar figures, with the cents omitted and with agreeing totals.

-) 1 Each respondent should make its report in duplicate, retaining one copy for its files for reference, in case correspondence with regard tosuch report becomes necessary. For this reason, several copies of the accompanying forms are sent to each utillty companyconcerned.

LEC-3

REPORT TO ARKANSAS PUBLIC SERVICE COMMISSION

Give the name, title, office address, telephone number and e-mail address ofthe person towhom any correspondence concerning this report should be addressed:

Name Daniel Ferreira Title Compliance Reporting Specialist 1

Address p.o. Drawer 200,, Winter Park, FL 32790-0200

Telephone Number 407-659-8767

E-Mail dferreira@inteserra.com

Give the name, address, telephone number and e-mail address of the resident agent:

Name Registered Agent Solutions, Inc. Telephone Number 888-705-7274

Address l6WCenter Fayetteville, AR 72701

E-Mail

LEC-4

REPORT TO ARKANSAS PUBLIC SERVICE COMMISSION

IDENTITY OF RESPONDENT

2.

Give the exact name by which respondent was known in law at the close of the year. Use the initialword "The" only when it is part ofthe name:

Fusion Cloud Services, LLC

Give the location (including street and number) of (a) the main Arkansas business office ofrespondent at the close ofthe year, and(b) if respondent is a foreign corporation, the mainbusiness office if not in this state:

210 Interstate North Parkway Suite 300Atlanta, GA 30339

(a) Registered Agent Solutions, Inc. ( b)16WCenterFayetteville, AR 72701

Indicate by an x in the proper space (a) the type of service rendered, and (b) the type oforganization under which respondent was operating at the end of the year:

(a) ( ) Electric, ( ) Gas,

(b) ( ) Proprietorship, ( )( x) Corporation, ( )

( ) Water, ( x ) Telephone,

Partnership, ( ) Joint Stock Association,Other (describe below):

Other

If respondent is not a corporation, give (a) date of organization, and (b) name of the proprietor orthe names of all partners, and the extent of their rpspective interest at the close of the year.

(a) N/A

(b)

Ifa corporation, indicate (a) in which state respondent is incorporated (b) date ofincorporation,and (c) designation of the general law under which respondent was incorporated, or, if underspecial charter, the date of passage of the act:

(a) Georgia

(b) 5/28/1996

(c)

State whether or not respondent during the year conducted any part of its business within the Stateof Arkansas under a name or names other than that shown in response to inquiry No. 1 above,and, ifso, give full particulars:

Birch Communications, LLC

LEC-5

9.

REPORT TO ARKANSAS PUBLIC SERVICE COMMISSION

State whether respondent is a consolidated or merged company. If so, (a) give date and authorityfor each consolidation or merger, (b) name all constituent and merged companies, and(c) give likeparticulars as required ofthe respondent in inquiry No.5 above:

(a) The company is not a consolidated or merged company.

(b)

(c)

State whether respondent is a reorganized company, Ifso, give (a) name oforiginal corporation,(b) date of reorganization, (c) reference to the laws under which it was reorganized and (d) statethe occasion ofthe reorganization, whether because of foreclosure or mortgage or otherwise,giving full particulars.

(a) The company is not a reorganized company.

(b)

(c)

(d)

Was respondent subject to a receivership or other trust at any time during the year? NoIfso, state:

(a) Name of receiver or trustee:

(b) Name of beneficiary or beneficiaries for whom trust was maintained:

(c) Purpose ofthe trust:

(d) Give (1) date ofcreation of receivership or othertrust, and (2) date of acquisitionofrespondent: (1) (2)

10. Did the respondent act in any ofthe capacities listed in Paragraph (a) below during thepast year? No If so,

(a) Indicate the applicable one by using an X in the proper space:

( ) Guarantor, ( ) Surety, ( ) Principal--obligorto a surety contract,( ) Principal "obligor to a guaranty contract.

(b) Insert a statement showing the character, extent, and terms of the primary agreement orobligation, including (1) names of all parties involved, (2) extent of liability of respondent,whether contingent or actual, (3) extent of liabilities of the other parties, whether contingent oractual, and (4) security taken or offered by respondent.

LEC-6

REPORT TO ARKANSAS PUBLIC SERVICE COMMISSION

LEC-7

DIRECTORS

Give the name and office addresses of all directors at the close of the year, and dates of beginning andexpiration ofterms. Chairman (*) and Secretary (**) marked by asterisks.

Name of Director Office AddressDate of Term

Beginning EndSee Attached

PRINCIPAL OFFICERS AND KEY MANAGEMENT PERSONNEL

Give the title ofthe principal officers, managers and key personnel, the names and office addresses ofpersons holding such positions at the close of the year.

v,»^,^l,c^Name of person holding office a

close ofyearOffice Address

Pamela hlintz 210 Interstate North Parkway Suite300, Atlanta, GA 30339

REPORT TO ARKANSAS PUBLIC SERVICE COMMISSION

GROSS ASSESSABLE REVENUES

Description Amount

ARKANSAS GROSS ASSESSABLE REVENUES (excluding Interstate Tolls) 1,024,961

LOCAL EXCHANGE SERVICE STATISTICS

LEC-8

ACCESS LINES ARKANSAS

Residence

Business

o

1,695

TOTAL RESIDENTIAL & BUSINESS ACCESS LINES 1,695

PBX Access Lines

Coin or Credit Card Paystation Access Lines

Company Official Access Lines (Numbers)

o

o

o

TOTALACCESSLINES o

REPORTTO ARKANSAS PUBLIC SERVICE COMMISSION

STATEMENT OF ACCURACY

do hereby state that the amounts contained in thls report aretrue and accurate, schedules have been cross-referenced byuse of the attached check list, and that thc accuracy of al! totaishas been verified by me or under my supervision. Should 1 oranyone under my supervision become aware of any error in oromission from this report, 1 witl take steps to nottfy the ArkansasPubltc Sen/ice Commission of such error or omission andprovide corrected schedules as soon as possible.

-z-Generat^l^h^ger - Pam^fa Hintz

REPORT TO ARKANSAS PUBLIC SERVICE COMIV11SSION

COMPANY CONTACTS

Please list the number of utility employees located in Arkansas -o-

Company Information

Company Name Fusion Cloud Services, LLCdba

Official MailingAddress

210 Interstate North Parkway Suite 300Atlanta, GA 30339

Mailing Address forAPSC AnnualAssessment Invoice

AREA PERSON TO CONTACT PHONE# FAX# E-MAIL

Annual Report

APSC Annual Assessment

Tariffs

Property Taxes

Regulatory Affairs

Daniel Ferreira 407-659-8767 407-740-0613 dferreira@inteserra.com

Daniel Ferreira 407-659-8767 407-740-0613 dferreira@inteserra.com

Carey Roesel 407-740-3006 407-740-0613 croesel@inteserra.com

N/A N/A N/A N/A

Elena Thomasson 703-994-4453 703-852-3531 elena.thomasson@fusionconnect.com

FUSION CONNECT, INC.

(AND EACH OF ITS SUBSIDIARIES)OFFICERS

FUSION CONNECT, INC.

(AND EACH OF ITS SUBSIDIARIES)Managers and Directors

James P. Prenetta, Jr. and Keith Soldan are the "Managers" ofthe Fusion Connect, Inc. subsidiaries that areformed as an "LLC"

James P. Prenetta, Jr. and Keith Soldan are the "Directors" of the Fusion Connect, Inc. subsidiaries that areformed as a "Corporation"

Name Title

Kevin Brand Interim Chief Executive Officer, President and ChiefOperating Officer

Keith A. Soldan Chief Financial Officer and Chief Accounting Officer

James P. Prenettajr. Executive Vice President, General Counsel and Corporate Secretary

Brian George Chief Technology Officer

Joseph Haines Senior Vice President, Operations

Tadashi Egami Senior Vice President, Marketing, Account Management and Sales

Michael Fair Senior Vice President, Channel Sales

Diane Hutcherson Vice President, Direct Sales

Brian Balog Vice President, Finance

Richard Zertuche Vice President, Corporate Controller

Birch Blair Vice President, Deputy General Counsel and Assistant Secretary

Pamela Hintz Vice President, Regulatory Compliance

Kelli Pruet Vice President, Tax

Rod Brownridge Vice President, CustomerSupport

Doug Gillespie Vice President, Voice Engineering

Shane Smith Vice President, Systern Engineering

Tim Gallagher Vice President, Engineering and Planning

Katie Goforth Vice President, Engineering and Planning

Tasha Comalli Vice President, Service Assurarce

Vicki Spehar Vice President, Customer Experience