We’re TalkingFiber Optics, Baby!

Things, they are a changing

Tularosa Basin Telephone replacing copper with FTTP and FTTN – Press Release July 12, 2006

“…we can build a network that provides our subscribers with a full range of advanced communications services today and feel comfortable that this same network will enable us to meet future subscriber demands."

Tularosa Basin Telephone replacing copper with FTTP and FTTN – Press Release July 12, 2006

"TBTC is dedicated to bringing the same advanced services typically found in large metropolitan areas to the people of New Mexico's smaller, rural communities."

Tularosa Basin Telephone replacing copper with FTTP and FTTN – Press Release July 12, 2006

"This new…network provides us with the opportunity to offer our subscribers bundled service packages that include high-speed data, voice, and video at very affordable rates."

Investment in the Community

TBTC is making a substantial investment ($16 million) to totally rebuild our existing network. We are investing for the future of our customers and our community.

We are working to

Keep Our Customers Connected!

Keeping Customers Connected!

We're upgrading with: Fiber to the Node (FTTN) Fiber to the Premise (FTTP)

Why Now?

Single Source Provider – Triple Play... Grand Slam

Response to competition Financial health of TBTC Aging copper cable Undersized copper cable

Responding to Competition

Cable TV providers High speed internet, LD & POTS

Satellite Providers High speed internet

Wireless Providers High speed internet, LD & POTS

Voice over Internet Protocol (VoIP) LD

Responding to Competition

New sources of revenue Bundled services

Gains in efficiency mean bigger profit margins

Maintain customer base New subscribers Win back customers

TBTC is committed to providing our customers with new products and

services – so we can all keep connected as technology changes!

Customer Service Issues

Expect to field a lot of questions from our customers

We want to make this upgrade as painless as possible

TBTC will start notifying customers in early August

Bill insert Frequently Asked Questions mailer

Questions Anyone?

Who's paying for this? TBTC will make equipment upgrades to the

customer's property at the company's expense TBTC will cover all construction costs associated

with upgrades to the customer's property Subscription to upgraded services is optional TBTC will release a new price list/tariff for upgraded

services closer to the completion of construction and service roll-out

Rates will NOT increase

Enhanced services are OPTIONAL

The Details

Services Network Upgrades Engineering and Construction Customer Impact Timeline

New Services!

Higher speed data (internet) Video

Broadcast Video on Demand (VOD) Local content

Service Convergence

Network Upgrades

Fiber to the Premise (FTTP) ADSL2+ (Copper)

What's the difference?

Fiber Standard ethernet based network, just like what all

computers use today Gigabit speeds

Copper Faster version of familiar DSL technology 20+ megabits

What's the same?

Quality of service We are committed to maintaining the same quality

and reliability we are known for today Availability of service

We are striving to making all services available to all customers, regardless of the access technology

Construction

New cable placement Local streets Highways Aerial and buried

Some customer premises will require on-site construction

Construction Crews

TBTC Crews Contract Crews

Licensed Bonded Insured

Engineering Fiber vs. Copper

60% of customer base will require fiber optlic loop connections

40% of customer base will remain on short copper loops Copper loops already capable of handling all that

big data

Fiber Factors

There are a few factors that determine new fiber placement Age and condition of existing copper distribution

cable Distance from customer to TBTC switching

equipment Other engineering and construction specifications

Engineering Challenges: Fiber

New service entrance cable Aerial or buried In some cases, new entrance cable may disturb

customer's landscaping... TBTC will take pains to minimize any construction effects on customer property

New wiring to computer for data connections

Customer Impact

Construction Service Disruptions Cool New Services!!!

Customer Premise Construction

Tailored to the unique requirements of each customer's property

TBTC will schedule meetings with individual customers to discuss required construction on their property Comprehensive on-site assessment Minimize impact to landscaping Aesthetics are important too – NID, UPS, Cabling

Customer Premise: Copper

No construction on customer property No new wiring Possibly new DSL modem

Customer Premise: Fiber

Access to the customer's property required New UPS unit to be mounted on wall inside the

building New house wiring for current DSL customers

may be required

UPS

Uninterruptible Power Supply Locations with 100% fiber optic cables require a

UPS because there will no longer be copper wires to carry low-voltage power from TBTC's equipment to the customer's equipment

Low-voltage power is necessary to power electronics in the new Optical Networking Terminal (NID) and enable continued service operation during power outages

UPS

Enables continued service for 8 to 10 hours in the event of an electrical power outage

Manufacturer estimates power consumption for 30 days at 24 hours per day of continuous heavy load to cost about 61 cents

Monthly power consumption for a typical household is expected to be less than this estimate

Actual power consumption will vary based on actual usage

UPS

Needs to be plugged into an outlet inside the building with a wire ultimately connecting to the new NID on the outside of the building

Replacement NID will ideally be located in the same location as the existing NID

Timeline

Cloudcroft Exchange Starts within the next 30 days Phase I should be finished by the end of 2006 Phase II should be finished during 3Q 2007

Tularosa Exchange Starts by the beginning of 2007 Should be finished by 4Q 2007

Carrizozo Exchange Early 2007 Early 2008

Have we missed anything...

Contacts: Nathan - Project Manager Jerimiah - Access Platform Lance - External Communications Eddie - Turn-up Mary Beth - Customer Service Richard Suggs - NID installation

Voicemail at 585-FTTP (3887)