SPRING 2013

A QUARTERLY NEWSLETTER FROM HILL COUNTRY TELEPHONE COOPERATIVE, INC.

CONNECTING RURAL TEXAS—FASTER WE’VE DOUBLED THE SPEED OF YOUR INTERNET SERVICE Faster Internet access means different things to each of us. For some it means a shorter download time to see the e-mail of the new baby pictures—for some it means less time spent on research for a high school term paper—and for some it means a higher quality video experience when streaming Netflix movies. AT HILL COUNTRY WE’RE CONNECTING RURAL TEXAS— NOW WE’RE JUST DOING IT FASTER.

At Hill Country we know that fast, affordable and quality Internet access

is important to everyone, just not always in the same way. We are very excited to offer you more speed—for the same price. Hill Country is doubling the speed of your Internet service. If you currently subscribe to a regular or bundled DSL package of up to 5 Mbps download, many of you are now experiencing twice the speed. For example, if you subscribe to 1 Mbps, you are now receiving up to 2 Mbps. If you subscribe to 5 Mbps, you are now receiving up to 10 Mbps—at no additional cost to you. This is all a result of major

CONSTRUCTION PROGRESS Expansion of our fiber optic network continues through an aggressive Broadband Infrastructure Project. Pictured at right are contractors laying underground conduit. Fiber optic cable is then placed in these conduits to connect Internet / Broadband enabling electronics (Digital Services Access Multiplexer Concentrators) installed near the Member’s location. To date nearly 30 miles of fiber has been placed to concentrators located in our Medina Exchange at FM 2828 and Highway 16, Medina Bend, Coal Kiln Creek, Elm Creek, Jackson Creek, Clark Creek, DuPerier (Trip’s Barn), and Cazey Creek Tower.

In our Doss Exchange, approximately 15 miles of fiber has been placed to concentrator sites located at Kanyon, Whitetail, Manor Road and Dinosaur Ranch. Beginning in May of this year, subscribers will be cut over to the new plant. Following the construction in Medina and Doss, the project proceeds into the north Frio Canyon, Center Point, Tarpley, and Garven Store areas. With an expected completion date of early 2014, most of our members will be able to subscribe to Broadband DSL speeds in excess of 6 to 10 Mbps.

upgrades to our infrastructure for the past couple of years. While some subscriber locations are not yet capable of being upgraded, we want you to know that we are already hard at work on that as well. Currently, under our $12.2 million broadband infrastructure project awarded via grant/loan by the Rural Utilities Service Broadband Initiatives Program, we are placing over 157 miles of fiber and 30 broadband loop concentrators in our more remote areas. Upon completion of this project, most of our subscribers will be able to achieve the highest DSL speeds available.

FCC MANDATE FORCES SECOND RATE INCREASE As a result of Orders handed down by the Federal Communications Commission, ‘highly’ subsidized funding available to small rural telephone companies is being drastically reduced and shifted to our customers in a push for national equalization. In other words, the FCC will no longer allow consumers residing in rural areas to pay much lower rates than consumers residing in urban areas— local monthly rates must now be comparable across rural and urban. So while Hill Country Telephone has been extremely fortunate to offer low local rates for so many years, this is now going away as a result of recent reforms administered by the FCC. The FCC established benchmarks for basic local service rates that small rural telecom companies must comply with or, otherwise, risk further imputations against existing federal funds received through Universal Service Fund (USF) support. For 2013 the FCC established a mandated benchmark of $14 per month. Thus, effective May 1, 2013, the Cooperative’s basic local service rates for residential service will increase from $9.40 per month to $14 per month. In 2014, the FCC benchmark is expected to increase to $16-$17 per month for basic local service. Again, if we do not comply with the established benchmarks, Hill Country will certainly risk the loss of ‘additional’ funding alongside current reductions that have already been imposed on our USF support.

PLANT MODERNIZATION PROGRAM AIMED TO MEET CONSUMER NEEDS As our plant modernization project continues to progress, the availability of DSL throughout our service area also continues to expand. Chances are DSL is now available at your location. Simply contact one of our CSRs who will be happy to quickly verify if DSL is available at your location and assist you with a plan that best suits your needs. 830.367.5333 • 800.292.5457 [email protected]

Actual Cost of Basic Local Telephone Service This rate increase only serves to replace, dollar for dollar, the loss in subsidized funding. This does not represent a windfall for your cooperative. In fact, the local rates our members pay provide only 11 percent of the revenue required for us to operate. If subscribers, minus any State or Federal cost recovery, had to bear the total cost of providing local telephone service across the rugged Hill Country terrain of the Cooperative’s 2900 square mile service area, the local service rate would actually be $129.05 per month. For this reason alone, the State and Federal Costs Recovery Mechanisms are vital to Hill Country Telephone, as well as other rural telcos, in order to maintain affordable local rates and support investment in vital communications infrastructure. We remain diligent in our fight for rural America, reminding our national and state officials of the challenges in providing ubiquitous service as well as the devastating potential impact to rural economic development. And although a challenge under the current regulatory confinements, we also remain diligent in finding solutions whereby customers may receive added value for their dollar. But foremost, we remain committed to you—our members, our neighbors, our friends. Thank you for choosing Hill Country Telephone Cooperative!

NEW BILL PAY METHOD While online bill payments are convenient, many customers prefer check transactions at our Business Office. You can now pay your bill by check anytime between 7 am and 11 pm using the Kiosk conveniently located inside our foyer. Simply enter your customer

account number (located on your telephone bill) and the user-friendly interface will guide you through the payment process. Credit card transactions are also accepted at the Kiosk.

NEW CONVENIENT HOURS Pay your bill at the kiosk (located inside the foyer)

7am - 11pm EVERY DAY

HCTC PRESENTS DONATION TO LOCAL NON-PROFIT Hill Country Telephone Cooperative recently presented a matching grant donation to the Christian Women’s Job Corps of Kerr County (CWJC). Made possible through the CoBank Grant Program, these matching gift programs are a wonderful way for corporations to be partners in bettering our communities and helping those less fortunate. The CWJC of Kerr County is a nonprofit organization dedicated to making a positive difference in the lives of women, their families and future generations. Giving hope, education and self-sufficiency to women in need, currently there are more than 310 such organizations in the United States with 75 alone

in the state of Texas. In 12 years of operation, CWJC Kerr County has graduated 294 women with an 85 percent employment rate. Many of the graduates have also pursued continued education such as nursing degrees through Schreiner University. “The CWJC is doing great things in our community by helping mothers improve their lives. After receiving a tour of the facilities and an indepth explanation of their purpose, it was very apparent to us that we couldn’t have made a better choice,” according to Delbert Wilson, CEO of Hill Country Telephone. The money will be used to purchase additional computers and upgrade older ones, which are all used for training.

Delbert Wilson of Hill Country Telephone presenting the CoBank grant and matching funds to Ann Buck, Executive Director of the Christian Women’s Job Corps of Kerr County.

RETIRED GENERAL MANAGER PASSES AWAY appointed General Manager by the Board of Directors. During his tenure as Manager, Van was active in the National Telecommunications Cooperative Association serving on the Futures Committee and as the Texas Coordinator for the annual Legislative Conferences in Washington, D.C. His retirement in 2005 capped a 35-year career in the telecommunications industry. VAN B. COOK

Van B. Cook, former General Manager of Hill Country Telephone, passed away peacefully in Round Rock, Texas, on November 30, 2012. He was 69 years old. Van joined Hill Country Telephone in 1985 as our Commercial Manager. In 1989 Van was

After retirement, Van and his wife, Lynda, remained in Bandera, Texas. An avid lover of music, Van continued to play in bands as well as write songs. His most fulfilling times were playing music with his son, performing in several bands including Delta Blue and The Twilites. An active member of St. Stanislaus Catholic Church in Bandera, Van also volunteered at the local thrift store.

Van never lost his love for sitting by the campfire, often camping with his adult children and grandchildren. Van is survived by his beloved wife of 43 years, Lynda Louise Tybor Cook. Together they had three children, Selena Swartzfager (Glenn) of Brandon, MS, Van Tybor Cook (Joy) of San Antonio, TX, and Marika Cook Flatt (Doug) of Round Rock, TX, and six grandchildren, Ashton and Greyson Swartzfager, Analise, Tucker and Finn Flatt, and Van Cook (often referred to by Pops as “Mini-Van”). A funeral mass was held on December 5, 2012, at St. Stanislaus Catholic Church with burial at the church cemetery. Memorials may be made to the American Diabetes Association or St. Vincent de Paul.

CUSTOMER FACTS

HECHOS DEL CLIENTE

TEXAS “NO CALL” LISTS

Texans may register a telephone number(s) for one or both of two “No Call” lists sponsored by the Public Utility Commission (PUC). Placing your name, address and telephone number on these lists will identify you as someone who does not wish to receive telemarketing calls at home. STATEWIDE “DO NOT CALL” LIST Residential or Wireless Only The statewide “Do Not Call” list applies to any telephone marketers, including Retail Electric Providers, operating in Texas. Your registered telephone number(s) will remain on this list for three years. “ELECTRIC NO CALL” LIST Business Service Only The second list prevents calls only from Retail Providers and telemarketers calling about your electric service. Business numbers placed on this list will remain on the list five years. When will these calls stop? The date of your registration determines the date by which all telemarketing to your number must stop: Date Registered

Calls Stop By

Jan 1 - Mar 31

June 1

Apr 1 - June 30

Sept 1

Jul 1 - Sept 30

Dec 1

Oct 1 - Dec 31

Mar 1

How do I sign up? At www.TexasNoCall.com - Use the Internet for an easy, automated method that provides instant registration. To register by mail, use the printable registration form. •

Request a registration form by calling 1-866-TXNOCALL (1866-896-6225).



Write: TEXAS NO CALL P. O. Box 313 E. Walpole, MA 02032

Online registration is free. Telephone registrations must be paid by credit card. Mailed applications may be paid by credit card or by check made payable to Texas No Call. The charge is $2.25 for each number registered on the “Do Not Call” list and $2.55 for each number placed on the “Electric No Call” list. Consumers in Texas can now register for the National Do Not Call list by visiting www.DoNotCall.gov or by calling toll-free 1-888-382-1222 (TTY 1-866-290-4236). Companies that conduct telemarketing activities should call 1-866-896-6225 or visit www.texasnocall.com for compliance information and additional details regarding Texas “No Call” lists.

LISTAS DE “NO LLAMAR” EN TEJAS

Tejanos pueden ahora registrar un número(s) de teléfono para uno o ambos de dos listas “No Llamar” patrocinado por la Comisión de Utilidad Pública (PUC). Poniendo su nombre, la dirección y el número de teléfono en estas listas le identificarán pues alguien que no desea recibir llamadas de telemarcaderos en casa. LA LISTA ESTATAL DE “NO LLAMAR” Solo Residencial o Celular La lista estatal de “No Llamar” se aplica a cualquier vendedor de teléfono incluyendo proveedores electricos que funciónan en Tejas. Su número(s) de teléfono registrado se quedará en esta lista durante tres años. LA LISTA “ELÉCTRICA DE NO LLAMAR” Solo Servicio de Negocio La segunda lista previene llamadas sólamente de abastecedores y telemarcaderos eléctricos que llaman sobre su servicio eléctrico. Números de negocio puestos en esta lista seguiran apareciendo en la lista por cinco años. ¿Cuándo pararán estas llamadas? La fecha de su matrícula determina la fecha que toda televenta a su número debe parar: Fecha Registrada

Llamadas Paran

Jan 1 - Mar 31

June 1

Apr 1 - June 30

Sept 1

Jul 1 - Sept 30

Dec 1

Oct 1 - Dec 31

Mar 1

¿Cómo puedo registrarme? En www.TexasNoCall.com- Utilizar el Internet para unmétodo fácil y automatizado que proporciona matrícula instantánea. Para registrar por el correo, utiliza el formulario de inscripción imprimible. •

Solicite un formulario de inscripción llamando 1-866-TXNOCALL (1-866-896-6225).



Escriba: TEXAS NO CALL P. O. Box 313 E. Walpole, MA 02032

Registración en linea es gratis. Las matrículas telefónicas deben ser pagadas por tarjeta de crédito. Las aplicaciones enviadas pueden ser pagadas por tarjeta de crédito o cheque hecho pagadero a Texas No Call. La carga es $2.25 para cada número registrado en la lista de “No Llamar” y $2.55 para cada número puesto en la lista “Electrica de No Llamar.” Los consumidores en Tejas ahora se pueden registrar en la lista Nacíonal de No Llamar visitando www.DoNotCall.gov o llamando (gratis) 1-888-382-1222 (TTY 1-866-290-4236). Las compañias que conducen actividades de tele marca dero deben llamar 1-866-896-6225 o visitar www.texasnocall. com para información de conformidad y detalles adicionales con respecto a las listas de “No Llamar” de Tejas.

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P.O. DRAWER D INGRAM, TEXAS 78025 NOW OPEN AT THESE LOCATIONS (FOR YOUR CONVENIENCE)

PRSRT STD U.S. Postage PAI D Kerrville, TX HERRING PRINTING

Ingram 220 Carolyn 830.367.5333 M-F, 8-5 Kerrville 212 Sidney Baker S. 830.315.iFix (4349) M-F, 8-5 Mason 100 Ft. McKavitt 325.347.8877 M-F, 8-5 (Closed 1-2 for lunch)

Hill Country Telephone Cooperative, Inc. P.O. Drawer D, Ingram, Texas 78025 830.367.5333 • 800.292.5457 www.hctc.net Hill Country Telephone Cooperative, Inc. is an equal opportunity provider and employer.