OREGON CONNECTIONS HOOD RIVER October 24, 2013

Company Background  Clear Creek Communications  Service Area 52 Sq. Miles Founded 1906  Statistics Dwindling Access Lines Stable DSL and Cable Modem Customers (20/80) Stable Number of Video Customers Growing Number of Security Customers  We serve no place Virtually no cities, towns or named communities

The Network of the Future  May Not Be Your Own  External Forces Are Changing How Traditional Carriers View the Very Nature of Their Operations  Leveraging Any Available Network is Now Acceptable

External Forces Change the Future  Three Drivers of Change 1. Reductions in Traditional Revenues 2. Financiers Tighten Credit 3. Active Regulatory Period  Opportunities Brought by Change  New Revenues and Markets Outcomes Actions Reactions

1.) Reduction in Traditional Revenues  ILEC’s Actions  Traditional Cost Cutting  Can Result In Returned Revenue  Customers Actions  Movement Toward Wireless  Can Result in Uncollected Revenues  Action Of Others  Events Beyond Your Control  Can Result in Lower Revenue

ILEC’s Actions  Can’t Manage an ILEC Like a Normal Business  Cost Savings vs Cost Study  Complicated by Two Year Lag  Positive Impact Can Be Short Lived  Frustration and ?#*%&$!

Customer Action  Adoption of Broadband  Loss of Second Lines  Shift Toward Wireless  Loss of Primary Lines  Recession  Just Trying to Cut Back  Impact on All Services  Expanded Options  Some Customers May Not Know You

Customer Actions  Wireless Drift  Access Line Loss

 Local Impact Caused By Separation Rules  Returns That Are Driven By Averages National Average Loop Cost Local Rate Benchmarks CAPS  Directly Impacted Our Operations  Heavy Investment In Some Areas Raised NALC  Our Investment Straight Lined Impacts Our NALC Multiple Significant Reduction in Support 20% of Annual Revenue Lost Actions of Others

 Exponential Growth  National Average Loop Cost Increase 7.5%,14%, 10%, 12%, 1% NACP Grew 3x Faster Than Company 2.2x 2.1x1.9x 1.7x1.5x1.6x

2.) Financiers Tighten Credit  Concerns With Industry Segment  Telephone Business Performance  Regulatory Uncertainty  Result  Cautious Lending  Tighter Covenants  Bottom-Line  Less Capital Available  Loan Pre-Payments

Concerns With Industry Segment  Industry Multiples – Jan 2013 Mean Enterprise ValueGrowthLending Multiple Transport/ Data Center 13.0 x (DC’s)10 – 20%3.5 – 6.0 x Cable7.3 x5 – 10%3.5 – 6.0 x Wireless5.2 x0 – 5%2.5 – 3.5 x Telco5.7 x-5 – 5%1.5 – 3.0 x

Credit Impacts Operation  Shifts Importance of Debt Service  20% Movement in 5 Years  Options Still Exist For Funding  Leverage Must Be Moderate  Business Plan Must be Prudent  Heightened Due Diligence  Will Be Pricing to Risk  Bank Will Have a Greater Focus Management Diversification Performance To Plan

3.) Active Regulatory Period  Pressure on Telco Operations  Limitations on USF Support  Phase Down of Switched Access Cost Recovery  Corporate Operations Expense Limitation  Rate of Return Re-Prescription  And More

Pressure on Telco Operations  USF and ICC Reform is Our Reality  Industry Continues to Advocate We Are Well Represented Yet That May Not Solve Your Specific Challenge Some of Us May Have Serious Issues  Regulators Continue to Regulate They May Not Have Your Best Interest In Mind Surprise!

4.) New Revenues and Markets  Positive Action Can Be Taken  Revenue Generation Possibilities  Actions We Pursued  Large Scale Project Security and Home Automation  Leverage Available Networks Both Wired and Wireless  Partnering

Positive Action Can Be Taken  Additional Revenue May Be Generated By  New Services  New Customers  Low Capital Options  Funded Per Customer  Partnerships  Cost Savings  Expertise

Revenue Generation Possibilities  Many Carriers Have Developed New Services  Regulated & Non ‐ Regulated Monitoring/Security Home Networking Computer Literacy/Support VoIP Hosted PBX Ethernet Transport to Wireless Dark Fiber Colocation

Revenue Generation Possibilities  Or Attempted to Leverage Existing Assets  Assets Owned and Operated Switching Services Installation & Repair Customer Service Billing & Collection Accounting/Regulatory/Management  Assets of Others Wireless Networks Interconnected Networks Capital Investment Labor and expertise

Security & Home Automation  ClearView  Next Generation Security Interactive Security Energy Management Home Automation Video Monitoring  Leverages Wireless and IP Networks Backhaul on Verizon, ATT, T-Mobile Video and Secondary on Any IP Connection Easily Offered Beyond Exchange

Industry With Growth Spurt  Projected Annual Revenue Growth

Interactive Security  Complete Web Control  A New Reality for Customers

Energy Management  Measure Energy Usage  Multiple Measurement Levels  Set Energy Goals  Query Current Usage  emPower  Control Lights  Operate Appliances  Thermostats

Home Automation  Intelligent Operations  Smart Schedules  Activity Patterns  Geo-Services  Home Control  Garage Doors  Window Blinds

Video Monitoring  Video Is The Most Popular Feature  Live Streaming  Video Alerts  Cloud Storage  Network DVR

Leverage Other Networks  Western Independent Networks  Expands Our Reach Offers Transport Network Throughout Oregon And The Greater Northwest Region Leverage The Networks Of 25 Shareholder Companies  Expands Our Opportunities Oregon Broadband Partnership Participation With Others Integra Century Link Wave Broadband LS Networks INDATEL (National Coverage)

Partnering  ClearView  Particularly Suited to Working Together  Current Have 7 Partners  Sharing Common Brand Knowledge Marketing Sales and Technical Staff Facilitates Quick Entry

Partnering  Oregon Cable Group  Created in 1999  Recently Joined  Current Have 4 Members  Sharing Headend Equipment Capital Projects Knowledge Technical Staff

Partnering  Western Independent Networks  Equity Partner  Network Partnership  Services Utilized Point to Point Special Access Ethernet Transport Internet Backbone Access IP Voice Aggregation Peering NOC and Maintenance Services

Partnering  Possibilities Abound  Jointly Provided Services  Infrastructure Sharing  Wholesale Purchasing  Management/Labor Contracts  Look Around You What’s Happening in Your Neighborhood? Are You Part of The Discussion?