OREGON CONNECTIONSHOOD RIVEROctober 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 Change1. Reductions in Traditional Revenues2. 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 ?#*%&$!

CostStudy

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

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

0500

10001500200025003000350040004500

Customer Actions Wireless Drift

Access Line Loss

36%10% of Annual Revenue Lost

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

Actions of Others Exponential Growth

National Average Loop Cost Increase 7.5%,14%, 10%, 12%, 1% NACP Grew 3x Faster Than Company

2006 2007 2008 2009 2010 20110

100200300400500600700800

Clear CreekNational Average

2.2x 2.1x 1.9x 1.7x 1.5x 1.6x

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 2013Mean Enterprise Value

Growth Lending Multiple

Transport/Data Center

13.0 x (DC’s) 10 – 20% 3.5 – 6.0 x

Cable 7.3 x 5 – 10% 3.5 – 6.0 x

Wireless 5.2 x 0 – 5% 2.5 – 3.5 x

Telco 5.7 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

Telephone23%

Television25%

Debt Ser-vice52%

2012

Telephone6%

Television20%

Debt Service74%

2016

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

Alternative Alarm Signal Transmission

Security via Mobile Devices

Intergrating Secuirty on IT Networks

Video Guard Replacements

Intergrating Alarms and HVAC

Monitored Residential Fire

Video Verification

Hosted Video

Managed Video

Managed Access Control

Hosted Access Control

Energy Information Services

Business intelligence Apps

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0%

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?