Table of Contents
The Telecom Segment operates the following incumbent local exchange carriers (ILECs) and competitive local exchange carriers (CLECs) and has investment ownership interests as follows:
Telecom Segment
● ILECs:
▪ NU Telecom, the parent company;
▪ Hutchinson Telephone Company, a wholly-owned subsidiary of NU Telecom;
▪ Peoples Telephone Company, a wholly-owned subsidiary of NU Telecom;
▪ Sleepy Eye Telephone Company, a wholly-owned subsidiary of NU Telecom; and
▪ Western Telephone Company, a wholly-owned subsidiary of NU Telecom;
● CLECs:
▪ NU Telecom, located in Redwood Falls, Minnesota; and
▪ Hutchinson Telecommunications, Inc., a wholly-owned subsidiary of HTC, located in Litchfield, Minnesota;
● Our investments and interests in the following entities include certain management responsibilities:
▪ FiberComm, LC 18.27% subsidiary equity ownership interest. FiberComm, LC is located in Sioux City, Iowa;
▪ Broadband Visions, LLC 24.30% subsidiary equity ownership interest. Broadband Visions, LLC provides video headend and Internet services; and
▪ Independent Emergency Services, LLC 14.29% subsidiary equity ownership interest. Independent Emergency Services, LLC is a provider of E-911 services to the State of Minnesota as well as a number of counties located in Minnesota.
Note
11
Commitments and Contingencies
We are involved in certain contractual disputes in the ordinary course of business. We do not believe the ultimate resolution of any of these existing matters will have a material adverse effect on our financial position, results of operations or cash flows. We did not experience any changes to material contractual obligations in the first three months of 2014. Refer to the Companys Annual Report on Form 10-K for the year ended December 31, 2013 for the discussion relating to commitments and contingencies.
Note 12 Hector Communications Corporation
On November 3, 2006 we acquired a one-third interest in HCC. HCC
was equally owned
by NU Telecom, Blue Earth Valley Communications, Inc. and Arvig Enterprises, Inc. Each of the owners provide
d
management and other operational services to HCC and its subsidiaries.
On December 31, 2012 NU Telecom completed a spin-off agreement with HCC. NU Telecom originally acquired a one-third interest in HCC on November 3, 2006. Under the spin-off agreement, NU Telecom received all of the stock of SETC and other assets and investments and incurred $3.3 million of additional debt.
Our President and Chief Executive Officer, Mr. Bill D. Otis,
was elected
Chairman of the Board of Directors and President of HCC. Ms. Barbara A.J. Bornhoft, our Vice-President and Chief Operating Officer, also serve
d
on the Board of Directors of HCC.