TELE U WHAT. Capital Credit Refund. The Cooperative Advantage COOPERATIVE NEWS AND INFORMATION

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COOPERATIVE NEWS AND INFORMATION SEPTEMBER 2015 TELE U WHAT 2015 Capital Credit Refund The Cooperative Advantage Paul Bunyan Communica ons has mailed out over $2.8 million in capital credits to members. The payouts include 50% or the unre red balance from 2001 and 20% of the capital credits earned in 2014. All subscribers who were a member in either of those years and accrued over $10 total in capital credits should have or will receive a check. The use of capital credit alloca ons are the coopera ve s way of individually securing each member s share of the coopera ve s net margins. We are very proud to once again issue capital credit returns to our members. Our coopera ve remains strong because of the high quality of services we provide, loyalty of our members, leadership of the Board of Directors, and our dedicated employees. As a coopera ve, Paul Bunyan Communica ons is owned by the members it serves. Services that apply towards capital credit returns include local phone service, Paul Bunyan Long Distance, Internet service from Paul Bunyan Net, Paul Bunyan Television, and Minnesota Gold Yellow Page Adver sing. It s the coopera ve advantage and a win-win for our members. You get high quality communica on services at affordable rates with a high level of customer service and share in our success. The return a member receives is based on their patronage and our profit margin from that par cular year. It s rare that a customer gets money back from a service provider. The coopera ve structure allows us to give back to those who make us successful. It is truly providing service at cost. If you were a member of the cooperaɵve in 2001 and/or 2014 and accrued more than $10 in total capital credit allocaɵons, but do not receive a check by September 26, please contact Paul Bunyan CommunicaƟons at (218) 444-1234 in Bemidji or (218) 999-1234 in Grand Rapids.

Paul Bunyan Communications Wins 2015 Leading Lights National Award GigaZone Named Most Innovative Gigabit Broadband Service Leading Lights Editor-in-Chief Ray Le Maistre (le ) and PBC Informa on Techonology & Development Manager Steve Howard (right) Paul Bunyan Communica ons has been named the winner of the Most Innova ve Gigabit Broadband Service for its GigaZone project in the Light Reading 2015 Leading Lights awards program. The na onal award recognizes the communica ons provider that has launched the most innova ve Gigabit Broadband service during the past year. The other finalists for the award were large na onal or regional corpora ons including AT&T, C Spire, and TDS Telecom. The coopera ve announced the gigabit project last fall and it will be one of the largest gigabit networks in rural America when the project is done. Already over 7,800 loca ons in northern Minnesota are in the GigaZone and an es mated 20,000+ will be reached by the end of this year. The project is expected to take a few years but is progressing ahead of schedule. Once completed it will include the coopera ve s en re service territory of over 5,000 square miles. We are honored to receive this award for our GigaZone project. It is one of the first gigabit network ini a ves that will encompass a large rural area and I think that is significant. Many of the gigabit network projects taking place are in small por ons of densely populated metropolitan areas. Too o en, the more challenging rural America gets overlooked. That s not the case here in northern Minnesota and we are thrilled that Light Reading acknowledged our efforts. said Gary Johnson, Paul Bunyan Communica ons CEO/General Manager The Leading Lights program, the telecom industry s most pres- gious awards program, focuses on next-genera on communica ons technologies, applica ons, services, and strategies. The Leading Lights winners were announced at an awards dinner at Chicago s Field Museum on Monday, June 8 to coincide with the Big Telecom Event. The volume and quality of the entries we received across our 24 categories shows how seriously the industry takes these awards, which are now in their 11th year, stated Light Reading Editor-in-Chief Ray Le Maistre. The winners are an excep onal group of companies that have every right to be proud of their achievements and progress during the past year. added Le Maistre.

Channels Added to PBTV, HD, and PBTV Everywhere CHANNEL 20 BELTRAMI, HUBBARD, AND CASS COUNTIES ONLY Decades u lizes a library of more than 100 classic television series, including select tles from the CBS library such as I Love Lucy from the 1950s, Star Trek from the 1960s, Happy Days from the 1970s and Cheers from the 1980s, as well as a wide selec on of theatrical and made-for-television movies and footage of historical news events from the archives of CBS News and Entertainment Tonight, Decades will provide viewers with a new way to experience our shared historical and cultural past. CHANNEL 21 BELTRAMI, HUBBARD, AND CASS COUNTIES ONLY The Jus ce Network, a new broadcast network out of Minneapolis, has been added to the PBTV lineup The Jus ce Network features more than 500 hours of crime and mystery programming, including shows such as Alaska State Troopers, Body of Evidence, LA Forensics, Masterminds and more. The Jus ce Network also offers safety ps and ask viewers to help track down most wanted criminals and missing children each hour. CHANNEL 967 OR 1067 KKCW 96.7 Owned by R&J Broadcasting Inc., KKCQ serves the area with local news, sports, weather and farm informa on as well as professional and college sports to include, Minnesota Viking football, Minnesota Twins Baseball, Minnesota Wild hockey, Minnesota Timberwolves basketball, NDSU Bison football, NFL & NCAA sports from Westwood One and more! KKCQ also broadcasts high school sports for area high schools including Red Lake and Blackduck. CHANNEL 800 CHANNEL 600 HD KBSUHD CHANNEL 517 The Weather Channel HD is now available to all PBTV HD subscribers. Through The Weather Channel, weather.com, Weather Underground, Intellicast.com and third-party publishing partners, the Weather Channel provides millions of people every day with the world s best weather forecasts, content and data, connec ng with them through television, online, mobile and tablet screens. WGN America HD features entertainment programming including the original, scripted series Salem, Manha an, Outsiders and Ten Commandments, along with first-run syndicated series, blockbuster movies and live sports. For more informa on, visit wgnamerica.com. KBSU HD Can t make it to the game? Watch BSU Football home games this fall and BSU Men s and Women s Basketball NSIC Conference home games this winter in high defini on on KBSU-17 with PBTV! PBTV HD subscribers can find KBSU HD on channel 517. KBSU is also available to all PBTV digital subscribers in standard defini on on channel 17. Fox Sports Go is now a part of PBTV Everywhere! FOX Sports GO provides live video for the biggest events and the best shows for sports fana cs everywhere. Stream live sports content from FOX Sports, FOX Sports 1, FOX Sports 2, Fox Sports North, and FOX College Sports. Catch NFL, MLB, NBA, college football and basketball, NASCAR, UFC and much more. FOX Sports GO is available on FOX- SportsGO.com, ios, Android and Windows tablets & phones, Amazon Fire TV & phone and Kindle Fire tablet. PBTV customers can watch programs on their computer, smart phone, gaming systems, or tablet with PBTV Everywhere. It s free and all you need is Internet access. Some restric ons may apply.

In the Community Project Lifesaver Paul Bunyan Communica ons recently made a dona on to Project Lifesaver, a public safety program through the Beltrami County Sheriff s Department. Project Lifesaver is designed to use state of the art technology in assis ng those who care for vic ms of Alzheimer s demen a, Au- sm, Down Syndrome, and any other cogni ve condi on that causes wandering. The program places personalized radio transmi ers on iden fied persons which assist caregivers and emergency agencies in loca ng those who cannot help themselves. Pictured are Brian Bissone e, Paul Bunyan Communica- ons Marke ng Supervisor and Project Lifesaver to Beltrami County Sheriff s Deputy Sco Hinners. 4-H Robotics Program Paul Bunyan Communica ons recently made a dona- on to the regional 4-H Robo cs program. This is the 4th consecu ve year the coopera ve has been a major donor to the program which supports Robo cs programs throughout the region served by Paul Bunyan Communica ons. Pictured with the check (le to right) are Chloe Keprios, Paul Bunyan Communica ons Account Execu ve and Ann Marie Ward, 4-H Program Coordinator. They are surrounded by members of the Beltrami County 4-H Robo cs team. Taking Care of Business Event Join Paul Bunyan Communica ons at the 5th annual Taking Care of Business! event held by the Grand Rapids Chamber of Commerce on Wednesday, October 7th from 4:00-7:00 pm at Timberlake Lodge. Admission is free and a chance to learn about a wide variety of Grand Rapids chamber businesses plus get in to win great door prizes. Enter to win! Be sure to stop by the Paul Bunyan Communica ons booth to learn more about the communica on services our coopera ve can provide you, get a free gi while supplies last, and get in to win a Samsung Galaxy 3 tablet!

BOARD MEETING HIGHLIGHTS BOARD MEETING HIGHLIGHTS JULY Paul Bunyan Communica ons Board of Directors conducted its monthly mee ng on July 8, 2015. Also present were CEO and General Manager Gary Johnson, CFO Dave Schultz and Administra ve Assistant Elaine Iverson. The Manager updated the board on our CLEC projects. New member sign-ups in the rural Park Rapids and Trout Lake areas were discussed. GigaZone ac va ons were reviewed and 2015 construc on for new ac va- ons was discussed. The promo on of GizaZone service was discussed. Upcoming construc on in the Blackduck exchange was discussed. Access lines for the ILEC were reviewed. Digital video was discussed. PBTV Lite op ons were discussed. The Manager updated the Board on data services. The management team reviewed with the board a financial and construc on five-year forecast for offering GigaZone service. Grant areas were also noted. Network Opera ons Manager Rob St. Clair reviewed construc on plans and fiber cable needs for 2016. Following discussion, a mo on was made, seconded and carried to accept the low quote presented for the fiber purchase for 2016 construc on. The Manager gave his monthly report. He stated he par cipated in a forward looking roundtable discussion on broadband with Red Lake Tribal Band leaders. The May 2015 financial report was reviewed. Thank you le ers and correspondence were reviewed. The delinquent accounts and new member lists were reviewed. AUGUST Paul Bunyan Communica ons Board of Directors conducted its monthly mee ng on August 6, 2015. Also present were CEO and General Manager Gary Johnson, CFO Dave Schultz and Administra ve Assistant Elaine Iverson The Manager updated the board on our CLEC projects. New member sign-ups in the rural Park Rapids and Trout Lake areas were discussed. GigaZone ac va ons were reviewed and 2015 construc on for new ac va ons was discussed. Upcoming construc on in the Blackduck exchange for this fall was discussed. Access lines for the ILEC were reviewed. Digital video was discussed. PBTV Lite op ons were discussed. The Manager updated the Board on data services. The board reviewed the NTCA Standing Commi ees for 2016 and designated their interest to serve on any of the commi ees. A mo on was made, seconded and carried to approve two broadband construc on fund checks to reimburse general funds. Digital Services Supervisor Leo Anderson reviewed a proposal with the board to purchase monitoring so ware for our digital television service. A mo on was made, seconded and carried to approve the purchase with the quote presented. An expansion opportunity was reviewed and discussed. The Manager gave his monthly report. The June 2015 financial report was reviewed. Thank you le ers and correspondence were reviewed. GigaZone Activated for Thousands in Bemidji and Grand Rapids The GigaZone is quickly becoming one of the largest Gigabit networks in the United States. While only ac vated just 9 months ago, the GigaZone is currently available to over 9,400 loca ons including all of the coopera ve s service area of rural Park Rapids, Lake George, Trout Lake Township east of Grand Rapids, and areas of Bemidji and now Grand Rapids. Most recently over 2,800 loca ons in the Bemidji area were upgraded in June and over 2,100 loca ons in Grand Rapids were upgraded in September and are now in the GigaZone. GigaZone upgrades are expected by the end of the year in the remaining areas of Grand Rapids currently served by the coopera ve. To find out if you are in the GigaZone or when it may be coming to you, visit paulbunyan.net/gigazone/map/ We have already seen the demand for GigaZone services from the region with lots of people wondering when it will reach their loca on. The online map of the ac ve areas and plans for this year is a great resource for those interested in checking on their specific loca on. added Brian Bissone e, Paul Bunyan Communica ons Marke ng Supervisor. GigaZone service op ons include unprecedented Broadband Internet speeds of up to 1000 Mbps a Gigabit. Members who subscribe to Giga- Zone Broadband can also add PBTV Fusion and/or low cost unlimited local and long distance GigaZone voice service. All current service op ons also remain available to coopera ve members within the GigaZone. Most current wireless routers cannot support blazing GigaZone Internet speeds. To help, the coopera ve is offering GigaZone Integrated Wi-Fi that uses the latest in advanced Wi-Fi technologies to maximize the in-home wireless experience. This service is free to all new GigaZone customers for the first six months, with a minimal charge therea er. SEPTEMBER 1 SEPTEMBER 15 SEPTEMBER 29 SEPTEMBER 29 The delinquent accounts and new member lists were reviewed.

TELE U WHAT 2015 Paul Bunyan Communica ons Published by Paul Bunyan Rural Telephone Coopera ve An Equal Opportunity Employer email: info@paulbunyan.net online: paulbunyan.net After Hours Repair (800) 475.8309 1831 Anne St. NW Bemidji, MN 56601 PRSRT STD U.S. POSTAGE PAID PERMIT NO. 27 BEMIDJI, MN BEMIDJI 1831 Anne St. NW Bemidji, MN 56601 Phone (218) 444.1234 Toll Free (888) 586.3100 Monday - Friday 7:30 am - 6:00 pm Saturday 10:00 am - 2:00 pm Paul Bunyan Net Monday - Friday 8:00 am - 7:00 pm Saturday 8:00 am - 4:30 pm NOTE: No walk-in customers a er 6:00 pm, phone support only GRAND RAPIDS Grand Square 1220 S. Pokegama Ave. Grand Rapids, MN 55744 Phone (218) 999.1234 Toll Free (888) 586.3100 Monday - Friday 7:30 am - 6:00 pm Saturday 10:00 am - 2:00 pm BOARD OF DIRECTORS President Kathy Peterson, District 3 Inger-Wirt, Squaw Lake Vice President Jim Tarbell, District 4 Cohasset, Deer River, Grand Rapids stop writing checks with Secretary Gary Eklund, District 1 Blackduck, Kelliher, Northome, Big Falls Treasurer Tim Hins, District 9 Cass Lake, Puposky, Turtle River Randy Frisk, District 5 Becida, Bemidji, Laporte, Itasca State Park, Lake George, Park Rapids Glenda Mar n, District 6 Ponemah, Red Lake Bruce Campbell, District 7 Bemidji, Solway Jim Su on, District 8 City of Bemidji Easy Pay will automatically pay your bill directly from your bank account each month, so you don t have to send a check in the mail. Call us to find out how to enroll in this free service from Paul Bunyan Communications.