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C2, Ownership and other Contributing funds
<br />Tekstar Communitations, Int. d/b/a Arvig will own, support, maintain and operate the proposed network. Funding sources to be
<br />contributed frorn other entities is not anticipated at this time, howe er, the Company understands and acknowledges that
<br />5herburne, as part of their RFP process, shall be engaging Cities and Townships so that they may consider par icipation by
<br />granting additional ARPA contributions and that such a contrihutian is critical for the purposes 4f consideration for eligibility. As
<br />such, our executive accou t team has rea hed out to the Townships identified as part of this project and has recei ed pos ti e
<br />response / interest relating to su}port.
<br />No partnerships or jaint build efforts are anticipated to be part of the propdsed praject at this time anci start to finish
<br />implementation inciuding field engineering, permitting, construction, and subscriber connectivity are all stheduled to o cur
<br />using Company affiliates.
<br />C3. Applicants Ability to Complete
<br />In 195U, Royal B. Arvig bought the Perham Telephane Company, located in Perham, fVlinrtesata. In subsequent years, Perham
<br />Telephone Company purchased th lines from the farmers and started to replace the existing lines and phones with more
<br />modem technology. The Company continued to purchase local exchanges in the Emmediate area overthe following years. Arvig
<br />Enterprises, Inc. was organized in 1984 ta faciEitate diversifieation beyond what is allowed by variaus regulatory kaodies. This
<br />corporate Structure provides aperating efficiencies in managing the Company's variaus business entities and lends to the
<br />technical feaSib lity, experience, deli erability, and organizational capacity of the applicant to commit and implement the
<br />proposed project with the schedule specified and propased tim frame far buildout.
<br />Today, Arvig pro ides entertainment and communication services to residential and business customers thrflughout Minnesota,
<br />North Dakota, 5outh Dako'ka, Nebraska, and lowa with Company wholly owned (except where noted) subsidiaries as fallaws:
<br />Holding Cpmpanies: Martinsen Communica#ions, Inc.; Midwest Information Systems, Inc.; diversiCom, Inc.; Alliance
<br />Telecommunications Corporation; V3 Technologies, LLC; Perham Investors, LLC; Osakis Telephone Company; The Home elephone
<br />Company; and The Peo les Telephone Co. of Bigfork
<br />Regulated Incurnbent Local Exthange Carriers ["ILECs"j: East Otter Tail Telephone Company; Twin Valley-Ulen Telephone Company;
<br />Callaway Telepfione Corr pany, Inc., Midwest Telephone Company; itedwood County Telephone Company; Melrose Telephone
<br />Company; Clements Telephone Company, Felton Telephone Company; Eagle Valley Telephone Cvmpany; Loretel Systems, Inc.; and
<br />Arrowhead Communications Carporation; Osakis Telephone Company; The Hame Telephone Company; and The Peoples Telephone
<br />Co. of Bigfork
<br />Competiti e Local Exchange Carriers ("CLECs"j: Tekstar Communieations, Inc.; Sauthern Cahlevisian, Inc.; Mainstreet
<br />Communications, LLC
<br />Long Distance: Redwaod County Long Distance Company anc! Royale Comtronics, Inc.
<br />Affiliate Companies: All State Communications, Inc.; AEI Construction, Inc.; AElS Construction, Inc,; CD Communications, Inc.; Time
<br />Communications, Inc.;
<br />Partially Owned: Central Minnesota Network 5ystems, LLC
<br />Arvig pro ides corporat services to all subsidiaries intluding management, accoun#ing, billing, HR, marketing, executiue
<br />leadership, employees, purchasing, data processing, IT support, ce stomer seruice5 and plant maintenance ervices. AEI
<br />Construction, Inc., an affiliate company, pro ides fiber optic network and utilities construction senrices positively affecting turn-
<br />key implementatian #or this proposa! and other projects. Arvig also provides all cash management services and the credit facility
<br />is maintained at the corporate level. All borrowing and spending decisians are made by the Arvig leadership team and Board of
<br />Directors.
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