Northwestern Indiana Telephone Company - Page 9

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            telephone switching equipment.  After it replaced the old                                  
            switching equipment at its exchanges with the new Alcatel                                  
            switching equipment, NITCO paid off the remaining purchase money                           
            debt of $669,530 that it owed on the old equipment to the old                              
            equipment's manufacturer.                                                                  
                  When NITCO ordered the Alcatel E10-5 switching equipment for                         
            its five exchanges in 1985, Alcatel had represented to NITCO that                          
            Alcatel would continue to engage in research and development                               
            efforts that would allow the Alcatel equipment that was purchased                          
            to be upgraded in future years so as to offer enhanced and                                 
            improved telephone services.  In 1988, NITCO purchased and                                 
            installed another piece of Alcatel switching equipment, an                                 
            Alcatel 1210 access tandem toll switch, at its central office.                             
            The Alcatel E10-5 switching equipment installed in NITCO's five                            
            exchanges performs switching functions in each exchange and is                             
            connected to the Alcatel 1210 tandem toll switch, which provides                           
            access to long-distance telephone service carriers, equal access,                          
            and 800 call capability to all of NITCO's exchanges.  With the                             
            E10-5 switches and the 1210 switch, NITCO can provide equal                                
            access, touch-tone services, direct long-distance dialing, call                            
            forwarding, call waiting, three-way calling, speed dialing,                                
            foreign exchange lines, pbx services, call tracing, and 911                                
            services to all its exchanges.                                                             
                  In various 1990 NITCO publications circulated to NITCO's                             
            customers and employees, NITCO stated that the Alcatel switching                           




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Last modified: May 25, 2011