Northwestern Indiana Telephone Company - Page 11

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            cable has certain definite advantages over copper cable.  The                              
            fiber optic cable is much smaller in size and has a greater                                
            transmission capacity than copper cable.  It further allows                                
            higher speed transmissions and requires less maintenance than                              
            copper cable.                                                                              
                  However, from 1987 through the time of trial, it was not                             
            economically feasible for NITCO to install fiber optic cable in                            
            the homes or business premises of its customers.  From 1986 until                          
            sometime in 1987 or 1988, Kyle was NITCO's fiber optic cable                               
            specialist.  During 1989, while he was employed as NITCO's                                 
            general manager, Kyle authored and published a white paper for                             
            the independent telephone industry stating that, at that time and                          
            for the immediate future, installation of fiber optic cable by                             
            local telephone companies in residences was not economically                               
            feasible.  In the paper, Kyle expressed the opinion that there                             
            was then no economic justification for local telephone companies                           
            to incur the high cost of installing the fiber optic cable in                              
            residences, because no significant additional revenues would yet                           
            be produced for them from their installation of the cable in                               
            residences.                                                                                
                  From 1987 through the time of trial, NITCO has not installed                         
            fiber optic cable in residences or in the business premises of                             
            its customers.  However, NITCO has installed and utilized fiber                            
            optic cable in connection with other parts of its telephone                                
            service system.  Its employees have laid and installed the fiber                           




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Last modified: May 25, 2011