Northwestern Indiana Telephone Company - Page 13

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                  NITCO owned an IBM computer, which it used to help perform                           
            its billing and collections work.  In late 1986, AT&T took back                            
            the long-distance billing and collections function that NITCO                              
            previously performed for AT&T with respect to long-distance                                
            calls.                                                                                     
                  In October 1989, NITCO and Bank of Illinois entered into a                           
            3-year contract under which Bank of Illinois agreed to perform                             
            NITCO's billing and collections work.  In a November 1989 NITCO                            
            publication circulated to its employees, NITCO announced that the                          
            new NITCO billing system to be operated by Bank of Illinois would                          
            help to (1) improve service to NITCO's customers, and (2)                                  
            increase the productivity of NITCO's employees.  Another reason                            
            why NITCO entered into the contract was because the IBM computer                           
            that NITCO owned could not provide all the information on long-                            
            distance calls that NITCO was required to furnish to AT&T.  The                            
            contract was subsequently taken over from Bank of Illinois by                              
            another company, Communications Data Group (CDG).                                          
                  As of September 1991, although it had experienced some                               
            problems with the billing and collections work done, NITCO was                             
            still utilizing CDG's billing and collections services.  At a                              
            meeting on October 25, 1991, attended by NITCO personnel and CDG                           
            personnel at the offices of NITCO's attorneys, NITCO and CDG                               
            agreed that NITCO would continue to utilize CDG's billing and                              
            collections services.  However, the problems with the billing and                          
            collections work done for NITCO persisted.                                                 




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