Northwestern Indiana Telephone Company - Page 14

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                  In 1992, NITCO purchased and paid approximately $781,000 for                         
            a new computer to perform its own billing and collections work.                            
            NITCO also hired additional employees to operate the new computer                          
            and to perform this work.  Thereafter, employees of NITCO                                  
            utilized this computer to perform NITCO's billing and collections                          
            work.                                                                                      
                  During 1987 through 1989, NITCO had no specific and definite                         
            plans to buy a computer to perform its billing and collections                             
            work.                                                                                      

                     F.  Long Range Planning and Discussions Concerning                                
                     a Proposed Airport in or Near NITCO's Service Area                                

                  At various times during 1987 through 1989, long-range                                
            planning and discussions were taking place concerning a proposed                           
            new airport in Indiana to service the Chicago, Illinois, area.                             
            Proponents of the airport project anticipated that the proposed                            
            airport eventually would be needed, because Chicago's O'Hare                               
            airport was already being heavily used.  The proponents believed                           
            that, as O'Hare airport's maximum air traffic capacity was                                 
            reached (which some of them predicted could occur as early as                              
            2010 through 2020), much of the increased air traffic to the                               
            Chicago area would have to be accommodated at a new Indiana                                
            airport.                                                                                   
                  During the years in issue, 4 of the 15 possible sites in                             
            Indiana discussed for the proposed airport were either in or near                          
            NITCO's service area.  However, a final decision concerning the                            



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Last modified: May 25, 2011