Northwestern Indiana Telephone Company - Page 15

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            building of the airport and the selection of its site was not                              
            likely to be made for a number of years.  As of the time of                                
            trial, no decision had yet been made concerning the building or                            
            site of the proposed airport, and there were no current plans to                           
            build the airport in or near NITCO's service area.                                         

                     G.  Cellular Telephone and Long-Distance Telephone                                
                     Service License Applications Filed by Mr. Mussman,                                
                     NITCO, and Another Company Mr. Mussman Controlled                                 

                  In order to offer cellular telephone or long-distance                                
            telephone services in a specific area, the potential service                               
            provider must first apply for and obtain authorization from                                
            either the Federal Communications Commission (FCC) or an                                   
            appropriate State regulatory agency.                                                       
                  During the 1980's, the FCC held lotteries to select the                              
            applicants to whom it would issue licenses to build and operate                            
            cellular telephone systems serving various areas of the United                             
            States.  The FCC issued two types of cellular telephone licenses:                          
            (1) On frequency B, only to local wire-line telephone companies,                           
            their owners, and affiliates who were under the common control of                          
            local telephone companies and/or their owners; and (2) on                                  
            frequency A, to anyone else other than local telephone companies,                          
            owners of local telephone companies, and their affiliates.  If a                           
            cellular telephone licensee failed to provide the required level                           
            of cellular telephone service to the entire area covered under                             
            the license issued to it within a 5-year period, then the FCC                              




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