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Indiana. NITCO provided local telephone services in these same
areas. To help Rhys and NICATV obtain the financing needed to
build NICATV's cable television system, Mr. Mussman personally
guaranteed the bank loan to NICATV.
From 1983 through 1988, NITCO's employees helped construct
NICATV's cable television system. From 1983 through about July
1989, NICATV maintained its offices at the 301 North Washington
Street building that it subleased from NITCO. It further leased
or subleased from NITCO a small area of cleared land located
behind NITCO's office building at 205 North Washington Street and
telephone pole space for cable television attachments. In 1988
and 1989, NITCO paid a total of at least $6,119.95 and $3,263.51,
respectively, in utility bills at the 301 North Washington Street
building.
NITCO had no ownership interest in NICATV or in NICATV's
cable television facilities.
In 1983, Rhys, NICATV, and NITCO became involved in a
dispute before the FCC concerning whether NICATV was an affiliate
of NITCO. The FCC later took the position that NICATV was a
NITCO affiliate, in large part because of the extensive financial
support and other assistance NICATV and Rhys received from Mr.
Mussman and NITCO. This dispute continued for a number of years
and was not resolved until after Rhys sold NICATV to an unrelated
party in July 1989. The FCC proceedings and other related legal
proceedings that arose from this dispute are discussed more fully
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