|   |   |   |   |   |
|--------|--------|--------|--------|--------|

|   | x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE |
|--------|-----------------------------------------------------------|

|   | SECURITIES EXCHANGE ACT OF 1934 |
|--------|---------------------------------|

|   | o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE |
|--------|------------------------------------------------------------|

|   | SECURITIES EXCHANGE ACT OF 1934 |
|--------|---------------------------------|

|   | GCI, INC.                                              |   |
|--------|--------------------------------------------------------|--------|
|   | (Exact name of registrant as specified in its charter) |   |

|   | State of Alaska                 |   | 91-1820757          |   |
|--------|---------------------------------|--------|---------------------|--------|
|   | (State or other jurisdiction of |   | (I.R.S Employer     |   |
|   | incorporation or organization)  |   | Identification No.) |   |

|   | 2550 Denali Street                      |   |       |   |
|--------|-----------------------------------------|--------|------------|--------|
|   | Suite 1000                              |   |       |   |
|   | Anchorage, Alaska                       |   | 99503      |   |
|   | (Address of principalexecutive offices) |   | (Zip Code) |   |

|   | Registrant’s telephone number, including area code: (907) 265-5600 |
|--------|--------------------------------------------------------------------------|

|   | Not Applicable                                                                   |   |
|--------|----------------------------------------------------------------------------------|--------|
|   | Former name, former address and former fiscal year, if changed since last report |   |

| Large accelerated filer o                                             | Accelerated filer o         |
|-----------------------------------------------------------------------|-----------------------------|
| Non-accelerated filer x (Do not check if a smaller reporting company) | Smaller reporting company o |

----

|                                                      |                                                 |                                                                      |   |   | Page No. |
|-----------------------------------------------------------|------------------------------------------------------|---------------------------------------------------------------------------|--------|--------|----------|
|                                                      |                                                 |                                                                      |   |   |     |
| Cautionary Statement Regarding Forward-Looking Statements | 3                                                    |
|                                                      |                                                 |                                                                      |   |   |     |
| Part I.  FINANCIAL INFORMATION                  |                                                 |
|                                                      |                                                 |                                                                      |   |   |     |
|                                                      | Item I.                                              | Financial Statements                                                      |   |   |     |
|                                                      |                                                 |                                                                      |   |   |     |
|                                                      |                                                 | Consolidated Balance Sheets (unaudited) as of March 31, 2012              |   |   |     |
|                                                      |                                                 |   and December 31, 2011                                         |   |   | 4        |
|                                                      |                                                 |                                                                      |   |   |     |
|                                                      |                                                 | Consolidated Income Statements (unaudited) for the three months ended     |   |   |     |
|                                                      |                                                 |   March 31, 2012 and 2011                                       |   |   | 6        |
|                                                      |                                                 |                                                                      |   |   |     |
|                                                      |                                                 | Consolidated Statements of Stockholders’ Equity (unaudited)         |   |   |     |
|                                                      |                                                 |   for the three months ended  March 31, 2012 and 2011 |   |   | 7        |
|                                                      |                                                 |                                                                      |   |   |     |
|                                                      |                                                 | Consolidated Statements of Cash Flows (unaudited) for the three months    |   |   |     |
|                                                      |                                                 |   ended March 31, 2012 and 2011                                 |   |   | 8        |
|                                                      |                                                 |                                                                      |   |   |     |
|                                                      |                                                 | Condensed Notes to Interim Consolidated Financial Statements (unaudited)  |   |   | 9        |
|                                                      |                                                 |                                                                      |   |   |     |
|                                                      | Item 2.                                              | Management’s Discussion and Analysis of Financial Condition         |   |   |     |
|                                                      |                                                 |   and Results of Operations                                     |   |   | 24       |
|                                                      |                                                 |                                                                      |   |   |     |
|                                                      | Item 3.                                              | Quantitative and Qualitative Disclosures About Market Risk                |   |   | 35       |
|                                                      |                                                 |                                                                      |   |   |     |
|                                                      | Item 4.                                              | Controls and Procedures                                                   |   |   | 36       |
|                                                      |                                                 |                                                                      |   |   |     |
| Part II.  OTHER INFORMATION                     |                                                 |                                                                      |   |
|                                                      |                                                 |                                                                      |   |   |     |
|                                                      | Item 1.                                              | Legal Proceedings                                                         |   |   | 37       |
|                                                      |                                                 |                                                                      |   |   |     |
|                                                      | Item 6.                                              | Exhibits                                                                  |   |   | 37       |
|                                                      |                                                 |                                                                      |   |   |     |
|                                                      | Other items are omitted, as they are not applicable. |                                                                      |   |
|                                                      |                                                 |                                                                      |   |   |     |
| SIGNATURES                                                |                                                 |                                                                      | 38     |

----

----

|                                                                                                                                                       |   |      |      |   |         |        |
|------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|-----------|--------|--------------|-------------|
| PART I. FINANCIAL INFORMATION                                                                                                                              |   |
| ITEM I. FINANCIAL STATEMENTS                                                                                                                               |   |
|                                                                                                                                                       |   |      |      |   |         |        |
| GCI, INC. AND SUBSIDIARIES                                                                                                                                 |
| CONSOLIDATED BALANCE SHEETS                                                                                                                                |
| (Unaudited)                                                                                                                                                |
|                                                                                                                                                       |   |      |      |   |         |        |
| (Amounts in thousands)                                                                                                                                     |   |      |      |   |         |        |
|                                                                                                                                                       |   | March 31, |      |   | December 31, |        |
| ASSETS                                                                                                                                                     |   | 2012      |      |   | 2011         |        |
|                                                                                                                                                       |   |      |      |   |         |        |
| Current assets:                                                                                                                                            |   |      |      |   |         |        |
| Cash and cash equivalents                                                                                                                                  |   | $         | 27,016    |   |         |        | 27,730 |   |
|                                                                                                                                                       |   |      |      |   |         |        |   |   |
| Receivables                                                                                                                                                |   |      | 150,934   |   |         |        | 141,827 |   |
| Less allowance for doubtful receivables                                                                                                                    |   |      | 5,011     |   |         |        | 5,796 |   |
| Net receivables                                                                                                                                            |   |      | 145,923   |   |         |        | 136,031 |   |
|                                                                                                                                                       |   |      |      |   |         |        |   |   |
| Deferred income taxes                                                                                                                                      |   |      | 15,555    |   |         |        | 15,555 |   |
| Prepaid expenses                                                                                                                                           |   |      | 9,419     |   |         |        | 7,899 |   |
| Inventories                                                                                                                                                |   |      | 9,507     |   |         |        | 7,522 |   |
| Other current assets                                                                                                                                       |   |      | 3,527     |   |         |        | 3,631 |   |
| Total current assets                                                                                                                                       |   |      | 210,947   |   |         |        | 198,368 |   |
|                                                                                                                                                       |   |      |      |   |         |        |   |   |
| Property and equipment in service, net of depreciation                                                                                                     |   |      | 835,832   |   |         |        | 849,121 |   |
| Construction in progress                                                                                                                                   |   |      | 51,736    |   |         |        | 42,918 |   |
| Net property and equipment                                                                                                                                 |   |      | 887,568   |   |         |        | 892,039 |   |
|                                                                                                                                                       |   |      |      |   |         |        |   |   |
| Cable certificates                                                                                                                                         |   |      | 191,635   |   |         |        | 191,635 |   |
| Goodwill                                                                                                                                                   |   |      | 74,883    |   |         |        | 74,883 |   |
| Wireless licenses                                                                                                                                          |   |      | 25,967    |   |         |        | 25,967 |   |
| Restricted cash                                                                                                                                            |   |      | 14,804    |   |         |        | 15,910 |   |
| Other intangible assets, net of amortization                                                                                                               |   |      | 15,612    |   |         |        | 15,835 |   |
| Deferred loan and senior notes costs, net of amortization  of $3,353 and $2,880 at March 31, 2012 and December  31, 2011, respectively |   |      | 12,262    |   |         |        | 12,812 |   |
| Other assets                                                                                                                                               |   |      | 16,104    |   |         |        | 17,214 |   |
| Total other assets                                                                                                                                         |   |      | 351,267   |   |         |        | 354,256 |   |
| Total assets                                                                                                                                               |   | $         | 1,449,782 |   |         |        | 1,444,663 |   |
|                                                                                                                                                       |   |      |      |   |         |        |   |   |
| See accompanying condensed notes to interim consolidated financial statements.                                                                             |   |
|                                                                                                                                                       |   |      |      |   |         |        |   |   |
|                                                                                                                                                       |   |      |      |   |         |        |   |   |
|                                                                                                                                                       |   |      |      |   |         |        |   |   |
|                                                                                                                                                       |   |      |      |   |         | (Continued) |   |

----

| GCI, INC. AND SUBSIDIARIES                                                                                      |
|-----------------------------------------------------------------------------------------------------------------|
| CONSOLIDATED BALANCE SHEETS                                                                                     |
| (Unaudited)                                                                                                     |
| (Continued)                                                                                                     |
|                                                                                                            |   |   |   |   |   |   |
|                                                                                                            |   |   |   |   |   |   |
| (Amounts in thousands)                                                                                          |   |   |   |   |   |   |
|                                                                                                            |   | March 31, |   |   | December 31, |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                            |   | 2012 |   |   | 2011 |   |
|                                                                                                            |   |   |   |   |   |   |
| Current liabilities:                                                                                            |   |   |   |   |   |   |
|     Current maturities of obligations under long-term debt and     capital leases |   | $ | 9,507 |   |   |   | 8,797 |   |
|     Accounts payable                                                                             |   |   | 37,067 |   |   |   | 41,353 |   |
|     Deferred revenue                                                                             |   |   | 23,181 |   |   |   | 22,003 |   |
|     Accrued payroll and payroll related obligations                                              |   |   | 20,285 |   |   |   | 22,126 |   |
|     Accrued interest                                                                             |   |   | 21,366 |   |   |   | 6,680 |   |
|     Accrued liabilities                                                                          |   |   | 14,032 |   |   |   | 11,423 |   |
|     Subscriber deposits                                                                          |   |   | 1,206 |   |   |   | 1,250 |   |
|            Total current liabilities                     |   |   | 126,644 |   |   |   | 113,632 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |
| Long-term debt, net                                                                                             |   |   | 859,617 |   |   |   | 858,031 |   |
| Obligations under capital leases, excluding current maturities                                                  |   |   | 77,286 |   |   |   | 78,605 |   |
| Obligation under capital lease due to related party, excluding                                                  |   |   |   |   |   |   |   |   |
|     current maturity                                                                             |   |   |      1,893 |   |   |   |  1,893 |   |
| Deferred income taxes                                                                                           |   |   | 115,383 |   |   |   | 114,234 |   |
| Long-term deferred revenue                                                                                      |   |   | 81,541 |   |   |   | 81,822 |   |
| Other liabilities                                                                                               |   |   | 23,800 |   |   |   | 24,456 |   |
|            Total liabilities                             |   |   | 1,286,164 |   |   |   | 1,272,673 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |
| Commitments and contingencies                                                                                   |   |   |   |   |   |   |   |   |
| Stockholders' equity:                                                                                           |   |   |   |   |   |   |   |   |
|     Class A common stock (no par). Authorized 10 shares;                                         |   |   |   |   |   |   |   |   |
|     issued and outstanding 0.1 shares each at March 31, 2012 and December 31, 2011          |   |   | 206,622 |   |   |   | 206,622 |   |
| Paid-in capital                                                                                                 |   |   | 64,320 |   |   |   | 61,841 |   |
| Retained deficit                                                                                                |   |   | (123,455 | ) |   |   | (112,781 | ) |
|     Total GCI, Inc. stockholder's equity                                                         |   |   | 147,487 |   |   |   | 155,682 |   |
| Non-controlling interest                                                                                        |   |   | 16,131 |   |   |   | 16,308 |   |
|     Total stockholders' equity                                                                   |   |   | 163,618 |   |   |   | 171,990 |   |
|            Total liabilities and stockholders' equity         |   | $ | 1,449,782 |   |   |   | 1,444,663 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |
| See accompanying condensed notes to interim consolidated financial statements.                                  |   |   |   |   |   |

----

|  GCI, INC. AND SUBSIDIARIES                                               |
|--------------------------------------------------------------------------------|
| CONSOLIDATED INCOME STATEMENTS                                                 |
| (Unaudited)                                                                    |
|                                                                           |   |   |   |   |   |   |
|                                                                           |   |   |   |   |   |   |
|                                                                           |   | Three Months Ended |   |
|                                                                           |   | March 31, |   |
| (Amounts in thousands)                                                         |   | 2012 |   |   | 2011 |   |
| Revenues                                                                       |   | $ | 171,907 |   |   |   | 164,777 |   |
| Cost of goods sold (exclusive of depreciation and                              |   |   |   |   |   |   |   |   |
| amortization shown separately below)                                           |   |   | 56,860 |   |   |   | 53,756 |   |
| Selling, general and administrative expenses                                   |   |   | 62,982 |   |   |   | 58,893 |   |
| Depreciation and amortization expense                                          |   |   | 32,380 |   |   |   | 31,866 |   |
|   Operating income                                                        |   |   | 19,685 |   |   |   | 20,262 |   |
|                                                                           |   |   |   |   |   |   |   |   |
| Other income (expense):                                                        |   |   |   |   |   |   |   |   |
|     Interest expense (including amortization                    |   |   |   |   |   |   |   |   |
|  of deferred loan fees)                                                   |   |   | (17,155 | ) |   |   | (17,452 | ) |
|     Interest income                                             |   |   | 2 |   |   |   | 4 |   |
|     Other                                                       |   |   | (131 | ) |   |   | (24 | ) |
|  Other expense, net                                                       |   |   | (17,284 | ) |   |   | (17,472 | ) |
|    Income before income tax expense                             |   |   | 2,401 |   |   |   | 2,790 |   |
| Income tax expense                                                             |   |   | 1,149 |   |   |   | 1,391 |   |
|                                                                           |   |   |   |   |   |   |   |   |
|    Net income                                                   |   |   | 1,252 |   |   |   | 1,399 |   |
| Net loss attributable to non-controlling interest                              |   |   | 177 |   |   |   | - |   |
|        Net income attributable to GCI, Inc.      |   | $ | 1,429 |   |   |   | 1,399 |   |
|                                                                           |   |   |   |   |   |   |   |   |
| See accompanying condensed notes to interim consolidated financial statements. |   |

----

| GCI, INC. AND SUBSIDIARIES                                                     |
|--------------------------------------------------------------------------------|
| CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY                                |
| THREE MONTHS ENDED MARCH 31, 2012 AND 2011                                     |
|                                                                           |   |   |   |   |   |   |   |   |
|                                                                           |   |   |   |   |   |   |   |   |
|                                                                           |   |   |   |   |   |   |   |   |
| (Amounts in thousands)                                                    |   Shares of Class A Common Stock  |   |   |   Class A Common Stock |   Paid-in Capital |   Retained Deficit |   Non-controlling Interest |   Total Stockholders' Equity |
| Balances at January 1, 2011                                                    |  100  |   | $ |  206,622  |  54,574  |  (63,390) |  -  |  197,806  |
| Net income                                                                     |  -  |   |   |  -  |  -  |  1,399  |  -  |  1,399  |
| Distribution to General Communication, Inc.                                    |  -  |   |   |  -  |  -  |  (7,259) |  -  |  (7,259) |
| Contribution from General Communication, Inc.                                  |  -  |   |   |  -  |  1,544  |  -  |  -  |  1,544  |
| Other                                                                          |  -  |   |   |  -  |  -  |  51  |  -  |  51  |
| Balances at March 31, 2011                                                     |  100  |   | $ |  206,622  |  56,118  |  (69,199) |  -  |  193,541  |
|                                                                           |   |   |   |   |   |   |   |   |
| Balances at January 1, 2012                                                    |  100  |   | $ |  206,622  |  61,841  |  (112,781) |  16,308  |  171,990  |
| Net income                                                                     |  -  |   |   |  -  |  -  |  1,429  |  (177) |  1,252  |
| Distribution to General Communication, Inc.                                    |  -  |   |   |  -  |  -  |  (12,103) |  -  |  (12,103) |
| Contribution from General Communication, Inc.                                  |  -  |   |   |  -  |  2,479  |  -  |  -  |  2,479  |
| Balances at March 31, 2012                                                     |  100  |   | $ |  206,622  |  64,320  |  (123,455) |  16,131  |  163,618  |
|                                                                           |   |   |   |   |   |   |   |   |
| See accompanying condensed notes to interim consolidated financial statements. |   |   |   |   |   |   |   |

----

| GCI, INC. AND SUBSIDIARIES                                                     |
|--------------------------------------------------------------------------------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS                                          |
| THREE MONTHS ENDED MARCH 31, 2012 AND 2011                                     |
| (Unaudited)                                                                    |
|                                                                           |   |
|                                                                           |   |   |   |   |   |   |
| (Amounts in thousands)                                                         |   |   |   |   |   |   |
|                                                                           |   | 2012 |   |   | 2011 |   |
| Cash flows from operating activities:                                          |   |   |   |   |   |   |
| Net income                                                                     |   | $ | 1,252 |   |   |   | 1,399 |   |
| Adjustments to reconcile net income to net cash                                |   |   |   |   |   |   |   |   |
| provided by operating activities:                                              |   |   |   |   |   |   |   |   |
| Depreciation and amortization expense                                          |   |   | 32,380 |   |   |   | 31,866 |   |
| Deferred income tax expense                                                    |   |   | 1,149 |   |   |   | 1,391 |   |
| Share-based compensation expense                                               |   |   | 1,730 |   |   |   | 1,170 |   |
| Other noncash income and expense items                                         |   |   | 1,534 |   |   |   | 2,151 |   |
| Change in operating assets and liabilities                                     |   |   | (3,902 | ) |   |   | (9,980 | ) |
| Net cash provided by operating activities                                      |   |   | 34,143 |   |   |   | 27,997 |   |
| Cash flows from investing activities:                                          |   |   |   |   |   |   |   |   |
| Purchases of property and equipment                                            |   |   | (23,591 | ) |   |   | (28,824 | ) |
| Restricted cash                                                                |   |   | 1,106 |   |   |   | - |   |
| Purchases of other assets and intangible assets                                |   |   | (1,125 | ) |   |   | (1,923 | ) |
| Net cash used in investing activities                                          |   |   | (23,610 | ) |   |   | (30,747 | ) |
| Cash flows from financing activities:                                          |   |   |   |   |   |   |   |   |
| Net distribution to General Communication, Inc.                                |   |   | (12,034 | ) |   |   | (7,208 | ) |
| Borrowing of other long-term debt                                              |   |   | 2,729 |   |   |   | - |   |
| Repayment of debt and capital lease obligations                                |   |   | (1,942 | ) |   |   | (6,971 | ) |
| Borrowing on Senior Credit Facility                                            |   |   | - |   |   |   | 13,000 |   |
| Net cash used in financing activities                                          |   |   | (11,247 | ) |   |   | (1,179 | ) |
| Net decrease in cash and cash equivalents                                      |   |   | (714 | ) |   |   | (3,929 | ) |
| Cash and cash equivalents at beginning of period                               |   |   | 27,730 |   |   |   | 31,777 |   |
| Cash and cash equivalents at end of period                                     |   | $ | 27,016 |   |   |   | 27,848 |   |
|                                                                           |   |   |   |   |   |   |   |   |
| See accompanying condensed notes to interim consolidated financial statements. |   |
|                                                                           |   |   |   |   |   |   |   |   |

----

|   |  (a) | Business |
|--------|-----------|----------|

| ·   | Postpaid and prepaid wireless telephone services and sale of wireless telephone handsets and accessories, |
|--------------------|-----------------------------------------------------------------------------------------------------------|

| ·   | Video services throughout Alaska, |
|--------------------|-----------------------------------|

| ·   | Internet access services, |
|--------------------|---------------------------|

| ·   | Wireless roaming for certain wireless carriers and origination and termination of wireline traffic in Alaska for certain common carriers, |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Competitive and incumbent local access services throughout Alaska, |
|--------------------|--------------------------------------------------------------------|

| ·   | Long-distance telephone service, |
|--------------------|----------------------------------|

| ·   | Data network services, |
|--------------------|------------------------|

| ·   | Broadband services, including our SchoolAccess® offering to rural school districts, our ConnectMD® offering to rural hospitals and health clinics, and managed video conferencing, |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Managed services to certain commercial customers, |
|--------------------|---------------------------------------------------|

| ·   | Sales and service of dedicated communications systems and related equipment, and |
|--------------------|----------------------------------------------------------------------------------|

| ·   | Lease, service arrangements and maintenance of capacity on our fiber optic cable systems used in the transmission of voice and data services within Alaska and between Alaska and the remaining United States and foreign countries. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Principles of Consolidation |
|--------|-----|-----------------------------|

|   | (c) | Non-controlling Interest |
|--------|-----|--------------------------|

----

|   | (e) | Regulatory Accounting |
|--------|-----|-----------------------|

|   | (f) | Earnings per Common Share |
|--------|-----|---------------------------|

|   | (g)  Revenue Recognition |
|--------|------------------------------------|

----

----

|   | (h) | Use of Estimates |
|--------|-----|------------------|

|   | (i) | Income Taxes |
|--------|-----|--------------|

|   | GCI, Inc., as a wholly owned subsidiary and member of the GCI controlled group of corporations, files its income tax returns as part of the consolidated group of corporations under GCI.  Accordingly, all discussions regarding income taxes reflect the consolidated group's activity.  Our income tax expense and deferred income tax assets and liabilities are presented herein using the separate-entity method. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (j) | Classification of Taxes Collected from Customers |
|--------|-----|--------------------------------------------------|

|   | (k) | Immaterial Error Correction |
|--------|-----|-----------------------------|

----

| Consolidated Balance Sheet as of                                        |   | As Previously Reported |      |   | Adjustment |   |   | As Revised |   |
|-------------------------------------------------------------------------|--------|------------------------|-----------|--------|------------|--------|--------|------------|--------|
|   December 31, 2011:                                          |   |                   |      |   |       |   |   |       |   |
| Property and equipment in service, net of depreciation                  |   | $                      | 851,705   |   |       |   | (2,584 | )          |   |   | 849,121 |   |
| Net property and equipment                                              |   |                   | 894,623   |   |       |   | (2,584 | )          |   |   | 892,039 |   |
| Total assets                                                            |   |                   | 1,447,247 |   |       |   | (2,584 | )          |   |   | 1,444,663 |   |
| Deferred income taxes                                                   |   |                   | 115,296   |   |       |   | (1,062 | )          |   |   | 114,234 |   |
| Total liabilities                                                       |   |                   | 1,273,735 |   |       |   | (1,062 | )          |   |   | 1,272,673 |   |
| Retained deficit                                                        |   |                   | (111,259  | )      |       |   | (1,522 | )          |   |   | (112,781 | ) |
| Total GCI stockholders' equity                                          |   |                   | 157,204   |   |       |   | (1,522 | )          |   |   | 155,682 |   |
| Total stockholders' equity                                              |   |                   | 173,512   |   |       |   | (1,522 | )          |   |   | 171,990 |   |
| Total liabilities and stockholders' equity                              |   |                   | 1,447,247 |   |       |   | (2,584 | )          |   |   | 1,444,663 |   |
|                                                                    |   |                   |      |   |       |   |   |       |   |   |   |   |
| Consolidated Income Statement for the Three                             |   |                   |      |   |       |   |   |       |   |   |   |   |
|   Months Ended March 31, 2011:                                |   |                   |      |   |       |   |   |       |   |   |   |   |
| Depreciation and amortization expense                                   |   |                   | 31,720    |   |       |   | 146    |       |   |   | 31,866 |   |
| Operating income                                                        |   |                   | 20,408    |   |       |   | (146   | )          |   |   | 20,262 |   |
| Income before income tax expense or benefit                             |   |                   | 2,936     |   |       |   | (146   | )          |   |   | 2,790 |   |
| Income tax expense                                                      |   |                   | 1,451     |   |       |   | (60    | )          |   |   | 1,391 |   |
| Net income                                                              |   |                   | 1,485     |   |       |   | (86    | )          |   |   | 1,399 |   |
|                                                                    |   |                   |      |   |       |   |   |       |   |   |   |   |
| Consolidated Statement of Stockholder's Equity                          |   |                   |      |   |       |   |   |       |   |   |   |   |
|   for the Three Months Ended March 31, 2011:                  |   |                   |      |   |       |   |   |       |   |   |   |   |
| Retained deficit, balance at January 1, 2011                            |   |                   | (61,983   | )      |       |   | (1,407 | )          |   |   | (63,390 | ) |
| Net income                                                              |   |                   | 1,485     |   |       |   | (86    | )          |   |   | 1,399 |   |
| Retained deficit, balance at March 31, 2011                             |   |                   | (67,706   | )      |       |   | (1,493 | )          |   |   | (69,199 | ) |
| Total stockholders' equity, balance at January 1,   2011 |   |                   | 199,213   |   |       |   | (1,407 | )          |   |   | 197,806 |   |
| Total stockholders' equity, balance at March 31, 2011                   |   |                   | 195,034   |   |       |   | (1,493 | )          |   |   | 193,541 |   |
|                                                                    |   |                   |      |   |       |   |   |       |   |   |   |   |
| Consolidated Statement of Cash Flows for the                            |   |                   |      |   |       |   |   |       |   |   |   |   |
|   Three Months Ended March 31, 2011:                          |   |                   |      |   |       |   |   |       |   |   |   |   |
| Net income                                                              |   |                   | 1,485     |   |       |   | (86    | )          |   |   | 1,399 |   |
| Depreciation and amortization expense                                   |   |                   | 31,720    |   |       |   | 146    |       |   |   | 31,866 |   |
| Deferred income tax expense (benefit)                                   |   |                   | 1,451     |   |       |   | (60    | )          |   |   | 1,391 |   |

----

| (2) | Consolidated Statements of Cash Flows Supplemental Disclosures |
|-----|----------------------------------------------------------------|

|   | Changes in operating assets and liabilities consist of (amounts in thousands): |
|--------|--------------------------------------------------------------------------------|

| Three Months Ended March 31,                                           |   | 2012   |    |   | 2011   |   |
|------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Increase in accounts receivable, net                                   |   | $      | (10,619 | )      |   |   | (7,388 | ) |
| Increase in prepaid expenses                                           |   |   | (1,520  | )      |   |   | (1,911 | ) |
| Increase in inventories                                                |   |   | (1,985  | )      |   |   | (992 | ) |
| Decrease in other current assets                                       |   |   | 104     |   |   |   | 59 |   |
| Decrease in other assets                                               |   |   | 1,152   |   |   |   | 582 |   |
| Increase (decrease) in accounts payable                                |   |   | (6,813  | )      |   |   | 772 |   |
| Increase in deferred revenues                                          |   |   | 1,178   |   |   |   | 244 |   |
| Decrease in accrued payroll and  payroll related obligations |   |   | (2,048  | )      |   |   | (2,353 | ) |
| Increase (decrease) in accrued liabilities                             |   |   | 3,120   |   |   |   | (99 | ) |
| Increase in accrued interest                                           |   |   | 14,686  |   |   |   | 3,551 |   |
| Decrease in subscriber deposits                                        |   |   | (44     | )      |   |   | (53 | ) |
| Decrease in long-term deferred revenue                                 |   |   | (281    | )      |   |   | (359 | ) |
| Decrease in components of other  long-term liabilities       |   |   | (832    | )      |   |   | (2,033 | ) |
|                                                                   |   | $      | (3,902  | )      |   |   | (9,980 | ) |

| Net cash paid or received:                |   | 2012 |   |   | 2011   |   |
|-------------------------------------------|--------|------|--------|--------|--------|--------|
| Interest paid, net of amounts capitalized |   | $    | 2,086  |   |   |   | 13,664 |   |

|                                                                                                            |   | 2012 |   |   | 2011   |   |
|-----------------------------------------------------------------------------------------------------------------|--------|------|--------|--------|--------|--------|
| Non-cash additions for purchases of property and  equipment                                           |   | $    | 2,868  |   |   |   | 6,872 |   |
| Asset retirement obligation additions to property and  equipment                                      |   | $    | 92     |   |   |   | 116 |   |
| Asset retirement obligation reductions to property and  equipment for revisions to previous estimates |   | $    | -      |   |   |   | 294 |   |
| Deferred compensation distribution denominated in  shares                                             |   | $    | 511    |   |   |   | - |   |

| (3) | Intangible Assets |
|-----|-------------------|

|                 |   | Three Months Ended March 31, |   |
|----------------------|--------|------------------------------|--------|
|                 |   | 2012                         |   |   | 2011 |   |
| Amortization expense |   | $                            | 1,300  |   |   |   | 1,572 |   |

| Years Ending December 31, |   |   |   |
|---------------------------|--------|--------|--------|
| 2012                 |   | $      | 4,777  |   |
| 2013                 |   |   | 3,806  |   |
| 2014                 |   |   | 2,948  |   |
| 2015                 |   |   | 2,101  |   |
| 2016                 |   |   | 769    |   |

----

| (4) | Financial Instruments |
|-----|-----------------------|

|                                                                |   | March 31,       |    |   | December 31, |   |
|---------------------------------------------------------------------|--------|-----------------|---------|--------|--------------|--------|
|                                                                |   | 2012            |    |   | 2011         |   |
|                                                                |   | Carrying Amount |    |   | Fair Value   |   |   | Carrying Amount |   |   | Fair Value |   |
| Current and long-term debt and  capital lease obligations |   | $               | 948,303 |   |         |   | 982,805 |   |   |   | 947,326 |   |   |   | 942,895 |   |
| Other liabilities                                                   |   |            | 104,985 |   |         |   | 104,167 |   |   |   | 106,002 |   |   |   | 105,173 |   |

|   | Current and long-term debt and capital lease obligations:  The fair values of the $325.0 million in aggregate principal amount of 6.75% Senior Notes due 2021 (“2021 Notes”), the $425.0 million in aggregate principal amount of 8.63% Senior Notes due 2019 (“2019 Notes”), Rural Utilities Service debt, CoBank mortgage note payable, and capital leases are based upon quoted market prices for the same or similar issues or on the current rates offered to us for the same remaining maturities.  The fair value of our $50.0 million term loan and $75.0 million revolving credit facility is estimated to approximate the carrying value because this instrument is subject to variable interest rates. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Other Liabilities:  Lease escalation liabilities are valued at the discounted amount of future cash flows using quoted market prices on current rates offered to us. Deferred compensation liabilities are carried at fair value, which is the amount payable as of the balance sheet date. Asset retirement obligations are recorded at their fair value and, over time, the liability is accreted to its present value each period. Our non-employee share-based compensation awards are reported at their fair value at each reporting period. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                        |   | Fair Value Measurement at Reporting Date Using                 |   |
|-------------------------------------------------------------|--------|----------------------------------------------------------------|--------|
| March 31, 2012 Assets                                       |   | Quoted Prices in Active Markets for Identical Assets (Level 1) |   |   | Significant Other Observable Inputs (Level 2) |   |   | Significant Unobservable Inputs (Level 3) |   |
| Deferred compensation plan assets  (mutual funds) |   |                                                           | 1,708  |   |   |   | - |   |   |   | - |   |
| Total assets at fair value                                  |   | $                                                              | 1,708  |   |   |   | - |   |   |   | - |   |
|                                                        |   |                                                           |   |   |   |   |   |   |   |   |   |   |

----

|                                                        |   | Fair Value Measurement at Reporting Date Using                 |   |   |
|-------------------------------------------------------------|--------|----------------------------------------------------------------|--------|--------|
| December 31, 2011 Assets                                    |   | Quoted Prices in Active Markets for Identical Assets (Level 1) |   |   | Significant Other Observable Inputs (Level 2) |   |   | Significant Unobservable Inputs (Level 3) |   |
| Deferred compensation plan assets  (mutual funds) |   |                                                           | 1,600  |   |   |   | - |   |   |   | - |   |
| Total assets at fair value                                  |   | $                                                              | 1,600  |   |   |   | - |   |   |   | - |   |

| (5) | Stockholders’ Equity |
|-----|----------------------------|

----

|                           |   |   |   |   |     |   | Weighted    |   |           |   |
|--------------------------------|--------|--------|--------|--------|----------|--------|-------------|--------|----------------|--------|
|                           |   |   |   |   | Weighted |   | Average     |   | Aggregate      |   |
|                           |   |   |   |   | Average  |   | Remaining   |   | Intrinsic      |   |
|                           |   |   |   |   | Exercise |   | Contractual |   | Value          |   |
|                           |   | Shares |   |   | Price    |   | Term        |   | (in thousands) |   |
| Outstanding at January 1, 2012 |   |   | 1,087  |   |     | $      | 7.29        |   |           |   |   |   |
| Exercised                      |   |   | (187   | )      |     | $      | 7.29        |   |           |   |   |   |
| Expired                        |   |   | (1     | )      |     | $      | 7.52        |   |           |   |   |   |
| Outstanding at March 31, 2012  |   |   | 899    |   |     | $      | 7.27        |   | 3.98 years     |   | $ | 1,473 |   |
| Exercisable at March 31, 2012  |   |   | 820    |   |     | $      | 7.31        |   | 3.67 years     |   | $ | 1,312 |   |

|                         |   |   |   |   | Weighted   |   |
|------------------------------|--------|--------|--------|--------|------------|--------|
|                         |   |   |   |   | Average    |   |
|                         |   |   |   |   | Grant Date |   |
|                         |   | Shares |   |   | Fair Value |   |
| Nonvested at January 1, 2012 |   |   | 1,556  |   |       | $      | 6.89 |   |
| Granted                      |   |   | 316    |   |       | $      | 11.20 |   |
| Vested                       |   |   | (937   | )      |       | $      | 4.79 |   |
| Forfeited                    |   |   | (1     | )      |       | $      | 7.41 |   |
| Nonvested at March 31, 2012  |   |   | 934    |   |       | $      | 10.45 |   |

|                                                    |   | 2012   |   |   | 2011   |   |
|---------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Employee share-based compensation expense               |   | $      | 1,900  |   |   |   | 1,544 |   |
| Adjustment to fair value of liability classified awards |   |   | (170   | )      |   |   | (374 | ) |
|   Total share-based compensation expense      |   | $      | 1,730  |   |   |   | 1,170 |   |

----

| (6) | Industry Segments Data |
|-----|------------------------|

----

|                                         |   | Consumer |   |   | Network Access |   |   | Commercial |   |   | Managed Broadband |   |   | Regulated Operations |   |   | Total Reportable Segments |   |
|----------------------------------------------|--------|----------|--------|--------|----------------|--------|--------|------------|--------|--------|-------------------|--------|--------|----------------------|--------|--------|---------------------------|--------|
| 2012                                    |   |     |   |   |           |   |   |       |   |   |              |   |   |                 |   |   |                      |   |
| Revenues:                                    |   |     |   |   |           |   |   |       |   |   |              |   |   |                 |   |   |                      |   |
|   Intersegment                     |   | $        | 524    |   |           |   | 83     |       |   |   | 1,385             |   |   |                 | -      |   |                      |   | 39 |   |   |   | 2,031 |   |
|   External                         |   |     | 87,812 |   |           |   | 25,188 |       |   |   | 34,341            |   |   |                 | 19,029 |   |                      |   | 5,537 |   |   |   | 171,907 |   |
|     Total revenues       |   |     | 88,336 |   |           |   | 25,271 |       |   |   | 35,726            |   |   |                 | 19,029 |   |                      |   | 5,576 |   |   |   | 173,938 |   |
| Adjusted EBITDA                              |   | $        | 24,794 |   |           |   | 12,410 |       |   |   | 8,441             |   |   |                 | 8,249  |   |                      |   | 935 |   |   |   | 54,829 |   |
|                                         |   |     |   |   |           |   |   |       |   |   |              |   |   |                 |   |   |                      |   |   |   |   |   |   |   |
| 2011                                    |   |     |   |   |           |   |   |       |   |   |              |   |   |                 |   |   |                      |   |   |   |   |   |   |   |
| Revenues:                                    |   |     |   |   |           |   |   |       |   |   |              |   |   |                 |   |   |                      |   |   |   |   |   |   |   |
|   Intersegment                     |   | $        | -      |   |           |   | -      |       |   |   | 1,409             |   |   |                 | -      |   |                      |   | 69 |   |   |   | 1,478 |   |
|   External                         |   |     | 88,417 |   |           |   | 25,097 |       |   |   | 31,829            |   |   |                 | 13,995 |   |                      |   | 5,439 |   |   |   | 164,777 |   |
|      Total revenues |   |     | 88,417 |   |           |   | 25,097 |       |   |   | 33,238            |   |   |                 | 13,995 |   |                      |   | 5,508 |   |   |   | 166,255 |   |
| Adjusted EBITDA                              |   | $        | 28,393 |   |           |   | 11,880 |       |   |   | 6,662             |   |   |                 | 5,711  |   |                      |   | 700 |   |   |   | 53,346 |   |

----

| Three Months Ended March 31,                                            |   | 2012   |    |   | 2011   |   |
|-------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Reportable segment revenues                                             |   | $      | 173,938 |   |   |   | 166,255 |   |
| Less intersegment revenues eliminated in   consolidation |   |   | 2,031   |   |   |   | 1,478 |   |
| Consolidated revenues                                                   |   | $      | 171,907 |   |   |   | 164,777 |   |

| Three Months Ended March 31,                                      |   | 2012   |    |   | 2011   |   |
|-------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Reportable segment Adjusted EBITDA                                |   | $      | 54,829  |   |   |   | 53,346 |   |
| Less depreciation and amortization  expense             |   |   | (32,380 | )      |   |   | (31,866 | ) |
| Less share-based compensation  expense                  |   |   | (1,730  | )      |   |   | (1,170 | ) |
| Less non-cash contribution  expense                     |   |   | (800    | )      |   |   | - |   |
| Less net loss attributable to  non-controlling interest |   |   | (177    | )      |   |   | - |   |
| Plus net loss attributable to equity  investment        |   |   | 131     |   |   |   | - |   |
| Less accretion expense                                            |   |   | (188    | )      |   |   | (72 | ) |
| Plus other expense                                                |   |   | -       |   |   |   | 24 |   |
| Consolidated operating income                                     |   |   | 19,685  |   |   |   | 20,262 |   |
| Less other expense, net                                           |   |   | (17,284 | )      |   |   | (17,472 | ) |
| Consolidated income before  income tax expense          |   | $      | 2,401   |   |   |   | 2,790 |   |

| (7) | Non-controlling Interest |
|-----|--------------------------|

----

|   | The following table summarizes the impact of the VIE consolidated as of March 31, 2012 (amounts in thousands): |
|--------|----------------------------------------------------------------------------------------------------------------|

| Assets Carrying Value                                                                  | Assets Classification |                     | Equity Carrying Value | Equity Classification                                                                                               |
|----------------------------------------------------------------------------------------|-----------------------|--------------------------|-----------------------|---------------------------------------------------------------------------------------------------------------------|
| $              14,804 |                  | Restricted cash          |                  |  $                 16,131 |   | Non-controlling interest |
|  1,742                                                                       |                  | Construction in progress |                  | 415                                                                                                                 |   | Retained earnings attributable to General Communication, Inc. common stockholders |
| $              16,546 |                  |                     |                  |  $                 16,546 |   |   |

| (8) | Commitments and Contingencies |
|-----|-------------------------------|

| ·   | In September 2008, the FCC's Office of Inspector General ("OIG") initiated an investigation regarding Alaska DigiTel LLC’s (“Alaska DigiTel”) compliance with program rules and requirements under the Lifeline Program. The request covered the period beginning January 1, 2004 through August 31, 2008 and related to amounts received for Lifeline service.  Alaska DigiTel was an Alaska based wireless communications company of which we acquired an 81.9% equity interest on January 2, 2007 and the remaining 18.1% equity interest on August 18, 2008 and was subsequently merged with one of our wholly owned subsidiaries in April 2009. Prior to August 18, 2008, our control over the operations of Alaska DigiTel was limited as required by the FCC upon its approval of our initial acquisition completed in January 2007. We responded to this request on behalf of Alaska DigiTel and the GCI companies as affiliates. On January 18, 2011 we reached an agreement with the FCC and the Department of Justice to settle the matter, which required us to contribute $1.6 million to the United States Treasury and granted us a broad release of claims including those under the False Claims Act.  The $1.6 million contribution was recognized in our 2008 through 2010 income statements and was paid in January 2011; and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In August 2010, a GCI owned aircraft was involved in an accident resulting in five fatalities and injuries to the remaining four passengers on board.  We had aircraft and liability insurance coverage in effect at the time of the accident.  As of March 31, 2012, all claims paid out have been covered by insurance and were recorded net of these recoveries in our Consolidated Income Statements.  While some of the claims have been resolved, we cannot predict the likelihood or nature of the total remaining claims, including environmental remediation, related to the accident. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | The order adopted on an interim basis a flat rate of $9.25 to replace the support previously available under Tier I through Tier III support mechanisms as defined by USAC.  The replacement support reduces the wireless subscriber per line support $0.75 and will take effect 90 days after Office of Management and Budget (“OMB”) approval.  We do not expect this change to have a material impact on our income statement, financial position or cash flows.  The FCC intends to further investigate whether this support amount is reasonable over the long term in the further rulemaking. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The order adopted a requirement for annual recertification of all Lifeline subscribers enrolled as of June 1, 2012 to be completed by the end of 2012.  We are evaluating this requirement and possible processes and cannot predict whether this new rule will have a material impact on our income statement, financial position or cash flows. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The order adopted a “one per household” rule with “household” defined as an “economic unit.”  We do not expect this new rule to have a material impact on our income statement, financial position or cash flows. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|                  |                       | Reportable Segments |
|-----------------------|----------------------------|---------------------|
| Services and Products | Consumer                   | Network Access      | Commercial | Managed Broadband | Regulated Operations |
| Voice:                |                       |                |   |   |   |
|                  | Long-distance              | X                   | X | X |   | X |
|                  | Local Access               | X                   | X | X |   | X |
|                  |                       |                |   |   |   |   |
| Video                 | X                          |                | X |   |   |
|                  |                       |                |   |   |   |   |
| Data:                 |                       |                |   |   |   |
|                  | Internet                   | X                   | X | X | X | X |
|                  | Data Networks              |                | X | X | X |   |
|                  | Managed Services           |                |   | X | X |   |
|                  | Managed Broadband Services |                |   |   | X |   |
|                  |                       |                |   |   |   |   |
| Wireless              | X                          | X                   | X |   |   |

----

|                                         |   |               |   |   |    |   |   | Percentage |   |
|----------------------------------------------|--------|--------------------|--------|--------|---------|--------|--------|------------|--------|
|                                         |   | Three Months Ended |   |   | Change1 |   |
|                                         |   | March 31,          |   |   | 2012    |   |
|                                         |   | 2012               |   |   | 2011    |   |   | vs. 2011   |   |
| (Unaudited)                                  |   |               |   |   |    |   |   |       |   |
| Selected Financial Data:                     |   |               |   |   |    |   |   |
| Revenues:                                    |   |               |   |   |    |   |   |       |   |
|  Consumer segment                       |   |               | 51     | %      |    |   | 54     | %          |   |   | (1 | %) |
|  Network Access segment                 |   |               | 15     | %      |    |   | 15     | %          |   |   | 0 | % |
|  Commercial segment                     |   |               | 20     | %      |    |   | 19     | %          |   |   | 8 | % |
|  Managed Broadband segment              |   |               | 11     | %      |    |   | 9      | %          |   |   | 36 | % |
|  Regulated Operations segment           |   |               | 3      | %      |    |   | 3      | %          |   |   | 2 | % |
| Total revenues                               |   |               | 100    | %      |    |   | 100    | %          |   |   | 4 | % |
| Selling, general and administrative expenses |   |               | 37     | %      |    |   | 36     | %          |   |   | 7 | % |
| Depreciation and amortization expense        |   |               | 19     | %      |    |   | 19     | %          |   |   | 2 | % |
| Operating income                             |   |               | 12     | %      |    |   | 12     | %          |   |   | (3 | %) |
| Other expense, net                           |   |               | 10     | %      |    |   | 11     | %          |   |   | (1 | %) |
| Income before income tax expense             |   |               | 1      | %      |    |   | 2      | %          |   |   | (17 | %) |
| Net income                                   |   |               | 1      | %      |    |   | 1      | %          |   |   | (14 | %) |
| Net income attributable to GCI               |   |               | 1      | %      |    |   | 1      | %          |   |   | (2 | %) |
|                                         |   |               |   |   |    |   |   |       |   |   |   |   |

| 1 Percentage change in underlying data |   |   |   |   |   |   |   |   |   |
|---------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|

|                           |   |   |   |   | Percentage |   |
|--------------------------------|--------|--------|--------|--------|------------|--------|
|                           |   | 2012   |   |   | 2011       |   |   | Change |   |
| Voice                          |   | $      | 11,280 |   |       |   | 13,752 |   |   |   | (18 | %) |
| Video                          |   |   | 29,022 |   |       |   | 30,339 |   |   |   | (4 | %) |
| Data                           |   |   | 20,449 |   |       |   | 16,701 |   |   |   | 22 | % |
| Wireless                       |   |   | 27,061 |   |       |   | 27,625 |   |   |   | (2 | %) |
| Total Consumer segment revenue |   | $      | 87,812 |   |       |   | 88,417 |   |   |   | (1 | %) |

----

|                                      |   |   |   |   | Percentage |   |
|-------------------------------------------|--------|--------|--------|--------|------------|--------|
|                                      |   | 2012   |   |   | 2011       |   |   | Change |   |
| Voice                                     |   | $      | 2,348  |   |       |   | 2,928 |   |   |   | (20 | %) |
| Video                                     |   |   | 12,789 |   |       |   | 13,535 |   |   |   | (6 | %) |
| Data                                      |   |   | 1,547  |   |       |   | 1,426 |   |   |   | 8 | % |
| Wireless                                  |   |   | 11,934 |   |       |   | 9,419 |   |   |   | 27 | % |
| Total Consumer segment Cost of Goods Sold |   | $      | 28,618 |   |       |   | 27,308 |   |   |   | 5 | % |

|   |                             |   |         |       |         | Percentage |
|--------|----------------------------------|--------|--------------|------------|--------------|------------|
|   |                             |   |         | 2012  |         | 2011  |   | Change |
|   | Consumer segment Adjusted EBITDA | $      | 24,794  |       | 28,394  |       | (13%) |

|                                                                                                                                                                                                                                                                                                                                                                                     |   | March 31, |    |   | Percentage |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|---------|--------|------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                     |   | 2012      |    |   | 2011       |   |   | Change |   |
|  Voice:                                                                                                                                                                                                                                                                                                                                                                             |   |      |    |   |       |   |   |   |   |
| Total local access lines in service1                                                                                                                                                                                                                                                                                                                                                |   |      | 76,100  |   |       |   | 85,100 |   |   |   | (11 | %) |
| Local access lines in service on GCI facilities1                                                                                                                                                                                                                                                                                                                                    |   |      | 70,700  |   |       |   | 78,000 |   |   |   | (9 | %) |
|  Video:                                                                                                                                                                                                                                                                                                                                                                             |   |      |    |   |       |   |   |   |   |   |   |   |
| Basic subscribers2                                                                                                                                                                                                                                                                                                                                                                  |   |      | 124,200 |   |       |   | 130,200 |   |   |   | (5 | %) |
| Digital programming tier subscribers3                                                                                                                                                                                                                                                                                                                                               |   |      | 74,600  |   |       |   | 81,600 |   |   |   | (9 | %) |
| HD/DVR converter boxes4                                                                                                                                                                                                                                                                                                                                                             |   |      | 90,300  |   |       |   | 89,300 |   |   |   | 1 | % |
| Homes passed                                                                                                                                                                                                                                                                                                                                                                             |   |      | 242,200 |   |       |   | 239,000 |   |   |   | 1 | % |
| Average monthly gross revenue per subscriber5                                                                                                                                                                                                                                                                                                                                       |   | $         | 77.72   |   |       | $      | 77.60 |   |   |   | 0 | % |
|  Data:                                                                                                                                                                                                                                                                                                                                                                              |   |      |    |   |       |   |   |   |   |   |   |   |
| Cable modem subscribers6                                                                                                                                                                                                                                                                                                                                                            |   |      | 110,700 |   |       |   | 107,200 |   |   |   | 3 | % |
|  Wireless:                                                                                                                                                                                                                                                                                                                                                                          |   |      |    |   |       |   |   |   |   |   |   |   |
| Wireless lines in service7                                                                                                                                                                                                                                                                                                                                                          |   |      | 124,500 |   |       |   | 126,500 |   |   |   | (2 | %) |
| Average monthly gross revenue per subscriber8                                                                                                                                                                                                                                                                                                                                       |   | $         | 68.65   |   |       | $      | 69.46 |   |   |   | (1 | %) |
|                                                                                                                                                                                                                                                                                                                                                                                     |   |      |    |   |       |   |   |   |   |   |   |   |
| 1 A local access line in service is defined as a revenue generating circuit or channel connecting a customer to the public switched telephone network.                                                                                                                                                                                                                              |   |
| 2 A basic subscriber is defined as one basic tier of service delivered to an address or separate subunits thereof regardless of the number of outlets purchased.                                                                                                                                                                                                                    |   |
| 3 A digital programming tier subscriber is defined as one digital programming tier of service delivered to an address or separate subunits thereof regardless of the number of outlets or digital programming tiers  purchased. Digital programming tier subscribers are a subset of basic subscribers.                                                                   |   |
| 4 A high-definition/digital video recorder ("HD/DVR") converter box is defined as one box rented by a digital programming or basic tier subscriber. A digital programming or basic tier subscriber is not required to rent  an HD/DVR converter box to receive service.                                                                                                   |   |
| 5 Average monthly consumer video revenues divided by the average of consumer basic subscribers at the beginning and end of each month in the period.                                                                                                                                                                                                                                |   |
| 6 A cable modem subscriber is defined by the purchase of cable modem service regardless of the level of service purchased. If one entity purchases multiple cable modem service access points, each access point is counted as a subscriber. Cable modem subscribers may also be video basic subscribers though basic video service is not required to receive cable modem service. |   |
| 7 A wireless line in service is defined as a revenue generating wireless device.                                                                                                                                                                                                                                                                                                    |   |
| 8 Average monthly consumer wireless revenues divided by the average of consumer wireless subscribers at the beginning and end of each month in the period.                                                                                                                                                                                                                          |   |

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| ·   | The order adopted on an interim basis a flat rate of $9.25 to replace the support previously available under Tier I through Tier III support mechanisms as defined by USAC.  The replacement support reduces the wireless subscriber per line support $0.75 and will take effect 90 days after Office of Management and Budget approval.  We do not expect this change to have a material impact on our income statement.  The FCC intends to further investigate whether this support amount is reasonable over the long term in further rulemaking. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The order adopted a requirement for annual recertification of all Lifeline subscribers enrolled as of June 1, 2012 to be completed by the end of 2012.  We are evaluating this requirement and possible processes and cannot predict whether this new rule will have a material impact on our income statement, financial position or cash flows. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A 20% decrease in local service high cost support to $2.2 million due to the changes in the high cost support program as discussed above, |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A 17% decrease in local service plan fee revenue to $4.4 million due to decreased subscribers; and |
|--------------------|----------------------------------------------------------------------------------------------------|

| ·   | A 40% decrease in long distance usage revenue to $687,000 due to the lower rates mandated by the Intrastate Access Reform Act (“Intrastate Access Reform”) which went into effect in the third quarter of 2011 along with our introduction of a popular new plan offering unlimited interstate and intrastate calling. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A 19% increase in cable modem revenue to $17.7 million due to increased subscribers, rate increases in May 2011 and our subscribers’ selection of plans that offer higher speeds; and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A 96% increase in excess usage revenue to $2.5 million due to moving customers from plans with unlimited usage to plans with limited usage. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                 |   |   |   |   | Percentage |   |
|--------------------------------------|--------|--------|--------|--------|------------|--------|
|                                 |   | 2012   |   |   | 2011       |   |   | Change |   |
| Voice                                |   | $      | 5,564  |   |       |   | 6,470 |   |   |   | (14 | %) |
| Data                                 |   |   | 14,353 |   |       |   | 14,972 |   |   |   | (4 | %) |
| Wireless                             |   |   | 5,271  |   |       |   | 3,655 |   |   |   | 44 | % |
| Total Network Access segment revenue |   | $      | 25,188 |   |       |   | 25,097 |   |   |   | 0 | % |

|                                            |   |   |   |   | Percentage |   |
|-------------------------------------------------|--------|--------|--------|--------|------------|--------|
|                                            |   | 2012   |   |   | 2011       |   |   | Change |   |
| Voice                                           |   | $      | 2,273  |   |       |   | 3,250 |   |   |   | (30 | %) |
| Data                                            |   |   | 3,496  |   |       |   | 3,194 |   |   |   | 9 | % |
| Wireless                                        |   |   | 254    |   |       |   | 221 |   |   |   | 15 | % |
| Total Network Access segment Cost of Goods Sold |   | $      | 6,023  |   |       |   | 6,665 |   |   |   | (10 | %) |

|                                   |   |   |   |   | Percentage |   |
|----------------------------------------|--------|--------|--------|--------|------------|--------|
|                                   |   | 2012   |   |   | 2011       |   |   | Change |   |
| Network Access segment Adjusted EBITDA |   | $      | 12,410 |   |       |   | 11,879 |   |   |   | 4 | % |

----

|                             |   |   |   |   | Percentage |   |
|----------------------------------|--------|--------|--------|--------|------------|--------|
|                             |   | 2012   |   |   | 2011       |   |   | Change |   |
| Voice                            |   | $      | 7,086  |   |       |   | 7,573 |   |   |   | (6 | %) |
| Video                            |   |   | 3,120  |   |       |   | 2,840 |   |   |   | 10 | % |
| Data                             |   |   | 21,837 |   |       |   | 19,095 |   |   |   | 14 | % |
| Wireless                         |   |   | 2,298  |   |       |   | 2,321 |   |   |   | (1 | %) |
| Total Commercial segment revenue |   | $      | 34,341 |   |       |   | 31,829 |   |   |   | 8 | % |

|                                        |   |   |   |   | Percentage |   |
|---------------------------------------------|--------|--------|--------|--------|------------|--------|
|                                        |   | 2012   |   |   | 2011       |   |   | Change |   |
| Voice                                       |   | $      | 2,629  |   |       |   | 3,891 |   |   |   | (32 | %) |
| Video                                       |   |   | 498    |   |       |   | 490 |   |   |   | 2 | % |
| Data                                        |   |   | 11,361 |   |       |   | 9,457 |   |   |   | 20 | % |
| Wireless                                    |   |   | 1,212  |   |       |   | 1,028 |   |   |   | 18 | % |
| Total Commercial segment Cost of Goods Sold |   | $      | 15,700 |   |       |   | 14,866 |   |   |   | 6 | % |

|                               |   |   |   |   | Percentage |   |
|------------------------------------|--------|--------|--------|--------|------------|--------|
|                               |   | 2012   |   |   | 2011       |   |   | Change |   |
| Commercial segment Adjusted EBITDA |   | $      | 8,441  |   |       |   | 6,662 |   |   |   | 27 | % |

|                                                                                                                                                                                                                                              |   | March 31, |   |   | Percentage |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|--------|--------|------------|--------|
|                                                                                                                                                                                                                                              |   | 2012      |   |   | 2011       |   |   | Change |   |
|  Voice:                                                                                                                                                                                                                                      |   |      |   |   |       |   |   |   |   |
| Total local access lines in service1                                                                                                                                                                                                         |   |      | 51,900 |   |       |   | 50,400 |   |   |   | 3 | % |
| Local access lines in service on GCI facilities1                                                                                                                                                                                             |   |      | 29,900 |   |       |   | 26,500 |   |   |   | 13 | % |
|                                                                                                                                                                                                                                              |   |      |   |   |       |   |   |   |   |   |   |   |
|  Data:                                                                                                                                                                                                                                       |   |      |   |   |       |   |   |   |   |   |   |   |
| Cable modem subscribers2                                                                                                                                                                                                                     |   |      | 11,300 |   |       |   | 10,800 |   |   |   | 5 | % |
|                                                                                                                                                                                                                                              |   |      |   |   |       |   |   |   |   |   |   |   |
|  Wireless:                                                                                                                                                                                                                                   |   |      |   |   |       |   |   |   |   |   |   |   |
| Wireless lines in service3                                                                                                                                                                                                                   |   |      | 15,500 |   |       |   | 13,700 |   |   |   | 13 | % |
|                                                                                                                                                                                                                                              |   |      |   |   |       |   |   |   |   |   |   |   |
| 1 A local access line in service is defined as a revenue generating circuit or channel connecting a customer to the public switched telephone network.                                                                                       |   |
| 2 A cable modem subscriber is defined by the purchase of cable modem service regardless of the level of service purchased. If one entity purchases multiple cable modem service access points, each access point is counted as a subscriber. |   |
| 3 A wireless line in service is defined as a revenue generating wireless device.                                                                                                                                                             |   |

----

----

|                                                                                                                                                        |   | March 31, |   |   | Percentage |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|--------|--------|------------|--------|
|                                                                                                                                                        |   | 2012      |   |   | 2011       |   |   | Change |   |
|  Voice:                                                                                                                                                |   |      |   |   |       |   |   |   |   |
| Total local access lines in service on GCI facilities1                                                                                                 |   |      | 8,900  |   |       |   | 9,800 |   |   |   | (9 | %) |
|                                                                                                                                                        |   |      |   |   |       |   |   |   |   |   |   |   |
| 1 A local access line in service is defined as a revenue generating circuit or channel connecting a customer to the public switched telephone network. |   |

| ·   | A $1.3 million increase in labor costs, |
|--------------------|-----------------------------------------|

| ·   | A $981,000 increase in health benefit costs, |
|--------------------|----------------------------------------------|

| ·   | A $800,000 increase in contribution expense related to donated services to the University of Alaska, |
|--------------------|------------------------------------------------------------------------------------------------------|

| ·   | A $632,000 increase in employer-paid payroll taxes due to a large number of restricted stock awards that vested in 2012 and increased labor costs, and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A $591,000 increase in share-based compensation expense. |
|--------------------|----------------------------------------------------------|

----

----

|                                      |   | 2012   |    |   | 2011   |   |
|-------------------------------------------|--------|--------|---------|--------|--------|--------|
| Operating activities                      |   | $      | 34,143  |   |   |   | 27,997 |   |
| Investing activities                      |   |   | (23,610 | )      |   |   | (30,747 | ) |
| Financing activities                      |   |   | (11,247 | )      |   |   | (1,179 | ) |
| Net decrease in cash and cash equivalents |   | $      | (714    | )      |   |   | (3,929 | ) |

----

----

----

| ·   | In August 2010, a GCI-owned aircraft was involved in an accident resulting in five fatalities and injuries to the remaining four passengers on board.  We had aircraft and liability insurance coverage in effect at the time of the accident.  As of March 31, 2012, all claims paid out have been covered by insurance and were recorded net of these recoveries in our Consolidated Income Statements.  While some of the claims have been resolved, we cannot predict the likelihood or nature of the total remaining claims, including environmental remediation, related to the accident. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Exhibit No. |   | Description                                                                                                                                                                                                                                                                                                                                                                                                              |
|-------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.1   |   | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by our President and Director *                                                                                                                                                                                                                                                                   |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 31.2   |   | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 by our Secretary, Treasurer and Director *                                                                                                                                                                                                                                                        |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 32.1   |   | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 by our President and Director *                                                                                                                                                                                                                                                                   |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 32.2   |   | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 by our Secretary, Treasurer and Director *                                                                                                                                                                                                                                                        |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 101    |   | The following materials from GCI, Inc.'s Quarterly Report on Form 10-Q for the quarter ended March 31, 2012 formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets; (ii) Consolidated Income Statements; (iii) Consolidated Statements of Stockholder's Equity; (iv) Consolidated Statements of Cash Flows; and (v) Condensed Notes to Interim Consolidated Financial Statements. * |
|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                           |   |   |
|------------------------------------------------|--------|--------|
|                                           |   |   |
| *      Filed herewith |   |   |
|                                           |   |   |

----

| Signature            |   | Title                                  |   | Date        |
|----------------------|--------|----------------------------------------|--------|-------------|
|                 |   |                                   |   |        |
|                 |   |                                   |   |        |
| /s/ G. Wilson Hughes |   | President and Director                 |   | May 3, 2012 |
| G. Wilson Hughes     |   | (Principal Executive Officer)          |   |        |
|                 |   |                                   |   |        |
| /s/ John M. Lowber   |   | Secretary, Treasurer and Director      |   | May 3, 2012 |
| John M. Lowber       |   | (Principal Financial Officer)          |   |        |
|                 |   |                                   |   |        |
| /s/ Lynda L. Tarbath |   | Vice President, Chief Accounting       |   | May 3, 2012 |
| Lynda L. Tarbath     |   | Officer (Principal Accounting Officer) |   |        |