----

| [X] | No fee required. |
|-----|------------------|

| [   ] | Fee computed on table below per Exchange Act Rules 14a-6(I)(1) and 0-11. |
|-----------------|--------------------------------------------------------------------------|

|   | a) | Title of each class of securities to which transaction applies: _______________________ |
|--------|----|-----------------------------------------------------------------------------------------|

|   | b) | Aggregate number of securities to which transaction applies: ______________________ |
|--------|----|-------------------------------------------------------------------------------------|

|   | c) | Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fees is calculated and state how it was determined):_________________________________________________________ |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d) | Proposed maximum aggregate value of transaction: _____________________________ |
|--------|----|--------------------------------------------------------------------------------|

|   | [  ] | Check box if any part of the fee if offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously.  Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing. |
|--------|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| ·   | Electing three directors, each for a three year term, as part of Class II of our classified board of directors. |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ·   | Ratifying the appointment of Grant Thornton LLP as the Company’s independent registered public accounting firm for the year ended December 31, 2012. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Transacting such other business as may properly come before the Annual Meeting and any adjournment or adjournments of it. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------|

----

----

| ABOUT THE ANNUAL MEETING                                                                       | 1  |
|------------------------------------------------------------------------------------------------|----|
| MATTERS TO BE VOTED UPON                                                                       | 8  |
|     Director Elections                                                     | 9  |
|     Ratification of Appointment of External Accountant                     | 9  |
|     Other Business                                                         | 10 |
| GOVERNANCE OF COMPANY                                                                          | 10 |
|     Directors and Executive Officers                                       | 10 |
|     Board and Its Committees; Meetings                                     | 14 |
|     Director Independence                                                  | 21 |
|     Board Leadership Structure and Role in Risk Oversight                  | 22 |
|     Compensation Committee Interlocks and Insider Participation            | 23 |
|     Compensation Committee Report                                          | 23 |
|     Director Compensation                                                  | 24 |
|     Compensation Consultant, Legal and Other Adviser Independence          | 25 |
|     Litigation and Regulatory Matters                                      | 25 |
| COMPENSATION DISCUSSION AND ANALYSIS                                                           | 26 |
|     Overview                                                               | 26 |
|     Principles of the Compensation Program                                 | 26 |
|     Process                                                                | 26 |
|     Elements of Compensation                                               | 28 |
|     Performance Rewarded                                                   | 39 |
|     Timing of Equity Awards                                                | 39 |
|     Tax and Accounting Treatment of Executive Compensation                 | 40 |
|     Compensation Policies and Practices in Relation to Our Risk Management | 40 |
|     Shareholder Advisory Votes on Executive Compensation                   | 41 |
| EXECUTIVE COMPENSATION                                                                         | 41 |
|     Summary Compensation Table                                             | 41 |
|     Grants of Plan-Based Awards Table                                      | 44 |
|     Outstanding Equity Awards at Fiscal Year-End Table                     | 44 |
|     Option Exercises and Stock Vested Table                                | 46 |
|     Potential Payments upon Termination or Change-in-Control               | 46 |
| NONQUALIFIED DEFERRED COMPENSATION                                                             | 47 |
|     Deferred Compensation Plan                                             | 47 |
|     Deferred Compensation Arrangements                                     | 47 |
| CODE OF BUSINESS CONDUCT AND ETHICS                                                            | 48 |
| CERTAIN TRANSACTIONS                                                                           | 49 |
|     Transactions with Related Persons                                      | 49 |
|     Review Procedure for Transactions with Related Persons                 | 50 |
| OWNERSHIP OF COMPANY                                                                           | 51 |
|     Principal Shareholders                                                 | 51 |
|     Changes in Control                                                     | 53 |
|     Securities Authorized for Issuance under Equity Compensation Plans     | 54 |
|     Section 16(a) Beneficial Ownership Reporting Compliance                | 54 |
| AUDIT COMMITTEE REPORT                                                                         | 55 |
| RELATIONSHIP WITH OUR INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM                            | 55 |
|     Overview                                                               | 55 |
|     Pre-Approval Policies and Procedures                                   | 55 |
|     Fees and Services                                                      | 56 |
| ANNUAL REPORT                                                                                  | 57 |
| SHAREHOLDER COMMUNICATIONS                                                                     | 57 |
| FUTURE SHAREHOLDER PROPOSALS AND RECOMMENDATIONS                                               | 57 |
|     Proposals                                                              | 57 |
|     Recommendations                                                        | 58 |

----

| ·   | Electing three individuals as directors, each for a three-year term, as part of Class II of our eight member classified board of directors, as identified in the Proxy Card and this Proxy Statement.    |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | Ratifying the appointment of Grant Thornton LLP ("Grant Thornton") as the Company's independent registered public accounting firm ("External Accountant") for year ended December 31, 2012.   |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Transacting such other business as may properly come before the meeting and any adjournment or adjournments of it. |
|--------------------|--------------------------------------------------------------------------------------------------------------------|

| ·   | For election of management's board-nominees as directors. |
|--------------------|-----------------------------------------------------------|

| ·   | For ratification of the appointment of Grant Thornton as our External Accountant for 2012. |
|--------------------|--------------------------------------------------------------------------------------------|

| ·   | For or against other matters that come before our Annual Meeting, as the proxy holder deems advisable. |
|--------------------|--------------------------------------------------------------------------------------------------------|

----

| ·   | For the election of three nominees in Class II of our board, the three nominees receiving the most "FOR" votes (among votes properly cast in person or by proxy) and in each case constituting a tally of at least a majority of that quorum, excluding broker nonvotes. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | For each of the ratification of appointment of Grant Thornton and the adoption of the minutes of the 2011 annual meeting, "FOR" votes (among votes properly cast in person or by proxy) constituting in each case a tally of at least a majority of that quorum. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | Online – Go to www.proxyvote.com. |
|--------------------|-----------------------------------------|

| ·   | Email – Send message to sendmaterial@proxyvote.com. |
|--------------------|-----------------------------------------------------------|

| ·   | Telephone – Call 1.800.579.1639. |
|--------------------|----------------------------------------|

| ·   | Online– Go to www.proxyvote.com and follow the instructions.  You need to enter certain information that is printed on your Internet Notice or Proxy Card.  You can also use this website to elect to be notified in the future by email that future proxy statements and annual reports are available online instead of receiving paper copies of those materials by mail. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|      ·  | By Telephone– Call toll-free 1.800.690.6903 within the United States and follow the instructions.  You need to enter certain information that is printed on your Internet Notice or Proxy Card in order to vote by telephone. |
|---------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | By Mail– Complete, sign and date your Proxy Card and return it in the envelope provided. |
|--------------------|------------------------------------------------------------------------------------------------|

----

----

----

----

----

| ·   | Stephen M. Brett |
|--------------------|------------------|

| ·   | Ronald A. Duncan |
|--------------------|------------------|

| ·   | Stephen R. Mooney |
|--------------------|-------------------|

----

----

| Name                  | Age      | Position                                                            |
|-----------------------|----------|--------------------------------------------------------------------------|
| Stephen M. Brett1     | 71       | Chairman, Director                                                  |
| Ronald A. Duncan1     | 59       | President, Chief Executive Officer and Director                     |
| John M. Lowber        | 62  | Senior Vice President, Chief Financial Officer, Secretary, and Treasurer |
| G. Wilson Hughes      | 66  | Executive Vice President and General Manager                             |
| William C. Behnke     | 54  | Senior Vice President                                                    |
| Martin E. Cary        | 47  | Vice President – General Manager, Managed Broadband Services       |
| Gregory F. Chapados   | 54  | Senior Vice President                                                    |
| Paul E. Landes        | 54  | Senior Vice President and General Manager, Consumer Services             |
| Gregory W. Pearce     | 49  | Vice President and General Manager, Business Services                    |
| Tina M. Pidgeon  | 43       | Senior Vice President, General Counsel and Government Affairs            |
| Jerry A. Edgerton1    | 70  | Director                                                                 |
| Scott M. Fisher1      | 46  | Director                                                                 |
| William P. Glasgow1   | 53  | Director                                                                 |
| Mark W. Kroloff1      | 55       | Director                                                            |
| Stephen R. Mooney1    | 52  | Director                                                                 |
| James M. Schneider1   | 59       | Director                                                            |

| 1 | The present classification of our board is as follows: (1) Class I – Messrs. Edgerton and Kroloff, whose present terms expire at the time of our 2014 annual meeting; (2) Class II – Messrs. Brett, Duncan and Mooney whose present terms expire at the time of our Annual Meeting; and (3) Class III – Messrs. Fisher, Glasgow, and Schneider, whose present terms expire at the time of our 2013 annual meeting. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| ·   | Audit Committee. |
|--------------------|------------------|

| ·   | Compensation Committee. |
|--------------------|-------------------------|

| ·   | Executive Committee. |
|--------------------|----------------------|

| ·   | Finance Committee. |
|--------------------|--------------------|

| ·   | Litigation Committee. |
|--------------------|-----------------------|

| ·   | Nominating and Corporate Governance Committee. |
|--------------------|------------------------------------------------|

|   Name         |   Audit |   Compensation |   Executive |   Finance1 |   Litigation | Nominating & Corporate Governance |
|--------------------------|-------------------|--------------------------|-----------------------|----------------------|------------------------|--------------------------------------------|
|  Stephen M. Brett   |              |  X                  |  Chair           |                 |  X                |  Chair                                |
|  Ronald A. Duncan   |              |                     |  X               |                 |                   |                                       |
|  Jerry A. Edgerton  |              |  Chair              |                  |                 |                   |  X                                    |
|  Scott M. Fisher    |  X           |                     |                  |  X              |                   |  X                                    |
|  William P. Glasgow |  X           |                     |  X               |  X              |  X                |  X                                    |
|  Mark W. Kroloff    |              |                     |                  |                 |  Chair            |  X                                    |
|  Stephen R. Mooney  |  Chair       |  X                  |  X               |                 |                   |  X                                    |
|  James M. Schneider |              |  ­­ X     |                  |                 |                   |  X                                    |

|  1 |  Mr. Lowber is also a member of this committee. |
|---------|------------------------------------------------------|

----

| ·   | Understanding of accounting principles generally accepted in the United States of America ("GAAP") and financial statements. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------|

| ·   | Ability to assess the general application of GAAP in connection with accounting for estimates, accruals and reserves. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------|

| ·   | Experience in preparing, auditing, analyzing or evaluating financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by our financial statements, or experience actively supervising one or more persons engaged in such activities. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Understanding of internal control over financial reporting. |
|--------------------|-------------------------------------------------------------|

| ·   | Understanding of audit committee functions. |
|--------------------|---------------------------------------------|

| ·   | Education and experience as a principal financial officer, principal accounting officer, controller, public accountant or auditor or experience in one or more positions that involved the performance of similar functions. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | Experience actively supervising a principal financial officer, principal accounting officer, controller, public accountant, auditor or person performing similar functions. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Experience overseeing or assessing the performance of companies or public accountants with respect to the preparation, auditing or evaluation of financial statements. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Other relevant experience. |
|--------------------|----------------------------|

| ·   | Principal Accountant Selection, Qualification – Is directly responsible for appointment, compensation, retention, oversight, qualifications and independence of our External Accountant. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Financial Statements – Assists in our board's oversight of integrity of the Company financial statements. |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ·   | Financial Reports, Internal Control – Is directly responsible for oversight of the audit by our External Accountant of our financial reports and reports on internal control. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Annual Reports – Prepares reports required to be included in our annual proxy statement.  See, "Audit Committee Report." |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Complaints – Receives and responds to certain complaints relating to internal accounting controls, and auditing matters, confidential, anonymous submissions by our employees regarding questionable accounting or auditing matters, and certain alleged illegal acts or behavior-related conduct in violation of our Ethics Code.  See, "Code of Business Conduct and Ethics." |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Principal Accountant Disagreements – Resolves disagreements, if any, between our External Accountant and us regarding financial reporting. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Non-Audit Services – Reviews and pre-approves any non-audit services (audit-related, tax and other non-audit related services) offered to us by our External Accountant ("Non-Audit Services"). |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Attorney Reports – Addresses certain attorney reports, if any, relating to violation of securities law or fiduciary duty by one of our officers, directors, employees or agents. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Related Party Transactions – Reviews certain related party transactions as described elsewhere in this Proxy Statement.  See, "Certain Transactions." |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Other – Carries out other assignments as designated by our board. |
|--------------------|-------------------------------------------------------------------------|

----

| ·   | Review, on an annual basis, plans and targets for executive officer and board member compensation, if any – |
|--------------------|-------------------------------------------------------------------------------------------------------------------|

| o   | Review is specifically to address expected performance and compensation of, and the criteria on which compensation is based for, the Chief Executive Officer and such other of our executive officers as our board may designate for this purpose. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Monitor the effect of ongoing events on, and the effectiveness of, existing compensation policies, goals, and plans – |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------|

| o   | Events specifically include but are not limited to the status of the premise that all pay systems correlate with our compensation goals and policies. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | Report from time to time, its findings to our board. |
|---------------|------------------------------------------------------|

| ·   | Administer our Amended and Restated 1986 Stock Option Plan ("Stock Option Plan") and approve grants of options and awards pursuant to the plan. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Monitor compensation-related publicity and public and private sector developments on executive compensation. |
|--------------------|--------------------------------------------------------------------------------------------------------------|

| ·   | Familiarize itself with, and monitor the tax, accounting, corporate, and securities law ramifications of, our compensation policies, including but not limited to – |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | Comprehending a senior executive officer's total compensation package. |
|---------------|------------------------------------------------------------------------|

| o   | Comprehending the package's total cost to us and its total value to the recipient. |
|---------------|------------------------------------------------------------------------------------|

| o   | Paying close attention to salary, bonuses, individual insurance and health benefits, perquisites, special benefits to specific executive officers, and other retirement benefits. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Establish the overall cap on executive compensation and the measure of performance for executive officers, either by predetermined measurement or by a subjective evaluation. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Strive to make our compensation plans simple, fair, and structured so as to maximize shareholder value. |
|--------------------|---------------------------------------------------------------------------------------------------------|

----

| ·   | Nominations – Identifies and recommends nominees for our board and its committees. |
|--------------------|------------------------------------------------------------------------------------------|

| ·   | Corporate Governance – Reviews and recommends to our board or independently takes action on various corporate governance issues. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Complaints – Receives and responds to certain complaints raised by our employees, and not otherwise addressed by our Audit Committee, regarding alleged illegal acts or behavior-related conduct by our board members in violation of our Ethics Code. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Supervision – Supervises our chief financial officer in the context of our Ethics Code. |
|--------------------|-----------------------------------------------------------------------------------------------|

| ·   | Other – Carries out other assignments as designated by our board. |
|--------------------|-------------------------------------------------------------------------|

----

| ·   | Board size. |
|--------------------|-------------|

| ·   | Minimum qualifications. |
|--------------------|-------------------------|

| ·   | Skills and characteristics. |
|--------------------|-----------------------------|

| ·   | Company strategic direction. |
|--------------------|------------------------------|

| ·   | Board compositional needs. |
|--------------------|----------------------------|

----

| ·   | Knowledge, skills and experience – Knowledge, skills and experience in at least one of the primary industries in which the Company operates. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Fundamental financial statements – Ability to read and understand fundamental financial statements, including the Company's balance sheet, income statement and cash flow statement, and at least have familiarity with underlying accounting rules and practices. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Business and financial risks – Ability to understand key business and financial risks of the Company. |
|--------------------|-------------------------------------------------------------------------------------------------------------|

| ·   | Changing needs of society – Appreciation of the relationship of the Company's business to the changing needs of society. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------|

| ·   | Financial sophistication – With respect to at least one board member, skills, attributes and financial sophistication of an Audit Committee Financial Expert. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Independent Director – With respect to at least a simple majority of the authorized members of the board, be an Independent Director. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Other specifications – Other skills and characteristics specifically identified and approved by the Committee. |
|--------------------|----------------------------------------------------------------------------------------------------------------------|

----

----

----

----

| Name               | FeesEarnedorPaid inCash($) | StockAwards2($) | OptionAwards($) | Non-EquityIncentive PlanCompensation($) | Change inPensionValue and NonqualifiedDeferredCompensationEarnings($) | All OtherCompensation($) | Total($) |
|--------------------|----------------------------|-----------------|-----------------|-----------------------------------------|----------------------------------------------------------------------------|--------------------------|----------|
| Stephen M. Brett   | 45,000                     | 60,534          | ---             | ---                                     | ---                                                                        | ---                      | 105,534  |
| Jerry A. Edgerton  | 45,000                     | 60,534          | ---             | ---                                     | ---                                                                        | ---                      | 105,534  |
| Scott M. Fisher    | 45,000                     | 60,534          | ---             | ---                                     | ---                                                                        | ---                      | 105,534  |
| William P. Glasgow | 50,000                     | 60,534          | ---             | ---                                     | ---                                                                        | ---                      | 110,534  |
| Mark W. Kroloff    | 45,000                     | 60,534          | ---             | ---                                     | ---                                                                        | ---                      | 105,534  |
| Stephen R. Mooney  | 50,000                     | 60,534          | ---             | ---                                     | ---                                                                        | ---                      | 110,534  |
| James M. Schneider | 50,000                     | 77,349          | ---             | ---                                     | ---                                                                        | ---                      | 127,349  |

| 1 | Compensation to Mr. Duncan as a director is described elsewhere in this report.  See “Executive Compensation” and “Compensation Discussion and Analysis.” |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | Each director received a grant of awards of 5,400 shares of Company Class A common stock on June 1, 2011 (the grant date), with the exception of Mr. Schneider, our Audit Committee Chair through August 8, 2011,  who received 6,900 shares.  The value of the shares on the date of grant was $11.21 per share, i.e., the closing price of the stock on Nasdaq on that date and as required in accordance with FASB ASC Topic 718. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

----

| ·   | Compensation is related to performance and must cause alignment of interests of executive officers with the long term interests of our shareholders. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Compensation targets must take into consideration competitive market conditions and provide incentives for superior performance by the Company. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Actual compensation must take into consideration the Company's and the executive officer's performance over the prior year and the long term, and the Company's resources. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Compensation is based upon both qualitative and quantitative factors. |
|--------------------|-----------------------------------------------------------------------|

| ·   | Compensation must enable the Company to attract and retain management necessary to cause the Company to succeed. |
|--------------------|------------------------------------------------------------------------------------------------------------------|

----

| ·   | Companies in industries similar to our Company. |
|--------------------|-------------------------------------------------|

| ·   | Companies with which our Company competes for executive talent. |
|--------------------|-----------------------------------------------------------------|

| ·   | Our Company's direct business competitors. |
|--------------------|--------------------------------------------|

| ·   | Companies that compete with our Company for investment dollars. |
|--------------------|-----------------------------------------------------------------|

----

| Alaska Communications Systems Group, Inc.  | Knology, Inc.                  |
|--------------------------------------------|--------------------------------|
| C Beyond, Inc.                             | Mediacom Communications Corp.  |
| Cincinnati Bell, Inc.                      | Premiere Global Services, Inc. |
| Consolidated Communications Holdings, Inc. | RCN Corp                       |
| Crown Media Holdings, Inc.                 | SureWest Communications        |
| Equinix, Inc.                              | Time Warner Telecom, Inc.      |
| Grande Communications                      | Wave Broadband                 |
| Iowa Telecommunications Services, Inc.     | XO Holdings, Inc.              |

| ·   | Base Salary. |
|--------------------|--------------|

| ·   | Incentive Compensation Bonus Plan ("Incentive Compensation Plan"). |
|--------------------|--------------------------------------------------------------------|

| ·   | Stock Option Plan. |
|--------------------|--------------------|

| ·   | Perquisites. |
|--------------------|--------------|

| ·   | Retirement and Welfare Benefits. |
|--------------------|----------------------------------|

----

----

| Name                | Short-Term IncentiveCompensation –  Target($) | Long-Term IncentiveCompensation – Target($) | Total Annual Target –Incentive Compensation Plan($) |
|---------------------|---------------------------------------------------------------|---------------------------------------------------|-----------------------------------------------------------|
| Ronald A. Duncan    | 1,450,000                                                     | 350,000                                           | 1,800,000                                                 |
| G. Wilson Hughes    | 466,667                                                       |   500,0001                                   | 966,667                                                   |
| John M. Lowber      | 350,000                                                       | 200,000                                           | 550,000                                                   |
| Gregory F. Chapados | 350,000                                                       | 200,000                                           | 550,000                                                   |
| Tina M. Pidgeon     | 325,000                                                       | 150,000                                           | 475,000                                                   |

|   | 1 | The Long-Term Incentive Compensation – Target for Mr. Hughes represents one year since he is eligible to receive the payment regardless of whether he is employed by the Company in year four (2013) of the incentive plan. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Name                | Free Cash Flow Goal($) | Capex Spending($) | Discretionary($) | 2011 Short-TermIncentive Compensation Plan Target($) |
|---------------------|------------------------|-------------------|------------------|------------------------------------------------------|
| Ronald A. Duncan    | 350,000                | 200,000           | 900,000          | 1,450,000                                            |
| G. Wilson Hughes    | 200,000                | 100,000           | 166,667          | 466,667                                              |
| John M. Lowber      | 125,000                | 50,000            | 175,000          | 350,000                                              |
| Gregory F. Chapados | 100,000                | 25,000            | 225,000          | 350,000                                              |
| Tina M. Pidgeon     | 100,000                | 25,000            | 200,000          | 325,000                                              |

----

| ·   | Cash Adjusted EBITDA – Adjusted EBITDA, plus indefeasible rights to use sales, less non-cash items and adjusted for new businesses.  The target for year over year growth in this metric was $48.7 million in 2011. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Free Cash Flow – Cash Adjusted EBITDA, less capital expenditure spending ("Capex Spending"), less interest expense and less cash taxes.  The target for year over year growth in this metric was a decrease of $43.0 million in 2011. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Increase in Cash Balance - Targeted Free Cash Flow, plus acquisition payments, plus net principal payments, plus stock repurchases and dividends, if any.  The target for this component was a decrease of $2.4 million in 2011. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Goals                                                     | Ronald A. Duncan               | G. Wilson Hughes | John M. Lowber | Gregory F. Chapados | Tina M. Pidgeon |
|-----------------------------------------------------------|--------------------------------|------------------|----------------|---------------------|-----------------|
| Free Cash Flow Goal – Target Incentive Compensation | $350,000                       | $200,000         | $125,000       | $100,000            | $100,000        |
| Free Cash Flow Goal Achievement1                          |     27.69% | 27.69%           | 27.69%         | 27.69%              | 27.69%          |
| 2011 Free Cash Flow Incentive Compensation Earned         | $96,919                        | $55,382          | $34,614        | $27,691             | $27,691         |
|                                                      |                           |             |           |                |            |
| Capex Spending                                            | $200,000                       | $100,000         | $50,000        | $25,000             | $25,000         |
| Capex Spending Achievement                                | 100%                           | 100%             | 100%           | 100%                | 100%            |
| 2011 Capex Spending Incentive Compensation Earned         | $200,000                       | $100,000         | $50,000        | $25,000             | $25,000         |
|                                                      |                           |             |           |                |            |
| Discretionary                                             | $900,000                       | $166,667         | $175,000       | $225,000            | $200,000        |
| Discretionary Achievement2                                | 83.90%                         | 116.90%          | 95%            | 91.10%              | 78.30%          |
| 2011 Discretionary Incentive Compensation Earned          | $755,000                       | $194,834         | $166,250       | $205,000            | $156,500        |
|                                                      |                           |             |           |                |            |
| 2011 Short-Term Incentive Compensation Earned             | $1,051,919                     | $350,216         | $250,864       | $257,691            | $209,191        |

| 1 | The Free Cash Flow metric for 2011 was $3,272,000.  Each of the Named Executive Officers would earn their Target Incentive Compensation for this goal if the Company had Free Cash Flow equal to the metric.  The Target Incentive Compensation is increased or decreased by 2% for each $1 million that the actual Free Cash Flow is above or below the metric.  For 2011, the actual free cash flow was negative $32,883,000 resulting in actual free cash flow that was $36,155,000 below the metric, therefore, the Target Incentive Compensation was reduced by 72.31%. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | Our Compensation Committee considered the following factors regarding the Discretionary Achievement of the Named Executive Officers.  With regard to Mr. Duncan, the Compensation Committee took into account his leadership during 2011, performance in developing a strategic plan for key components of our business, diversification and succession planning.  With regard to Mr. Hughes, the Compensation Committee took into account his leadership of the TERRA-SW project, succession planning and the development of a plan to expand strategic network assets.  With regard to Mr. Lowber, the Compensation Committee considered his leadership in regards to risk management, management development and financial reporting.  With regard to Mr. Chapados, the Compensation Committee considered, among other things, his leadership in supporting strategic transactions and key lines of business.  With regard to Ms. Pidgeon, the Compensation Committee considered her leadership in managing strategic legal initiatives for the Company and as General Counsel for the Company. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name                | Free Cash Flow Goal($) | Capex Spending($) | Discretionary($) | 2012 Short-TermIncentive Compensation Plan Target($) |
|---------------------|------------------------|-------------------|------------------|------------------------------------------------------|
| Ronald A. Duncan    | 450,000                | 200,000           | 800,000          | 1,450,000                                            |
| G. Wilson Hughes    | 175,000                | 75,000            | 216,667          | 466,667                                              |
| John M. Lowber      | 175,000                | 50,000            | 125,000          | 350,000                                              |
| Gregory F. Chapados | 175,000                | 50,000            | 125,000          | 350,000                                              |
| Tina M. Pidgeon     | 75,000                 | ---               | 250,000          | 325,000                                              |

| Name                | Minimum Payments($) | Target Payments($) | Maximum Payments($) |
|---------------------|---------------------|--------------------|---------------------|
| Ronald A. Duncan    | 0                   | 700,000            | 1,750,000           |
| G. Wilson Hughes    | 0                   | 500,000            | 1,250,000           |
| John M. Lowber      | 0                   | 400,000            | 1,000,000           |
| Gregory F. Chapados | 0                   | 400,000            | 1,000,000           |
| Tina M. Pidgeon     | 0                   | 300,000            | 750,000             |

----

| Name                  |     2011 ($) |
|-----------------------|-----------------------------|
| Ronald A. Duncan      | 700,000                     |
| G. Wilson Hughes      | 500,000                     |
| John M. Lowber        | 400,000                     |
| Gregory F. Chapados   | 400,000                     |
|  Tina M. Pidgeon |  300,000               |

| Name                | If 2012 Adjusted EBITDA is below $250 million($) | If 2012 Adjusted EBITDA is above $250 million($) |
|---------------------|--------------------------------------------------|--------------------------------------------------|
| Ronald A. Duncan    | 0                                                | 700,000                                          |
| G. Wilson Hughes    | 0                                                | 500,000                                          |
| John M. Lowber      | 0                                                | 400,000                                          |
| Gregory F. Chapados | 0                                                | 400,000                                          |
| Tina M. Pidgeon     | 0                                                | 300,000                                          |

----

----

----

| ·   | Use of Company Leased Aircraft – The Company permits employees, including the Named Executive Officers, to use Company aircraft for personal travel for themselves and their guests.  Such travel generally is limited to a space available basis on flights that are otherwise business-related.  Where a Named Executive Officer, or a guest of that officer, flies on a space available basis, the additional variable cost to the Company (such as fuel, catering, and landing fees) is de minimus.  As a result, no amount is reflected in the Summary Compensation Table for that flight.  Where the additional variable cost to the Company occurs on such a flight for solely personal purposes of that Named Executive Officer or guest, that cost is included in the Summary Compensation Table entry for that officer.  Because it is rare for a flight to be purely personal in nature, fixed costs (such as hangar expenses, crew salaries and monthly leases) are not included in the Summary Compensation Table.  In any case, in the event such a cost is non-deductible by the Company under the Internal Revenue Code, the value of that lost deduction is included in the Summary Compensation Table entry for that Named Executive Officer.  When employees, including the Named Executive Officers, use Company aircraft for such travel they are attributed with taxable income in accordance with regulations pursuant to the Internal Revenue Code.  The Company does not "gross up" or reimburse an employee for taxes he or she owes on such attributed income.  Mr.  Duncan has made use of the aircraft for personal travel, the variable cost, if any, of which is included in his respective entries in the Summary Compensation Table.  See "Executive Compensation:  Summary Compensation Table." |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Enhanced Long Term Disability Benefit – The Company provides the Named Executive Officers and other senior executive officers of the Company with an enhanced long term disability benefit.  This benefit provides a supplemental replacement income benefit of 60% of average monthly compensation capped at $10,000 per month.  The normal replacement income benefit applying to other of our employees is capped at $5,000 per month. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Enhanced Short Term Disability Benefit – The Company provides the Named Executive Officers and other senior executive officers of the Company with an enhanced short term disability benefit.  This benefit provides a supplemental replacement income benefit of 66 2/3% of average monthly compensation, capped at $2,300 per week.  The normal replacement income benefit applying to other of our employees is capped at $1,150 per week. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Miscellaneous – Aside from benefits offered to its employees generally, the Company provided miscellaneous other benefits to its Named Executive Officers including the following (see "Executive Compensation:  Summary Compensation Table – Components of 'All Other Compensation'"): |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | Success Sharing – An incentive program offered to all of our employees that shares 15% of the excess earnings before interest, taxes, depreciation, amortization and share based compensation expense over the highest previous year ("Success Sharing"). |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| o   | Board Fees – Provided to Mr. Duncan as one of our directors. The Compensation Committee believes that it is appropriate to provide such board fees to Mr. Duncan given the additional oversight responsibilities and the accompanying liability incumbent upon members of our board.  In determining the appropriate amount of overall compensation payable to Mr. Duncan in his capacity as  Chief Executive Officer, the Compensation Committee does take into account any such board fees that are payable to Mr. Duncan.  This monitoring of Mr. Duncan's overall compensation package for services rendered as Chief Executive Officer and as a director is done to ensure that Mr. Duncan is not being doubly compensated for the same services rendered to the Company. |
|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Name andPrincipal Position                                                                                                         | Year         | Salary1($)             | Bonus($)                                 | Nonequity Incentive PlanCompensation($)    | StockAwards2($)                                                            | Option Awards2($) | Change in Pension Value and Nonqualified Deferred Compensation Earnings3($) | All Other Compensation($)4 | Total($)                                                    |
|------------------------------------------------------------------------------------------------------------------------------------|--------------|------------------------|------------------------------------------|--------------------------------------------|----------------------------------------------------------------------------|-------------------|-----------------------------------------------------------------------------|----------------------------|-------------------------------------------------------------|
| Ronald A. Duncan5  President and Chief  Executive Officer                                                      | 201120102009 | 600,000600,000600,000  |  --- 454,3976400,000      | 1,751,919  725,000  350,000      | 1,220,3647   33,744    36,500                | ---433,635---     | ---------                                                                   | 61,50067,25984,489         | 3,633,7832,314,0351,470,989                                 |
| G. Wilson Hughes  Executive Vice  President and  General Manager                                     | 201120102009 | 487,500487,500486,4598 | 25,0006185,7176102,000              |   400,108  233,333  150,000 |    412,0957   ---     32,453  | ---------         |   4,224  6,15310,899                                              | 16,50019,23925,281         | 1,345,427   931,942   807,092 |
| John M. Lowber  Senior Vice President,  Chief Financial Officer  and Secretary/  Treasurer | 201120102009 | 395,000728,709325,000  | --- 116,944625,000             |   325,432  175,000  100,000 |    287,0977   323,251    55,428    | ---------         |   3,058------                                                          | 18,50019,23925,281         | 1,029,0871,363,143   530,709                      |
| Gregory F. Chapados  Senior Vice President                                                                               | 201120102009 | 300,000270,000240,000  | ---  95,2546 53,000  |   328,846  175,000  100,000 |    265,7707   844,750    172,471   | ---------         | ---------                                                                   | 23,08718,46324,594         |    917,7031,403,467   590,065           |
| Tina M. Pidgeon9  General Counsel and Senior Vice President, Government Affairs                                          | 2011         | 275,000                | ---                                      |   254,596                             |    159,0247                                                      | ---               | ---                                                                         | 161,717                    |    850,337                                        |

| 1 | For 2009, salary includes deferred compensation of $225,000 and $65,000 for Messrs. Hughes and Lowber, respectively.  For 2010, salary includes deferred compensation of $125,000 for Mr. Hughes and $468,709 for Mr. Lowber of which $403,709 for Mr. Lowber reflects the vesting of a multi-year retention agreement.  For 2011, salary includes deferred compensation of $125,000 and $135,000 for Messrs. Hughes and Lowber, respectively. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | This column reflects the grant date fair values of awards of Class A common stock, restricted stock awards or stock options granted in the fiscal year indicated which were computed in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 718, Compensation – Stock Options ("ASC Topic 718"). Assumptions used in the calculation of these amounts are set forth in Footnote 9 of Part II – Item 8 – Consolidated Financial Statements and Supplementary Data of the Annual Report. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3 | The amount shown represents the above-market earnings on nonqualified deferred compensation plan balances. Above market-earnings is defined as earnings in excess of 120% of the long-term monthly applicable federal rate (AFR). |
|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5 | In 2009, Mr. Duncan received $76,500 in compensation for service on our board in the form of director fees of $40,000 and stock awards valued at $36,500.  In 2010, Mr. Duncan received $73,744 in compensation relative to his service on our board including $40,000 in board fees and stock awards valued at $33,744.  In 2011, Mr. Duncan received $105,534 in compensation relative to his service on our board including $45,000 in board fees and stock awards valued at $60,534. |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6 | The Bonus Compensation represents compensation paid pursuant to the Incentive Compensation Plan in excess of the target payment under the plan. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------|

| 7 | The Stock Awards granted during 2011 were for the Named Executive Officer’s performance during 2010.  |
|---|------------------------------------------------------------------------------------------------------------------|

| 8 | For 2009, includes $37,500 for Mr. Hughes representing the amount vested during 2009 pursuant to prepaid retention agreements. |
|---|--------------------------------------------------------------------------------------------------------------------------------|

----

| 9 | Compensation for Ms. Pidgeon is only provided for 2011, as she was not a Named Executive Officer in 2010 or 2009. |
|---|-------------------------------------------------------------------------------------------------------------------|

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

| Name andPrincipal Position | Year         | Stock PurchasePlan1($) | Board Fees($)      | Success Sharing2($) | Use of Company Leased Aircraft3($) | Miscellaneous($) | Total($)           |
|----------------------------|--------------|------------------------|--------------------|---------------------|------------------------------------|------------------|--------------------|
| Ronald A. Duncan           | 201120102009 | 16,50016,50023,334     | 45,00040,00040,000 | ---------           | ---10,75921,155                    | ---------        | 61,50067,25984,489 |
| G. Wilson Hughes           | 201120102009 | 16,50016,50023,334     | ---------          | ---2,7391,947       | ---------                          | ---------        | 16,50019,23925,281 |
| John M. Lowber             | 201120102009 | 16,50016,50023,334     | ---------          | ---2,7391,947       | ---------                          | 2,0004------     | 18,50019,23925,281 |
| Gregory F. Chapados        | 201120102009 | 16,50015,72422,647     | ---------          | ---2,7391,947       | ---------                          | 6,5875------     | 23,08718,46324,594 |
| Tina M. Pidgeon            | 2011         | 16,500                 | ---                | ---                 | ---                                | 145,2176         | 161,717            |

| 1 | Amounts are contributions by us matching each employee's contribution.  Matching contributions by us under our GCI 401(k) Plan are available to each of our full time employees with over one year of service.  During 2011 and 2010, the match was based upon the lesser of $16,500 ($24,500 for 2009) or 10% of the employee's salary and the total of the employee's pre-tax and post-tax contributions to the plan.  See " Compensation Discussion and Analysis:  Elements of Compensation – Retirement and Welfare Benefits – GCI 401(k) Plan." |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | See "Part III – Item 11 – Compensation Discussion and Analysis:  Elements of Compensation – Perquisites." |
|---|---------------------------------------------------------------------------------------------------------------------------------------|

| 3 | The value of use of Company leased aircraft is shown at the variable cost to the Company. |
|---|-------------------------------------------------------------------------------------------|

| 4 | Includes $2,000 for attending certain management meetings. |
|---|------------------------------------------------------------|

| 5 | Includes $4,587 for a guest to accompany Mr. Chapados on a business trip and $2,000 for attending certain management meetings. |
|---|--------------------------------------------------------------------------------------------------------------------------------|

| 6 | Includes vesting of a $137,500 portion of a $275,000 signing bonus received in 2010, $3,717 for moving expenses and $4,000 for attending management meetings. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

| Name                | Grant Date       | Estimated Future PayoutsUnderNon-Equity Incentive Plan Awards |       | Estimated Future PayoutsUnderEquity Incentive Plan Awards | All OtherStockAwards:Number ofSharesof Stockor Units | All OtherOptionAwards:Number of SecuritiesUnderlyingOptions | Exerciseor BasePrice ofOptionAwards($/Sh) | Grant DateFair Value of Stock and Option Awards1($) |
|---------------------|------------------|---------------------------------------------------------------|------------|-----------------------------------------------------------|------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------|-----------------------------------------------------|
|                |             | Threshold($)                                                  | Target($)  | Maximum($)                                                |                                                 | Threshold(#)                                                | Target(#)                                 | Maximum(#)                                          | (#) | (#) |   |   |
| Ronald A. Duncan    | 02/08/1106/01/11 | - - -- - -                                                    | - - -- - - | - - -- - -                                                |                                                 | - - -- - -                                                  | - - -- - -                                | - - -- - -                                          | 93,1592      5,4003 | - - -- - - | - - -- - - | 1,159,830     60,534 |
| G. Wilson Hughes    | 02/08/11         | - - -                                                         | - - -      | - - -                                                     |                                                 | - - -                                                       | - - -                                     | - - -                                               | 33,1002 | - - - | - - - |    412,095 |
| John M. Lowber      | 02/08/11         | - - -                                                         | - - -      | - - -                                                     |                                                 | - - -                                                       | - - -                                     | - - -                                               | 23,0602 | - - - | - - - |    287,097 |
| Gregory F. Chapados | 02/08/11         | - - -                                                         | - - -      | - - -                                                     |                                                 | - - -                                                       | - - -                                     | - - -                                               | 21,3472 | - - - | - - - |    265,770 |
| Tina M. Pidgeon     | 02/08/11         | - - -                                                         | - - -      | - - -                                                     |                                                 | - - -                                                       | - - -                                     | - - -                                               | 12,7732 | - - - | - - - |    159,024 |

| 1 | Computed in accordance with FASB ASC Topic 718. |
|---|-------------------------------------------------|

| 2 | Represents the 50% portion of the 2010 incentive compensation paid in the form of restricted stock grants under our Incentive Compensation Plan that were not granted until 2011.  Restricted stock awards are included in the "Stock Awards" column of the Summary Compensation Table above. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3 | Mr. Duncan's stock award was granted pursuant to the terms of our Director Compensation Plan.  See "Governance of Company: Director Compensation." |
|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name                                                           | Option Awards1                                                                                                                                                                               | Stock Awards                                                                                                                                                                                                                                                      |
|----------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Number of SecuritiesUnderlyingUnexercisedOptions(#)Exercisable | Number ofSecuritiesUnderlyingUnexercisedOptions (#) Unexercisable                                                                                                                            | OptionExercisePrice($)                                                                                                                                                                                                                                            | OptionExpirationDate | Number of Shares orUnits of StockThat Have NotVested (#) | Market Valueof Shares orUnits of Stockthat HaveNot Vested($) | Equity Incentive Plan Awards:  Number of Unearned Shares, Units or Other Rights That Have Not Vested (#) | Equity Incentive Plan Awards:  Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($) |
| Ronald A. Duncan                                               |    150,000   250,000      - - -      - - -                                                         |        - - -       - - -   150,000       - - -                                                                                            | 7.258.405.32- - - | 02/08/1206/24/1402/08/20- - - |         - - -        - - -        - - -     93,1592 |      - - -     - - -     - - -   912,0272 |  - - - - - - - - - - - - |        - - -       - - -       - - -       - - - |
| G. Wilson Hughes                                               |        - - -       - - -                                                                                               |        - - -       - - -                                                                                                                                                                    | - - -- - - | - - -- - - |    109,1503     33,1002 |  1,068,5793    324,0492 |  - - -    - - - |        - - -       - - - |
| John M. Lowber                                                 |        - - -       - - -       - - -       - - - |        - - -       - - -       - - -       - - -                                                                      | - - -- - -- - -- - - | - - -- - -- - -- - - |    113,0393     14,0984     25,0005     23,0602 |  1,106,6523    138,0194    244,7505    225,7572 |   - - -  - - -  - - -  - - - |        - - -       - - -       - - -       - - - |
| Gregory F. Chapados                                            |     30,000  100,000   - - -    - - -    - - -    - - -    - - - |        - - -     - - -     - - -     - - -     - - -     - - -     - - - | 6.007.95- - -- - -- - -- - -- - - | 02/10/1301/09/18- - -- - -- - -- - -- - - |       - - -      - - -    18,7974    20,0006    50,0007    68,3603    21,3472 |       - - -      - - -   184,0234   195,8006   489,5007   669,2443   208,9872 |   - - -  - - -  - - -  - - -  - - -  - - -  - - - |        - - -       - - -       - - -       - - -       - - -       - - -       - - - |
| Tina M. Pidgeon                                                |        - - -       - - -       - - -       - - - |        - - -       - - -       - - -       - - -                                                                      | - - -- - -- - -- - - | - - -- - -- - -- - - |       9,0003      5,0008    20,0009    12,7732 |    88,1103   48,9508 195,8009 125,0482 |   - - -  - - -  - - -  - - - |        - - -       - - -       - - -       - - - |

| 1   | Stock option awards generally vest over five years and expire ten years from grant date, except as noted in the footnotes below. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------|

| 2   | Restricted stock vests on November 30, 2013. |
|---------------|----------------------------------------------|

| 3   | Restricted stock vests on February 28, 2012. |
|---------------|----------------------------------------------|

| 4   | Restricted stock vests on February 8, 2013. |
|---------------|---------------------------------------------|

| 5   | Restricted stock vests on December 31, 2013. |
|---------------|----------------------------------------------|

| 6   | Restricted stock vests 5,000 shares on October 7 of 2012, 2013, 2014 and 2015. |
|---------------|--------------------------------------------------------------------------------|

----

| 7   | Restricted stock vests on October 7, 2015. |
|---------------|--------------------------------------------|

| 8   | Restricted stock vests on June 30, 2012. |
|---------------|------------------------------------------|

| 9   | Restricted stock vests on October 1, 2012. |
|---------------|--------------------------------------------|

|                | Option Awards                            |                          | Stock Awards |
|---------------------|------------------------------------------|-------------------------------|--------------|
| Name                | Number of SharesAcquired on Exercise (#) | Value Realized on Exercise($) |         | Number of SharesAcquired on Vesting (#) | Value Realized on Vesting($) |
| Ronald A. Duncan    | ------                                   | ------                        |         |    5,400175,000 |   60,534905,250 |
| G. Wilson Hughes    | ---                                      | ---                           |         | 109,149    | 1,152,613    |
| John M. Lowber      | ---                                      | ---                           |         |  113,039     |  1,193,692     |
| Gregory F. Chapados | ------                                   | ------                        |         |  5,000 68,359   |   39,650  721,871   |
| Tina M. Pidgeon     | ---                                      | ---                           |         |  9,000 |   95,040 |

| 1 | This stock award relates to Mr. Duncan's service as one of our directors. |
|---|---------------------------------------------------------------------------|

----

| Name                | ExecutiveContributionsin Last FY($) | RegistrantContributionin Last FY($) | AggregateEarnings (Loss)in Last FY($) | AggregateWithdrawals/Distributions($) | AggregateBalanceat Last FY($) |
|---------------------|-------------------------------------|-------------------------------------|---------------------------------------|---------------------------------------|-------------------------------|
| Ronald A. Duncan    | ---                                 | ---                                 | ---                                   | ---                                   | ---                           |
| G. Wilson Hughes1   | 125,000                             |     ---              | (524,259)                             | ---                                   | 3,470,680                     |
| John M. Lowber2     |  35,000                        | ---                                 |    84,814         | 200,000                               | 1,170,521                     |
| Gregory F. Chapados | ---                                 | ---                                 | ---                                   | ---                                   | ---                           |
| Tina M. Pidgeon     | ---                                 | ---                                 | ---                                   | ---                                   | ---                           |

| 1 | Includes earnings of $4,224 for Mr. Hughes that is reported in the Summary Compensation Table. |
|---|------------------------------------------------------------------------------------------------|

| 2 | Includes earnings of $3,058 for Mr. Lowber that is reported in the Summary Compensation Table. |
|---|------------------------------------------------------------------------------------------------|

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

----

----

----

----

| ·   | Each person known by us to own beneficially 5% or more of the outstanding shares of Class A common stock or Class B common stock. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------|

| ·   | Each of our directors. |
|--------------------|------------------------|

| ·   | Each of the Named Executive Officers. |
|--------------------|---------------------------------------|

| ·   | All of our executive officers and directors as a group. |
|--------------------|---------------------------------------------------------|

|     Name ofBeneficial Owner1                                                 |     Title ofClass2 |  Amount andNature ofBeneficialOwnership(#)                                                  |      % of Class                                             |   % of Total Shares Outstanding (Class A & B)2 |   % CombinedVotingPower(Class A & B)2 |
|--------------------------------------------------------------------------------------------------|----------------------------------------|--------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------|-------------------------------------------------------------------|-----------------------------------------------------|
|  Stephen M. Brett                                                                           |  Class AClass B                   |      57,7503        ---         |  *---                                                                           |  *                                                           |  *                                             |
|  Ronald A. Duncan                                                                           |  Class AClass B                   |   1,526,9383,4  661,8094                                                     |    4.020.9                                                            |   5.2                                              |  11.5                                     |
|  Jerry A. Edgerton                                                                     |  Class AClass B                   |     32,7503       ---                     |  *---                                                                           |  *                                                           |  *                                             |
|  Scott M. Fisher                                                                            |  Class AClass B                   |       46,3343,5 511,7165                                      |  *16.1                                                                          |   1.4                                                   |   7.3                                     |
|  William P. Glasgow                                                                         |  Class AClass B                   |       82,6943,6        --- |  *---                                                                           |  *                                                           |  *                                             |
|  Mark W. Kroloff                                                                            |  Class AClass B                   |     26,1003        ---               |  *---                                                                           |  *                                                           |  *                                        |
|  Stephen R. Mooney                                                                          |  Class AClass B                   |     43,4003        ---               |  *---                                                                           |  *                                                           |  *                                             |
|  James M. Schneider                                                                         |  Class AClass B                   |     31,1503         ---         |  *---                                                                           |  *                                                           |  *                                             |
|  G. Wilson Hughes                                                                      |  Class AClass B                   |   629,3457     2,6957                                         |   1.6*                                                                     |   1.5                                                   |  *                                        |
|  John M. Lowber                                                                             |  Class AClass B                   |   356,8988     6,2038                                         |  **                                                                             |  *                                                           |  *                                        |
|  Gregory F. Chapados                                                                        |  Class AClass B                   |   388,1529        ---                          |  1.0*                                                                           |  *                                                           |  *                                        |
|  Tina M. Pidgeon                                                                            |  Class AClass B                   |       87,47810        ---  |  *---                                                                           |  *                                                           |  *                                             |
|  Black Rock, Inc.40 East 52nd StreetNew York, New York 10022                                |  Class AClass B                   |  3,507,06411        ---                        |  9.1   ---                                                       |   8.4                                                   |  5.0                                           |
|  Dimensional Fund Advisors LPPalisades West, Building One6300 Bee Cave RoadAustin, TX 78746 |  Class AClass B                   |  2,137,73412        ---                        |  5.5---                                                                         |  5.1                                                         |  3.0                                           |
|  GCI 401(k) Plan2550 Denali St., Ste. 1000Anchorage, AK 99503                               |  Class AClass B                   |   4,723,62513      56,99713                              |  12.2  1.8                                                            |  11.4                                                        |    7.5                               |
|  Gary Magnessc/o Raymond L. Sutton, Jr.303 East 17th Ave., Ste 1100Denver, CO 80203-1264    |  Class AClass B              |  347,961433,924                                                                        |    3.513.7                                                       |    4.3                                             |    8.1                               |
|  Private ManagementGroup, Inc.15635 Alton Parkway,Suite 400Irvine, CA 92606                 |  Class AClass B                   |  2,223,34511        ---                        |   5.8          ---  |   5.3                                                   |   3.2                                     |
|  John W. Stanton andTheresa E. Gillespie155 108th Avenue., N.E.,Suite 450Bellevue, WA 98004 |  Class AClass B                   |  2,342,6271,436,469                                                                         |    6.145.3                                                            |    9.0                                             |  23.8                                          |
|  The Vanguard Group, Inc.100 Vanguard BlvdMalvern, PA 19355                                 |  Class AClass B                   |  2,311,88214        ---                             |  6.0---                                                                         |  5.5                                                         |  3.3                                           |
|  All Directors and Executive  Officers As a Group  (16 Persons)         |  Class AClass B              |  3,603,839151,182,42315                                                                     |    9.337.3                                                            |  11.3                                                        |  21.8                                          |

----

| 1 | Beneficial ownership is determined in accordance with Rule 13d-3 of the Exchange Act.  Shares of our stock that a person has the right to acquire within 60 days of the Record Date are deemed to be beneficially owned by such person and are included in the computation of the ownership and voting percentages only of such person.  Each person has sole voting and investment power with respect to the shares indicated, except as otherwise stated in the footnotes to the table.  Addresses are provided only for persons other than management who own beneficially more than 5% of the outstanding shares of Class A or B common stock. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | "Title of Class" includes our Class A common stock and Class B common stock.  "Amount and Nature of Beneficial Ownership" and "% of Class" are given for each class of stock.  "% of Total Shares Outstanding" and "% Combined Voting Power" are given for the combination of outstanding Class A common stock and Class B common stock, and the voting power for Class B common stock (10 votes per share) is factored into the calculation of that combined voting power. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3 | Includes 5,400 shares of our Class A common stock granted to each of those persons pursuant to the Director Compensation Plan for services performed during 2011 except for our Audit Committee Chairman, Mr. Schneider, who was granted 6,900 shares of our Class A common stock. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4 | Includes 157,397 shares of Class A common stock and 6,165 shares of Class B common stock allocated to Mr. Duncan under the GCI 401(k) Plan as of December 31, 2011.  Includes 400,000 shares of Class A common stock subject to stock options granted under the Stock Option Plan to Mr. Duncan which he has the right to acquire within 60 days of the Record Date by exercise of the stock options.  Does not include 35,560 shares of Class A common stock or 8,242 shares of Class B common stock held by the Amanda Miller Trust, with respect to which Mr. Duncan has no voting or investment power.  Ms. Miller is Mr. Duncan's daughter, and Mr. Duncan disclaims beneficial ownership of the shares.   Does not include 30,660 shares of Class A common stock or 27,020 shares of Class B common stock held by Dani Bowman, Mr. Duncan's wife, of which Mr. Duncan disclaims beneficial ownership.  Does not include 392 shares of Class A common stock held by Missy, LLC which is 25% owned by Mr. Duncan, 25% owned by Dani Bowman and 50% owned by a trust of which Mr. Duncan’s daughter is the 50% beneficiary, of which securities Mr. Duncan disclaims beneficial ownership (Mr. Duncan does not disclaim beneficial ownership of an additional 131 shares of Class A Common Stock held by Missy, LLC. which are included within the shares for which Mr. Duncan has a pecuniary interest).  Includes 852,733 shares of Class A common stock and 655,644 shares of Class B common stock pledged as security. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 5 | Includes 13,484 shares of Class A and 511,716 shares of Class B common stock owned by Fisher Capital Partners, Ltd. of which Mr. Fisher is a partner. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6 | Does not include 158 shares owned by a daughter of Mr. Glasgow.  Mr. Glasgow disclaims any beneficial ownership of the shares held by his daughter. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7 | Includes 7,495 shares of Class A common stock allocated to Mr. Hughes under the GCI 401(k) Plan, as of December 31, 2011.  Includes 325,890 shares of Class A common stock pledged as security.  Excludes 158,179 shares held by the Company pursuant to Mr. Hughes' Deferred Compensation Agreement. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8 | Includes 27,834 shares of Class A common stock and 5,933 shares of Class B common stock allocated to Mr. Lowber under the GCI 401(k) Plan, as of December 31, 2011. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9 | Includes 17,686 shares of Class A common stock allocated to Mr. Chapados under the GCI 401(k) Plan, as of December 31, 2011.  Includes 130,000 shares of Class A common stock subject to stock options granted under the Stock Option Plan to Mr. Chapados which he has the right to acquire within 60 days of the Record Date by exercise of those options. |
|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10 | Includes 11,717 shares of Class A common stock allocated to Ms. Pidgeon under the GCI 401(k) Plan, as of December 31, 2011. |
|----|-----------------------------------------------------------------------------------------------------------------------------|

| 12 | As disclosed in Schedule 13G filed with the SEC on February 14, 2012, Dimensional Fund Advisors LP has sole voting power for 2,049,805 shares of Class A common stock and sole dispositive power for 2,137,734 shares of Class A common stock as of December 31, 2011. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14 | As disclosed in Schedule 13G filed with the SEC on February 10, 2012, The Vanguard Group, Inc. has sole voting power and shared dispositive power for 61,102 shares of Class A common stock and sole dispositive power for 2,250,780 shares of Class A common stock as of December 31, 2011. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15 | Includes 530,000 shares of Class A common stock which such persons have the right to acquire within 60 days of the Record Date through the exercise of vested stock options.  Includes 264,473 shares of Class A common stock and 12,098 shares of Class B common stock allocated to such persons under the GCI 401(k) Plan. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

| Plan category                                        | Number of securitiesto be issued upon exercise of outstanding options, warrants and rights | Weighted-averageexercise price ofoutstanding options,warrants and rights($) | Number of securitiesremaining available for future issuance under equity compensation plans (excluding securities reflected in the second column) |
|------------------------------------------------------|--------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|
| Equity compensationplans approved bysecurity holders | 1,086,550                                                                                  | 7.27                                                                        | 4,021,272                                                                                                                                         |

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| ·   | Full Audit Committee – The full Audit Committee can consider each Non-Audit Service. |
|--------------------|--------------------------------------------------------------------------------------------|

| ·   | Designee – The Audit Committee can designate one of its members to approve a Non-Audit Service, with that member reporting approvals to the full committee. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Pre-Approval of Categories – The Audit Committee can pre-approve categories of Non-Audit Services.  Should this option be chosen, the categories must be specific enough to ensure both of the following – |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | The Audit Committee knows exactly what it is approving and can determine the effect of such approval on auditor independence. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------|

| o   | Management will not find it necessary to decide whether a specific service falls within a category of pre-approved Non-Audit Service. |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------|

| Type of Fees        | 2011       | 2010       |
|---------------------|------------|------------|
| Audit Fees1         | $1,766,185 | $1,386,321 |
| Audit-Related Fees2 | 29,842     | 51,480     |
| Tax Fees3           | 105,873    | 114,793    |
| All Other Fees4     | ---        | ---        |
| Total               | $1,901,900 | $1,552,594 |

| 1 | Consists of fees for our annual financial statement audit, quarterly financial statement reviews, reviews of other filings by us with the SEC, audit of our internal control over financial reporting and for services that are normally provided by an auditor in connection with statutory and regulatory filings or engagements. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2 | Consists of fees for audit of the GCI 401(k) Plan and review of the related annual report on Form 11-K filed with the SEC. |
|---|----------------------------------------------------------------------------------------------------------------------------|

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| 3 | Consists of fees for review of our state and federal income tax returns and consultation on various tax advice and tax planning matters. |
|---|------------------------------------------------------------------------------------------------------------------------------------------|

| 4 | Consists of fees for any services not included in the first three types of fees identified in the table. |
|---|----------------------------------------------------------------------------------------------------------|

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

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