----

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

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

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

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

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

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

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

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

|   | Registrant’s telephone number, including area code: (907) 868-5600 |
|--------|--------------------------------------------------------------------------|

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

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

----

|                                                      |                                                                                                                           |   |   | Page No.  |
|-----------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|
|                                                      |                                                                                                                           |   |   |      |
| Cautionary Statement Regarding Forward-Looking Statements |   3                                                                                                                       |
|                                                      |                                                                                                                           |   |   |      |
| Part I.  FINANCIAL INFORMATION                  |                                                                                                                           |
|                                                      |                                                                                                                           |   |   |      |
| Item I.                                                   | Financial Statements                                                                                                           |   |   |      |
|                                                      |                                                                                                                           |   |   |      |
|                                                      | Consolidated Balance Sheets as of September 30, 2011 (unaudited)  and December 31, 2010 (unaudited)                  |   |   |   4  |
|                                                      |                                                                                                                           |   |   |      |
|                                                      | Consolidated Income Statements for the three and nine months ended September 30, 2011 (unaudited) and 2010 (unaudited)         |   |   |   6  |
|                                                      |                                                                                                                           |   |   |      |
|                                                      | Consolidated Statements of Cash Flows for the nine months ended  September 30, 2011 (unaudited) and 2010 (unaudited) |   |   |   7  |
|                                                      |                                                                                                                           |   |   |      |
|                                                      | Condensed Notes to Interim Consolidated Financial Statements (unaudited)                                                       |   |   |   8  |
|                                                      |                                                                                                                           |   |   |      |
| Item 2.                                                   | Management’s Discussion and Analysis of Financial Condition                                                              |   |   |      |
|                                                      |   and Results of Operations                                                                                          |   |   |   23 |
|                                                      |                                                                                                                           |   |   |      |
| Item 3.                                                   | Quantitative and Qualitative Disclosures About Market Risk                                                                     |   |   |   41 |
|                                                      |                                                                                                                           |   |   |      |
| Item 4.                                                   | Controls and Procedures                                                                                                        |   |   |   41 |
|                                                      |                                                                                                                           |   |   |      |
| Part II.  OTHER INFORMATION                     |                                                                                                                           |   |   |
|                                                      |                                                                                                                           |   |   |      |
| Item 1.                                                   | Legal Proceedings                                                                                                              |   |   |   42 |
|                                                      |                                                                                                                           |   |   |      |
| Item 6.                                                   | Exhibits                                                                                                                       |   |   |   43 |
|                                                      |                                                                                                                           |   |   |      |
| Other items are omitted, as they are not applicable.      |                                                                                                                           |
|                                                      |                                                                                                                           |   |   |      |
| SIGNATURES                                                |                                                                                                                           |   |   |  44  |

----

----

|                                                                           |   |          |      |   |         |        |
|--------------------------------------------------------------------------------|--------|---------------|-----------|--------|--------------|-------------|
| PART I. FINANCIAL INFORMATION                                                  |   |
| ITEM 1. FINANCIAL STATEMENTS                                                   |   |
|                                                                           |   |          |      |   |         |        |
| GCI, INC. AND SUBSIDIARIES                                                     |   |
| CONSOLIDATED BALANCE SHEETS                                                    |   |
| (Unaudited)                                                                    |   |
|                                                                           |   |          |      |   |         |        |
| (Amounts in thousands)                                                         |   |          |      |   |         |        |
|                                                                           |   | September 30, |      |   | December 31, |        |
| ASSETS                                                                         |   | 2011          |      |   | 2010         |        |
|                                                                           |   |          |      |   |         |        |
| Current assets:                                                                |   |          |      |   |         |        |
| Cash and cash equivalents                                                      |   | $             | 32,515    |   |         |        | 31,777 |   |
|                                                                           |   |          |      |
| Receivables                                                                    |   |          | 168,840   |   |         |        | 132,856 |   |
| Less allowance for doubtful receivables                                        |   |          | 6,273     |   |         |        | 9,189 |   |
| Net receivables                                                                |   |          | 162,567   |   |         |        | 123,667 |   |
|                                                                           |   |          |      |   |         |        |   |   |
| Deferred income taxes                                                          |   |          | 10,145    |   |         |        | 10,145 |   |
| Prepaid expenses                                                               |   |          | 8,434     |   |         |        | 5,950 |   |
| Inventories                                                                    |   |          | 7,949     |   |         |        | 5,804 |   |
| Other current assets                                                           |   |          | 3,658     |   |         |        | 3,940 |   |
| Total current assets                                                           |   |          | 225,268   |   |         |        | 181,283 |   |
|                                                                           |   |          |      |   |         |        |   |   |
| Property and equipment in service, net of depreciation                         |   |          | 762,170   |   |         |        | 798,278 |   |
| Construction in progress                                                       |   |          | 108,692   |   |         |        | 31,144 |   |
| Net property and equipment                                                     |   |          | 870,862   |   |         |        | 829,422 |   |
|                                                                           |   |          |      |   |         |        |   |   |
| Cable certificates                                                             |   |          | 191,635   |   |         |        | 191,635 |   |
| Goodwill                                                                       |   |          | 73,932    |   |         |        | 73,932 |   |
| Wireless licenses                                                              |   |          | 25,967    |   |         |        | 25,967 |   |
| Restricted cash                                                                |   |          | 16,546    |   |         |        | - |   |
| Other intangible assets, net of amortization                                   |   |          | 16,549    |   |         |        | 17,717 |   |
| Deferred loan and senior notes costs, net of amortization                      |   |          | 13,223    |   |         |        | 13,661 |   |
| Other assets                                                                   |   |          | 15,271    |   |         |        | 16,850 |   |
| Total other assets                                                             |   |          | 353,123   |   |         |        | 339,762 |   |
| Total assets                                                                   |   | $             | 1,449,253 |   |         |        | 1,350,467 |   |
|                                                                           |   |          |      |   |         |        |   |   |
| See accompanying condensed notes to interim consolidated financial statements. |   |
|                                                                           |   |          |      |   |         |        |   |   |
|                                                                           |   |          |      |   |         |        |   |   |
|                                                                           |   |          |      |   |         |        |   |   |
|                                                                           |   |          |      |   |         | (Continued) |   |

----

| GCI, INC. AND SUBSIDIARIES                                                           |   |
|--------------------------------------------------------------------------------------|--------|
| CONSOLIDATED BALANCE SHEETS                                                          |   |
| (Unaudited)                                                                          |   |
| (Continued)                                                                          |   |
|                                                                                 |   |   |   |   |   |   |
| (Amounts in thousands)                                                               |   |   |   |   |   |   |
|                                                                                 |   | September 30, |   |   | December 31, |   |
| LIABILITIES AND STOCKHOLDER'S EQUITY                                                 |   | 2011 |   |   | 2010 |   |
|                                                                                 |   |   |   |   |   |   |
| Current liabilities:                                                                 |   |   |   |   |   |   |
| Current maturities of obligations under long-term debt and  capital leases |   | $ | 8,042 |   |   |   | 7,652 |   |
| Accounts payable                                                                     |   |   | 49,726 |   |   |   | 35,589 |   |
| Deferred revenue                                                                     |   |   | 18,583 |   |   |   | 17,296 |   |
| Accrued payroll and payroll related obligations                                      |   |   | 20,313 |   |   |   | 22,132 |   |
| Accrued interest                                                                     |   |   | 21,969 |   |   |   | 13,456 |   |
| Accrued liabilities                                                                  |   |   | 11,370 |   |   |   | 12,557 |   |
| Subscriber deposits                                                                  |   |   | 1,304 |   |   |   | 1,271 |   |
| Total current liabilities                                                            |   |   | 131,307 |   |   |   | 109,953 |   |
|                                                                                 |   |   |   |   |   |   |   |   |
| Long-term debt, net                                                                  |   |   | 852,374 |   |   |   | 779,201 |   |
| Obligations under capital leases, excluding current maturities                       |   |   | 80,031 |   |   |   | 84,144 |   |
| Obligation under capital lease due to related party                                  |   |   | 1,893 |   |   |   | 1,885 |   |
| Deferred income taxes                                                                |   |   | 109,804 |   |   |   | 102,401 |   |
| Long-term deferred revenue                                                           |   |   | 63,914 |   |   |   | 49,175 |   |
| Other liabilities                                                                    |   |   | 22,433 |   |   |   | 24,495 |   |
| Total liabilities                                                                    |   |   | 1,261,756 |   |   |   | 1,151,254 |   |
|                                                                                 |   |   |   |   |   |   |   |   |
| Commitments and contingencies                                                        |   |   |   |   |   |   |   |   |
| Stockholder's equity:                                                                |   |   |   |   |   |   |   |   |
| Class A common stock (no par). Authorized 10 shares;                                 |   |   |   |   |   |   |   |   |
| issued and outstanding 0.1 shares at September 30, 2011 and December 31, 2010        |   |   | 206,622 |   |   |   | 206,622 |   |
| Paid-in capital                                                                      |   |   | 58,776 |   |   |   | 54,574 |   |
| Retained earnings                                                                    |   |   | (94,447 | ) |   |   | (61,983 | ) |
| Total GCI, Inc. stockholder's equity                                                 |   |   | 170,951 |   |   |   | 199,213 |   |
| Noncontrolling interest                                                              |   |   | 16,546 |   |   |   | - |   |
| Total stockholder's equity                                                           |   |   | 187,497 |   |   |   | 199,213 |   |
| Total liabilities and stockholder's equity                                           |   | $ | 1,449,253 |   |   |   | 1,350,467 |   |
|                                                                                 |   |   |   |   |   |   |   |   |
| See accompanying condensed notes to interim consolidated financial statements.       |   |

----

| CONSOLIDATED INCOME STATEMENTS                                                |   |
|-------------------------------------------------------------------------------|--------|
| (Unaudited)                                                                   |   |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                          |   | Three Months Ended |   |   | Nine Months Ended |   |
|                                                                          |   | September 30, |   |   | September 30, |   |
| (Amounts in thousands)                                                        |   | 2011 |   |   | 2010 |   |   | 2011 |   |   | 2010 |   |
| Revenues                                                                      |   | $ | 177,703 |   |   |   | 171,509 |   |   |   | 510,569 |   |   |   | 486,254 |   |
| Cost of goods sold (exclusive of depreciation and                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| amortization shown separately below)                                          |   |   | 60,664 |   |   |   | 52,486 |   |   |   | 171,734 |   |   |   | 153,147 |   |
| Selling, general and administrative expenses                                  |   |   | 54,453 |   |   |   | 58,532 |   |   |   | 171,043 |   |   |   | 166,493 |   |
| Depreciation and amortization expense                                         |   |   | 30,702 |   |   |   | 30,288 |   |   |   | 93,054 |   |   |   | 92,234 |   |
|  Operating income                                                        |   |   | 31,884 |   |   |   | 30,203 |   |   |   | 74,738 |   |   |   | 74,380 |   |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expense):                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense (including amortization of deferred                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| loan fees)                                                                    |   |   | (16,678 | ) |   |   | (17,760 | ) |   |   | (51,424 | ) |   |   | (53,169 | ) |
| Loss on extinguishment of debt                                                |   |   | - |   |   |   | - |   |   |   | (9,111 | ) |   |   | - |   |
| Interest income                                                               |   |   | 22 |   |   |   | 99 |   |   |   | 30 |   |   |   | 236 |   |
| Other                                                                         |   |   | (59 | ) |   |   | - |   |   |   | (92 | ) |   |   | - |   |
|  Other expense, net                                                      |   |   | (16,715 | ) |   |   | (17,661 | ) |   |   | (60,597 | ) |   |   | (52,933 | ) |
|    Income before income tax expense                            |   |   | 15,169 |   |   |   | 12,542 |   |   |   | 14,141 |   |   |   | 21,447 |   |
| Income tax expense                                                            |   |   | (7,959 | ) |   |   | (4,959 | ) |   |   | (7,403 | ) |   |   | (10,260 | ) |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Net income                                                  |   | $ | 7,210 |   |   |   | 7,583 |   |   |   | 6,738 |   |   |   | 11,187 |   |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See accompanying condensed notes to interim consolidated financial statements |   |   |   |   |   |
|                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| CONSOLIDATED STATEMENTS OF CASH FLOWS                                          |   |
|--------------------------------------------------------------------------------|--------|
| NINE MONTHS ENDED SEPTEMBER 30, 2011 AND 2010                                  |   |
| (Unaudited)                                                                    |   |
|                                                                           |   |   |   |   |
|                                                                           |   |   |   |   |
|  (Amount in thousands)                                                    |   |   |   | 2011  |   |   |   | 2010  |   |
|  Cash flows from operating activities:                                    |   |   |   |   |   |   |   |   |   |
| Net income                                                                     |   | $ |   | 6,738 |   |   |   | 11,187 |   |
| Adjustments to reconcile net income to net cash provided by                    |   |   |   |   |
| operating activities:                                                          |   |   |   |   |
| Depreciation and amortization expense                                          |   |   |   | 93,054 |   |   |   | 92,234 |   |
| Loss on extinguishment of debt                                                 |   |   |   | 9,111 |   |   |   | - |   |
| Deferred income tax expense                                                    |   |   |   | 7,403 |   |   |   | 10,260 |   |
| Share-based compensation expense                                               |   |   |   | 3,224 |   |   |   | 4,696 |   |
| Other noncash income and expense items                                         |   |   |   | 7,195 |   |   |   | 5,712 |   |
| Change in operating assets and liabilities                                     |   |   |   | (30,199 | ) |   |   | (11,933 | ) |
| Net cash provided by operating activities                                      |   |   |   | 96,526 |   |   |   | 112,156 |   |
| Cash flows from investing activities:                                          |   |   |   |   |
| Purchases of property and equipment                                            |   |   |   | (126,900 | ) |   |   | (68,813 | ) |
| Restricted cash                                                                |   |   |   | 16,546 |   |   |   | - |   |
| Grant proceeds                                                                 |   |   |   | 15,314 |   |   |   | - |   |
| Purchases of other assets and intangible assets                                |   |   |   | (4,635 | ) |   |   | (3,002 | ) |
| Purchase of businesses, net of cash received                                   |   |   |   | - |   |   |   | (5,545 | ) |
| Purchase of marketable securities                                              |   |   |   | - |   |   |   | (202 | ) |
| Proceeds from sale of marketable securities                                    |   |   |   | - |   |   |   | 178 |   |
| Other                                                                          |   |   |   | 233 |   |   |   | - |   |
| Net cash used in investing activities                                          |   |   |   | (99,442 | ) |   |   | (77,384 | ) |
| Cash flows from financing activities:                                          |   |   |   |   |
| Repayment of debt and capital lease obligations                                |   |   |   | (414,733 | ) |   |   | (7,315 | ) |
| Issuance of 2021 Notes                                                         |   |   |   | 325,000 |   |   |   | - |   |
| Borrowing on Senior Credit Facility                                            |   |   |   | 142,000 |   |   |   | - |   |
| Distribution to General Communication, Inc.                                    |   |   |   | (39,202 | ) |   |   | (1,347 | ) |
| Investment by noncontrolling interest                                          |   |   |   | (16,546 | ) |   |   |   |
| Issuance of other long-term debt                                               |   |   |   | 15,375 |   |   |   | 6,206 |   |
| Payment of Senior Notes call premiums                                          |   |   |   | (4,728 | ) |   |   | - |   |
| Payment of debt issuance costs                                                 |   |   |   | (3,512 | ) |   |   | (2,300 | ) |
| Net cash provided by (used in) financing activities                            |   |   |   | 3,654 |   |   |   | (4,756 | ) |
| Net increase in cash and cash equivalents                                      |   |   |   | 738 |   |   |   | 30,016 |   |
| Cash and cash equivalents at beginning of period                               |   |   |   | 31,777 |   |   |   | 48,142 |   |
| Cash and cash equivalents at end of period                                     |   | $ |   | 32,515 |   |   |   | 78,158 |   |
|                                                                           |   |   |   |   |
| See accompanying condensed notes to interim consolidated financial statements. |   |   |   |   |   |   |   |   |

----

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

| ·   | Origination and termination of traffic in Alaska for certain common carriers, |
|--------------------|-------------------------------------------------------------------------------|

| ·   | Cable television services throughout Alaska, |
|--------------------|----------------------------------------------|

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

| ·   | Incumbent local access services in areas of rural Alaska, |
|--------------------|-----------------------------------------------------------|

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

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

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

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

| ·   | Wireless roaming for certain wireless carriers, |
|--------------------|-------------------------------------------------|

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

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

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

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

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

|   | The consolidated financial statements include the consolidated accounts of GCI and its wholly-owned subsidiaries, as well as a variable interest entity (“VIE”) in which we were the primary beneficiary, when on August 30, 2011, we provided certain loans and guarantees to Terra GCI Investment Fund, LLC (“TIF”).  We account for non-controlling interests in consolidated subsidiaries for which our ownership is less than 100 percent.  All significant intercompany transactions between non-regulated affiliates of our company are eliminated.   Intercompany transactions generated between regulated and non-regulated affiliates of the company are not eliminated in consolidation. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Noncontrolling Interest |
|--------|-----|-------------------------|

----

|   | (d) | Recently Issued Accounting Pronouncements |
|--------|-----|-------------------------------------------|

|   | (e) | Recently Adopted Accounting Pronouncements |
|--------|-----|--------------------------------------------|

----

|   | (f) | Regulatory Accounting |
|--------|-----|-----------------------|

|   | We account for our regulated operations in accordance with the accounting principles for regulated enterprises.  This accounting recognizes the economic effects of rate regulation by recording cost and a return on investment as such amounts are recovered through rates authorized by regulatory authorities.  Accordingly, plant and equipment is depreciated over lives approved by regulators and certain costs and obligations are deferred based upon approvals received from regulators to permit recovery of such amounts in future years.  Our cost studies and depreciation rates for our regulated operations are subject to periodic audits that could result in a change to recorded revenues. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant items subject to estimates and assumptions include the allowance for doubtful receivables, unbilled revenues, accrual of the Universal Service Fund (“USF”) high cost area program support, share-based compensation, inventory reserves, reserve for future customer credits, valuation allowances for deferred income tax assets, depreciable and amortizable lives of assets, the carrying value of long-lived assets including goodwill, cable certificates and wireless licenses, purchase price allocations, deferred lease expense, asset retirement obligations, the accrual of Cost of Goods Sold (exclusive of depreciation and amortization) and the accrual of contingencies and litigation. Actual results could differ from those estimates. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

|                      |   | Three Months Ended |   |   | Nine Months Ended |   |
|---------------------------|--------|--------------------|--------|--------|-------------------|--------|
|                      |   | September 30,      |   |   | September 30,     |   |
|                      |   | 2011               |   |   | 2010              |   |   | 2011 |   |   | 2010 |   |
| Surcharges reported gross |   | $                  | 1,300  |   |              |   | 1,272 |   |   |   | 4,100 |   |   |   | 4,023 |   |

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

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

| Nine month period ended September 30,                                  |   | 2011   |    |   | 2010   |   |
|------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Increase in accounts receivable                                        |   | $      | (42,901 | )      |   |   | (23,482 | ) |
| Increase in prepaid expenses                                           |   |   | (2,484  | )      |   |   | (1,563 | ) |
| (Increase) decrease in inventories                                     |   |   | (2,145  | )      |   |   | 1,343 |   |
| Decrease in other current assets                                       |   |   | 282     |   |   |   | 646 |   |
| Decrease in other assets                                               |   |   | 2,617   |   |   |   | 2,193 |   |
| Increase in accounts payable                                           |   |   | 10,517  |   |   |   | 5,430 |   |
| Increase in deferred revenues                                          |   |   | 1,287   |   |   |   | 1,057 |   |
| Increase (decrease) in accrued payroll and payroll related obligations |   |   | (2,057  | )      |   |   | 96 |   |
| Increase (decrease) in accrued liabilities                             |   |   | (1,338  | )      |   |   | 3,030 |   |
| Increase in accrued interest                                           |   |   | 8,513   |   |   |   | 2,093 |   |
| Increase (decrease) in subscriber deposits                             |   |   | 33      |   |   |   | (344 | ) |
| Decrease in long-term deferred revenue                                 |   |   | (575    | )      |   |   | (1,932 | ) |
| Decrease in components of other long-term  liabilities       |   |   | (1,948  | )      |   |   | (500 | ) |
|                                                                   |   | $      | (30,199 | )      |   |   | (11,933 | ) |

| Net cash paid or received:                |   | 2011 |   |   | 2010   |   |
|-------------------------------------------|--------|------|--------|--------|--------|--------|
| Interest paid, net of amounts capitalized |   | $    | 42,654 |   |   |   | 49,363 |   |
| Income tax refund received                |   | $    | -      |   |   |   | 1,163 |   |

----

|                                                                                                            |   | 2011 |   |   | 2010   |   |
|-----------------------------------------------------------------------------------------------------------------|--------|------|--------|--------|--------|--------|
| Non-cash additions for purchases of property and  equipment                                           |   | $    | 11,481 |   |   |   | 3,547 |   |
| Asset retirement obligation additions to property and  equipment                                      |   | $    | 222    |   |   |   | 657 |   |
| Asset retirement obligation reductions to property and  equipment for revisions to previous estimates |   | $    | 294    |   |   |   | - |   |

|                 |   | Three Months Ended |   |   | Nine Months Ended |   |
|----------------------|--------|--------------------|--------|--------|-------------------|--------|
|                 |   | September 30,      |   |   | September 30,     |   |
|                 |   | 2011               |   |   | 2010              |   |   | 2011 |   |   | 2010 |   |
| Amortization expense |   | $                  | 1,517  |   |              |   | 1,557 |   |   |   | 4,673 |   |   |   | 4,854 |   |

| Years Ending December 31, |   |   |   |
|---------------------------|--------|--------|--------|
| 2011                 |   | $      | 5,991  |   |
| 2012                 |   |   | 4,341  |   |
| 2013                 |   |   | 3,284  |   |
| 2014                 |   |   | 2,424  |   |
| 2015                 |   |   | 1,697  |   |

| (4) | Long-Term Debt |
|-----|----------------|

----

| Year                |   | Redemption Price |    |
|---------------------|--------|------------------|---------|
| 2016           |   |             | 103.375 | % |
| 2017           |   |             | 102.250 | % |
| 2018           |   |             | 101.125 | % |
| 2019 and thereafter |   |             | 100.000 | % |

----

| (5) | Financial Instruments |
|-----|-----------------------|

|                                                                |   | September 30,   |    |   | December 31, |   |
|---------------------------------------------------------------------|--------|-----------------|---------|--------|--------------|--------|
|                                                                |   | 2011            |    |   | 2010         |   |
|                                                                |   | Carrying Amount |    |   | Fair Value   |   |   | Carrying Amount |   |   | Fair Value |   |
| Current and long-term debt and  capital lease obligations |   | $               | 942,340 |   |         |   | 941,804 |   |   |   | 872,882 |   |   |   | 908,286 |   |
| Other liabilities                                                   |   |            | 86,044  |   |         |   | 84,518 |   |   |   | 73,309 |   |   |   | 72,065 |   |

|   | Current and long-term debt and capital lease obligations:  The fair values of our 2021 Notes, 2019 Notes, 2014 Notes, Rural Utilities Service (“RUS”) debt, CoBank mortgage note payable, and capital leases are based upon quoted market prices for the same or similar issues or on the current rates offered to us for the same remaining maturities.  The fair value of our Senior Credit Facility is estimated to approximate the carrying value because this instrument is subject to variable interest rates. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

|                                                        |   | Fair Value Measurement at Reporting Date Using                 |   |
|-------------------------------------------------------------|--------|----------------------------------------------------------------|--------|
| September 30, 2011 Assets                                   |   | Quoted Prices in Active Markets for Identical Assets (Level 1) |   |   | Significant Other Observable Inputs (Level 2) |   |   | Significant Unobservable Inputs (Level 3) |   |
| Deferred compensation plan assets  (mutual funds) |   | $                                                              | 1,494  |   |   |   | - |   |   |   | - |   |
| Total assets at fair value                                  |   | $                                                              | 1,494  |   |   |   | - |   |   |   | - |   |
|                                                        |   |                                                           |   |   |   |   |   |   |   |   |   |   |
| December 31, 2010 Assets                                    |   |                                                           |   |   |   |   |   |   |   |   |   |   |
| Deferred compensation plan assets  (mutual funds) |   | $                                                              | 1,678  |   |   |   | - |   |   |   | - |   |
| Total assets at fair value                                  |   | $                                                              | 1,678  |   |   |   | - |   |   |   | - |   |

----

|   | The following is a summary of our share-based compensation expense for the nine months ended September 30, 2011 and 2010 (in thousands): |
|--------|------------------------------------------------------------------------------------------------------------------------------------------|

|                                                    |   | 2011   |   |   | 2010   |   |
|---------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Employee share-based compensation expense               |   | $      | 4,193  |   |   |   | 3,982 |   |
| Adjustment to fair value of liability classified awards |   |   | (969   | )      |   |   | 714 |   |
|   Total share-based compensation expense      |   | $      | 3,224  |   |   |   | 4,696 |   |

|                              |   |   |   |   |     |   | Weighted    |   |           |   |
|-----------------------------------|--------|--------|--------|--------|----------|--------|-------------|--------|----------------|--------|
|                              |   |   |   |   | Weighted |   | Average     |   | Aggregate      |   |
|                              |   |   |   |   | Average  |   | Remaining   |   | Intrinsic      |   |
|                              |   |   |   |   | Exercise |   | Contractual |   | Value          |   |
|                              |   | Shares |   |   | Price    |   | Term        |   | (in thousands) |   |
| Outstanding at December 31, 2010  |   |   | 1,249  |   |     | $      | 7.08        |   |           |   |   |   |
| Exercised                         |   |   | (157   | )      |     | $      | 5.84        |   |           |   |   |   |
| Outstanding at September 30, 2011 |   |   | 1,092  |   |     | $      | 7.26        |   | 3.9 years      |   | $ | 1,317 |   |
| Exercisable at September 30, 2011 |   |   | 799    |   |     | $      | 7.64        |   | 2.4 years      |   | $ | 720 |   |

|                            |   |   |   |   | Weighted   |   |
|---------------------------------|--------|--------|--------|--------|------------|--------|
|                            |   |   |   |   | Average    |   |
|                            |   |   |   |   | Grant Date |   |
|                            |   | Shares |   |   | Fair Value |   |
| Nonvested at December 31, 2010  |   |   | 2,196  |   |       | $      | 5.29 |   |
| Granted                         |   |   | 417    |   |       | $      | 12.30 |   |
| Vested                          |   |   | (121   | )      |       | $      | 12.31 |   |
| Forfeited                       |   |   | (12    | )      |       | $      | 6.85 |   |
| Nonvested at September 30, 2011 |   |   | 2,480  |   |       | $      | 6.12 |   |

----

|                                       |   |   |   |   | Weighted |   |
|--------------------------------------------|--------|--------|--------|--------|----------|--------|
|                                       |   |   |   |   | Average  |   |
|                                       |   |   |   |   | Exercise |   |
|                                       |   | Shares |   |   | Price    |   |
| Outstanding at December 31, 2009           |   |   | 150    |   |     | $      | 6.50 |   |
| Options forfeited and retired              |   |   | (150   | )      |     | $      | 6.50 |   |
| Outstanding at September 30, 2010 and 2011 |   |   | -      |   |     |   |   |   |
| Available for grant at September 30, 2011  |   |   | -      |   |     |   |   |   |

| (7) | Industry Segments Data |
|-----|------------------------|

|   | Corporate related expenses including engineering, information technology, accounting, legal and regulatory, human resources, and other general and administrative expenses for the three and nine months ended September 30, 2011 and 2010 are allocated to our segments using segment margin for the years ended December 31, 2010 and 2009, respectively.  Bad debt expense for the three and nine months ended September 30, 2011 and 2010 is allocated to our segments using a combination of specific identification and allocations based upon segment revenue for the three and nine months ended September 30, 2011 and 2010, respectively.  Corporate related expenses and bad debt expense are specifically identified for our Regulated Operations segment, and therefore are not included in the allocations. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | We evaluate performance and allocate resources based on earnings before depreciation and amortization expense, net interest expense, income taxes, share-based compensation expense, accretion expense and non-cash contribution adjustment (“Adjusted EBITDA”). Management believes that this measure is useful to investors and other users of our financial information in evaluating operating profitability as an analytical indicator of income generated to service debt and fund capital expenditures.  In addition, multiples of current or projected EBITDA are used to estimate current or prospective enterprise value.  The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies in note 1 in the “Notes to Consolidated Financial Statements” included in Part II of our December 31, 2010 annual report on Form 10-K. Intersegment sales are recorded at cost plus an agreed upon intercompany profit. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | We earn all revenues through sales of services and products within the United States. All of our long-lived assets are located within the United States of America, except approximately 82% of our undersea fiber optic cable systems which transit international waters and all of our satellite transponders. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Three months ended September 30, |   | Consumer |   |   | Network Access |   |   | Commercial |   |   | Managed Broadband |   |   | Regulated Operations |   |   | Total Reportable Segments |   |
|----------------------------------|--------|----------|--------|--------|----------------|--------|--------|------------|--------|--------|-------------------|--------|--------|----------------------|--------|--------|---------------------------|--------|
| 2011                        |   |     |   |   |           |   |   |       |   |   |              |   |   |                 |   |   |                      |   |
| Revenues:                        |   |     |   |   |           |   |   |       |   |   |              |   |   |                 |   |   |                      |   |
| Intersegment                     |   | $        | -      |   |           |   | -      |       |   |   | 1,382             |   |   |                 | -      |   |                      |   | 4 |   |   |   | 1,386 |   |
| External                         |   |     | 89,267 |   |           |   | 29,467 |       |   |   | 35,572            |   |   |                 | 17,407 |   |                      |   | 5,990 |   |   |   | 177,703 |   |
| Total revenues                   |   | $        | 89,267 |   |           |   | 29,467 |       |   |   | 36,954            |   |   |                 | 17,407 |   |                      |   | 5,994 |   |   |   | 179,089 |   |
| Adjusted EBITDA                  |   | $        | 30,373 |   |           |   | 13,729 |       |   |   | 9,117             |   |   |                 | 8,844  |   |                      |   | 1,038 |   |   |   | 63,101 |   |
|                             |   |     |   |   |           |   |   |       |   |   |              |   |   |                 |   |   |                      |   |   |   |   |   |   |   |

| Three months ended September 30, |   |  Consumer |   |   |  Network Access |   |   |  Commercial |   |   |  Managed Broadband |   |   |  Regulated Operations |   |   |  Total Reportable Segments |   |
|----------------------------------|--------|----------------|--------|--------|----------------------|--------|--------|------------------|--------|--------|-------------------------|--------|--------|----------------------------|--------|--------|---------------------------------|--------|
| 2010                        |   |           |   |   |                 |   |   |             |   |   |                    |   |   |                       |   |   |                            |   |
| Revenues:                        |   |           |   |   |                 |   |   |             |   |   |                    |   |   |                       |   |   |                            |   |
| Intersegment                     |   | $              | -      |   |                 |   | (1     | )                |   |   | 1,386                   |   |   |                       | -      |   |                            |   | 44 |   |   |   | 1,429 |   |
| External                         |   |           | 88,713 |   |                 |   | 28,204 |             |   |   | 35,449                  |   |   |                       | 13,548 |   |                            |   | 5,595 |   |   |   | 171,509 |   |
| Total revenues                   |   | $              | 88,713 |   |                 |   | 28,203 |             |   |   | 36,835                  |   |   |                       | 13,548 |   |                            |   | 5,639 |   |   |   | 172,938 |   |
| Adjusted EBITDA                  |   | $              | 31,212 |   |                 |   | 15,028 |             |   |   | 9,125                   |   |   |                       | 5,826  |   |                            |   | 1,550 |   |   |   | 62,741 |   |

| Nine months ended September 30, |   | Consumer |    |   | Network Access |   |   | Commercial |   |   | Managed Broadband |   |   | Regulated Operations |   |   | Total Reportable Segments |   |
|---------------------------------|--------|----------|---------|--------|----------------|--------|--------|------------|--------|--------|-------------------|--------|--------|----------------------|--------|--------|---------------------------|--------|
| 2011                       |   |     |    |   |           |   |   |       |   |   |              |   |   |                 |   |   |                      |   |
| Revenues:                       |   |     |    |   |           |   |   |       |   |   |              |   |   |                 |   |   |                      |   |
| Intersegment                    |   | $        | -       |   |           |   | -      |       |   |   | 4,207             |   |   |                 | -      |   |                      |   | 117 |   |   |   | 4,324 |   |
| External                        |   |     | 266,238 |   |           |   | 79,715 |       |   |   | 101,617           |   |   |                 | 46,041 |   |                      |   | 16,958 |   |   |   | 510,569 |   |
| Total revenues                  |   | $        | 266,238 |   |           |   | 79,715 |       |   |   | 105,824           |   |   |                 | 46,041 |   |                      |   | 17,075 |   |   |   | 514,893 |   |
| Adjusted EBITDA                 |   | $        | 87,024  |   |           |   | 37,953 |       |   |   | 23,180            |   |   |                 | 20,264 |   |                      |   | 2,959 |   |   |   | 171,380 |   |

----

| Nine months ended September 30, |   |   | Consumer  |   |   |   | Network Access  |   |   |   | Commercial  |   |   |   | Managed Broadband  |   |   |   | Regulated Operations  |   |   |   | Total Reportable Segments  |   |
|---------------------------------|--------|--------|----------------|--------|--------|--------|----------------------|--------|--------|--------|------------------|--------|--------|--------|-------------------------|--------|--------|--------|----------------------------|--------|--------|--------|---------------------------------|--------|
| 2010                       |   |   |           |   |   |   |                 |   |   |   |             |   |   |   |                    |   |   |   |                       |   |   |   |                            |   |
| Revenues:                       |   |   |           |   |   |   |                 |   |   |   |             |   |   |   |                    |   |   |   |                       |   |   |   |                            |   |
| Intersegment                    |   | $      | -              |   |   |   | -                    |   |   |   | 4,042            |   |   |   | -                       |   |   |   | 132                        |   |   |   | 4,174                           |   |
| External                        |   |   | 256,230        |   |   |   | 81,499               |   |   |   | 95,243           |   |   |   | 36,020                  |   |   |   | 17,262                     |   |   |   | 486,254                         |   |
| Total revenues                  |   | $      | 256,230        |   |   |   | 81,499               |   |   |   | 99,285           |   |   |   | 36,020                  |   |   |   | 17,394                     |   |   |   | 490,428                         |   |
| Adjusted EBITDA                 |   | $      | 88,420         |   |   |   | 40,206               |   |   |   | 23,526           |   |   |   | 13,888                  |   |   |   | 5,110                      |   |   |   | 171,150                         |   |

|                                                              |   | Three Months Ended |    |   | Nine Months Ended |   |
|-------------------------------------------------------------------|--------|--------------------|---------|--------|-------------------|--------|
|                                                              |   | September 30,      |    |   | September 30,     |   |
|                                                              |   | 2011               |    |   | 2010              |   |   | 2011 |   |   | 2010 |   |
| Reportable segment revenues                                       |   | $                  | 179,089 |   |              |   | 172,938 |   |   |   | 514,893 |   |   |   | 490,428 |   |
| Less intersegment revenues eliminated in  consolidation |   |               | 1,386   |   |              |   | 1,429 |   |   |   | 4,324 |   |   |   | 4,174 |   |
| Consolidated revenues                                             |   | $                  | 177,703 |   |              |   | 171,509 |   |   |   | 510,569 |   |   |   | 486,254 |   |

|                                                     |   | Three Months Ended |    |   | Nine Months Ended |   |
|----------------------------------------------------------|--------|--------------------|---------|--------|-------------------|--------|
|                                                     |   | September 30,      |    |   | September 30,     |   |
|                                                     |   | 2011               |    |   | 2010              |   |   | 2011 |   |   | 2010 |   |
| Reportable segment Adjusted EBITDA                       |   | $                  | 63,101  |   |              |   | 62,741 |   |   |   | 171,380 |   |   |   | 171,150 |   |
| Less depreciation and amortization  expense    |   |               | (30,702 | )      |              |   | (30,288 | ) |   |   | (93,054 | ) |   |   | (92,234 | ) |
| Less share-based compensation expense                    |   |               | (384    | )      |              |   | (2,250 | ) |   |   | (3,224 | ) |   |   | (4,696 | ) |
| Plus other expense                                       |   |               | 59      |   |              |   | - |   |   |   | 92 |   |   |   | 160 |   |
| Less accretion expense                                   |   |               | (190    | )      |              |   | - |   |   |   | (456 | ) |   |   | - |   |
| Consolidated operating income                            |   |               | 31,884  |   |              |   | 30,203 |   |   |   | 74,738 |   |   |   | 74,380 |   |
| Less other expense, net                                  |   |               | (16,715 | )      |              |   | (17,661 | ) |   |   | (60,597 | ) |   |   | (52,933 | ) |
| Consolidated income before  income tax expense |   | $                  | 15,169  |   |              |   | 12,542 |   |   |   | 14,141 |   |   |   | 21,447 |   |

----

|                             |   | Assets         |   | Equity |
|----------------------------------|--------|----------------|--------|--------|
| (in thousands)                   |   | Carrying Value |   |   |   Classification |   | Carrying Value |   | Classification |
| New Markets Tax Credit Financing |   | $              | 16,546 |   |   |   |   Restricted cash |   | $ | 16,546 |   | Noncontrolling interest |

----

| (10) | Commitments and Contingencies |
|------|-------------------------------|

| ·   | In September 2008, the FCC's Office of Inspector General ("OIG") initiated an investigation regarding Alaska DigiTel LLC’s (“Alaska DigiTel”) compliance with program rules and requirements under the Lifeline Program. The request covered the period beginning January 1, 2004 through August 31, 2008 and related to amounts received for Lifeline service.  Alaska DigiTel was an Alaska based wireless communications company of which we acquired an 81.9% equity interest on January 2, 2007 and the remaining 18.1% equity interest on August 18, 2008 and was subsequently merged with one of our wholly owned subsidiaries in April 2009. Prior to August 18, 2008, our control over the operations of Alaska DigiTel was limited as required by the FCC upon its approval of our initial acquisition completed in January 2007. We responded to this request on behalf of Alaska DigiTel and the GCI companies as affiliates. On January 18, 2011 we reached an agreement with the FCC and the Department of Justice to settle the matter, which required us to contribute $1.6 million to the United States Treasury and granted us a broad release of claims including those under the False Claims Act.  The $1.6 million contribution, of which $154,000, $661,000 and $741,000 were recognized in selling, general and administrative expense in the income statements in the years ending December 31, 2010, 2009 and 2008, respectively, was paid in January 2011; and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In August 2010, a company-owned aircraft was involved in an accident resulting in five fatalities and injuries to the remaining four passengers on board.  We had aircraft and liability insurance coverage in effect at the time of the accident.  We cannot predict the likelihood or nature of the total potential claims related to the accident. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (11) | Subsequent Event |
|------|------------------|

----

----

----

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

|                          |                                  |                         |           |               |          | Percentage        |          |       | Percentage |
|-------------------------------|---------------------------------------|------------------------------|----------------|--------------------|---------------|-------------------|---------------|------------|------------|
|                          |                                  |                         |           | Three Months Ended | Change1  | Nine Months Ended | Change1  |
|                          |                                  |                         |           | September 30,      | 2011     | September 30,     | 2011     |
|                          |                                  |                         |           | 2011          | 2010     | vs. 2010          | 2011     | 2010  | vs. 2010   |
| (Unaudited)                   |                                  |                         |           |               |          |              |
| Selected Financial Data: |                                  |                         |           |               |          |              |
|                          | Revenues:                             |                         |           |               |          |              |
|                          |                                  | Consumer segment             | 50%            | 52%                | 1%            | 52%               | 53%           | 4%         |
|                          |                                  | Network Access segment       | 17%            | 16%                | 4%            | 16%               | 17%           | (2%)       |
|                          |                                  | Commercial segment           | 20%            | 21%                | 0%            | 20%               | 20%           | 7%         |
|                          |                                  | Managed Broadband segment    | 10%            | 8%                 | 28%           | 9%                | 7%            | 28%        |
|                          |                                  | Regulated Operations segment | 3%             | 3%                 | 7%            | 3%                | 3%            | (2%)       |
|                          |                                  |                         | Total revenues | 100%               | 100%          | 4%                | 100%          | 100%       | 5%         |
|                          | Selling, general and                  |                         |           |               |          |              |          |
|                          |                                  | administrative expenses      | 31%            | 34%                | (7%)          | 34%               | 34%           | 3%         |
|                          | Depreciation and amortization         |                         |           |               |          |              |          |
|                          |                                  | expense                      | 17%            | 18%                | 1%            | 18%               | 19%           | 1%         |
|                          | Operating income                      | 18%                          | 18%            | 6%                 | 15%           | 15%               | 0%            |
|                          | Other expense, net                    | 9%                           | 10%            | (5%)               | 12%           | 11%               | 14%           |
|                          | Income before income tax expense      | 9%                           | 7%             | 21%                | 3%            | 4%                | (34%)         |
|                          | Net income                            | 4%                           | 4%             | (5%)               | 1%            | 2%                | (40%)         |
|                          |                                  |                         |           |               |          |              |          |       |       |
| 1                        | Percentage change in underlying data. |                         |           |               |          |              |          |

----

|                           |   | Third Quarter of |   |   | Percentage |   |
|--------------------------------|--------|------------------|--------|--------|------------|--------|
|                           |   | 2011             |   |   | 2010       |   |   | Change |   |
| Voice                          |   | $                | 13,164 |   |       |   | 14,601 |   |   |   | (10 | %) |
| Video                          |   |             | 29,155 |   |       |   | 29,720 |   |   |   | (2 | %) |
| Data                           |   |             | 18,088 |   |       |   | 15,797 |   |   |   | 15 | % |
| Wireless                       |   |             | 28,860 |   |       |   | 28,595 |   |   |   | 1 | % |
| Total Consumer segment revenue |   | $                | 89,267 |   |       |   | 88,713 |   |   |   | 1 | % |

|                                      |   | Third Quarter of |   |   | Percentage |   |
|-------------------------------------------|--------|------------------|--------|--------|------------|--------|
|                                      |   | 2011             |   |   | 2010       |   |   | Change |   |
| Voice                                     |   | $                | 2,555  |   |       |   | 2,724 |   |   |   | (6 | %) |
| Video                                     |   |             | 12,994 |   |       |   | 12,662 |   |   |   | 3 | % |
| Data                                      |   |             | 1,351  |   |       |   | 972 |   |   |   | 39 | % |
| Wireless                                  |   |             | 10,536 |   |       |   | 9,016 |   |   |   | 17 | % |
| Total Consumer segment Cost of Goods Sold |   | $                | 27,436 |   |       |   | 25,374 |   |   |   | 8 | % |

|                             |   | Third Quarter of |   |   | Percentage |   |
|----------------------------------|--------|------------------|--------|--------|------------|--------|
|                             |   | 2011             |   |   | 2010       |   |   | Change |   |
| Consumer segment Adjusted EBITDA |   | $                | 30,373 |   |       |   | 31,212 |   |   |   | (3 | %) |

|                                                   |   | September 30, |   |   | Percentage |   |
|--------------------------------------------------------|--------|---------------|--------|--------|------------|--------|
|                                                   |   | 2011          |   |   | 2010       |   |   | Change |   |
|  Voice:                                           |   |          |   |   |       |   |   |   |   |
| Long-distance subscribers1                        |   |          | 81,700 |   |       |   | 89,000 |   |   |   | (8 | %) |
| Long-distance minutes carried (in millions)            |   |          | 22.3   |   |       |   | 25.6 |   |   |   | (13 | %) |
| Total local access lines in service2              |   |          | 79,100 |   |       |   | 84,700 |   |   |   | (7 | %) |
| Local access lines in service on GCI facilities2  |   |          | 73,200 |   |       |   | 77,100 |   |   |   | (5 | %) |

----

|  Video:                                                                                                                                                                                                                                                                                                                                                                             |   |   |    |   |   |   |    |   |   |   |   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|--------|--------|
| Basic subscribers3                                                                                                                                                                                                                                                                                                                                                                  |   |   | 126,400 |   |   |   | 130,500 |   |   |   | (3     | %)     |
| Digital programming tier subscribers4                                                                                                                                                                                                                                                                                                                                               |   |   | 76,700  |   |   |   | 80,600  |   |   |   | (5     | %)     |
| HD/DVR converter boxes5                                                                                                                                                                                                                                                                                                                                                             |   |   | 87,400  |   |   |   | 87,500  |   |   |   | 0      | %      |
| Homes passed                                                                                                                                                                                                                                                                                                                                                                             |   |   | 239,800 |   |   |   | 234,900 |   |   |   | 2      | %      |
| Average monthly gross revenue per subscriber6                                                                                                                                                                                                                                                                                                                                       |   | $      | 76.85   |   |   | $      | 75.85   |   |   |   | 1      | %      |
|  Data:                                                                                                                                                                                                                                                                                                                                                                              |   |   |    |   |   |   |    |   |   |   |   |   |
| Cable modem subscribers7                                                                                                                                                                                                                                                                                                                                                            |   |   | 106,800 |   |   |   | 104,400 |   |   |   | 2      | %      |
|  Wireless:                                                                                                                                                                                                                                                                                                                                                                          |   |   |    |   |   |   |    |   |   |   |   |   |
| Wireless lines in service8                                                                                                                                                                                                                                                                                                                                                          |   |   | 125,800 |   |   |   | 122,900 |   |   |   | 2      | %      |
| Average monthly gross revenue per subscriber9                                                                                                                                                                                                                                                                                                                                       |   | $      | 72.60   |   |   | $      | 74.61   |   |   |   | (3     | %)     |
|                                                                                                                                                                                                                                                                                                                                                                                     |   |   |    |   |   |   |    |   |   |   |   |   |
| 1 A long-distance subscriber is defined as a customer account that is invoiced a monthly long-distance plan fee or has made a long-distance call during the month.                                                                                                                                                                                                                  |   |
| 2 A local access line in service is defined as a revenue generating circuit or channel connecting a customer to the public switched telephone network.                                                                                                                                                                                                                              |   |
| 3 A basic cable subscriber is defined as one basic tier of service delivered to an address or separate subunits thereof regardless of the number of outlets purchased.                                                                                                                                                                                                              |   |
| 4 A digital programming tier subscriber is defined as one digital programming tier of service delivered to an address or separate subunits thereof regardless of the number of outlets or digital programming tiers purchased. Digital programming tier subscribers are a subset of basic subscribers.                                                                              |   |
| 5 A high definition/digital video recorder (“HD/DVR”) converter box is defined as one box rented by a digital programming or basic tier subscriber. A digital programming or basic tier subscriber is not required to rent an HD/DVR converter box to receive service.                                                                                                  |   |
| 6 Quarter-to-date average monthly consumer video revenues divided by the average of consumer video basic subscribers at the beginning and end of each month in the period.                                                                                                                                                                                                          |   |
| 7 A cable modem subscriber is defined by the purchase of cable modem service regardless of the level of service purchased. If one entity purchases multiple cable modem service access points, each access point is counted as a subscriber. Cable modem subscribers may also be video basic subscribers though basic cable service is not required to receive cable modem service. |   |
| 8 A wireless line in service is defined as a revenue generating wireless device.                                                                                                                                                                                                                                                                                                    |   |
| 9 Quarter-to-date average monthly consumer wireless revenues divided by the average of consumer wireless subscribers at the beginning and end of each month in the period.                                                                                                                                                                                                          |   |

----

|                                 |   | Third Quarter of |   |   | Percentage |   |
|--------------------------------------|--------|------------------|--------|--------|------------|--------|
|                                 |   | 2011             |   |   | 2010       |   |   | Change |   |
| Voice                                |   | $                | 6,213  |   |       |   | 8,636 |   |   |   | (28 | %) |
| Data                                 |   |             | 17,140 |   |       |   | 14,208 |   |   |   | 21 | % |
| Wireless                             |   |             | 6,114  |   |       |   | 5,360 |   |   |   | 14 | % |
| Total Network Access segment revenue |   | $                | 29,467 |   |       |   | 28,204 |   |   |   | 4 | % |

|                                            |   | Third Quarter of |   |   | Percentage |   |
|-------------------------------------------------|--------|------------------|--------|--------|------------|--------|
|                                            |   | 2011             |   |   | 2010       |   |   | Change |   |
| Voice                                           |   | $                | 3,460  |   |       |   | 4,437 |   |   |   | (22 | %) |
| Data                                            |   |             | 5,697  |   |       |   | 680 |   |   |   | 738 | % |
| Wireless                                        |   |             | 374    |   |       |   | 430 |   |   |   | (13 | %) |
| Total Network Access segment Cost of Goods Sold |   | $                | 9,531  |   |       |   | 5,547 |   |   |   | 72 | % |

|                                   |   | Third Quarter of |   |   | Percentage |   |
|----------------------------------------|--------|------------------|--------|--------|------------|--------|
|                                   |   | 2011             |   |   | 2010       |   |   | Change |   |
| Network Access segment Adjusted EBITDA |   | $                | 13,729 |   |       |   | 15,028 |   |   |   | (9 | %) |

|                                                                                                                                                                             |   | September 30, |   |   | Percentage |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|--------|------------|--------|
|                                                                                                                                                                             |   | 2011          |   |   | 2010       |   |   | Change |   |
|  Voice:                                                                                                                                                                     |   |          |   |   |       |   |   |   |   |
| Long-distance minutes carried (in millions)                                                                                                                                      |   |          | 202.5  |   |       |   | 205.4 |   |   |   | (1 | %) |
|  Data:                                                                                                                                                                      |   |          |   |   |       |   |   |   |   |   |   |   |
| Total Internet service provider access lines in service1                                                                                                                    |   |          | 1,600  |   |       |   | 1,700 |   |   |   | (6 | %) |
|                                                                                                                                                                             |   |          |   |   |       |   |   |   |   |   |   |   |
| 1 An Internet service provider access line in service is defined as a revenue generating circuit or channel connecting a customer to the public switched telephone network. |   |

----

| ·   | A $2.6 million revenue classification change.  Prior to the fourth quarter of 2010 certain revenues were classified as Network Access segment voice revenue.  Beginning in the fourth quarter of 2010 these revenues were reclassified to data revenue for a more accurate presentation, and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | $1.9 million in revenue due to special project work for a new customer. |
|--------------------|-------------------------------------------------------------------------|

| ·   | $1.8 million in Cost of Goods Sold related to the special project work revenue described above in “Network Access Segment Revenues”, |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A $1.6 million Cost of Goods Sold classification change.  Prior to the fourth quarter of 2010 certain Cost of Goods Sold were classified as Network Access segment voice Cost of Goods Sold.  Beginning in the fourth quarter of 2010 these Cost of Goods Sold were reclassified to data Cost of Goods Sold for a more accurate presentation, and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The absence of a $724,000 favorable adjustment in 2010 based upon refunds from several vendors.  In the course of business we estimate unbilled data services Cost of Goods Sold based upon minutes of use processed through our network and established rates.  Such estimates are revised when subsequent billings are received, payments are made, billing matters are researched and resolved, tariffed billing periods lapse, or when disputed charges are resolved. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                             |   | Third Quarter of |   |   | Percentage |   |
|----------------------------------|--------|------------------|--------|--------|------------|--------|
|                             |   | 2011             |   |   | 2010       |   |   | Change |   |
| Voice                            |   | $                | 7,137  |   |       |   | 8,025 |   |   |   | (11 | %) |
| Video                            |   |             | 2,830  |   |       |   | 2,953 |   |   |   | (4 | %) |
| Data                             |   |             | 23,040 |   |       |   | 22,211 |   |   |   | 4 | % |
| Wireless                         |   |             | 2,565  |   |       |   | 2,260 |   |   |   | 13 | % |
| Total Commercial segment revenue |   | $                | 35,572 |   |       |   | 35,449 |   |   |   | 0 | % |

|                                        |   | Third Quarter of |   |   | Percentage |   |
|---------------------------------------------|--------|------------------|--------|--------|------------|--------|
|                                        |   | 2011             |   |   | 2010       |   |   | Change |   |
| Voice                                       |   | $                | 3,001  |   |       |   | 3,486 |   |   |   | (14 | %) |
| Video                                       |   |             | 542    |   |       |   | 520 |   |   |   | 4 | % |
| Data                                        |   |             | 12,522 |   |       |   | 11,752 |   |   |   | 7 | % |
| Wireless                                    |   |             | 1,167  |   |       |   | 973 |   |   |   | 20 | % |
| Total Commercial segment Cost of Goods Sold |   | $                | 17,232 |   |       |   | 16,731 |   |   |   | 3 | % |

----

|                               |   | Third Quarter of |   |   | Percentage |   |
|------------------------------------|--------|------------------|--------|--------|------------|--------|
|                               |   | 2011             |   |   | 2010       |   |   | Change |   |
| Commercial segment Adjusted EBITDA |   | $                | 9,117  |   |       |   | 9,125 |   |   |   | 0 | % |

|                                                                                                                                                                                                                                              |   | September 30, |   |   | Percentage |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|--------|------------|--------|
|                                                                                                                                                                                                                                              |   | 2011          |   |   | 2010       |   |   | Change |   |
|  Voice:                                                                                                                                                                                                                                      |   |          |   |   |       |   |   |   |   |
| Long-distance subscribers1                                                                                                                                                                                                                   |   |          | 8,600  |   |       |   | 9,300 |   |   |   | (8 | %) |
| Long-distance minutes carried (in millions)                                                                                                                                                                                                       |   |          | 28.4   |   |       |   | 29.8 |   |   |   | (5 | %) |
| Total local access lines in service2                                                                                                                                                                                                         |   |          | 49,200 |   |       |   | 48,100 |   |   |   | 2 | % |
| Local access lines in service on GCI facilities2                                                                                                                                                                                             |   |          | 25,800 |   |       |   | 20,900 |   |   |   | 23 | % |
|  Data:                                                                                                                                                                                                                                       |   |          |   |   |       |   |   |   |   |   |   |   |
| Cable modem subscribers3                                                                                                                                                                                                                     |   |          | 11,100 |   |       |   | 10,800 |   |   |   | 3 | % |
|  Wireless:                                                                                                                                                                                                                                   |   |          |   |   |       |   |   |   |   |   |   |   |
| Wireless lines in service4                                                                                                                                                                                                                   |   |          | 14,900 |   |       |   | 13,600 |   |   |   | 10 | % |
|                                                                                                                                                                                                                                              |   |          |   |   |       |   |   |   |   |   |   |   |
| 1 A long-distance subscriber is defined as a customer account that is invoiced a monthly long-distance plan fee or has made a long-distance call during the month.                                                                           |   |
| 2 A local access line in service is defined as a revenue generating circuit or channel connecting a customer to the public switched telephone network.                                                                                       |   |
| 3 A cable modem subscriber is defined by the purchase of cable modem service regardless of the level of service purchased. If one entity purchases multiple cable modem service access points, each access point is counted as a subscriber. |   |
| 4 A wireless line in service is defined as a revenue generating wireless device.                                                                                                                                                             |   |

----

|                                                                                                                                                        |   | September 30, |   |   | Percentage |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|--------|------------|--------|
|                                                                                                                                                        |   | 2011          |   |   | 2010       |   |   | Change |   |
|  Voice:                                                                                                                                                |   |          |   |   |       |   |   |   |   |
| Total local access lines in service on GCI facilities1                                                                                                 |   |          | 9,300  |   |       |   | 10,200 |   |   |   | (9 | %) |
|                                                                                                                                                        |   |          |   |   |       |   |   |   |   |   |   |   |
| 1 A local access line in service is defined as a revenue generating circuit or channel connecting a customer to the public switched telephone network. |   |

| ·   | A $2.6 million decrease in our company-wide success sharing bonus accrual, |
|--------------------|----------------------------------------------------------------------------|

| ·   | A $1.8 million decrease in costs, including workers compensation expense, related to an accident involving our company-owned aircraft in August 2010, and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A $1.7 million decrease in share-based compensation expense. |
|--------------------|--------------------------------------------------------------|

----

----

|                           |   |   |    |   | Percentage |   |
|--------------------------------|--------|--------|---------|--------|------------|--------|
|                           |   | 2011   |    |   | 2010       |   |   | Change |   |
| Voice                          |   | $      | 40,541  |   |       |   | 43,711 |   |   |   | (7 | %) |
| Video                          |   |   | 89,040  |   |       |   | 88,096 |   |   |   | 1 | % |
| Data                           |   |   | 52,046  |   |       |   | 44,531 |   |   |   | 17 | % |
| Wireless                       |   |   | 84,611  |   |       |   | 79,892 |   |   |   | 6 | % |
| Total Consumer segment revenue |   | $      | 266,238 |   |       |   | 256,230 |   |   |   | 4 | % |

|                                      |   |   |   |   | Percentage |   |
|-------------------------------------------|--------|--------|--------|--------|------------|--------|
|                                      |   | 2011   |   |   | 2010       |   |   | Change |   |
| Voice                                     |   | $      | 8,194  |   |       |   | 9,227 |   |   |   | (11 | %) |
| Video                                     |   |   | 39,982 |   |       |   | 38,128 |   |   |   | 5 | % |
| Data                                      |   |   | 4,265  |   |       |   | 2,795 |   |   |   | 53 | % |
| Wireless                                  |   |   | 30,314 |   |       |   | 27,049 |   |   |   | 12 | % |
| Total Consumer segment Cost of Goods Sold |   | $      | 82,755 |   |       |   | 77,199 |   |   |   | 7 | % |

|                             |   |   |   |   | Percentage |   |
|----------------------------------|--------|--------|--------|--------|------------|--------|
|                             |   | 2011   |   |   | 2010       |   |   | Change |   |
| Consumer segment Adjusted EBITDA |   | $      | 87,024 |   |       |   | 88,420 |   |   |   | (2 | %) |

|                                                                                                                                                                         |   | September 30, |   |   | Percentage |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|--------|------------|--------|
|                                                                                                                                                                         |   | 2011          |   |   | 2010       |   |   | Change |   |
|  Voice:                                                                                                                                                                 |   |          |   |   |       |   |   |   |   |
| Long-distance minutes carried (in millions)                                                                                                                                  |   |          | 70.0   |   |       |   | 80.6 |   |   |   | (13 | %) |
|  Video:                                                                                                                                                                 |   |          |   |   |       |   |   |   |   |   |   |   |
| Average monthly gross revenue per subscriber1                                                                                                                           |   | $             | 77.06  |   |       | $      | 74.80 |   |   |   | 3 | % |
|  Wireless:                                                                                                                                                              |   |          |   |   |       |   |   |   |   |   |   |   |
| Average monthly gross revenue per subscriber2                                                                                                                           |   | $             | 70.89  |   |       | $      | 70.51 |   |   |   | 1 | % |
|                                                                                                                                                                         |   |          |   |   |       |   |   |   |   |   |   |   |
| 1 Year-to-date average monthly consumer video revenues divided by the average of consumer video basic subscribers at the beginning and end of each month in the period. |   |
| 2 Year-to-date average monthly consumer wireless revenues divided by the average of consumer wireless subscribers at the beginning and end of each month in the period. |   |

----

| ·   | A $4.1 million increase in plan fee revenue to $31.8 million primarily due to an increase in the number of wireless subscribers and our subscribers’ selection of plans that offer more usage; and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A $3.5 million increase in USF high cost support. We accrue estimated USF high cost support revenue quarterly and adjust our revenue as we obtain new information that changes the variables used to calculate our estimate. The increase in USF high cost support is due to changes in the rates used to calculate our estimate and an increase in the number of wireless subscribers. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                 |   |   |   |   | Percentage |   |
|--------------------------------------|--------|--------|--------|--------|------------|--------|
|                                 |   | 2011   |   |   | 2010       |   |   | Change |   |
| Voice                                |   | $      | 18,124 |   |       |   | 22,471 |   |   |   | (19 | %) |
| Data                                 |   |   | 47,135 |   |       |   | 46,360 |   |   |   | 2 | % |
| Wireless                             |   |   | 14,456 |   |       |   | 12,668 |   |   |   | 14 | % |
| Total Network Access segment revenue |   | $      | 79,715 |   |       |   | 81,499 |   |   |   | (2 | %) |

|                                            |   |   |   |   | Percentage |   |
|-------------------------------------------------|--------|--------|--------|--------|------------|--------|
|                                            |   | 2011   |   |   | 2010       |   |   | Change |   |
| Voice                                           |   | $      | 9,841  |   |       |   | 11,137 |   |   |   | (12 | %) |
| Data                                            |   |   | 12,055 |   |       |   | 6,288 |   |   |   | 92 | % |
| Wireless                                        |   |   | 876    |   |       |   | 1,029 |   |   |   | (15 | %) |
| Total Network Access segment Cost of Goods Sold |   | $      | 22,772 |   |       |   | 18,454 |   |   |   | 23 | % |

----

|                                   |   |   |   |   | Percentage |   |
|----------------------------------------|--------|--------|--------|--------|------------|--------|
|                                   |   | 2011   |   |   | 2010       |   |   | Change |   |
| Network Access segment Adjusted EBITDA |   | $      | 37,953 |   |       |   | 40,206 |   |   |   | (6 | %) |

|                                        |   | September 30, |   |   | Percentage |   |
|---------------------------------------------|--------|---------------|--------|--------|------------|--------|
|                                        |   | 2011          |   |   | 2010       |   |   | Change |   |
|  Voice:                                |   |          |   |   |       |   |   |   |   |
| Long-distance minutes carried (in millions) |   |          | 580.9  |   |       |   | 600.3 |   |   |   | (3 | %) |

| ·   | A $2.2 million increase in off-network capacity purchased by our common carrier customers, |
|--------------------|--------------------------------------------------------------------------------------------|

| ·   | $1.8 million in Cost of Goods Sold related to the special project work revenue described above in “Network Access Segment Revenues”, |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A $1.6 million Cost of Goods Sold classification change.  Prior to the fourth quarter of 2010 certain Cost of Goods Sold were classified as Network Access segment voice Cost of Goods Sold.  Beginning in the fourth quarter of 2010 these Cost of Goods Sold were reclassified to data Cost of Goods Sold for a more accurate presentation, and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The absence of a $724,000 favorable adjustment in 2010 based upon refunds from several vendors.  In the course of business we estimate unbilled data services Cost of Goods Sold based upon minutes of use processed through our network and established rates.  Such estimates are revised when subsequent billings are received, payments are made, billing matters are researched and resolved, tariffed billing periods lapse, or when disputed charges are resolved. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                             |   |   |    |   | Percentage |   |
|----------------------------------|--------|--------|---------|--------|------------|--------|
|                             |   | 2011   |    |   | 2010       |   |   | Change |   |
| Voice                            |   | $      | 22,050  |   |       |   | 24,316 |   |   |   | (9 | %) |
| Video                            |   |   | 8,606   |   |       |   | 7,909 |   |   |   | 9 | % |
| Data                             |   |   | 63,653  |   |       |   | 56,544 |   |   |   | 13 | % |
| Wireless                         |   |   | 7,308   |   |       |   | 6,474 |   |   |   | 13 | % |
| Total Commercial segment revenue |   | $      | 101,617 |   |       |   | 95,243 |   |   |   | 7 | % |

----

|                                        |   |   |   |   | Percentage |   |
|---------------------------------------------|--------|--------|--------|--------|------------|--------|
|                                        |   | 2011   |   |   | 2010       |   |   | Change |   |
| Voice                                       |   | $      | 10,514 |   |       |   | 11,626 |   |   |   | (10 | %) |
| Video                                       |   |   | 1,581  |   |       |   | 1,550 |   |   |   | 2 | % |
| Data                                        |   |   | 33,660 |   |       |   | 28,276 |   |   |   | 19 | % |
| Wireless                                    |   |   | 3,275  |   |       |   | 2,747 |   |   |   | 19 | % |
| Total Commercial segment Cost of Goods Sold |   | $      | 49,030 |   |       |   | 44,199 |   |   |   | 11 | % |

|                               |   |   |   |   | Percentage |   |
|------------------------------------|--------|--------|--------|--------|------------|--------|
|                               |   | 2011   |   |   | 2010       |   |   | Change |   |
| Commercial segment Adjusted EBITDA |   | $      | 23,180 |   |       |   | 23,526 |   |   |   | (1 | %) |

|                                        |   | September 30, |   |   | Percentage |   |
|---------------------------------------------|--------|---------------|--------|--------|------------|--------|
|                                        |   | 2011          |   |   | 2010       |   |   | Change |   |
|  Voice:                                |   |          |   |   |       |   |   |   |   |
| Long-distance minutes carried (in millions) |   |          | 84.8   |   |       |   | 88.8 |   |   |   | (5 | %) |

----

| ·   | A $1.6 million increase in bad debt expense primarily due to absence of settlements which resulted in the release of credit reserves in the third quarter of 2010, |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A $1.5 million increase in health benefit costs, and |
|--------------------|------------------------------------------------------|

| ·   | A $935,000 increase in labor costs. |
|--------------------|-------------------------------------|

----

----

|                                      |   | 2011   |    |   | 2010   |   |
|-------------------------------------------|--------|--------|---------|--------|--------|--------|
| Operating activities                      |   | $      | 96,526  |   |   |   | 112,156 |   |
| Investing activities                      |   |   | (99,442 | )      |   |   | (77,384 | ) |
| Financing activities                      |   |   | 3,654   |   |   |   | (4,756 | ) |
| Net increase in cash and cash equivalents |   | $      | 738     |   |   |   | 30,016 |   |

----

| Share Repurchases |
|-------------------|

----

----

| ·   | In September 2008, the FCC's Office of Inspector General ("OIG") initiated an investigation regarding Alaska DigiTel LLC’s (“Alaska DigiTel”) compliance with program rules and requirements under the Lifeline Program. The request covered the period beginning January 1, 2004 through August 31, 2008 and related to amounts received for Lifeline service.  Alaska DigiTel was an Alaska based wireless communications company of which we acquired an 81.9% equity interest on January 2, 2007 and the remaining 18.1% equity interest on August 18, 2008 and was subsequently merged with one of our wholly owned subsidiaries in April 2009. Prior to August 18, 2008, our control over the operations of Alaska DigiTel was limited as required by the FCC upon its approval of our initial acquisition completed in January 2007. We responded to this request on behalf of Alaska DigiTel and the GCI companies as affiliates. On January 18, 2011 we reached an agreement with the FCC and the Department of Justice to settle the matter, which required us to contribute $1.6 million to the United States Treasury and granted us a broad release of claims including those under the False Claims Act.  The $1.6 million contribution, of which $154,000, $661,000 and $741,000 were recognized in selling, general and administrative expense in the income statements in the years ending December 31, 2010, 2009 and 2008, respectively, was paid in January 2011; and |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | In August 2010, a GCI, Inc.-owned aircraft was involved in an accident resulting in five fatalities and injuries to the remaining four passengers on board.  We had aircraft and liability insurance coverage in effect at the time of the accident.  We cannot predict the likelihood or nature of the total potential claims related to the accident. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Exhibit No.  | Description                                                                              |                                                                                 |
|--------------|------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------|
| 31.1    | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to                 |                                                                                 |
|         |                                                                                     | Section 302 of the Sarbanes-Oxley Act of 2002 by our President and Director *        |   |
| 31.2    | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to                 |                                                                                 |
|         |                                                                                     | Section 302 of the Sarbanes-Oxley Act of 2002 by our Secretary,                      |   |
|         |                                                                                     | Treasurer and Director *                                                             |   |
| 32.1    | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to                 |                                                                                 |
|         |                                                                                     | Section 906 of the Sarbanes-Oxley Act of 2002 by our President and Director *        |   |
| 32.2    | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to                 |                                                                                 |
|         |                                                                                     | Section 906 of the Sarbanes-Oxley Act of 2002 by our Secretary,                      |   |
|         |                                                                                     | Treasurer and Director *                                                             |   |
| 10.192  | Credit Agreement dated August 30, 2011 by and between Unicom, Inc. as borrower           |                                                                                 |
|         |                                                                                     | and Northern Development Fund VIII, LLC as Lender and Travois New Markets            |   |
|         |                                                                                     | Project CDE X, LLC as Lender and Waveland Sub CDE XVI, LLC as Lender and             |   |
|         |                                                                                     | Alaska Growth Capital Bidco, Inc. as Disbursing Agent (1)                            |   |
| 101     | The following materials from GCI, Inc.'s Quarterly Report on Form                        |                                                                                 |
|         |                                                                                     | 10-Q for the quarter ended September 30, 2011 formatted in XBRL (eXtensible Business |   |
|         |                                                                                     | Reporting Language): (i) Consolidated Balance Sheets; (ii) Consolidated Statements   |   |
|         |                                                                                     | of Operations; (iii) Consolidated Statements of Cash Flows; and (iv) Condensed       |   |
|         |                                                                                     | Notes to Interim Consolidated Financial Statements.                                  |   |
|         |                                                                                     |                                                                                 |   |   |   |   |   |   |   |   |   |
|         |                                                                                     |                                                                                 |   |   |   |   |   |   |   |   |   |
|         |                                                                                     |                                                                                 |
| *            | Filed herewith.                                                                          |                                                                                 |
| (1)          | Incorporated by reference to the Company's Current Report on Form 8-K dated September 6, |                                                                                 |
|         | 2011                                                                                     |                                                                                 |
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| Signature                   |   | Title                                  |   | Date                    |
|-----------------------------|--------|----------------------------------------|--------|-------------------------|
|                        |   |                                   |   |                    |
|                        |   |                                   |   |                    |
|   /s/ G. Wilson Hughes |   | President and Director                 |   |   November 3, 2011 |
| G. Wilson Hughes            |   | (Principal Executive Officer)          |   |                    |
|                        |   |                                   |   |                    |
|   /s/ John M. Lowber   |   | Secretary, Treasurer and Director      |   |   November 3, 2011 |
| John M. Lowber              |   | (Principal Financial Officer)          |   |                    |
|                        |   |                                   |   |                    |
|   /s/ Lynda L. Tarbath |   | Vice President, Chief Accounting       |   |   November 3, 2011 |
| Lynda L. Tarbath            |   | Officer (Principal Accounting Officer) |   |                    |

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