----

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

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

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

|   | State of Alaska                 |   | 92-0072737          |   |
|--------|---------------------------------|--------|---------------------|--------|
|   | (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 x         |
|-----------------------------------------------------------------------|-----------------------------|
| Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting company o |

----

|                                                      |                                                 |                                                                                                                    |   |   | Page No. |
|-----------------------------------------------------------|------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------|--------|--------|----------|
|                                                      |                                                 |                                                                                                                    |   |   |     |
| Cautionary Statement Regarding Forward-Looking Statements | 3                                                    |
|                                                      |                                                 |                                                                                                                    |   |   |     |
| Part I.  FINANCIAL INFORMATION                  |                                                 |
|                                                      |                                                 |                                                                                                                    |   |   |     |
|                                                      | Item I.                                              | Financial Statements                                                                                                    |   |   |     |
|                                                      |                                                 |                                                                                                                    |   |   |     |
|                                                      |                                                 | Consolidated Balance Sheets (unaudited) as of September 30, 2012 and December 31, 2011                             |   |   | 4        |
|                                                      |                                                 |                                                                                                                    |   |   |     |
|                                                      |                                                 | Consolidated Income Statements (unaudited) for the three and nine months ended September 30, 2012 and 2011              |   |   | 6        |
|                                                      |                                                 |                                                                                                                    |   |   |     |
|                                                      |                                                 | Consolidated Statements of Stockholders’ Equity (unaudited) for the nine months ended September 30, 2012 and 2011 |   |   | 7        |
|                                                      |                                                 |                                                                                                                    |   |   |     |
|                                                      |                                                 | Consolidated Statements of Cash Flows (unaudited) for the nine months ended September 30, 2012 and 2011                 |   |   | 8        |
|                                                      |                                                 |                                                                                                                    |   |   |     |
|                                                      |                                                 | Condensed Notes to Interim Consolidated Financial Statements (unaudited)                                                |   |   | 9        |
|                                                      |                                                 |                                                                                                                    |   |   |     |
|                                                      | Item 2.                                              | Management’s Discussion and Analysis of Financial Condition                                                       |   |   |     |
|                                                      |                                                 |   and Results of Operations                                                                                   |   |   | 29       |
|                                                      |                                                 |                                                                                                                    |   |   |     |
|                                                      | Item 3.                                              | Quantitative and Qualitative Disclosures About Market Risk                                                              |   |   | 47       |
|                                                      |                                                 |                                                                                                                    |   |   |     |
|                                                      | Item 4.                                              | Controls and Procedures                                                                                                 |   |   | 47       |
|                                                      |                                                 |                                                                                                                    |   |   |     |
| Part II.  OTHER INFORMATION                     |                                                 |                                                                                                                    |   |
|                                                      |                                                 |                                                                                                                    |   |   | 48       |
|                                                      | Item 1.                                              | Legal Proceedings                                                                                                       |   |   |     |
|                                                      |                                                 |                                                                                                                    |   |   |     |
|                                                      | Item 2.                                              | Unregistered Sales of Equity Securities and Use of Proceeds                                                             |   |   | 48       |
|                                                      |                                                 |                                                                                                                    |   |   |     |
|                                                      | Item 6.                                              | Exhibits                                                                                                                |   |   | 50       |
|                                                      |                                                 |                                                                                                                    |   |   |     |
|                                                      | Other items are omitted, as they are not applicable. |                                                                                                                    |   |
|                                                      |                                                 |                                                                                                                    |   |   |     |
| SIGNATURES                                                |                                                 |                                                                                                                    | 51     |

----

----

|                                                                                                                                                           |   |          |      |   |         |        |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-----------|--------|--------------|-------------|
| PART I. FINANCIAL INFORMATION                                                                                                                                  |   |
| ITEM I. FINANCIAL STATEMENTS                                                                                                                                   |   |
|                                                                                                                                                           |   |          |      |   |         |        |
| GENERAL COMMUNICATION, INC. AND SUBSIDIARIES                                                                                                                   |   |
| CONSOLIDATED BALANCE SHEETS                                                                                                                                    |   |
| (Unaudited)                                                                                                                                                    |   |
|                                                                                                                                                           |   |          |      |   |         |        |
| (Amounts in thousands)                                                                                                                                         |   |          |      |   |         |        |
|                                                                                                                                                           |   | September 30, |      |   | December 31, |        |
| ASSETS                                                                                                                                                         |   | 2012          |      |   | 2011         |        |
|                                                                                                                                                           |   |          |      |   |         |        |
| Current assets:                                                                                                                                                |   |          |      |   |         |        |
| Cash and cash equivalents                                                                                                                                      |   | $             | 27,555    |   |         |        | 29,387 |   |
|                                                                                                                                                           |   |          |      |   |         |        |   |   |
| Receivables                                                                                                                                                    |   |          | 183,097   |   |         |        | 141,827 |   |
| Less allowance for doubtful receivables                                                                                                                        |   |          | 3,740     |   |         |        | 5,796 |   |
| Net receivables                                                                                                                                                |   |          | 179,357   |   |         |        | 136,031 |   |
|                                                                                                                                                           |   |          |      |   |         |        |   |   |
| Deferred income taxes                                                                                                                                          |   |          | 15,555    |   |         |        | 15,555 |   |
| Prepaid expenses                                                                                                                                               |   |          | 8,151     |   |         |        | 7,899 |   |
| Inventories                                                                                                                                                    |   |          | 11,948    |   |         |        | 7,522 |   |
| Other current assets                                                                                                                                           |   |          | 2,464     |   |         |        | 3,631 |   |
| Total current assets                                                                                                                                           |   |          | 245,030   |   |         |        | 200,025 |   |
|                                                                                                                                                           |   |          |      |   |         |        |   |   |
| Property and equipment in service, net of depreciation                                                                                                         |   |          | 817,798   |   |         |        | 849,121 |   |
| Construction in progress                                                                                                                                       |   |          | 92,600    |   |         |        | 42,918 |   |
| Net property and equipment                                                                                                                                     |   |          | 910,398   |   |         |        | 892,039 |   |
|                                                                                                                                                           |   |          |      |   |         |        |   |   |
| Cable certificates                                                                                                                                             |   |          | 191,635   |   |         |        | 191,635 |   |
| Goodwill                                                                                                                                                       |   |          | 74,883    |   |         |        | 74,883 |   |
| Wireless licenses                                                                                                                                              |   |          | 25,967    |   |         |        | 25,967 |   |
| Deferred loan and senior notes costs, net of amortization  of $4,117 and $2,880 at September 30, 2012 and December  31, 2011, respectively |   |          | 11,566    |   |         |        | 12,812 |   |
| Restricted cash                                                                                                                                                |   |          | 10,445    |   |         |        | 15,910 |   |
| Other intangible assets, net of amortization                                                                                                                   |   |          | 15,472    |   |         |        | 15,835 |   |
| Other assets                                                                                                                                                   |   |          | 14,449    |   |         |        | 17,214 |   |
| Total other assets                                                                                                                                             |   |          | 344,417   |   |         |        | 354,256 |   |
| Total assets                                                                                                                                                   |   | $             | 1,499,845 |   |         |        | 1,446,320 |   |
|                                                                                                                                                           |   |          |      |   |         |        |   |   |
| See accompanying condensed notes to interim consolidated financial statements.                                                                                 |   |
|                                                                                                                                                           |   |          |      |   |         |        |   |   |
|                                                                                                                                                           |   |          |      |   |         |        |   |   |
|                                                                                                                                                           |   |          |      |   |         |        |   |   |
|                                                                                                                                                           |   |          |      |   |         | (Continued) |   |

----

| GENERAL COMMUNICATION, INC. AND SUBSIDIARIES                                                                                                                            |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED BALANCE SHEETS                                                                                                                                             |   |
| (Unaudited)                                                                                                                                                             |   |
| (Continued)                                                                                                                                                             |   |
|                                                                                                                                                                    |   |   |   |   |   |   |
|                                                                                                                                                                    |   |   |   |   |   |   |
| (Amounts in thousands)                                                                                                                                                  |   |   |   |   |   |   |
|                                                                                                                                                                    |   | September 30, |   |   | December 31, |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                              |   | 2012 |   |   | 2011 |   |
|                                                                                                                                                                    |   |   |   |   |   |   |
| Current liabilities:                                                                                                                                                    |   |   |   |   |   |   |
| Current maturities of obligations under long-term debt and  capital leases                                                                                    |   | $ | 7,766 |   |   |   | 8,797 |   |
| Accounts payable                                                                                                                                                        |   |   | 43,880 |   |   |   | 41,353 |   |
| Deferred revenue                                                                                                                                                        |   |   | 23,903 |   |   |   | 22,003 |   |
| Accrued payroll and payroll related obligations                                                                                                                         |   |   | 20,901 |   |   |   | 22,126 |   |
| Accrued interest                                                                                                                                                        |   |   | 21,358 |   |   |   | 6,680 |   |
| Accrued liabilities                                                                                                                                                     |   |   | 25,528 |   |   |   | 11,423 |   |
| Subscriber deposits                                                                                                                                                     |   |   | 1,125 |   |   |   | 1,250 |   |
| Total current liabilities                                                                                                                                               |   |   | 144,461 |   |   |   | 113,632 |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| Long-term debt, net                                                                                                                                                     |   |   | 864,804 |   |   |   | 858,031 |   |
| Obligations under capital leases, excluding current maturities                                                                                                          |   |   | 74,259 |   |   |   | 78,605 |   |
| Obligation under capital lease due to related party, excluding  current maturity                                                                              |   |   | 1,893 |   |   |   | 1,893 |   |
| Deferred income taxes                                                                                                                                                   |   |   | 124,619 |   |   |   | 114,234 |   |
| Long-term deferred revenue                                                                                                                                              |   |   | 88,561 |   |   |   | 81,822 |   |
| Other liabilities                                                                                                                                                       |   |   | 25,705 |   |   |   | 24,456 |   |
| Total liabilities                                                                                                                                                       |   |   | 1,324,302 |   |   |   | 1,272,673 |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| Commitments and contingencies                                                                                                                                           |   |   |   |   |   |   |   |   |
| Stockholders’ equity:                                                                                                                                             |   |   |   |   |   |   |   |   |
| Common stock (no par):                                                                                                                                                  |   |   |   |   |   |   |   |   |
| Class A. Authorized 100,000 shares; issued 38,818 and                                                                                                                   |   |   |   |   |   |   |   |   |
| 39,296 shares at September 30, 2012 and December 31, 2011, respectively; outstanding 38,625 and 39,043 shares at September 30, 2012 and December 31, 2011, respectively |   |   | 25,543 |   |   |   | 26,179 |   |
| Class B. Authorized 10,000 shares; issued and                                                                                                                           |   |   |   |   |   |   |   |   |
| outstanding 3,169 and 3,171 shares at September 30, 2012 and December 31, 2011, respectively; convertible on a share-per-share basis into Class A common stock          |   |   | 2,676 |   |   |   | 2,679 |   |
| Less cost of 193 and 253 Class A common shares held                                                                                                                     |   |   |   |   |   |   |   |   |
| in treasury at September 30, 2012 and December 31, 2011, respectively                                                                                                   |   |   | (1,707 | ) |   |   | (2,225 | ) |
| Paid-in capital                                                                                                                                                         |   |   | 26,232 |   |   |   | 32,795 |   |
| Retained earnings                                                                                                                                                       |   |   | 107,022 |   |   |   | 97,911 |   |
| Total General Communication, Inc. stockholders' equity                                                                                                                  |   |   | 159,766 |   |   |   | 157,339 |   |
| Non-controlling interest                                                                                                                                                |   |   | 15,777 |   |   |   | 16,308 |   |
| Total stockholders’ equity                                                                                                                                        |   |   | 175,543 |   |   |   | 173,647 |   |
| Total liabilities and stockholders’ equity                                                                                                                        |   | $ | 1,499,845 |   |   |   | 1,446,320 |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| See accompanying condensed notes to interim consolidated financial statements.                                                                                          |   |

----

| GENERAL COMMUNICATION, INC. AND SUBSIDIARIES                                                                                      |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED INCOME STATEMENTS                                                                                               |   |
| (Unaudited)                                                                                                                       |   |
|                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                              |   | Three Months Ended |   |   | Nine Months Ended |   |
|                                                                                                                              |   | September 30, |   |   | September 30, |   |
| (Amounts in thousands, except per share amounts)                                                                                  |   | 2012 |   |   | 2011 |   |   | 2012 |   |   | 2011 |   |
| Revenues                                                                                                                          |   | $ | 178,494 |   |   |   | 177,703 |   |   |   | 526,505 |   |   |   | 510,569 |   |
| Cost of goods sold (exclusive of depreciation and                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| amortization shown separately below)                                                                                              |   |   | 62,754 |   |   |   | 60,664 |   |   |   | 177,687 |   |   |   | 171,734 |   |
| Selling, general and administrative expenses                                                                                      |   |   | 58,228 |   |   |   | 54,453 |   |   |   | 181,258 |   |   |   | 171,043 |   |
| Depreciation and amortization expense                                                                                             |   |   | 32,120 |   |   |   | 30,653 |   |   |   | 97,850 |   |   |   | 93,298 |   |
|  Operating income                                                                                                            |   |   | 25,392 |   |   |   | 31,933 |   |   |   | 69,710 |   |   |   | 74,494 |   |
| Other income (expense):                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense (including amortization                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| of deferred loan fees)                                                                                                            |   |   | (16,765 | ) |   |   | (16,678 | ) |   |   | (50,868 | ) |   |   | (51,424 | ) |
| Loss on extinguishment of debt                                                                                                    |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (9,111 | ) |
| Interest income                                                                                                                   |   |   | 2 |   |   |   | 22 |   |   |   | 8 |   |   |   | 30 |   |
| Other                                                                                                                             |   |   | 164 |   |   |   | (59 | ) |   |   | 117 |   |   |   | (92 | ) |
|  Other expense, net                                                                                                          |   |   | (16,599 | ) |   |   | (16,715 | ) |   |   | (50,743 | ) |   |   | (60,597 | ) |
|    Income before income tax expense                                                                                |   |   | 8,793 |   |   |   | 15,218 |   |   |   | 18,967 |   |   |   | 13,897 |   |
| Income tax expense                                                                                                                |   |   | (5,270 | ) |   |   | (7,979 | ) |   |   | (10,387 | ) |   |   | (7,303 | ) |
|    Net income                                                                                                      |   |   | 3,523 |   |   |   | 7,239 |   |   |   | 8,580 |   |   |   | 6,594 |   |
| Net loss attributable to non-controlling interest                                                                                 |   |   | 177 |   |   |   | - |   |   |   | 531 |   |   |   | - |   |
|   Net income attributable to General   Communication, Inc.                                               |   | $ | 3,700 |   |   |   | 7,239 |   |   |   | 9,111 |   |   |   | 6,594 |   |
| Basic net income attributable to General  Communication, Inc. common stockholders per  Class A common share   |   | $ | 0.09 |   |   |   | 0.16 |   |   |   | 0.22 |   |   |   | 0.14 |   |
| Basic net income attributable to General  Communication, Inc. common stockholders per  Class B common share   |   | $ | 0.09 |   |   |   | 0.16 |   |   |   | 0.22 |   |   |   | 0.14 |   |
| Diluted net income attributable to General  Communication, Inc. common stockholders per  Class A common share |   | $ | 0.09 |   |   |   | 0.15 |   |   |   | 0.22 |   |   |   | 0.13 |   |
| Diluted net income attributable to General  Communication, Inc. common stockholders per  Class B common share |   | $ | 0.09 |   |   |   | 0.15 |   |   |   | 0.22 |   |   |   | 0.13 |   |
|                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See accompanying condensed notes to interim consolidated financial statements.                                                    |   |   |   |   |   |   |   |   |   |

----

| GENERAL COMMUNICATION, INC. AND SUBSIDIARIES                                                |               |
|---------------------------------------------------------------------------------------------|--------------------|
| CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY                                             |               |
| NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011                                               |               |
|                                                                                        |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                        |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Amounts in thousands)                                                                      | Class ACommonStock |   |   | Class BCommonStock |   |   | Class Aand BSharesHeld inTreasury |   |   | Paid-inCapital |   |   | RetainedEarnings |   |   | Non-controllingInterest |   |   | TotalStockholders’Equity |   |
| Balances at January 1, 2011                                                                 | $                  | 69,396 |   |   |   | 2,677 |   |   |   | (2,249 | ) |   |   | 37,075 |   |   |   | 92,200 |   |   |   | - |   |   |   | 199,099 |   |
| Net Income                                                                                  |               | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 6,594 |   |   |   | - |   |   |   | 6,594 |   |
| Common stock repurchases and  retirements                                         |               | (39,291 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (39,291 | ) |
| Share-based  compensation expense                                                 |               | - |   |   |   | - |   |   |   | - |   |   |   | 4,193 |   |   |   | - |   |   |   | - |   |   |   | 4,193 |   |
| Shares issued under stock  option plan                                            |               | 915 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 915 |   |
| Issuance of restricted stock  awards                                                   |               | 518 |   |   |   | - |   |   |   | - |   |   |   | (518 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
| Investment by non-controlling interest                                                      |               | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 16,546 |   |   |   | 16,546 |   |
| Other                                                                                       |               | (3 | ) |   |   | 3 |   |   |   | 9 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 9 |   |
| Balances at September 30, 2011                                                              | $                  | 31,535 |   |   |   | 2,680 |   |   |   | (2,240 | ) |   |   | 40,750 |   |   |   | 98,794 |   |   |   | 16,546 |   |   |   | 188,065 |   |
|                                                                                        |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balances at January 1, 2012                                                                 | $                  | 26,179 |   |   |   | 2,679 |   |   |   | (2,225 | ) |   |   | 32,795 |   |   |   | 97,911 |   |   |   | 16,308 |   |   |   | 173,647 |   |
| Net income (loss)                                                                           |               | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 9,111 |   |   |   | (531 | ) |   |   | 8,580 |   |
| Common stock repurchases and  retirements                                         |               | (13,189 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (13,189 | ) |
| Share-based compensation  expense                                                 |               | - |   |   |   | - |   |   |   | - |   |   |   | 3,989 |   |   |   | - |   |   |   | - |   |   |   | 3,989 |   |
| Shares issued under stock  option plan                                            |               | 1,929 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,929 |   |
| Issuance of restricted stock  awards                                              |               | 10,621 |   |   |   | - |   |   |   | - |   |   |   | (10,621 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
| Issuance of treasury shares  related to deferred   compensation payment |               | - |   |   |   | - |   |   |   | 511 |   |   |   | 69 |   |   |   | - |   |   |   | - |   |   |   | 580 |   |
| Other                                                                                       |               | 3 |   |   |   | (3 | ) |   |   | 7 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 7 |   |
| Balances at September 30, 2012                                                              | $                  | 25,543 |   |   |   | 2,676 |   |   |   | (1,707 | ) |   |   | 26,232 |   |   |   | 107,022 |   |   |   | 15,777 |   |   |   | 175,543 |   |
|                                                                                        |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See accompanying condensed notes to interim consolidated financial statements.              |               |

----

| GENERAL COMMUNICATION, INC. AND SUBSIDIARIES                                   |   |
|--------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS                                          |   |
| NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011                                  |   |
| (Unaudited)                                                                    |   |
|                                                                           |   |
|                                                                           |   |   |   |   |   |   |
| (Amounts in thousands)                                                         |   |   |   |   |   |   |
|                                                                           |   | 2012 |   |   | 2011 |   |
| Cash flows from operating activities:                                          |   |   |   |   |   |   |
| Net income                                                                     |   | $ | 8,580 |   |   |   | 6,594 |   |
| Adjustments to reconcile net income to net cash                                |   |   |   |   |   |   |   |   |
| provided by operating activities:                                              |   |   |   |   |   |   |   |   |
| Depreciation and amortization expense                                          |   |   | 97,850 |   |   |   | 93,298 |   |
| Deferred income tax expense                                                    |   |   | 10,387 |   |   |   | 7,303 |   |
| Share-based compensation expense                                               |   |   | 3,990 |   |   |   | 3,224 |   |
| Loss on extinguishment of debt                                                 |   |   | - |   |   |   | 9,111 |   |
| Other noncash income and expense items                                         |   |   | 5,986 |   |   |   | 7,195 |   |
| Change in operating assets and liabilities                                     |   |   | (21,627 | ) |   |   | (30,199 | ) |
| Net cash provided by operating activities                                      |   |   | 105,166 |   |   |   | 96,526 |   |
| Cash flows from investing activities:                                          |   |   |   |   |   |   |   |   |
| Purchases of property and equipment                                            |   |   | (104,351 | ) |   |   | (126,900 | ) |
| Grant proceeds                                                                 |   |   | 5,492 |   |   |   | 15,314 |   |
| Restricted cash                                                                |   |   | 5,465 |   |   |   | 16,546 |   |
| Purchases of other assets and intangible assets                                |   |   | (3,741 | ) |   |   | (4,635 | ) |
| Other                                                                          |   |   | - |   |   |   | 233 |   |
| Net cash used in investing activities                                          |   |   | (97,135 | ) |   |   | (99,442 | ) |
| Cash flows from financing activities:                                          |   |   |   |   |   |   |   |   |
| Repayment of debt and capital lease obligations                                |   |   | (62,659 | ) |   |   | (414,733 | ) |
| Borrowing on Senior Credit Facility                                            |   |   | 60,000 |   |   |   | 142,000 |   |
| Purchase of treasury stock to be retired                                       |   |   | (13,189 | ) |   |   | (39,291 | ) |
| Borrowing of other long-term debt                                              |   |   | 3,980 |   |   |   | 15,375 |   |
| Investment by non-controlling interest                                         |   |   | - |   |   |   | (16,546 | ) |
| Issuance of 2021 Notes                                                         |   |   | - |   |   |   | 325,000 |   |
| Payment of Senior Notes call premiums                                          |   |   | - |   |   |   | (4,728 | ) |
| Payment of debt issuance costs                                                 |   |   | - |   |   |   | (3,512 | ) |
| Proceeds from stock option exercises                                           |   |   | 1,929 |   |   |   | 915 |   |
| Other                                                                          |   |   | 76 |   |   |   | - |   |
| Net cash provided by (used in) financing activities                            |   |   | (9,863 | ) |   |   | 4,480 |   |
| Net increase (decrease) in cash and cash equivalents                           |   |   | (1,832 | ) |   |   | 1,564 |   |
| Cash and cash equivalents at beginning of period                               |   |   | 29,387 |   |   |   | 33,070 |   |
| Cash and cash equivalents at end of period                                     |   | $ | 27,555 |   |   |   | 34,634 |   |
|                                                                           |   |   |   |   |   |   |   |   |
| See accompanying condensed notes to interim consolidated financial statements. |   |
|                                                                           |   |   |   |   |   |   |   |   |

----

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

----

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

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

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

----

|                                                                                                                                                                       |   | Three Months Ended September 30, |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|--------|
|                                                                                                                                                                       |   | 2012                             |   |   | 2011 |   |
|                                                                                                                                                                       |   | Class A                          |   |   | Class B |   |   | Class A |   |   | Class B |   |
| Basic net income per share:                                                                                                                                                |   |                             |   |   |   |   |   |   |   |   |   |   |
| Numerator:                                                                                                                                                                 |   |                             |   |   |   |   |   |   |   |   |   |   |
| Allocation of undistributed earnings                                                                                                                                       |   | $                                | 3,419  |   |   |   | 281 |   |   | $ | 6,728 |   |   |   | 511 |   |
|                                                                                                                                                                       |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Denominator:                                                                                                                                                               |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common shares  outstanding                                                                                                                      |   |                             | 38,600 |   |   |   | 3,170 |   |   |   | 41,768 |   |   |   | 3,175 |   |
| Basic net income attributable to GCI  common stockholders per common share                                                                                       |   | $                                | 0.09   |   |   |   | 0.09 |   |   | $ | 0.16 |   |   |   | 0.16 |   |
|                                                                                                                                                                       |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted net income per share:                                                                                                                                              |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Numerator:                                                                                                                                                                 |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allocation of undistributed earnings for  basic computation                                                                                                      |   | $                                | 3,419  |   |   |   | 281 |   |   | $ | 6,728 |   |   |   | 511 |   |
| Reallocation of undistributed earnings as a  result of conversion of Class B to Class A  shares                                                        |   |                             | 281    |   |   |   | - |   |   |   | 511 |   |   |   | - |   |
| Effect of share based compensation that may  be settled in cash or shares                                                                                        |   |                             | -      |   |   |   | - |   |   |   | (495 | ) |   |   | - |   |
| Reallocation of undistributed earnings as a  result of conversion of Class B to Class A  shares outstanding                                            |   |                             | -      |   |   |   | (2 | ) |   |   | - |   |   |   | (40 | ) |
| Net income adjusted for allocation of  undistributed earnings and effect of  share based compensation that may be settled  in cash or shares |   | $                                | 3,700  |   |   |   | 279 |   |   | $ | 6,744 |   |   |   | 471 |   |
|                                                                                                                                                                       |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                                   |   |  Three Months Ended September 30, |   |
|----------------------------------------------------------------------------------------|--------|----------------------------------------|--------|
|                                                                                   |   |  2012                             |   |   |  2011  |   |
|                                                                                   |   | Class A                           |   |   | Class B  |   |   | Class A   |   |   | Class B  |   |
| Denominator:                                                                           |   |                                   |   |   |   |   |   |   |   |   |   |   |
| Number of shares used in basic computation                                             |   |                                   | 38,600 |   |   |   | 3,170 |   |   |   | 41,768 |   |   |   | 3,175 |   |
| Conversion of Class B to Class A common  shares outstanding                  |   |                                   | 3,170  |   |   |   | - |   |   |   | 3,175 |   |   |   | - |   |
| Unexercised stock options                                                              |   |                                   | 230    |   |   |   | - |   |   |   | 304 |   |   |   | - |   |
| Effect of share based compensation that may  be settled in cash or shares    |   |                                   | -      |   |   |   | - |   |   |   | 217 |   |   |   | - |   |
| Number of shares used in per share computations                                        |   |                                   | 42,000 |   |   |   | 3,170 |   |   |   | 45,464 |   |   |   | 3,175 |   |
| Diluted net income attributable to GCI  common stockholders per common share |   | $                                      | 0.09   |   |   |   | 0.09 |   |   | $ | 0.15 |   |   |   | 0.15 |   |

|                                                                                                                                                                       |   | Nine Months Ended September 30, |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|--------|
|                                                                                                                                                                       |   | 2012                            |   |   | 2011 |   |
|                                                                                                                                                                       |   | Class A                         |   |   | Class B |   |   | Class A |   |   | Class B |   |
| Basic net income per share:                                                                                                                                                |   |                            |   |   |   |   |   |   |   |   |   |   |
| Numerator:                                                                                                                                                                 |   |                            |   |   |   |   |   |   |   |   |   |   |
| Allocation of undistributed earnings                                                                                                                                       |   | $                               | 8,420  |   |   |   | 691 |   |   | $ | 6,140 |   |   |   | 454 |   |
|                                                                                                                                                                       |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Denominator:                                                                                                                                                               |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common shares  outstanding                                                                                                                      |   |                            | 38,614 |   |   |   | 3,170 |   |   |   | 42,940 |   |   |   | 3,177 |   |
| Basic net income attributable to GCI  common stockholders per common share                                                                                       |   | $                               | 0.22   |   |   |   | 0.22 |   |   | $ | 0.14 |   |   |   | 0.14 |   |
|                                                                                                                                                                       |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted net income per share:                                                                                                                                              |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Numerator:                                                                                                                                                                 |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allocation of undistributed earnings for  basic computation                                                                                                      |   | $                               | 8,420  |   |   |   | 691 |   |   | $ | 6,140 |   |   |   | 454 |   |
| Reallocation of undistributed earnings as a  result of conversion of Class B to Class A  shares                                                        |   |                            | 691    |   |   |   | - |   |   |   | 454 |   |   |   | - |   |
| Effect of share based compensation that may  be settled in cash or shares                                                                                        |   |                            | -      |   |   |   | - |   |   |   | (571 | ) |   |   | - |   |
| Reallocation of undistributed earnings as a  result of conversion of Class B to Class A  shares outstanding                                            |   |                            | -      |   |   |   | (6 | ) |   |   | - |   |   |   | (44 | ) |
| Net income adjusted for allocation of  undistributed earnings and effect of  share based compensation that may be settled  in cash or shares |   | $                               | 9,111  |   |   |   | 685 |   |   | $ | 6,023 |   |   |   | 410 |   |
|                                                                                                                                                                       |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Denominator:                                                                                                                                                               |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Number of shares used in basic computation                                                                                                                                 |   |                            | 38,614 |   |   |   | 3,170 |   |   |   | 42,940 |   |   |   | 3,177 |   |
| Conversion of Class B to Class A common  shares outstanding                                                                                                      |   |                            | 3,170  |   |   |   | - |   |   |   | 3,177 |   |   |   | - |   |
| Unexercised stock options                                                                                                                                                  |   |                            | 235    |   |   |   | - |   |   |   | 348 |   |   |   | - |   |
| Effect of share based compensation that may  be settled in cash or shares                                                                                        |   |                            | 158    |   |   |   | - |   |   |   | 217 |   |   |   | - |   |
| Number of shares used in per share computations                                                                                                                            |   |                            | 42,177 |   |   |   | 3,170 |   |   |   | 46,682 |   |   |   | 3,177 |   |

----

|                                                                                   |   |  Nine Months Ended September 30, |    |
|----------------------------------------------------------------------------------------|--------|---------------------------------------|---------|
|                                                                                   |   |                                  | 2012    |   |   |   | 2011 |   |
|                                                                                   |   |                                  | Class A |   |   |   | Class B |   |   |   | Class A |   |   |   | Class B |   |
|                                                                                   |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted net income attributable to GCI  common stockholders per common share |   | $                                     | 0.22    |   |   |   | 0.22 |   |   | $ | 0.13 |   |   |   | 0.13 |   |

|                                                                                                                       | Three Months Ended |   |   | Nine Months Ended |   |
|----------------------------------------------------------------------------------------------------------------------------|--------------------|--------|--------|-------------------|--------|
|                                                                                                                       | September 30,      |   |   | September 30,     |   |
|                                                                                                                       | 2012               |   |   | 2011              |   |   | 2012 |   |   | 2011 |   |
| Shares associated with anti-dilutive  unexercised stock options                                                  |               |   | 82     |              |   |   | 95 |   |   |   | 88 |   |   |   | 39 |   |
| Share based compensation that may  be settled in cash or shares, the effect  of which is anti-dilutive |               |   | 158    |              |   |   | - |   |   |   | - |   |   |   | - |   |

|                                     | Three Months Ended |   |   | Nine Months Ended |   |
|------------------------------------------|--------------------|--------|--------|-------------------|--------|
|                                     | September 30,      |   |   | September 30,     |   |
|                                     | 2012               |   |   | 2011              |   |   | 2012 |   |   | 2011 |   |
| Shares associated with contingent awards |               |   | 58     |              |   |   | 50 |   |   |   | 58 |   |   |   | 50 |   |

|   | (h) | Common Stock |
|--------|-----|--------------|

|                                                                                |                           |   | Class A |   |   | Class B |   |
|-------------------------------------------------------------------------------------|--------------------------------|--------|---------|--------|--------|---------|--------|
| Balances at December 31, 2010                                                       |                           |   | 44,213  |   |   |    | 3,178  |   |
| Class B shares converted to Class A                                                 |                           |   | 6       |   |   |    | (6     | ) |
| Shares issued upon stock option exercises                                           |                           |   | 157     |   |   |    | -      |   |
| Share awards issued                                                                 |                           |   | 417     |   |   |    | -      |   |
| Shares retired                                                                      |                           |   | (3,802  | )      |   |    | -      |   |
| Other                                                                               |                           |   | (25     | )      |   |    | -      |   |
|                                                                                | Balances at September 30, 2011 |   |    | 40,966 |   |    |   | 3,172 |   |
|                                                                                |                           |   |    |   |   |    |   |   |   |
| Balances at December 31, 2011                                                       |                           |   | 39,296  |   |   |    | 3,171  |   |
| Class B shares converted to Class A                                                 |                           |   | 2       |   |   |    | (2     | ) |
| Shares issued upon stock option exercises                                           |                           |   | 284     |   |   |    | -      |   |
| Share awards issued                                                                 |                           |   | 516     |   |   |    | -      |   |
| Shares retired                                                                      |                           |   | (980    | )      |   |    | -      |   |
| Shares acquired to settle minimum statutory tax  withholding requirements |                           |   | (292    | )      |   |    | -      |   |
| Other                                                                               |                           |   |    | (8     | )      |    |   | - |   |
|                                                                                | Balances at September 30, 2012 |   |    | 38,818 |   |    |   | 3,169 |   |

----

|   | (i) | Revenue Recognition |
|--------|-----|---------------------|

----

|   | (j) | Use of Estimates |
|--------|-----|------------------|

----

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

|                      |   | Three Months Ended |   |   | Nine Months Ended |   |
|---------------------------|--------|--------------------|--------|--------|-------------------|--------|
|                      |   | September 30,      |   |   | September 30,     |   |
|                      |   | 2012               |   |   | 2011              |   |   | 2012 |   |   | 2011 |   |
| Surcharges reported gross |   | $                  | 1,214  |   |              |   | 1,300 |   |   |   | 4,094 |   |   |   | 4,100 |   |

|   | (l) | Immaterial Error Correction |
|--------|-----|-----------------------------|

|                                                              |   |                   |      |   |       |   |                           |       |   |
|-------------------------------------------------------------------|--------|------------------------|-----------|--------|------------|--------|--------------------------------|------------|--------|
| Consolidated Balance Sheet as of  December 31, 2011:    |   | As Previously Reported |      |   | Adjustment |   |                           | As Revised |   |
| Property and equipment in service, net of  depreciation |   | $                      | 851,705   |   |       |   |     (2,584 | )          |   |   | 849,121 |   |
| Net property and equipment                                        |   |                   | 894,623   |   |       |   | (2,584                         | )          |   |   | 892,039 |   |
| Total assets                                                      |   |                   | 1,448,904 |   |       |   | (2,584                         | )          |   |   | 1,446,320 |   |
| Deferred income taxes                                             |   |                   | 115,296   |   |       |   | (1,062                         | )          |   |   | 114,234 |   |
| Total liabilities                                                 |   |                   | 1,273,735 |   |       |   | (1,062                         | )          |   |   | 1,272,673 |   |
| Retained earnings                                                 |   |                   | 99,433    |   |       |   | (1,522                         | )          |   |   | 97,911 |   |
| Total GCI stockholders' equity                                    |   |                   | 158,861   |   |       |   | (1,522                         | )          |   |   | 157,339 |   |
| Total stockholders' equity                                        |   |                   | 175,169   |   |       |   | (1,522                         | )          |   |   | 173,647 |   |
| Total liabilities and stockholders' equity                        |   |                   | 1,448,904 |   |       |   | (2,584                         | )          |   |   | 1,446,320 |   |
|                                                              |   |                   |      |   |       |   |                           |       |   |   |   |   |

----

|                                                                                                               |   |                   |    |   |       |   |   |       |   |
|--------------------------------------------------------------------------------------------------------------------|--------|------------------------|---------|--------|------------|--------|--------|------------|--------|
| Consolidated Income Statement for the  Three Months Ended September 30, 2011:                            |   | As Previously Reported |    |   | Adjustment |   |   | As Revised |   |
| Depreciation and amortization expense                                                                              |   |                   | 30,702  |   |       |   | (49    | )          |   |   | 30,653 |   |
| Operating income                                                                                                   |   |                   | 31,884  |   |       |   | 49     |       |   |   | 31,933 |   |
| Income before income tax expense                                                                                   |   |                   | 15,169  |   |       |   | 49     |       |   |   | 15,218 |   |
| Income tax expense                                                                                                 |   |                   | 7,959   |   |       |   | 20     |       |   |   | 7,979 |   |
| Net income                                                                                                         |   |                   | 7,210   |   |       |   | 29     |       |   |   | 7,239 |   |
|                                                                                                               |   |                   |    |   |       |   |   |       |   |   |   |   |
| Consolidated Income Statement for the  Nine Months Ended September 30, 2011:                             |   |                   |    |   |       |   |   |       |   |   |   |   |
| Depreciation and amortization expense                                                                              |   |                   | 93,054  |   |       |   | 244    |       |   |   | 93,298 |   |
| Operating income                                                                                                   |   |                   | 74,738  |   |       |   | (244   | )          |   |   | 74,494 |   |
| Income before income tax expense                                                                                   |   |                   | 14,141  |   |       |   | (244   | )          |   |   | 13,897 |   |
| Income tax expense                                                                                                 |   |                   | 7,403   |   |       |   | (100   | )          |   |   | 7,303 |   |
| Net income                                                                                                         |   |                   | 6,738   |   |       |   | (144   | )          |   |   | 6,594 |   |
| Basic net income attributable to General                                                                           |   |                   |    |   |       |   |   |       |   |   |   |   |
|   Communication, Inc. common stockholders                                                                |   |                   |    |   |       |   |   |       |   |   |   |   |
|   per Class A common share                                                                               |   |                   | 0.15    |   |       |   | (0.01  | )          |   |   | 0.14 |   |
| Basic net income attributable to General                                                                           |   |                   |    |   |       |   |   |       |   |   |   |   |
|   Communication, Inc. common stockholders                                                                |   |                   |    |   |       |   |   |       |   |   |   |   |
|   per Class B common share                                                                               |   |                   | 0.15    |   |       |   | (0.01  | )          |   |   | 0.14 |   |
|                                                                                                               |   |                   |    |   |       |   |   |       |   |   |   |   |
| Consolidated Statement of Stockholders'  Equity for the Nine Months Ended  September 30, 2011: |   |                   |    |   |       |   |   |       |   |   |   |   |
| Retained earnings, balance at January 1, 2011                                                                      |   |                   | 93,607  |   |       |   | (1,407 | )          |   |   | 92,200 |   |
| Net income                                                                                                         |   |                   | 6,738   |   |       |   | (144   | )          |   |   | 6,594 |   |
| Retained earnings, balance at September 30, 2011                                                                   |   |                   | 100,345 |   |       |   | (1,551 | )          |   |   | 98,794 |   |
| Total stockholders' equity, balance at  January 1, 2011                                                  |   |                   | 200,506 |   |       |   | (1,407 | )          |   |   | 199,099 |   |
| Total stockholders' equity, balance at  September 30, 2011                                               |   |                   | 189,616 |   |       |   | (1,551 | )          |   |   | 188,065 |   |
|                                                                                                               |   |                   |    |   |       |   |   |       |   |   |   |   |
| Consolidated Statement of Cash Flows for the                                                                       |   |                   |    |   |       |   |   |       |   |   |   |   |
|   Nine Months Ended September 30, 2011:                                                                  |   |                   |    |   |       |   |   |       |   |   |   |   |
| Net income                                                                                                         |   |                   | 6,738   |   |       |   | (144   | )          |   |   | 6,594 |   |
| Depreciation and amortization expense                                                                              |   |                   | 93,054  |   |       |   | 244    |       |   |   | 93,298 |   |
| Income tax expense                                                                                                 |   |                   | 7,403   |   |       |   | (100   | )          |   |   | 7,303 |   |
|                                                                                                               |   |                   |    |   |       |   |   |       |   |   |   |   |

----

| Nine Months Ended September 30,                                        |   | 2012   |    |   | 2011   |   |
|------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Increase in accounts receivable, net                                   |   | $      | (52,020 | )      |   |   | (42,901 | ) |
| Increase in prepaid expenses                                           |   |   | (312    | )      |   |   | (2,484 | ) |
| Increase in inventories                                                |   |   | (4,426  | )      |   |   | (2,145 | ) |
| Decrease in other current assets                                       |   |   | 1,167   |   |   |   | 282 |   |
| Decrease in other assets                                               |   |   | 3,337   |   |   |   | 2,617 |   |
| Increase (decrease) in accounts payable                                |   |   | (3,768  | )      |   |   | 10,517 |   |
| Increase in deferred revenues                                          |   |   | 1,900   |   |   |   | 1,287 |   |
| Decrease in accrued payroll and  payroll related obligations |   |   | (1,320  | )      |   |   | (2,057 | ) |
| Increase (decrease) in accrued liabilities                             |   |   | 14,616  |   |   |   | (1,338 | ) |
| Increase in accrued interest                                           |   |   | 14,678  |   |   |   | 8,513 |   |
| Increase (decrease) in subscriber deposits                             |   |   | (125    | )      |   |   | 33 |   |
| Increase (decrease) in long-term deferred revenue                      |   |   | 5,739   |   |   |   | (575 | ) |
| Decrease in components of other  long-term liabilities       |   |   | (1,093  | )      |   |   | (1,948 | ) |
|                                                                   |   | $      | (21,627 | )      |   |   | (30,199 | ) |

|                                      |   | 2012 |   |   | 2011   |   |
|-------------------------------------------|--------|------|--------|--------|--------|--------|
| Interest paid, net of amounts capitalized |   | $    | 37,874 |   |   |   | 42,654 |   |

|                                                                                                            |   | 2012 |   |   | 2011   |   |
|-----------------------------------------------------------------------------------------------------------------|--------|------|--------|--------|--------|--------|
| Non-cash additions for purchases of property and  equipment                                           |   | $    | 7,390  |   |   |   | 11,481 |   |
| Deferred compensation distribution denominated in  shares                                             |   | $    | 511    |   |   |   | - |   |
| Asset retirement obligation additions to property and  equipment                                      |   | $    | 644    |   |   |   | 222 |   |
| Asset retirement obligation reductions to property and  equipment for revisions to previous estimates |   | $    | -      |   |   |   | 294 |   |

|                 |   | Three Months Ended |   |   | Nine Months Ended |   |
|----------------------|--------|--------------------|--------|--------|-------------------|--------|
|                 |   | September 30,      |   |   | September 30,     |   |
|                 |   | 2012               |   |   | 2011              |   |   | 2012 |   |   | 2011 |   |
| Amortization expense |   | $                  | 1,275  |   |              |   | 1,517 |   |   |   | 3,900 |   |   |   | 4,673 |   |

----

| Years Ending December 31, |   |   |   |
|---------------------------|--------|--------|--------|
| 2012                 |   | $      | 4,879  |   |
| 2013                 |   |   | 4,044  |   |
| 2014                 |   |   | 3,271  |   |
| 2015                 |   |   | 2,051  |   |
| 2016                 |   |   | 844    |   |

|                                                                |   | September 30,   |    |   | December 31, |   |
|---------------------------------------------------------------------|--------|-----------------|---------|--------|--------------|--------|
|                                                                |   | 2012            |    |   | 2011         |   |
|                                                                |   | Carrying Amount |    |   | Fair Value   |   |   | Carrying Amount |   |   | Fair Value |   |
| Current and long-term debt and  capital lease obligations |   | $               | 948,722 |   |         |   | 999,411 |   |   |   | 947,326 |   |   |   | 942,895 |   |
| Other liabilities                                                   |   |            | 25,705  |   |         |   | 24,928 |   |   |   | 24,456 |   |   |   | 23,627 |   |

----

|                                                        |   | Fair Value Measurement at Reporting Date Using                 |   |
|-------------------------------------------------------------|--------|----------------------------------------------------------------|--------|
| September 30, 2012 Assets                                   |   | Quoted Prices in Active Markets for Identical Assets (Level 1) |   |   | Significant Other Observable Inputs (Level 2) |   |   | Significant Unobservable Inputs (Level 3) |   |
| Deferred compensation plan assets  (mutual funds) |   | $                                                              | 1,728  |   |   |   | - |   |   |   | - |   |
| Total assets at fair value                                  |   | $                                                              | 1,728  |   |   |   | - |   |   |   | - |   |
|                                                        |   |                                                           |   |   |   |   |   |   |   |   |   |   |
| December 31, 2011 Assets                                    |   |                                                           |   |   |   |   |   |   |   |   |   |   |
| Deferred compensation plan assets  (mutual funds) |   | $                                                              | 1,600  |   |   |   | - |   |   |   | - |   |
| Total assets at fair value                                  |   | $                                                              | 1,600  |   |   |   | - |   |   |   | - |   |

----

|                              |   |   |   |   |     |   | Weighted    |           |
|-----------------------------------|--------|--------|--------|--------|----------|--------|-------------|----------------|
|                              |   |   |   |   | Weighted |   | Average     | Aggregate      |
|                              |   |   |   |   | Average  |   | Remaining   | Intrinsic      |
|                              |   |   |   |   | Exercise |   | Contractual | Value          |
|                              |   | Shares |   |   | Price    |   | Term        | (in thousands) |
| Outstanding at January 1, 2012    |   |   | 1,087  |   |     | $      | 7.27        |           |   |   |
| Exercised                         |   |   | (284   | )      |     | $      | 6.78        |           |   |   |
| Forfeited                         |   |   | (14    | )      |     | $      | 5.86        |           |   |   |
| Expired                           |   |   | (33    | )      |     | $      | 5.83        |           |   |   |
| Outstanding at September 30, 2012 |   |   | 756    |   |     | $      | 7.54        |           | 3.80 years | $ 1,795 |
| Exercisable at September 30, 2012 |   |   | 712    |   |     | $      | 7.59        |           | 3.63 years | $ 1,660 |

|                            |   |   |   |   | Weighted   |   |
|---------------------------------|--------|--------|--------|--------|------------|--------|
|                            |   |   |   |   | Average    |   |
|                            |   |   |   |   | Grant Date |   |
|                            |   | Shares |   |   | Fair Value |   |
| Nonvested at January 1, 2012    |   |   | 1,556  |   |       | $      | 6.89 |   |
| Granted                         |   |   | 520    |   |       | $      | 9.58 |   |
| Vested                          |   |   | (991   | )      |       | $      | 4.90 |   |
| Forfeited                       |   |   | (9     | )      |       | $      | 10.88 |   |
| Nonvested at September 30, 2012 |   |   | 1,076  |   |       | $      | 10.01 |   |

----

|                                                    |   | 2012   |   |   | 2011   |   |
|---------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Employee share-based compensation expense               |   | $      | 3,989  |   |   |   | 4,193 |   |
| Adjustment to fair value of liability classified awards |   |   | 1      |   |   |   | (969 | ) |
|   Total share-based compensation expense      |   | $      | 3,990  |   |   |   | 3,224 |   |

----

| Three months ended September 30, |   | Consumer |    |   | Network Access |   |   | Commercial |   |   | Managed Broadband |   |   | Regulated Operations |   |   | Total Reportable Segments |   |
|----------------------------------|--------|----------|---------|--------|----------------|--------|--------|------------|--------|--------|-------------------|--------|--------|----------------------|--------|--------|---------------------------|--------|
| 2012                        |   |     |    |   |           |   |   |       |   |   |              |   |   |                 |   |   |                      |   |
| Revenues:                        |   |     |    |   |           |   |   |       |   |   |              |   |   |                 |   |   |                      |   |
| Intersegment                     |   | $        | (356    | )      |           |   | 45     |       |   |   | 1,417             |   |   |                 | -      |   |                      |   | 47 |   |   |   | 1,153 |   |
| External                         |   |     | 86,807  |   |           |   | 27,475 |       |   |   | 36,208            |   |   |                 | 22,685 |   |                      |   | 5,319 |   |   |   | 178,494 |   |
| Total revenues                   |   |     | 86,451  |   |           |   | 27,520 |       |   |   | 37,625            |   |   |                 | 22,685 |   |                      |   | 5,366 |   |   |   | 179,647 |   |
| Adjusted EBITDA                  |   | $        | 20,916  |   |           |   | 15,383 |       |   |   | 9,892             |   |   |                 | 12,249 |   |                      |   | 1,009 |   |   |   | 59,449 |   |
|                             |   |     |    |   |           |   |   |       |   |   |              |   |   |                 |   |   |                      |   |   |   |   |   |   |   |
| 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 |   |
|                             |   |     |    |   |           |   |   |       |   |   |              |   |   |                 |   |   |                      |   |   |   |   |   |   |   |
| Nine months ended September 30,  |   | Consumer |    |   | Network Access |   |   | Commercial |   |   | Managed Broadband |   |   | Regulated Operations |   |   | Total Reportable Segments |   |
| 2012                        |   |     |    |   |           |   |   |       |   |   |              |   |   |                 |   |   |                      |   |   |   |   |   |   |   |
| Revenues:                        |   |     |    |   |           |   |   |       |   |   |              |   |   |                 |   |   |                      |   |   |   |   |   |   |   |
| Intersegment                     |   | $        | -       |   |           |   | 210    |       |   |   | 4,228             |   |   |                 | -      |   |                      |   | 145 |   |   |   | 4,583 |   |
| External                         |   |     | 263,114 |   |           |   | 78,680 |       |   |   | 105,015           |   |   |                 | 63,431 |   |                      |   | 16,265 |   |   |   | 526,505 |   |
| Total revenues                   |   |     | 263,114 |   |           |   | 78,890 |       |   |   | 109,243           |   |   |                 | 63,431 |   |                      |   | 16,410 |   |   |   | 531,088 |   |
| Adjusted EBITDA                  |   | $        | 69,718  |   |           |   | 41,235 |       |   |   | 26,958            |   |   |                 | 32,561 |   |                      |   | 3,227 |   |   |   | 173,699 |   |
|                             |   |     |    |   |           |   |   |       |   |   |              |   |   |                 |   |   |                      |   |   |   |   |   |   |   |
| 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 |   |

----

|                                                                    |   | Three Months Ended |    |   | Nine Months Ended |   |
|-------------------------------------------------------------------------|--------|--------------------|---------|--------|-------------------|--------|
|                                                                    |   | September 30,      |    |   | September 30,     |   |
|                                                                    |   | 2012               |    |   | 2011              |   |   | 2012 |   |   | 2011 |   |
| Reportable segment revenues                                             |   | $                  | 179,647 |   |              |   | 179,089 |   |   |   | 531,088 |   |   |   | 514,893 |   |
| Less intersegment revenues eliminated in   consolidation |   |               | 1,153   |   |              |   | 1,386 |   |   |   | 4,583 |   |   |   | 4,324 |   |
| Consolidated revenues                                                   |   | $                  | 178,494 |   |              |   | 177,703 |   |   |   | 526,505 |   |   |   | 510,569 |   |

|                                                                |   |               |    |   |              |   |    |   |   |   |    |   |
|---------------------------------------------------------------------|--------|--------------------|---------|--------|-------------------|--------|---------|--------|--------|--------|---------|--------|
|                                                                |   | Three Months Ended |    |   | Nine Months Ended |   |
|                                                                |   | September 30,      |    |   | September 30,     |   |
|                                                                |   | 2012               |    |   | 2011              |   |    | 2012   |   |   | 2011    |   |
| Reportable segment Adjusted EBITDA                                  |   | $                  | 59,449  |   |              |   | 63,101  |   |   |   | 173,699 |   |   |   | 171,380 |   |
| Less depreciation and amortization  expense               |   |               | (32,120 | )      |              |   | (30,653 | )      |   |   | (97,850 | )      |   |   | (93,298 | ) |
| Less share-based compensation  expense                    |   |               | (1,395  | )      |              |   | (384    | )      |   |   | (3,990  | )      |   |   | (3,224 | ) |
| Less non-cash contribution  expense                       |   |               | -       |   |              |   | -       |   |   |   | (960    | )      |   |   | - |   |
| Less net loss attributable to  non-controlling interest   |   |               | (177    | )      |              |   | -       |   |   |   | (531    | )      |   |   | - |   |
| Plus net loss (income) attributable to  equity investment |   |               | (164    | )      |              |   | 59      |   |   |   | (117    | )      |   |   | 92 |   |
| Less accretion expense                                              |   |               | (201    | )      |              |   | (190    | )      |   |   | (541    | )      |   |   | (456 | ) |
| Consolidated operating income                                       |   |               | 25,392  |   |              |   | 31,933  |   |   |   | 69,710  |   |   |   | 74,494 |   |
| Less other expense, net                                             |   |               | (16,599 | )      |              |   | (16,715 | )      |   |   | (50,743 | )      |   |   | (60,597 | ) |
| Consolidated income before  income tax expense            |   | $                  | 8,793   |   |              |   | 15,218  |   |   |   | 18,967  |   |   |   | 13,897 |   |

----

| September 30, 2012 |
|--------------------|
| Assets             |   | Equity |
| Carrying Value     |   | Classification |   | Carrying Value |   | Classification |
| $                  | 10,445 |   | Restricted cash |   | $ | 15,777 |   | Non-controlling interest |
|               | 6,101 |   | Construction in progress |   |   | 769 |   | Retained earnings attributable to General Communication, Inc. common stockholders |
| $                  | 16,546 |   |   |   | $ | 16,546 |   |   |

| December 31, 2011 |
|-------------------|
| Assets            |   | Equity |
| Carrying Value    |   | Classification |   | Carrying Value |   | Classification |
| $                 | 15,910 |   | Restricted cash |   | $ | 16,308 |   | Non-controlling interest |
|              | 711 |   | Construction in progress |   |   | 313 |   | Retained earnings attributable to General Communication, Inc. common stockholders |
| $                 | 16,621 |   |   |   | $ | 16,621 |   |   |

----

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

| ·   | In August 2010, a GCI-owned aircraft was involved in an accident resulting in five fatalities and injuries to the remaining four passengers on board.  We had aircraft and liability insurance coverage in effect at the time of the accident.  As of September 30, 2012, all claims paid out have been covered by insurance and were recorded net of these recoveries in our Consolidated Income Statements.  Subsequent to September 30, 2012, final payments on all resolved claims were made and with the exception of any potential claims for environmental remediation, the claims related to the accident have been resolved within policy limits.  We cannot predict the likelihood or nature of any potential claims for environmental remediation. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | The order adopted on an interim basis a flat rate of $9.25 to replace the support previously available under Tier I through Tier III support mechanisms as defined by USAC.  The replacement support reduced the wireless subscriber per line support $0.75 and took effect in August 2012.  This change did not have a material impact on our income statement, financial position or cash flows.  The FCC intends to further investigate whether this support amount is reasonable over the long term in the further rulemaking. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The order adopted a requirement for annual recertification of all Lifeline subscribers enrolled as of June 1, 2012, to be completed by the end of 2012.  We have made significant progress toward completing the annual recertification process and do not expect this new rule to have a material impact on our income statement, financial position or cash flows. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

----

----

| ·   | The order adopted on an interim basis a flat rate of $9.25 to replace the support previously available under Tier I through Tier III support mechanisms as defined by USAC.  The replacement support reduced the wireless subscriber per line support $0.75 and took effect in August 2012.  The FCC intends to further investigate whether this support amount is reasonable over the long term in further rulemaking. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The order adopted a requirement for annual recertification of all Lifeline subscribers enrolled as of June 1, 2012, to be completed by the end of 2012.  We have made significant progress toward completing the annual recertification process. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                  |                       | 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,      | 2012     | September 30,     | 2012     |
|                                         |                                        |           | 2012          | 2011     | vs. 2011          | 2012     | 2011  | vs. 2011   |
|                                         |                                        |           |               |          |              |          |
| Income Statement Data:                       |                                        |           |               |          |              |
| Revenues:                                    |                                        |           |               |          |              |          |
|                                         |  Consumer segment                      | 49%            | 50%                | (3%)          | 50%               | 52%           | (1%)       |
|                                         |  Network Access segment                | 15%            | 17%                | (7%)          | 15%               | 16%           | (1%)       |
|                                         |  Commercial segment                    | 20%            | 20%                | 2%            | 20%               | 20%           | 3%         |
|                                         |  Managed Broadband segment             | 13%            | 10%                | 30%           | 12%               | 9%            | 38%        |
|                                         |  Regulated Operations segment          | 3%             | 3%                 | (11%)         | 3%                | 3%            | (4%)       |
|                                         |                                        | Total revenues | 100%               | 100%          | 0%                | 100%          | 100%       | 3%         |
| Selling, general and administrative expenses | 33%                                         | 31%            | 7%                 | 34%           | 34%               | 6%            |
| Depreciation and amortization expense        | 18%                                         | 17%            | 5%                 | 19%           | 18%               | 5%            |
| Operating income                             | 14%                                         | 18%            | (20%)              | 13%           | 15%               | (6%)          |
| Other expense, net                           | 9%                                          | 9%             | (1%)               | 10%           | 12%               | (16%)         |
| Income before income tax expense             | 5%                                          | 9%             | (42%)              | 4%            | 3%                | 36%           |
| Net income                                   | 2%                                          | 4%             | (51%)              | 2%            | 1%                | 30%           |
| Net income attributable to GCI               | 2%                                          | 4%             | (49%)              | 2%            | 1%                | 38%           |
|                                         |                                        |           |               |          |              |          |       |       |   |
|                                         | 1 Percentage change in underlying data |           |               |          |              |          |       |

|                           |   | Third Quarter of |   |   | Percentage |   |
|--------------------------------|--------|------------------|--------|--------|------------|--------|
|                           |   | 2012             |   |   | 2011       |   |   | Change |   |
| Voice                          |   | $                | 9,968  |   |       |   | 13,164 |   |   |   | (24 | %) |
| Video                          |   |             | 28,394 |   |       |   | 29,155 |   |   |   | (3 | %) |
| Data                           |   |             | 21,379 |   |       |   | 18,088 |   |   |   | 18 | % |
| Wireless                       |   |             | 27,066 |   |       |   | 28,860 |   |   |   | (6 | %) |
| Total Consumer segment revenue |   | $                | 86,807 |   |       |   | 89,267 |   |   |   | (3 | %) |

----

|                                      |   | Third Quarter of |   |   | Percentage |   |
|-------------------------------------------|--------|------------------|--------|--------|------------|--------|
|                                      |   | 2012             |   |   | 2011       |   |   | Change |   |
| Voice                                     |   | $                | 2,340  |   |       |   | 2,555 |   |   |   | (8 | %) |
| Video                                     |   |             | 12,668 |   |       |   | 12,994 |   |   |   | (3 | %) |
| Data                                      |   |             | 1,449  |   |       |   | 1,351 |   |   |   | 7 | % |
| Wireless                                  |   |             | 16,570 |   |       |   | 10,536 |   |   |   | 57 | % |
| Total Consumer segment Cost of Goods Sold |   | $                | 33,027 |   |       |   | 27,436 |   |   |   | 20 | % |

|                             |   | Third Quarter of |   |   | Percentage |   |
|----------------------------------|--------|------------------|--------|--------|------------|--------|
|                             |   | 2012             |   |   | 2011       |   |   | Change |   |
| Consumer segment Adjusted EBITDA |   | $                | 20,916 |   |       |   | 30,373 |   |   |   | (31 | %) |

|                                                                                                                                                                                                                                                                                                                                                                                     |   | September 30, |    |   | Percentage |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------|--------|------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                     |   | 2012          |    |   | 2011       |   |   | Change |   |
|  Voice:                                                                                                                                                                                                                                                                                                                                                                             |   |          |    |   |       |   |   |   |   |
| Total local access lines in service1                                                                                                                                                                                                                                                                                                                                                |   |          | 71,900  |   |       |   | 79,100 |   |   |   | (9 | %) |
| Local access lines in service on GCI facilities1                                                                                                                                                                                                                                                                                                                                    |   |          | 66,900  |   |       |   | 73,200 |   |   |   | (9 | %) |
|  Video:                                                                                                                                                                                                                                                                                                                                                                             |   |          |    |   |       |   |   |   |   |   |   |   |
| Basic subscribers2                                                                                                                                                                                                                                                                                                                                                                  |   |          | 122,200 |   |       |   | 126,400 |   |   |   | (3 | %) |
| Digital programming tier subscribers3                                                                                                                                                                                                                                                                                                                                               |   |          | 72,000  |   |       |   | 76,700 |   |   |   | (6 | %) |
| HD/DVR converter boxes4                                                                                                                                                                                                                                                                                                                                                             |   |          | 89,200  |   |       |   | 87,400 |   |   |   | 2 | % |
| Homes passed                                                                                                                                                                                                                                                                                                                                                                             |   |          | 248,400 |   |       |   | 239,800 |   |   |   | 4 | % |
| Average monthly revenue per subscriber5                                                                                                                                                                                                                                                                                                                                             |   | $             | 77.45   |   |       | $      | 76.85 |   |   |   | 1 | % |
|  Data:                                                                                                                                                                                                                                                                                                                                                                              |   |          |    |   |       |   |   |   |   |   |   |   |
| Cable modem subscribers6                                                                                                                                                                                                                                                                                                                                                            |   |          | 113,100 |   |       |   | 106,800 |   |   |   | 6 | % |
|  Wireless:                                                                                                                                                                                                                                                                                                                                                                          |   |          |    |   |       |   |   |   |   |   |   |   |
| Lifeline wireless lines in service7                                                                                                                                                                                                                                                                                                                                                 |   |          | 35,500  |   |       |   | 43,100 |   |   |   | (18 | %) |
| Non-Lifeline wireless lines in service8                                                                                                                                                                                                                                                                                                                                             |   |          | 87,300  |   |       |   | 82,700 |   |   |   | 6 | % |
| Average monthly revenue per subscriber9                                                                                                                                                                                                                                                                                                                                             |   | $             | 67.98   |   |       | $      | 72.60 |   |   |   | (6 | %) |
|                                                                                                                                                                                                                                                                                                                                                                                     |   |          |    |   |       |   |   |   |   |   |   |   |
| 1 A local access line in service is defined as a revenue generating circuit or channel connecting a customer to the public switched telephone network.                                                                                                                                                                                                                              |   |
| 2 A basic subscriber is defined as one basic tier of service delivered to an address or separate subunits thereof regardless of the number of outlets purchased.                                                                                                                                                                                                                    |   |
| 3 A digital programming tier subscriber is defined as one digital programming tier of service delivered to an address or separate subunits thereof regardless of the number of outlets or digital programming tiers purchased. Digital programming tier subscribers are a subset of basic subscribers.                                                                              |   |
| 4 A high-definition/digital video recorder ("HD/DVR") converter box is defined as one box rented by a digital programming or basic tier subscriber. A digital programming or basic tier subscriber is not required to rent an HD/DVR converter box to receive service.                                                                                                              |   |
| 5 Average monthly consumer video revenues divided by the average of consumer basic subscribers at the beginning and end of each month in the period.                                                                                                                                                                                                                                |   |
| 6 A cable modem subscriber is defined by the purchase of cable modem service regardless of the level of service purchased. If one entity purchases multiple cable modem service access points, each access point is counted as a subscriber. Cable modem subscribers may also be video basic subscribers though basic video service is not required to receive cable modem service. |   |
| 7 A Lifeline wireless line in service is defined as a revenue generating wireless device that is eligible for Lifeline support.                                                                                                                                                                                                                                                     |   |
| 8 A non-Lifeline wireless line in service is defined as a revenue generating wireless device that is not eligible for Lifeline support.                                                                                                                                                                                                                                             |   |
| 9 Average monthly consumer wireless revenues divided by the average of consumer Lifeline and non-Lifeline wireless subscribers at the beginning and end of each month in the period.                                                                                                                                                                                                |   |

----

| ·   | A 30% decrease in local service high cost support to $2.0 million due to the changes in the high cost support program as discussed above in the General Overview section of this Item 2, changes in the variables used to calculate our estimate and a decrease in subscribers, and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A 24% decrease in local service plan fee revenue to $3.8 million due to decreased subscribers and a rate decrease to one of our popular plans. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A 19% decrease in wireless high cost support to $8.0 million due to the changes in the high cost support program as discussed above in the General Overview section of this Item 2 and changes in the variables used to calculate our Remote high-cost estimate, and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A 22% decrease in Lifeline support to $3.2 million primarily due to decreased subscribers resulting from the recertification program started in June 2012 and discussed above in the General Overview section of this Item 2. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                 |   | Third Quarter of |   |   | Percentage |   |
|--------------------------------------|--------|------------------|--------|--------|------------|--------|
|                                 |   | 2012             |   |   | 2011       |   |   | Change |   |
| Voice                                |   | $                | 5,664  |   |       |   | 6,213 |   |   |   | (9 | %) |
| Data                                 |   |             | 14,093 |   |       |   | 17,140 |   |   |   | (18 | %) |
| Wireless                             |   |             | 7,718  |   |       |   | 6,114 |   |   |   | 26 | % |
| Total Network Access segment revenue |   | $                | 27,475 |   |       |   | 29,467 |   |   |   | (7 | %) |

|                                            |   | Third Quarter of |   |   | Percentage |   |
|-------------------------------------------------|--------|------------------|--------|--------|------------|--------|
|                                            |   | 2012             |   |   | 2011       |   |   | Change |   |
| Voice                                           |   | $                | 2,307  |   |       |   | 3,460 |   |   |   | (33 | %) |
| Data                                            |   |             | 3,433  |   |       |   | 5,697 |   |   |   | (40 | %) |
| Wireless                                        |   |             | 454    |   |       |   | 374 |   |   |   | 21 | % |
| Total Network Access segment Cost of Goods Sold |   | $                | 6,194  |   |       |   | 9,531 |   |   |   | (35 | %) |

|                                   |   | Third Quarter of |   |   | Percentage |   |
|----------------------------------------|--------|------------------|--------|--------|------------|--------|
|                                   |   | 2012             |   |   | 2011       |   |   | Change |   |
| Network Access segment Adjusted EBITDA |   | $                | 15,383 |   |       |   | 13,729 |   |   |   | 12 | % |

----

|                             |   | Third Quarter of |   |   | Percentage |   |
|----------------------------------|--------|------------------|--------|--------|------------|--------|
|                             |   | 2012             |   |   | 2011       |   |   | Change |   |
| Voice                            |   | $                | 6,896  |   |       |   | 7,137 |   |   |   | (3 | %) |
| Video                            |   |             | 3,142  |   |       |   | 2,830 |   |   |   | 11 | % |
| Data                             |   |             | 23,622 |   |       |   | 23,040 |   |   |   | 3 | % |
| Wireless                         |   |             | 2,548  |   |       |   | 2,565 |   |   |   | (1 | %) |
| Total Commercial segment revenue |   | $                | 36,208 |   |       |   | 35,572 |   |   |   | 2 | % |

|                                        |   | Third Quarter of |   |   | Percentage |   |
|---------------------------------------------|--------|------------------|--------|--------|------------|--------|
|                                        |   | 2012             |   |   | 2011       |   |   | Change |   |
| Voice                                       |   | $                | 2,434  |   |       |   | 3,001 |   |   |   | (19 | %) |
| Video                                       |   |             | 486    |   |       |   | 542 |   |   |   | (10 | %) |
| Data                                        |   |             | 11,906 |   |       |   | 12,522 |   |   |   | (5 | %) |
| Wireless                                    |   |             | 1,781  |   |       |   | 1,167 |   |   |   | 53 | % |
| Total Commercial segment Cost of Goods Sold |   | $                | 16,607 |   |       |   | 17,232 |   |   |   | (4 | %) |

|                               |   | Third Quarter of |   |   | Percentage |   |
|------------------------------------|--------|------------------|--------|--------|------------|--------|
|                               |   | 2012             |   |   | 2011       |   |   | Change |   |
| Commercial segment Adjusted EBITDA |   | $                | 9,892  |   |       |   | 9,117 |   |   |   | 9 | % |

|                                                                                                                                                                                                                                              |                                                   |   | September 30,      |   | Percentage         |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------|--------|--------------------|--------|--------------------|
|                                                                                                                                                                                                                                              |                                                   |   | 2012          |   | 2011          |   | Change |
|  Voice:                                                                                                                                                                                                                                      |                                                   |   |               |   |               |   |
|                                                                                                                                                                                                                                              | Total local access lines in service1              |   |  51,800  |   |  50,800  |   | 2% |
|                                                                                                                                                                                                                                              | Local access lines in service on GCI facilities1  |   |  30,500  |   |  27,200  |   | 12% |
|                                                                                                                                                                                                                                              |                                                   |   |               |   |               |   |
|  Data:                                                                                                                                                                                                                                       |                                                   |   |               |   |               |   |
|                                                                                                                                                                                                                                              | Cable modem subscribers2                          |   |  11,600  |   |  11,100  |   | 5% |
|                                                                                                                                                                                                                                              |                                                   |   |               |   |               |   |
|  Wireless:                                                                                                                                                                                                                                   |                                                   |   |               |   |               |   |
|                                                                                                                                                                                                                                              | Wireless lines in service3                        |   |  16,600  |   |  14,900  |   | 11% |
|                                                                                                                                                                                                                                              |                                                   |   |               |   |               |   |   |
| 1 A local access line in service is defined as a revenue generating circuit or channel connecting a customer to the public switched telephone network.                                                                                       |
| 2 A cable modem subscriber is defined by the purchase of cable modem service regardless of the level of service purchased. If one entity purchases multiple cable modem service access points, each access point is counted as a subscriber. |
| 3 A wireless line in service is defined as a revenue generating wireless device.                                                                                                                                                             |

----

| ·   | A $4.2 million increase in monthly contract revenue due to new ConnectMD® and SchoolAccess® customers and increased data network capacity purchased by our existing ConnectMD® and SchoolAccess® customers, and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A $1.1 million increase in product sales to our customers. |
|--------------------|------------------------------------------------------------|

|                                                                                                                                                        |                                                         |   | September 30,     |   | Percentage        |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------|--------|-------------------|--------|-------------------|
|                                                                                                                                                        |                                                         |   | 2012         |   | 2011         |   | Change |
|  Voice:                                                                                                                                                |                                                         |   |              |   |              |   |
|                                                                                                                                                        | Total local access lines in service on GCI facilities1  |   |  8,500  |   |  9,300  |   | (9%) |
|                                                                                                                                                        |                                                         |   |              |   |              |   |   |
| 1 A local access line in service is defined as a revenue generating circuit or channel connecting a customer to the public switched telephone network. |

----

| ·   | A $1.9 million increase in labor costs, |
|--------------------|-----------------------------------------|

| ·   | A $919,000 increase in share-based compensation expense, |
|--------------------|----------------------------------------------------------|

| ·   | A $599,000 increase in workers compensation expense, and |
|--------------------|----------------------------------------------------------|

| ·   | $456,000 in transaction costs related to the transactions described in the Wireless Agreement as discussed in the General Overview section of this Item 2. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                           |   |   |    |   | Percentage |   |
|--------------------------------|--------|--------|---------|--------|------------|--------|
|                           |   | 2012   |    |   | 2011       |   |   | Change |   |
| Voice                          |   | $      | 31,731  |   |       |   | 40,541 |   |   |   | (22 | %) |
| Video                          |   |   | 86,651  |   |       |   | 89,040 |   |   |   | (3 | %) |
| Data                           |   |   | 63,351  |   |       |   | 52,046 |   |   |   | 22 | % |
| Wireless                       |   |   | 81,381  |   |       |   | 84,611 |   |   |   | (4 | %) |
| Total Consumer segment revenue |   | $      | 263,114 |   |       |   | 266,238 |   |   |   | (1 | %) |

|                                      |   |   |   |   | Percentage |   |
|-------------------------------------------|--------|--------|--------|--------|------------|--------|
|                                      |   | 2012   |   |   | 2011       |   |   | Change |   |
| Voice                                     |   | $      | 6,982  |   |       |   | 8,194 |   |   |   | (15 | %) |
| Video                                     |   |   | 38,196 |   |       |   | 39,982 |   |   |   | (4 | %) |
| Data                                      |   |   | 4,295  |   |       |   | 4,265 |   |   |   | 1 | % |
| Wireless                                  |   |   | 42,759 |   |       |   | 30,314 |   |   |   | 41 | % |
| Total Consumer segment Cost of Goods Sold |   | $      | 92,232 |   |       |   | 82,755 |   |   |   | 11 | % |

|                             |   |   |   |   | Percentage |   |
|----------------------------------|--------|--------|--------|--------|------------|--------|
|                             |   | 2012   |   |   | 2011       |   |   | Change |   |
| Consumer segment Adjusted EBITDA |   | $      | 69,718 |   |       |   | 87,024 |   |   |   | (20 | %) |

|                                                                                                                                                                                      |   | September 30, |   |   | Percentage |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|--------|------------|--------|
|                                                                                                                                                                                      |   | 2012          |   |   | 2011       |   |   | Change |   |
|  Video:                                                                                                                                                                              |   |          |   |   |       |   |   |   |   |
| Average monthly revenue per subscriber1                                                                                                                                              |   | $             | 78.01  |   |       | $      | 77.06 |   |   |   | 1 | % |
|  Wireless:                                                                                                                                                                           |   |          |   |   |       |   |   |   |   |   |   |   |
| Average monthly revenue per subscriber2                                                                                                                                              |   | $             | 68.11  |   |       | $      | 70.89 |   |   |   | (4 | %) |
|                                                                                                                                                                                      |   |          |   |   |       |   |   |   |   |   |   |   |
| 1 Average monthly consumer video revenues divided by the average of consumer basic subscribers at the beginning and end of each month in the period.                                 |   |
| 2 Average monthly consumer wireless revenues divided by the average of consumer Lifeline and non-Lifeline wireless subscribers at the beginning and end of each month in the period. |   |

----

| ·   | A 29% decrease in local service high cost support to $6.2 million due to the changes in the high cost support program as discussed above in the General Overview section of this Item 2, changes in the variables used to calculate our estimate and a decrease in subscribers, |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A 21% decrease in local service plan fee revenue to $12.3 million due to decreased subscribers and a rate decrease to one of our popular plans, and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A 41% decrease in long distance usage revenue to $1.9 million due to the lower rates mandated by the Intrastate Access Reform which went into effect in the third quarter of 2011 along with our introduction of a popular new plan offering unlimited interstate and intrastate calling. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A 19% increase in cable modem revenue to $55.0 million due to increased subscribers and our subscribers’ selection of plans that offer higher speeds, and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A 78% increase in excess usage revenue to $5.8 million due to customers moving from plans with unlimited usage to plans with limited usage. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A 17% decrease in wireless high cost support to $23.8 million due to the changes in the high cost support program as discussed above in the General Overview section of this Item 2 and changes in the variables used to calculate our Remote high-cost estimate, and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A 12% decrease in Lifeline support revenue to $11.2 million primarily due to decreased subscribers resulting from the recertification program started in June 2012 and discussed above in the General Overview section of this Item 2. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                 |   |   |   |   | Percentage |   |
|--------------------------------------|--------|--------|--------|--------|------------|--------|
|                                 |   | 2012   |   |   | 2011       |   |   | Change |   |
| Voice                                |   | $      | 17,190 |   |       |   | 18,124 |   |   |   | (5 | %) |
| Data                                 |   |   | 41,858 |   |       |   | 47,135 |   |   |   | (11 | %) |
| Wireless                             |   |   | 19,632 |   |       |   | 14,456 |   |   |   | 36 | % |
| Total Network Access segment revenue |   | $      | 78,680 |   |       |   | 79,715 |   |   |   | (1 | %) |

|                                            |   |   |   |   | Percentage |   |
|-------------------------------------------------|--------|--------|--------|--------|------------|--------|
|                                            |   | 2012   |   |   | 2011       |   |   | Change |   |
| Voice                                           |   | $      | 6,990  |   |       |   | 9,841 |   |   |   | (29 | %) |
| Data                                            |   |   | 10,387 |   |       |   | 12,055 |   |   |   | (14 | %) |
| Wireless                                        |   |   | 1,026  |   |       |   | 876 |   |   |   | 17 | % |
| Total Network Access segment Cost of Goods Sold |   | $      | 18,403 |   |       |   | 22,772 |   |   |   | (19 | %) |

|                                   |   |   |   |   | Percentage |   |
|----------------------------------------|--------|--------|--------|--------|------------|--------|
|                                   |   | 2012   |   |   | 2011       |   |   | Change |   |
| Network Access segment Adjusted EBITDA |   | $      | 41,235 |   |       |   | 37,953 |   |   |   | 9 | % |

| ·   | A $2.3 million decrease from loss of a certain customer which had been leasing capacity to service a specific end-user.  This end-user’s service is now provided as a SchoolAccess® customer and its revenue is now reported in our Managed Broadband segment, and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Absence in 2012 of $1.9 million in revenue for special project work for a new customer recognized in 2011. |
|--------------------|------------------------------------------------------------------------------------------------------------|

----

|                             |   |   |    |   | Percentage |   |
|----------------------------------|--------|--------|---------|--------|------------|--------|
|                             |   | 2012   |    |   | 2011       |   |   | Change |   |
| Voice                            |   | $      | 20,786  |   |       |   | 22,050 |   |   |   | (6 | %) |
| Video                            |   |   | 9,498   |   |       |   | 8,606 |   |   |   | 10 | % |
| Data                             |   |   | 67,376  |   |       |   | 63,653 |   |   |   | 6 | % |
| Wireless                         |   |   | 7,355   |   |       |   | 7,308 |   |   |   | 1 | % |
| Total Commercial segment revenue |   | $      | 105,015 |   |       |   | 101,617 |   |   |   | 3 | % |

|                                        |   |   |   |   | Percentage |   |
|---------------------------------------------|--------|--------|--------|--------|------------|--------|
|                                        |   | 2012   |   |   | 2011       |   |   | Change |   |
| Voice                                       |   | $      | 7,568  |   |       |   | 10,514 |   |   |   | (28 | %) |
| Video                                       |   |   | 1,476  |   |       |   | 1,581 |   |   |   | (7 | %) |
| Data                                        |   |   | 34,051 |   |       |   | 33,660 |   |   |   | 1 | % |
| Wireless                                    |   |   | 4,714  |   |       |   | 3,275 |   |   |   | 44 | % |
| Total Commercial segment Cost of Goods Sold |   | $      | 47,809 |   |       |   | 49,030 |   |   |   | (2 | %) |

|                               |   |   |   |   | Percentage |   |
|------------------------------------|--------|--------|--------|--------|------------|--------|
|                               |   | 2012   |   |   | 2011       |   |   | Change |   |
| Commercial segment Adjusted EBITDA |   | $      | 26,958 |   |       |   | 23,180 |   |   |   | 16 | % |

| ·   | A $13.8 million increase in monthly contract revenue due to new ConnectMD® and SchoolAccess® customers and increased data network capacity purchased by our existing ConnectMD® and SchoolAccess® customers.  This revenue increase includes $2.3 million earned from a new customer previously purchasing service from another vendor. This vendor was a Network Access customer therefore this revenue increase is off-set by a corresponding decrease in our Network Access segment, |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A $2.0 million increase in product sales to our customers, and |
|--------------------|----------------------------------------------------------------|

| ·   | Recognition of $1.6 million in previously denied funding from the USAC for one ConnectMD® customer for the funding year July 2008 to June 2009.  We had appealed the funding denial and received notice during the second quarter of 2012 that our appeal was successful and the funding was reinstated. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | A $4.3 million increase in labor costs, |
|--------------------|-----------------------------------------|

| ·   | $2.5 million in transaction costs related to the transactions described in the Wireless Agreement as discussed in the General Overview section of this Item 2, |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | A $960,000 increase in contribution expense related to donated services to the University of Alaska, and |
|--------------------|----------------------------------------------------------------------------------------------------------|

| ·   | An $880,000 increase in employer-paid payroll taxes primarily due to a large number of restricted stock awards that vested in 2012 and increased labor costs. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                                 |   | 2012   |    |   | 2011   |   |
|------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Operating activities                                 |   | $      | 105,166 |   |   |   | 96,526 |   |
| Investing activities                                 |   |   | (97,135 | )      |   |   | (99,442 | ) |
| Financing activities                                 |   |   | (9,863  | )      |   |   | 4,480 |   |
| Net increase (decrease) in cash and cash equivalents |   | $      | (1,832  | )      |   |   | 1,564 |   |

----

----

----

| (c) The following table provides information about repurchases of shares of our Class A common stock during the quarter ended September 30, 2012: |
|---------------------------------------------------------------------------------------------------------------------------------------------------|

|                           |   | (a) Total Number of Shares Purchased1 |    |   | (b) Average Price Paid per Share |   |   | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs2 |   |   | (d) Maximum Number (or approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plan or Programs3 |   |
|--------------------------------|--------|---------------------------------------|---------|--------|----------------------------------|--------|--------|---------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------------------------------------------------------|--------|
| July 1, 2012 to 31-Jul-12      |   |                                  | 57      |   |                             | $      | 9.63   |                                                                                  |   |   | 57                                                                                                               |   |   | $ | 100,789,194 |   |
| August 1, 2012 to 31-Aug-12    |   |                                  | 108,446 |   |                             | $      | 8.89   |                                                                                  |   |   | 108,446                                                                                                          |   |   | $ | 99,825,549 |   |
| September 1, 2012 to 30-Sep-12 |   |                                  | 3,561   |   |                             | $      | 9.27   |                                                                                  |   |   | 2,641                                                                                                            |   |   | $ | 99,801,672 |   |
| Total                          |   |                                  | 112,064 |   |                             |   |   |                                                                                  |   |   |                                                                                                             |   |   |   |   |   |
|                           |   |                                  |    |   |                             |   |   |                                                                                  |   |   |                                                                                                             |   |   |   |   |   |

----

| 1 Consists of 110,930 shares from open market purchases made under our publicly announced repurchase plan, 214 shares from private purchases made under our publicly announced repurchase plan and 920 shares from private purchases made to settle the minimum statutory tax-withholding requirements pursuant to restricted stock award vesting.                                                                                                                                                                                                                                                        |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| 2 The repurchase plan was publicly announced on November 3, 2004. Our plan does not have an expiration date, however transactions pursuant to the plan are subject to periodic approval by our Board of Directors. We expect to continue the repurchases for an indefinite period dependent on leverage, liquidity, company performance and market conditions and subject to continued oversight by our Board of Directors.                                                                                                                                                                               |   |
| 3 The total amount approved by our Board of Directors for repurchase under our publicly announced repurchase plan was $312.1 million through September 30, 2012, consisting of $305.2 million through June 30, 2012, and an additional $6.9 million during the three months ended September 30, 2012. We have made total repurchases under the program of $212.3 million through September 30, 2012. If stock repurchases are less than the total approved quarterly amount the difference may be carried forward and used to repurchase additional shares in future quarters, subject to board approval. |   |

----

| 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 Senior Vice President, |
|              |                                                                                 | Chief Financial Officer, Secretary and Treasurer * |
| 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 Senior Vice President, |
|              |                                                                                 | Chief Financial Officer, Secretary and Treasurer * |
| 101          | The following materials from General Communication, Inc.'s Quarterly Report on Form  |
|              |                                                                                 | 10-Q for the quarter ended September 30, 2012, formatted in XBRL (eXtensible |
|              |                                                                                 | Business Reporting Language): (i) Consolidated Balance Sheets; (ii) Consolidated |
|              |                                                                                 | Income Statements; (iii) Consolidated Statements of Stockholders' Equity; |
|              |                                                                                 | (iv) Consolidated Statements of Cash Flows; and (v) Condensed Notes to Interim |
|              |                                                                                 | Consolidated  Financial Statements. * |
|              |                                                                                 |   |   |
|              |                                                                                 |   |   |
| * Filed herewith. |                                                                                 |   |   |
|              |                                                                                 |   |   |

----

| Signature                  |   | Title                                                         |   | Date                    |
|----------------------------|--------|---------------------------------------------------------------|--------|-------------------------|
|                       |   |                                                          |   |                    |
|                       |   |                                                          |   |                    |
| /s/ Ronald A. Duncan  |   | President and Director                                        |   |   November 8, 2012 |
| Ronald A. Duncan           |   | (Principal Executive Officer)                                 |   |                    |
|                       |   |                                                          |   |                    |
| /s/ John M. Lowber    |   | Senior Vice President, Chief Financial                        |   |   November 8, 2012 |
| John M. Lowber             |   | Officer, Secretary and Treasurer(Principal Financial Officer) |   |                    |
|                       |   |                                                          |   |                    |
| /s/ Lynda L. Tarbath  |   | Vice President, Chief Accounting                              |   |   November 8, 2012 |
| Lynda L. Tarbath           |   | Officer (Principal Accounting Officer)                        |   |                    |

----