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

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

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

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

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

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

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

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

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

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

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

----

|                                                      |                                                 |                                                                  |      |   | Page No.  |
|-----------------------------------------------------------|------------------------------------------------------|-----------------------------------------------------------------------|-----------|--------|-----------|
|                                                      |                                                 |                                                                  |      |   |      |
| Cautionary Statement Regarding Forward-Looking Statements |   3                                             |
|                                                      |                                                 |                                                                  |      |   |      |
| Part I.  FINANCIAL INFORMATION                  |                                                 |
|                                                      |                                                 |                                                                  |      |   |      |
|                                                      | Item I.                                              | Financial Statements                                                  |      |   |      |
|                                                      |                                                 |                                                                  |      |   |      |
|                                                      |                                                 | Consolidated Balance Sheets (unaudited) as of September 30, 2009 and  |      |   |      |
|                                                      |                                                 |   December 31, 2008                                         |      |   |   4  |
|                                                      |                                                 |                                                                  |      |   |      |
|                                                      |                                                 | Consolidated Income Statements for the three and nine months ended    |      |   |      |
|                                                      |                                                 |   September 30, 2009 (unaudited) and 2008 (unaudited)       |      |   |   6  |
|                                                      |                                                 |                                                                  |      |   |      |
|                                                      |                                                 | Consolidated Statements of Cash Flows for the nine months             |      |   |      |
|                                                      |                                                 |   ended September 30, 2009 (unaudited) and 2008 (unaudited) |      |   |   7  |
|                                                      |                                                 |                                                                  |      |   |      |
|                                                      |                                                 | Notes to Interim Consolidated Financial Statements (unaudited)        |      |   |   8  |
|                                                      |                                                 |                                                                  |      |   |      |
|                                                      | Item 2.                                              | Management’s Discussion and Analysis of Financial Condition     |      |   |      |
|                                                      |                                                 |   and Results of Operations                                 |      |   |   23 |
|                                                      |                                                 |                                                                  |      |   |      |
|                                                      | Item 3.                                              | Quantitative and Qualitative Disclosures About Market Risk            |      |   |   46 |
|                                                      |                                                 |                                                                  |      |   |      |
|                                                      | Item 4.                                              | Controls and Procedures                                               |      |   |   46 |
|                                                      |                                                 |                                                                  |      |   |      |
| Part II.  OTHER INFORMATION                     |                                                 |                                                                  |      |
|                                                      |                                                 |                                                                  |      |   |      |
|                                                      | Item 1.                                              | Legal Proceedings                                                     |      |   |   48 |
|                                                      |                                                 |                                                                  |      |   |      |
|                                                      | Item 6.                                              | Exhibits                                                              |      |   |   49 |
|                                                      |                                                 |                                                                  |      |   |      |
|                                                      | Other items are omitted, as they are not applicable. |                                                                  |      |
|                                                      |                                                 |                                                                  |      |   |      |
| SIGNATURES                                                |                                                 |                                                                  |   50 |

----

----

| (Amounts in thousands)                                    |   | September 30, |      |   | December 31, |   |
|-----------------------------------------------------------|--------|---------------|-----------|--------|--------------|--------|
| ASSETS                                                    |   | 2009          |      |   | 2008         |   |
|                                                      |   |          |      |   |         |   |
| Current assets:                                           |   |          |      |   |         |   |
| Cash and cash equivalents                                 |   | $             | 21,893    |   |         |   | 29,693 |   |
|                                                      |   |          |      |   |         |   |   |   |
| Receivables                                               |   |          | 133,405   |   |         |   | 113,136 |   |
| Less allowance for doubtful receivables                   |   |          | 5,757     |   |         |   | 2,582 |   |
| Net receivables                                           |   |          | 127,648   |   |         |   | 110,554 |   |
|                                                      |   |          |      |   |         |   |   |   |
| Deferred income taxes                                     |   |          | 13,847    |   |         |   | 7,843 |   |
| Inventories                                               |   |          | 8,111     |   |         |   | 7,085 |   |
| Prepaid expenses                                          |   |          | 5,046     |   |         |   | 5,960 |   |
| Investment securities                                     |   |          | 905       |   |         |   | 1,563 |   |
| Other current assets                                      |   |          | 4,411     |   |         |   | 647 |   |
| Total current assets                                      |   |          | 181,861   |   |         |   | 163,345 |   |
|                                                      |   |          |      |   |         |   |   |   |
| Property and equipment in service, net of depreciation    |   |          | 815,450   |   |         |   | 793,051 |   |
| Construction in progress                                  |   |          | 30,026    |   |         |   | 54,098 |   |
| Net property and equipment                                |   |          | 845,476   |   |         |   | 847,149 |   |
|                                                      |   |          |      |   |         |   |   |   |
| Cable certificates                                        |   |          | 191,565   |   |         |   | 191,565 |   |
| Goodwill                                                  |   |          | 68,586    |   |         |   | 66,868 |   |
| Wireless licenses                                         |   |          | 25,967    |   |         |   | 25,967 |   |
| Other intangible assets, net of amortization              |   |          | 19,135    |   |         |   | 22,976 |   |
| Deferred loan and senior notes costs, net of amortization |   |          | 5,561     |   |         |   | 6,496 |   |
| Other assets                                              |   |          | 20,413    |   |         |   | 10,724 |   |
| Total other assets                                        |   |          | 331,227   |   |         |   | 324,596 |   |
| Total assets                                              |   | $             | 1,358,564 |   |         |   | 1,335,090 |   |

----

| (Amounts in thousands, except share amounts)                                                                                           |   | September 30, |      |   | December 31, |   |
|----------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-----------|--------|--------------|--------|
| LIABILITIES AND STOCKHOLDER'S EQUITY                                                                                                   |   | 2009          |      |   | 2008         |   |
|                                                                                                                                   |   |          |      |   |         |   |
| Current liabilities:                                                                                                                   |   |          |      |   |         |   |
| Current maturities of obligations under long-term debt and capital leases                                                              |   | $             | 13,215    |   |         |   | 12,857 |   |
| Accounts payable                                                                                                                       |   |          | 29,743    |   |         |   | 40,497 |   |
| Deferred revenue                                                                                                                       |   |          | 22,021    |   |         |   | 22,095 |   |
| Accrued payroll and payroll related obligations                                                                                        |   |          | 20,287    |   |         |   | 22,632 |   |
| Accrued liabilities                                                                                                                    |   |          | 10,203    |   |         |   | 11,043 |   |
| Accrued interest                                                                                                                       |   |          | 2,973     |   |         |   | 10,224 |   |
| Subscriber deposits                                                                                                                    |   |          | 1,507     |   |         |   | 1,262 |   |
| Total current liabilities                                                                                                              |   |          | 99,949    |   |         |   | 120,610 |   |
|                                                                                                                                   |   |          |      |   |         |   |   |   |
| Long-term debt                                                                                                                         |   |          | 732,336   |   |         |   | 708,406 |   |
| Obligations under capital leases, excluding current maturities                                                                         |   |          | 90,499    |   |         |   | 94,029 |   |
| Obligation under capital lease due to related party, excluding current maturity                                                        |   |          | 1,874     |   |         |   | 1,868 |   |
| Deferred income taxes                                                                                                                  |   |          | 98,713    |   |         |   | 86,187 |   |
| Long-term deferred revenue                                                                                                             |   |          | 50,017    |   |         |   | 49,998 |   |
| Other liabilities                                                                                                                      |   |          | 16,940    |   |         |   | 15,288 |   |
| Total liabilities                                                                                                                      |   |          | 1,090,328 |   |         |   | 1,076,386 |   |
|                                                                                                                                   |   |          |      |   |         |   |   |   |
| Commitments and contingencies                                                                                                          |   |          |      |   |         |   |   |   |
| Stockholder's equity:                                                                                                                  |   |          |      |   |         |   |   |   |
| Class A common stock (no par). Authorized 10,000 shares; issued and outstanding 100 shares at September 30, 2009 and December 31, 2008 |   |          | 206,622   |   |         |   | 206,622 |   |
| Paid-in capital                                                                                                                        |   |          | 47,980    |   |         |   | 45,468 |   |
| Retained earnings                                                                                                                      |   |          | 13,634    |   |         |   | 6,614 |   |
| Total stockholders’ equity                                                                                                       |   |          | 268,236   |   |         |   | 258,704 |   |
| Total liabilities and stockholder’s equity                                                                                       |   | $             | 1,358,564 |   |         |   | 1,335,090 |   |

|   | See accompanying notes to interim consolidated financial statements. |
|--------|----------------------------------------------------------------------|

----

|                                                                                   |   | Three Months Ended |    |   | Nine Months Ended |   |
|----------------------------------------------------------------------------------------|--------|--------------------|---------|--------|-------------------|--------|
|                                                                                   |   | September 30,      |    |   | September 30,     |   |
| (Amounts in thousands)                                                                 |   | 2009               |    |   | 2008              |   |   | 2009 |   |   | 2008 |   |
| Revenues                                                                               |   | $                  | 150,816 |   |              |   | 151,660 |   |   |   | 448,301 |   |   |   | 428,795 |   |
|                                                                                   |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Cost of goods sold (exclusive of depreciation and amortization shown separately below) |   |               | 50,167  |   |              |   | 50,401 |   |   |   | 145,372 |   |   |   | 154,160 |   |
| Selling, general and administrative expenses                                           |   |               | 49,045  |   |              |   | 56,410 |   |   |   | 157,350 |   |   |   | 151,076 |   |
| Depreciation and amortization expense                                                  |   |               | 30,874  |   |              |   | 28,869 |   |   |   | 92,778 |   |   |   | 83,820 |   |
| Operating income                                                                       |   |               | 20,730  |   |              |   | 15,980 |   |   |   | 52,801 |   |   |   | 39,739 |   |
|                                                                                   |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expense):                                                                |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense (including amortization of deferred loan fees)                        |   |               | (13,176 | )      |              |   | (14,134 | ) |   |   | (39,096 | ) |   |   | (34,820 | ) |
| Interest income                                                                        |   |               | 49      |   |              |   | 386 |   |   |   | 68 |   |   |   | 869 |   |
| Other expense, net                                                                     |   |               | (13,127 | )      |              |   | (13,748 | ) |   |   | (39,028 | ) |   |   | (33,951 | ) |
| Income before income tax expense                                                       |   |               | 7,603   |   |              |   | 2,232 |   |   |   | 13,773 |   |   |   | 5,788 |   |
| Income tax expense                                                                     |   |               | 3,267   |   |              |   | 1,548 |   |   |   | 6,519 |   |   |   | 4,758 |   |
|                                                                                   |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                             |   |               | 4,336   |   |              |   | 684 |   |   |   | 7,254 |   |   |   | 1,030 |   |
|                                                                                   |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Net (income) loss attributable to the non-controlling interest                         |   |               | ---     |   |              |   | (419 | ) |   |   | --- |   |   |   | 1,503 |   |
|                                                                                   |   |               |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Net income attributable to GCI, Inc.                                                   |   | $                  | 4,336   |   |              |   | 265 |   |   |   | 7,254 |   |   |   | 2,533 |   |

----

| (Amounts in thousands)                                                                                                        |   |   | 2009    |   | 2008     |   |
|-------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|----------|--------|
| Cash flows from operating activities:                                                                                         |   |   |    |   |     |   |
| Net income                                                                                                                    |   | $      | 7,254   |   | 1,030    |   |
| Adjustments to reconcile net income to net cash provided  by operating activities (net of effects of acquisitions): |   |   |    |   |     |   |
| Depreciation and amortization expense                                                                                         |   |   | 92,778  |   | 83,820   |   |
| Deferred income tax expense                                                                                                   |   |   | 6,519   |   | 3,426    |   |
| Share-based compensation expense                                                                                              |   |   | 1,897   |   | 5,547    |   |
| Other noncash income and expense items                                                                                        |   |   | 6,850   |   | 6,720    |   |
| Change in operating assets and liabilities, net of effect of acquisition                                                      |   |   | (48,046 | )      | 32,193   |   |
| Net cash provided by operating activities                                                                                     |   |   | 67,252  |   | 132,736  |   |
|                                                                                                                          |   |   |    |   |     |   |
| Cash flows from investing activities:                                                                                         |   |   |    |   |     |   |
| Purchases of property and equipment                                                                                           |   |   | (92,989 | )      | (172,572 | )      |
| Proceeds from sale of marketable securities                                                                                   |   |   | 613     |   | 1,226    |   |
| Purchase of marketable securities                                                                                             |   |   | (305    | )      | (879)    |   |
| Purchase of business, net of cash received                                                                                    |   |   | (108    | )      | (64,945  | )      |
| Purchases of other assets and intangible assets                                                                               |   |   | (2,513  | )      | (5,115   | )      |
| Net cash used in investing activities                                                                                         |   |   | (95,302 | )      | (242,285 | )      |
|                                                                                                                          |   |   |    |   |     |   |
| Cash flows from financing activities:                                                                                         |   |   |    |   |     |   |
| Borrowing on Senior Credit Facility                                                                                           |   |   | 30,000  |   | 132,100  |   |
| Repayment of debt and capital lease obligations                                                                               |   |   | (9,516  | )      | (3,996   | )      |
| Issuance of long-term debt                                                                                                    |   |   | ---     |   | 2,161    |   |
| Payment of debt issuance costs                                                                                                |   |   | ---     |   | (1,662   | )      |
| Net contribution from (distribution to) General Communication, Inc.                                                           |   |   | (234    | )      | 280      |   |
| Net cash provided by financing activities                                                                                     |   |   | 20,250  |   | 128,883  |   |
| Net increase (decrease) in cash and cash equivalents                                                                          |   |   | (7,800  | )      | 19,334   |   |
| Cash and cash equivalents at beginning of period                                                                              |   |   | 29,693  |   | 13,074   |   |
|                                                                                                                          |   |   |    |   |     |   |
| Cash and cash equivalents at end of period                                                                                    |   | $      | 21,893  |   | 32,408   |   |

----

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

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

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

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

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

|   | · | Long-distance telephone service between Alaska and the remaining United States and foreign countries, |
|--------|--------|-------------------------------------------------------------------------------------------------------|

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

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

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

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

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

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

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

|   | · | Lease, service arrangements and maintenance of capacity on our fiber optic cable systems used in the transmission of interstate and intrastate data, switched message long-distance and Internet services within Alaska and between Alaska and the remaining United States and foreign countries, and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Distribution of white and yellow pages directories to residential and business customers in certain markets we serve and on-line directory products. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|   | The consolidated financial statements include the consolidated accounts of GCI, Inc. and its wholly-owned subsidiaries, as well as a variable interest entity in which we were the primary beneficiary prior to August 18, 2008 when we acquired the remaining 18.1% equity interest and voting control of Alaska DigiTel. All significant intercompany transactions between non-regulated affiliates of our company are eliminated.   Intercompanyrevenue and expenses generated between regulated and non-regulated affiliates of the company are not eliminated in consolidation |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

----

|   | (e) | Goodwill |
|--------|-----|----------|

preferable under the circumstances and will not result in adjustments to ourfinancial statements.  The annual impairment test was last performed as of December 31, 2008 and will be performed again as of October 31, 2009, therefore, less than 12 months will have elapsed since our last impairment test. 

|   | (f) | Regulatory Accounting and Regulation |
|--------|-----|--------------------------------------|

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

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

----

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

|   | (i) | Investment Securities |
|--------|-----|-----------------------|

| Balance at December 31, 2007                                                                                                                                            |   | $      | 4,173  |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
| Liability incurred                                                                                                                                                      |   |   | 644    |   |
| Accretion expense for the nine months endedSeptember 30, 2008                                                                                                           |   |   | 123    |   |
| Additions upon acquisition of United Utilities Inc. (“UUI”), Unicom, Inc. (“Unicom”) , and Alaska Wireless, LLC (“Alaska Wireless”) |   |   | 803    |   |
| Liability settled                                                                                                                                                       |   |   | (165   | )      |
| Balance at September 30, 2008                                                                                                                                           |   | $      | 5,578  |   |
|                                                                                                                                                                    |   |   |   |   |
| Balance at December 31, 2008                                                                                                                                            |   | $      | 6,179  |   |
| Liability incurred                                                                                                                                                      |   |   | 957    |   |
| Accretion expense for the nine months endedSeptember 30, 2009                                                                                                           |   |   | 352    |   |
| Liability settled                                                                                                                                                       |   |   | (34    | )      |
| Balance at September 30, 2009                                                                                                                                           |   | $      | 7,454  |   |

|   | (k) | Derivatives |
|--------|-----|-------------|

----

|               | Number of Contracts |   | Notional Value | Balance Sheet Location |   | Fair Value   |   |
|--------------------|---------------------|--------|----------------|------------------------|--------|--------------|--------|
| Interest rate caps | 2                   |   | $              | 180,000                |   | Other Assets |   | $ | 1 |   |

|                                              |                               |   | Amount of Gain (Loss) Recognized |   |
|---------------------------------------------------|------------------------------------|--------|----------------------------------|--------|
|                                              |                               |   | Three Months Ended September 30, |   |   | Nine Months Ended September 30, |   |
| Derivatives not designated as hedging instruments | Location of Gain (Loss) Recognized |   | 2009                             |   |   | 2008 |   |   | 2009 |   |   | 2008 |   |
| Interest rate caps                                | Interest expense                   |   | $                                | (8     | ) |   |   | (519 | ) |   |   | (6 | ) |   |   | (519 | ) |

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

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

----

|                      |   | Three Months Ended |   | Nine Months Ended |   |
|---------------------------|--------|--------------------|--------|-------------------|--------|
|                      |   | September 30, |   | September 30,     |   |
|                      |   | 2009               |   | 2008              |   | 2009 |   | 2008 |   |
| Surcharges reported gross | $      | 1,241              |   |              | 1,070  |   | 3,224 |   |   | 3,081 |   |

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

|   | Change in operating assets and liabilities, net of effect of acquisitions, consists of (amounts in thousands): |
|--------|----------------------------------------------------------------------------------------------------------------|

| Nine month period ended September 30,                                  |   | 2009   |    |   | 2008   |   |
|------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Increase in accounts receivable                                        |   | $      | (19,695 | )      |   |   | (3,014 | ) |
| Decrease in prepaid expenses                                           |   |   | 1,288   |   |   |   | 1,026 |   |
| Increase in inventories                                                |   |   | (960    | )      |   |   | (1,759 | ) |
| Increase in other current assets                                       |   |   | (3,874  | )      |   |   | (118 | ) |
| Increase in other assets                                               |   |   | (11,251 | )      |   |   | --- |   |
| Decrease in accounts payable                                           |   |   | (2,261  | )      |   |   | (1,484 | ) |
| Increase (decrease) in deferred revenues                               |   |   | (170    | )      |   |   | 3,668 |   |
| Increase (decrease) in accrued payroll and payroll related obligations |   |   | (2,471  | )      |   |   | 1,191 |   |
| Increase (decrease) in accrued liabilities                             |   |   | (840    | )      |   |   | 3,209 |   |
| Decrease in accrued interest                                           |   |   | (7,251  | )      |   |   | (6,021 | ) |
| Increase (decrease) in subscriber deposits                             |   |   | 245     |   |   |   | (35 | ) |
| Increase (decrease) in long-term deferred revenue                      |   |   | (1,562  | )      |   |   | 36,272 |   |
| Increase (decrease) in components of other long-term liabilities       |   |   | 756     |   |   |   | (742 | ) |
|                                                                   |   | $      | (48,046 | )      |   |   | 32,193 |   |

----

|   | During the nine months ended September 30, 2008, we financed $98.6 million for the use of satellite transponders through a capital lease obligation.  We also financed $1.3 million in capital expenditures through the extension of a previously existing capital lease. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | In May 2008, we received net cash of $110.6 million from a $145.0 million term loan that we obtained. We used $30.0 million of the term loan to repay the revolver portion of our Senior Credit Facility and our loan proceeds were reduced by $2.9 million for an original issue discount and $1.6 million for bank and legal fees associated with the new term loan.  Additionally, during the nine months ended September 30, 2008we borrowed $20.0 million on the revolver portion of our Senior Credit Facility. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | We had $4.0 million and $15.1 million in non-cash additions to property and equipment due to unpaid purchases as of September 30, 2009 and 2008, respectively. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

|                 |   | Three Months Ended |   | Nine Months Ended  |   |
|----------------------|--------|--------------------|--------|--------------------|--------|
|                 |   | September 30,      |   | September 30, |   |
|                 |   | 2009               |   | 2008               |   | 2009 |   | 2008 |   |
| Amortization expense | $      | 1,939              |   |               | 1,749  |   | 5,709 |   |   | 3,829 |   |

| Years Ending December 31, |   |   |   |
|---------------------------|--------|--------|--------|
| 2009                      |   | $      | 7,666  |   |
| 2010                      |   |   | 5,845  |   |
| 2011                      |   |   | 3,777  |   |
| 2012                      |   |   | 2,829  |   |
| 2013                      |   |   | 1,553  |   |

|   | For the period from January 1, 2009 to September 30, 2009, the U.S. economy has been experiencing the effects of a recession.  Should economic conditions in the State of Alaska and other indicators deteriorate such that they impact our ability to achieve levels of forecasted operating results and cash flows, should our stock price and market capitalization decline below our book value for a sustained period of time,or should other events occur indicating the carrying value of goodwill and intangible assets might be impaired, we would test our goodwill and intangible assets for impairment at that time and may recognize an impairment loss to the extent that the carrying amount exceeds such asset's fair value.  Any future impairment charges could have a material adverse effect on our results of operations. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

|                                                     |   | 2009            |   | 2008       |    |
|----------------------------------------------------------|--------|-----------------|--------|------------|---------|
|                                                     |   | Carrying Amount |   | Fair Value |    | Carrying Amount |   | Fair Value |   |
| Current and long-term debt and capital lease obligations | $      | 837,924         |   |       | 790,408 |   | 814,199 |   |   | 730,689 |   |
| Other liabilities                                        |   | 65,709          |   |       | 65,466  |   | 51,132 |   |   | 50,936 |   |

|   | Current and long-term debt and capital lease obligations:  The fair value of our Senior Notes is estimated based on the quoted market price for the same issue. The fair value of our Senior Credit Facility is estimated to approximate the carrying value because these instruments are subject to variable interest rates. The fair value of the CoBank Mortgage Note Payable is valued at the discounted amount of future cashflows using our current incremental rate of borrowing on our Senior Credit Facility.  The fair value of the Rural Utilities Services Debt is valued at the discounted amount of future cash flows using a treasury rate that corresponds to the remaining term of the loan.  The fair value of our capital leases and capital lease due to related party are estimated based upon the discounted amount of future cash flows using our current incremental rate of borrowing on our Senior Credit Facility. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Other Liabilities:  Deferred compensation liabilities have no defined maturity dates, therefore the fair value is the amount payable on demand as of the balance sheet date. Asset retirement obligations are recorded at their fair value and, over time, the liability is accreted to its present value each period. Lease escalation liabilities are valued at the discounted amount of future cash flows using the Senior CreditFacility interest rate at September 30, 2009. Our non-employee share-based compensation awards are reported at their fair value at each reporting period. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Fair Value Measurements |
|--------|-------------------------|

----

|                                                   |    |                                  |   | Fair Value Measurement at Reporting Date Using               |   |
|--------------------------------------------------------|---------|---------------------------------------|--------|--------------------------------------------------------------|--------|
| Description                                            |    | Balance as of September 30, 2009 |   | Quoted Prices in Active Marketsfor IdenticalAssets (Level 1) |   | Significant Other Observable Inputs (Level 2) |   | Significant Unobservable Inputs (Level 3) |   |
| Trading securities:                                    |    |                                  |   |                                                         |   |   |   |   |   |
| Money market funds                                     | $  | 7                                     |   | 7                                                            |   | --- |   | --- |   |
| U.S. treasury notes                                    |    | 423                                   |   | 423                                                          |   | --- |   | --- |   |
| U.S. government securities                             |    | 475                                   |   | 475                                                          |   | --- |   | --- |   |
| Deferred compensation plan assets (money market funds) |    | 1,451                                 |   | 1,451                                                        |   | --- |   | --- |   |
| Derivative financial instruments                       |    | 1                                     |   | ---                                                          |   | 1 |   | --- |   |
| Total assets at fair value                             | $  | 2,357                                 |   | 2,356                                                        |   | 1 |   | --- |   |

----

----

|                                                                  |   | Shares(in thousands) |   |   | WeightedAverageExercise Price |   |
|-----------------------------------------------------------------------|--------|----------------------|--------|--------|-------------------------------|--------|
| Outstanding options and restricted stock awards at December 31, 2008  |   |                 | 7,205  |   |                          | $      | 9.08 |   |
|                                                                  |   |                 |   |   |                          |   |   |   |
| Options granted                                                       |   |                 | 153    |   |                          | $      | 6.65 |   |
| Restricted stock awards granted                                       |   |                 | 1,941  |   |                          | $      | 4.44 |   |
| Options exercised                                                     |   |                 | (69    | )      |                          | $      | 5.76 |   |
| Restricted stock awards vested                                        |   |                 | (128   | )      |                          | $      | 11.23 |   |
| Options forfeited and retired                                         |   |                 | (5,257 | )      |                          | $      | 9.35 |   |
| Outstanding options and restricted stock awards at September 30, 2009 |   |                 | 3,845  |   |                          | $      | 6.29 |   |
|                                                                  |   |                 |   |   |                          |   |   |   |
| Available for grant at September 30, 2009                             |   |                 | 4,113  |   |                          |   |   |   |

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

----

| Three months ended September 30, |   | Consumer |   |   | Network Access |   |   | Commercial |   |   | Managed Broadband |   |   | Regulated Operations |   |   | Total Reportable Segments |   |
|----------------------------------|--------|----------|--------|--------|----------------|--------|--------|------------|--------|--------|-------------------|--------|--------|----------------------|--------|--------|---------------------------|--------|
| 2009                             |   |     |   |   |           |   |   |       |   |   |              |   |   |                 |   |   |                      |   |
| Revenues:                        |   |     |   |   |           |   |   |       |   |   |              |   |   |                 |   |   |                      |   |
| Intersegment                     |   | $        | ---    |   |           |   | 76     |       |   |   | 1,371             |   |   |                 | ---    |   |                      |   | 50 |   |   |   | 1,497 |   |
| External                         |   |     | 75,021 |   |           |   | 30,263 |       |   |   | 27,780            |   |   |                 | 11,715 |   |                      |   | 6,037 |   |   |   | 150,816 |   |
| Total revenues                   |   | $        | 75,021 |   |           |   | 30,339 |       |   |   | 29,151            |   |   |                 | 11,715 |   |                      |   | 6,087 |   |   |   | 152,313 |   |
| Adjusted EBITDA                  |   | $        | 23,234 |   |           |   | 14,084 |       |   |   | 6,154             |   |   |                 | 5,501  |   |                      |   | 1,299 |   |   |   | 50,272 |   |
|                             |   |     |   |   |           |   |   |       |   |   |              |   |   |                 |   |   |                      |   |   |   |   |   |   |   |
| 2008                             |   |     |   |   |           |   |   |       |   |   |              |   |   |                 |   |   |                      |   |   |   |   |   |   |   |
| Revenues:                        |   |     |   |   |           |   |   |       |   |   |              |   |   |                 |   |   |                      |   |   |   |   |   |   |   |
| Intersegment                     |   | $        | 33     |   |           |   | 336    |       |   |   | 1,428             |   |   |                 | ---    |   |                      |   | --- |   |   |   | 1,797 |   |
| External                         |   |     | 66,485 |   |           |   | 38,778 |       |   |   | 30,166            |   |   |                 | 10,293 |   |                      |   | 5,938 |   |   |   | 151,660 |   |
| Total revenues                   |   | $        | 66,518 |   |           |   | 39,114 |       |   |   | 31,594            |   |   |                 | 10,293 |   |                      |   | 5,938 |   |   |   | 153,457 |   |
| Adjusted EBITDA                  |   | $        | 18,275 |   |           |   | 17,869 |       |   |   | 6,045             |   |   |                 | 4,255  |   |                      |   | 1,320 |   |   |   | 47,764 |   |

| Nine months ended September 30, |   | Consumer |    |   | Network Access |   |   | Commercial |   |   | Managed Broadband |   |   | Regulated Operations |   |   | Total Reportable Segments |   |
|---------------------------------|--------|----------|---------|--------|----------------|--------|--------|------------|--------|--------|-------------------|--------|--------|----------------------|--------|--------|---------------------------|--------|
| 2009                            |   |     |    |   |           |   |   |       |   |   |              |   |   |                 |   |   |                      |   |
| Revenues:                       |   |     |    |   |           |   |   |       |   |   |              |   |   |                 |   |   |                      |   |
| Intersegment                    |   | $        | ---     |   |           |   | 459    |       |   |   | 4,309             |   |   |                 | ---    |   |                      |   | 154 |   |   |   | 4,922 |   |
| External                        |   |     | 219,139 |   |           |   | 94,582 |       |   |   | 82,683            |   |   |                 | 33,323 |   |                      |   | 18,574 |   |   |   | 448,301 |   |
| Total revenues                  |   | $        | 219,139 |   |           |   | 95,041 |       |   |   | 86,992            |   |   |                 | 33,323 |   |                      |   | 18,728 |   |   |   | 453,223 |   |
| Adjusted EBITDA                 |   | $        | 64,304  |   |           |   | 46,674 |       |   |   | 17,047            |   |   |                 | 14,777 |   |                      |   | 5,154 |   |   |   | 147,956 |   |

----

|            |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |    |   |
|-----------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------|--------|
| 2008            |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Revenues:       |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Intersegment    |   | $      | 50      |   |   |   | 804     |   |   |   | 4,346  |   |   |   | ---    |   |   |   | 116    |   |   |   | 5,316   |   |
| External        |   |   | 189,981 |   |   |   | 119,843 |   |   |   | 84,201 |   |   |   | 26,953 |   |   |   | 7,817  |   |   |   | 428,795 |   |
| Total revenues  |   | $      | 190,031 |   |   |   | 120,647 |   |   |   | 88,547 |   |   |   | 26,953 |   |   |   | 7,933  |   |   |   | 434,111 |   |
| Adjusted EBITDA |   | $      | 43,952  |   |   |   | 59,682  |   |   |   | 16,066 |   |   |   | 9,870  |   |   |   | 1,679  |   |   |   | 131,249 |   |

|                                                   |   | Three Months Ended |    |   | Nine Months Ended |   |
|--------------------------------------------------------|--------|--------------------|---------|--------|-------------------|--------|
|                                                   |   | September 30,      |    |   | September 30,     |   |
|                                                   |   | 2009               |    |   | 2008              |   |   | 2009 |   |   | 2008 |   |
| Reportable segment revenues                            |   | $                  | 152,313 |   |              |   | 153,457 |   |   |   | 453,223 |   |   |   | 434,111 |   |
| Less intersegment revenues eliminated in consolidation |   |               | 1,497   |   |              |   | 1,797 |   |   |   | 4,922 |   |   |   | 5,316 |   |
| Consolidated revenues                                  |   | $                  | 150,816 |   |              |   | 151,660 |   |   |   | 448,301 |   |   |   | 428,795 |   |

|   | A reconciliation of reportable segment earnings from adjusted EBITDA to consolidated income before income tax expense follows (amounts in thousands): |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                     |   | Three Months Ended |   |   | Nine Months Ended |   |
|--------------------------------------------------------------------------|--------|--------------------|--------|--------|-------------------|--------|
|                                                                     |   | September 30,      |   |   | September 30,     |   |
|                                                                     |   | 2009               |   |   | 2008              |   |   | 2009 |   |   | 2008 |   |
| Reportable segment adjusted EBITDA                                       |   | $                  | 50,272 |   |              |   | 47,764 |   |   |   | 147,956 |   |   |   | 131,249 |   |
| Less depreciation and amortization expense                               |   |               | 30,874 |   |              |   | 28,869 |   |   |   | 92,778 |   |   |   | 83,820 |   |
| Less (plus) share-based compensation expense                             |   |               | (1,332 | )      |              |   | 2,694 |   |   |   | 1,897 |   |   |   | 5,547 |   |
| Less non-cash contribution adjustment                                    |   |               | ---    |   |              |   | 640 |   |   |   | 480 |   |   |   | 640 |   |
| (Less net income) plus net loss attributable to non-controlling interest |   |               | ---    |   |              |   | (419 | ) |   |   | --- |   |   |   | 1,503 |   |
| Consolidated operating income                                            |   |               | 20,730 |   |              |   | 15,980 |   |   |   | 52,801 |   |   |   | 39,739 |   |
| Less other expense, net                                                  |   |               | 13,127 |   |              |   | 13,748 |   |   |   | 39,028 |   |   |   | 33,951 |   |
| Consolidated income before income tax expense                            |   | $                  | 7,603  |   |              |   | 2,232 |   |   |   | 13,773 |   |   |   | 5,788 |   |

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

| (7) | Commitments and Contingencies |
|-----|-------------------------------|

----

----

| (8) | Subsequent Event |
|-----|------------------|

----

----

|                       | Reportable Segments |
|----------------------------|---------------------|
| Services and Products      | Consumer            | Network Access | Commercial | Managed Broadband | Regulated Operations |
| Voice:                     |                |   |   |   |   |
| Long-distance              | X                   | X | X |   | X |
| Local Access               | X                   | X | X |   | X |
| Directories                |                |   | 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 |   | X |

----

----

----

----

|                                         |               | Percent­age |              |     | Percent­age |
|----------------------------------------------|--------------------|------------------|-------------------|----------|------------------|
|                                         | Three Months Ended | Change 1         | Nine Months Ended | Change 1 |
|                                         | September 30,      | 2009             | September 30,     | 2009     |
|                                         | 2009               | 2008             | vs. 2008          | 2009     | 2008             | vs. 2008 |
| (Unaudited)                                  |               |             |              |     |             |   |
| Statements of Operations Data:               |               |             |              |     |             |   |
| Revenues:                                    |               |             |              |     |             |   |
| Consumer segment                             | 50%                | 44%              | 13%               | 49%      | 44%              | 15% |
| Network Access segment                       | 20%                | 25%              | (22%)             | 21%      | 28%              | (21%) |
| Commercial segment                           | 18%                | 20%              | (8%)              | 19%      | 20%              | (2%) |
| Managed Broadband segment                    | 8%                 | 7%               | 14%               | 7%       | 6%               | 24% |
| Regulated Operations segment                 | 4%                 | 4%               | 2%                | 4%       | 2%               | 138% |
| Total revenues                               | 100%               | 100%             | (1%)              | 100%     | 100%             | 5% |
| Selling, general and administrative expenses | 33%                | 37%              | (13%)             | 35%      | 35%              | 4% |
| Depreciation and amortization expense        | 20%                | 19%              | 7%                | 21%      | 20%              | 11% |
| Operating income                             | 14%                | 11%              | 30%               | 12%      | 9%               | 33% |
| Other expense, net                           | 9%                 | 9%               | (5%)              | 9%       | 8%               | 15% |
| Income before income tax expense             | 5%                 | 2%               | 241%              | 3%       | 1%               | 138% |
| Net income                                   | 3%                 | 1%               | 534%              | 2%       | 0%               | 604% |
| Net income attributable to GCI, Inc.         | 3%                 | 0%               | 1,536%            | 2%       | 1%               | 186% |

----

|                           |   | Third Quarter of |   |   | Percentage |   |
|--------------------------------|--------|------------------|--------|--------|------------|--------|
|                           |   | 2009             |   |   | 2008       |   |   | Change |   |
| Voice                          |   | $                | 12,487 |   |       |   | 11,582 |   |   |   | 8 | % |
| Video                          |   |             | 27,612 |   |       |   | 26,241 |   |   |   | 5 | % |
| Data                           |   |             | 12,726 |   |       |   | 10,745 |   |   |   | 18 | % |
| Wireless                       |   |             | 22,196 |   |       |   | 17,917 |   |   |   | 24 | % |
| Total Consumer segment revenue |   | $                | 75,021 |   |       |   | 66,485 |   |   |   | 13 | % |

|                                      |   | Third Quarter of |   |   | Percentage |   |
|-------------------------------------------|--------|------------------|--------|--------|------------|--------|
|                                      |   | 2009             |   |   | 2008       |   |   | Change |   |
| Voice                                     |   | $                | 4,000  |   |       |   | 4,357 |   |   |   | (8 | %) |
| Video                                     |   |             | 11,921 |   |       |   | 10,094 |   |   |   | 18 | % |
| Data                                      |   |             | 1,127  |   |       |   | 1,598 |   |   |   | (29 | %) |
| Wireless                                  |   |             | 7,638  |   |       |   | 4,525 |   |   |   | 69 | % |
| Total Consumer segment Cost of Goods Sold |   | $                | 24,686 |   |       |   | 20,574 |   |   |   | 20 | % |

|                             |   | Third Quarter of |   |   | Percentage |   |
|----------------------------------|--------|------------------|--------|--------|------------|--------|
|                             |   | 2009             |   |   | 2008       |   |   | Change |   |
| Consumer segment adjusted EBITDA |   | $                | 23,234 |   |       |   | 18,275 |   |   |   | 27 | % |

|                                             |   | September 30, |    |   | Percentage |   |
|--------------------------------------------------|--------|---------------|---------|--------|------------|--------|
|                                             |   | 2009          |    |   | 2008       |   |   | Change |   |
| Voice:                                           |   |          |    |   |       |   |   |   |   |
| Long-distance subscribers1                       |   |          | 89,900  |   |       |   | 89,300 |   |   |   | 1 | % |
| Long-distance minutes carried (in millions)      |   |          | 28.0    |   |       |   | 31.2 |   |   |   | (10 | %) |
| Total local access lines in service2             |   |          | 82,700  |   |       |   | 79,200 |   |   |   | 4 | % |
| Local access lines in service on GCI facilities2 |   |          | 72,700  |   |       |   | 64,300 |   |   |   | 13 | % |
|                                             |   |          |    |   |       |   |   |   |   |   |   |   |
| Video:                                           |   |          |    |   |       |   |   |   |   |   |   |   |
| Basic subscribers3                               |   |          | 129,600 |   |       |   | 131,200 |   |   |   | (1 | %) |
| Digital programming tier subscribers4            |   |          | 77,600  |   |       |   | 70,100 |   |   |   | 11 | % |
| HD/DVR converter boxes5                          |   |          | 77,000  |   |       |   | 62,900 |   |   |   | 22 | % |
| Homes passed                                     |   |          | 231,400 |   |       |   | 227,400 |   |   |   | 2 | % |
| Average monthly gross revenue per subscriber6    |   | $             | 70.95   |   |       | $      | 67.00 |   |   |   | 6 | % |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |    |   |   |   |   |   |   |   |   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Data:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |    |   |   |   |   |   |   |   |   |   |
| Cable modem subscribers7                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | 97,900  |   |   |   | 92,100 |   |   |   | 6      | %      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |    |   |   |   |   |   |   |   |   |   |
| Wireless:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |    |   |   |   |   |   |   |   |   |   |
| Wireless lines in service8                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 109,900 |   |   |   | 81,200 |   |   |   | 35     | %      |
| Average monthly gross revenue per subscriber9                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $      | 58.05   |   |   | $      | 55.21  |   |   |   | 5      | %      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| 1 A long-distance customer is defined as a customer account that is invoiced a monthly long-distance plan fee or has made a long-distance call during the month.2 A local access line in service is defined as a revenue generating circuit or channel connecting a customer to the public switched telephone network.3 A basic cable subscriber is defined as one basic tier of service delivered to an address or separate subunits thereof regardless of the number of outlets purchased. On January 1, 2009, our Consumer segment transferred 2,900 basic cable subscribersto our Commercial segment.4 A digital programming tier subscriber is defined as one digital programming tier of service delivered to an address or separate subunits thereof regardless of the number of outlets or digital programming tiers purchased. Digital programming tiersubscribers are a subset of basic subscribers.5 A high definition/digital video recorder (“HD/DVR”) converter box is defined as one box rented by a digital programming or basic tier subscriber. A digital programming or basic tier subscriber is not required to rent an HD/DVR converterbox to receive service.6 Quarter-to-date average monthly consumer video revenues divided by the average of consumer video basic subscribers at the beginning and end of the period.7 A cable modem subscriber is defined by the purchase of cable modem service regardless of the level of service purchased. If one entity purchases multiple cable modem service access points, each access point is counted as a subscriber. Cable modemsubscribers may also be video basic subscribers though basic cable service is not required to receive cable modem service. On January 1, 2009, our Consumer segment transferred 1,400 cable modem subscribers to our Commercial segment.8 A wireless line in service is defined as a revenue generating wireless device.9 Quarter-to-date average monthly consumer wireless revenues divided by the average of consumer wireless subscribers at the beginning and end of the period. |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |

|   | · | A 4% increase in programming services revenue to $21.9 million in the third quarter of 2009 primarily resulting from an increase in digital programming tier subscribers in the third quarter of 2009 and a rate increase on certain cable service offerings beginning in August 2009, and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | A 11% increase in equipment rental revenue to $5.4 million in the third quarter of 2009 primarily resulting from our customers’ increased use of our HD/DVR converter boxes. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                 |   | Third Quarter of |   |   | Percentage |   |
|--------------------------------------|--------|------------------|--------|--------|------------|--------|
|                                 |   | 2009             |   |   | 2008       |   |   | Change |   |
| Voice                                |   | $                | 12,197 |   |       |   | 19,671 |   |   |   | (38 | %) |
| Data                                 |   |             | 14,876 |   |       |   | 18,148 |   |   |   | (18 | %) |
| Wireless                             |   |             | 3,190  |   |       |   | 959 |   |   |   | 233 | % |
| Total Network Access segment revenue |   | $                | 30,263 |   |       |   | 38,778 |   |   |   | (22 | %) |

|                                            |   | Third Quarter of |   |   | Percentage |   |
|-------------------------------------------------|--------|------------------|--------|--------|------------|--------|
|                                            |   | 2009             |   |   | 2008       |   |   | Change |   |
| Voice                                           |   | $                | 4,406  |   |       |   | 6,529 |   |   |   | (33 | %) |
| Data                                            |   |             | 2,792  |   |       |   | 3,456 |   |   |   | (19 | %) |
| Wireless                                        |   |             | 338    |   |       |   | 516 |   |   |   | (35 | %) |
| Total Network Access segment Cost of Goods Sold |   | $                | 7,536  |   |       |   | 10,501 |   |   |   | (28 | %) |

----

|                                   |   | Third Quarter of |   |   | Percentage |   |
|----------------------------------------|--------|------------------|--------|--------|------------|--------|
|                                   |   | 2009             |   |   | 2008       |   |   | Change |   |
| Network Access segment adjusted EBITDA |   | $                | 14,084 |   |       |   | 17,869 |   |   |   | (21 | %) |

|                                                                                                                                                                                   |   | September 30, |   | Percentage |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|------------|
|                                                                                                                                                                                   |   | 2009          |   | 2008       |   | Change |
| Voice:                                                                                                                                                                                 |   |          |   |       |   |   |
| Long-distance minutes carried (in millions)                                                                                                                                            |   | 224.6         |   | 255.8      |   | (12%) |
|                                                                                                                                                                                   |   |          |   |       |   |   |
| Data:                                                                                                                                                                                  |   |          |   |       |   |   |
| Total Internet service provider access lines in service1                                                                                                                               |   | 1,700         |   | 1,800      |   | (6%) |
|                                                                                                                                                                                   |   |
| 1  An Internet service provider access line in service is defined as a revenue generating circuit or channel connecting a customer to the public switched telephone network. |
|                                                                                                                                                                                   |   |

----

|                             |   | Third Quarter of |   |   | Percentage |   |
|----------------------------------|--------|------------------|--------|--------|------------|--------|
|                             |   | 2009             |   |   | 2008       |   |   | Change |   |
| Voice                            |   | $                | 7,688  |   |       |   | 7,597 |   |   |   | 1 | % |
| Video                            |   |             | 2,320  |   |       |   | 2,999 |   |   |   | (23 | %) |
| Data                             |   |             | 15,801 |   |       |   | 18,140 |   |   |   | (13 | %) |
| Wireless                         |   |             | 1,971  |   |       |   | 1,430 |   |   |   | 38 | % |
| Total Commercial segment revenue |   | $                | 27,780 |   |       |   | 30,166 |   |   |   | (8 | %) |

|                                        |   | Third Quarter of |   |   | Percentage |   |
|---------------------------------------------|--------|------------------|--------|--------|------------|--------|
|                                        |   | 2009             |   |   | 2008       |   |   | Change |   |
| Voice                                       |   | $                | 4,926  |   |       |   | 4,771 |   |   |   | 3 | % |
| Video                                       |   |             | 529    |   |       |   | 432 |   |   |   | 22 | % |
| Data                                        |   |             | 7,164  |   |       |   | 9,357 |   |   |   | (23 | %) |
| Wireless                                    |   |             | 691    |   |       |   | 723 |   |   |   | (4 | %) |
| Total Commercial segment Cost of Goods Sold |   | $                | 13,310 |   |       |   | 15,283 |   |   |   | (13 | %) |

|                               |   | Third Quarter of |   |   | Percentage |   |
|------------------------------------|--------|------------------|--------|--------|------------|--------|
|                               |   | 2009             |   |   | 2008       |   |   | Change |   |
| Commercial segment adjusted EBITDA |   | $                | 6,154  |   |       |   | 6,045 |   |   |   | 2 | % |

|   | Selected key performance indicators for our Commercial segment follow: |
|--------|------------------------------------------------------------------------|

|                                              |   | September 30, |   | Percentage |
|---------------------------------------------------|--------|---------------|--------|------------|
|                                              |   | 2009          |   | 2008       |   | Change |
| Voice:                                            |   |          |   |       |   |   |
| Long-distance subscribers1                        |   | 9,700         |   | 10,200     |   | (5%) |
| Long-distance minutes carried (in millions)       |   | 30.6          |   | 33.3       |   | (8%) |
| Local access lines in service on GCI facilities 2 |   | 19,000        |   | 17,900     |   | 6% |
| Total local access lines in service2              |   | 47,300        |   | 46,200     |   | 2% |
|                                              |   |          |   |       |   |   |
| Data:                                             |   |          |   |       |   |   |
| Cable modem subscribers3                          |   | 10,600        |   | 9,000      |   | 18% |
|                                              |   |          |   |       |   |   |
| Wireless:                                         |   |          |   |       |   |   |
| Wireless lines in service4                        |   | 10,100        |   | 6,900      |   | 46% |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| 1  A long-distance customer is defined as a customer account that is invoiced a monthly long-distance plan fee or has made a long-distance call during the month.2  A local access line in service is defined as a revenue generating circuit or channel connecting a customer to the public switched telephone network.3  A cable modem subscriber is defined by the purchase of cable modem service regardless of the level of service purchased. If one entity purchases multiple cable modem service access points, each access point is counted as a subscriber. OnJanuary 1, 2009, our Consumer segment transferred 1,400 cable modem subscribers to our Commercial segment. 4  A wireless line in service is defined as a revenue generating wireless device. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |

----

|                                                                                                                                                                                                                                                                                                                                           |   | September 30, |   | Percentage |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|------------|
|                                                                                                                                                                                                                                                                                                                                           |   | 2009          |   | 2008       |   | Change |
| Voice:                                                                                                                                                                                                                                                                                                                                         |   |          |   |       |   |   |
| Long-distance subscribers1                                                                                                                                                                                                                                                                                                                     |   | 600           |   | 900        |   | (33%) |
| Long-distance minutes carried (in millions)                                                                                                                                                                                                                                                                                                    |   | 0.3           |   | 0.4        |   | (25%) |
| Total local access lines in service (all on GCI facilities)2                                                                                                                                                                                                                                                                                   |   | 11,300        |   | 12,300     |   | (8%) |
|                                                                                                                                                                                                                                                                                                                                           |   |          |   |       |   |   |   |
| 1  A long-distance subscriber is defined as a customer account that is invoiced a monthly long-distance plan fee or has made a long-distance call during the month.2  A local access line in service is defined as a revenue generating circuit or channel connecting a customer to the public switched telephone network. |

| ·   | A $4.0 million decrease in share-based compensation expense primarily due to the reversal of expense properly recognized in previous periods for certain performance-based stock options and restricted stock awards that are not expected to vest, |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The absence of $1.8 million to terminate a management agreement that was paid in 2008 upon the acquisition of our non-controlling interest in Alaska DigiTel, and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The absence of a $960,000 contribution expense recognized upon the gift of an IRU to the University of Alaska that was recorded in the third quarter of 2008. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                           |   |   |    |   | Percentage |   |
|--------------------------------|--------|--------|---------|--------|------------|--------|
|                           |   | 2009   |    |   | 2008       |   |   | Change |   |
| Voice                          |   | $      | 39,390  |   |       |   | 35,560 |   |   |   | 11 | % |
| Video                          |   |   | 82,114  |   |       |   | 77,556 |   |   |   | 6 | % |
| Data                           |   |   | 36,654  |   |       |   | 31,227 |   |   |   | 17 | % |
| Wireless                       |   |   | 60,981  |   |       |   | 45,638 |   |   |   | 34 | % |
| Total Consumer segment revenue |   | $      | 219,139 |   |       |   | 189,981 |   |   |   | 15 | % |

|                                      |   |   |   |   | Percentage |   |
|-------------------------------------------|--------|--------|--------|--------|------------|--------|
|                                      |   | 2009   |   |   | 2008       |   |   | Change |   |
| Voice                                     |   | $      | 11,492 |   |       |   | 14,084 |   |   |   | (18 | %) |
| Video                                     |   |   | 34,280 |   |       |   | 29,960 |   |   |   | 14 | % |
| Data                                      |   |   | 3,255  |   |       |   | 5,301 |   |   |   | (39 | %) |
| Wireless                                  |   |   | 23,073 |   |       |   | 19,619 |   |   |   | 18 | % |
| Total Consumer segment Cost of Goods Sold |   | $      | 72,100 |   |       |   | 68,964 |   |   |   | 5 | % |

|                             |   |   |   |   | Percentage |   |
|----------------------------------|--------|--------|--------|--------|------------|--------|
|                             |   | 2009   |   |   | 2008       |   |   | Change |   |
| Consumer segment adjusted EBITDA |   | $      | 64,304 |   |       |   | 43,952 |   |   |   | 46 | % |

|                                                                                                                                                                                                                                                                                                                         |   | September 30, |   |   | Percentage |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|--------|------------|--------|
|                                                                                                                                                                                                                                                                                                                         |   | 2009          |   |   | 2008       |   |   | Change |   |
| Voice:                                                                                                                                                                                                                                                                                                                       |   |          |   |   |       |   |   |   |   |
| Long-distance minutes carried (in millions)                                                                                                                                                                                                                                                                                  |   |          | 85.9   |   |       |   | 96.8 |   |   |   | (11 | %) |
|                                                                                                                                                                                                                                                                                                                         |   |          |   |   |       |   |   |   |   |   |   |   |
| Video:                                                                                                                                                                                                                                                                                                                       |   |          |   |   |       |   |   |   |   |   |   |   |
| Average monthly gross revenue per subscriber1                                                                                                                                                                                                                                                                                |   | $             | 69.61  |   |       | $      | 66.58 |   |   |   | 5 | % |
|                                                                                                                                                                                                                                                                                                                         |   |          |   |   |       |   |   |   |   |   |   |   |
| Wireless:                                                                                                                                                                                                                                                                                                                    |   |          |   |   |       |   |   |   |   |   |   |   |
| Average monthly gross revenue per subscriber2                                                                                                                                                                                                                                                                                |   | $             | 59.03  |   |       | $      | 56.37 |   |   |   | 5 | % |
|                                                                                                                                                                                                                                                                                                                         |   |
| 1 Year-to-date average monthly consumer video revenues divided by the average of consumer video basic subscribers at the beginning and end of the period.2 Year-to-date average monthly consumer wireless revenues divided by the average of consumer wireless subscribers at the beginning and end of the period. |   |
|                                                                                                                                                                                                                                                                                                                         |   |

----

| ·   | An FCC order issued in March 2009, the result of which provided uncapped support for all lines served by competitive ETCs for tribal lands or Alaska Native regions retroactive to August 2008.  The issuance of this order allowed us to recognize in the first quarter 2009 $674,000 in additional USAC support for services provided from August 2008 to December2008 that is included in the revenue increase discussed above, |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Beginning in the third quarter of 2008 we recorded a decrease in recognized support from the USAC primarily due to a change in our revenue accrual estimation to more precisely consider changes in FCC reimbursement and to consider uncertainties we believed may impact the amount of reimbursement we receive. The issuance of the March 2009 FCC order discussed aboveallowed us to discontinue recording a reserve against our USAC support revenue and, therefore, no such decrease was recognized in the third quarter of 2009, and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Increased local subscribers including increases in locations that qualify for higher support rates. |
|--------------------|-----------------------------------------------------------------------------------------------------|

|   | · | A 5% increase in programming services revenue to $65.2 million in 2009 primarily resulting from an increase in digital programming tier subscribers in 2009 and a rate increase on certain cable service offerings beginning in August 2009, and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | A 13% increase in equipment rental revenue to $16.0 million in 2009 primarily resulting from our customers’ increased use of our HD/DVR converter boxes. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | An $8.9 million or 144% increase in recognized support from the USAC primarily due to the following: |
|--------------------|------------------------------------------------------------------------------------------------------|

| o   | Increased wireless subscribers in areas that receive USAC support, |
|---------------|--------------------------------------------------------------------|

| o   | Recognition of $3.1 million to be received from the USAC for interstate common line support for a new local access area for which we received ETC status in May 2009 of which $1.7 million was related to services provided during the year ended December 31, 2008.  Collectability was not reasonably assured until we were awarded ETC status, therefore, we deferredrevenue recognition until such status was confirmed, |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | Recognition of $1.1 million upon a change in our estimate of support to be received from the USAC for interstate common line support of which $593,000 and $77,000 were related to the six months ended June 30, 2009 and the year ended December 31, 2008, respectively.  We accrue estimated program revenue quarterly and adjust our revenue as we obtain new informationthat changes the variables used to calculate our estimate, and |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | The FCC order issued in March 2009, the result of which provides uncapped support for all lines served by competitive ETCs for tribal lands or Alaska Native regions retroactive to August 2008.  The issuance of this order allowed us to recognize $810,000 in additional USAC support from August 2008 to December 2008 in 2009 that is included in the revenueincrease discussed above. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | An increase in the number of wireless subscribers. |
|--------------------|----------------------------------------------------|

----

|                                 |   |   |   |   | Percentage |   |
|--------------------------------------|--------|--------|--------|--------|------------|--------|
|                                 |   | 2009   |   |   | 2008       |   |   | Change |   |
| Voice                                |   | $      | 39,975 |   |       |   | 64,826 |   |   |   | (38 | %) |
| Data                                 |   |   | 48,903 |   |       |   | 52,975 |   |   |   | (8 | %) |
| Wireless                             |   |   | 5,704  |   |       |   | 2,042 |   |   |   | 179 | % |
| Total Network Access segment revenue |   | $      | 94,582 |   |       |   | 119,843 |   |   |   | (21 | %) |

|                                            |   |   |   |   | Percentage |   |
|-------------------------------------------------|--------|--------|--------|--------|------------|--------|
|                                            |   | 2009   |   |   | 2008       |   |   | Change |   |
| Voice                                           |   | $      | 12,947 |   |       |   | 22,096 |   |   |   | (41 | %) |
| Data                                            |   |   | 7,004  |   |       |   | 8,979 |   |   |   | (22 | %) |
| Wireless                                        |   |   | 825    |   |       |   | 1,210 |   |   |   | (32 | %) |
| Total Network Access segment Cost of Goods Sold |   | $      | 20,776 |   |       |   | 32,285 |   |   |   | (36 | %) |

----

|                                   |   |   |   |   | Percentage |   |
|----------------------------------------|--------|--------|--------|--------|------------|--------|
|                                   |   | 2009   |   |   | 2008       |   |   | Change |   |
| Network Access segment adjusted EBITDA |   | $      | 46,674 |   |       |   | 59,682 |   |   |   | (22 | %) |

|                                        |   | September 30, |   | Percentage |
|---------------------------------------------|--------|---------------|--------|------------|
|                                        |   | 2009          |   | 2008       |   | Change |
| Voice:                                      |   |          |   |       |   |   |
| Long-distance minutes carried (in millions) |   | 640.6         |   | 896.6      |   | (29%) |

----

|                             |   |   |   |   | Percentage |   |
|----------------------------------|--------|--------|--------|--------|------------|--------|
|                             |   | 2009   |   |   | 2008       |   |   | Change |   |
| Voice                            |   | $      | 23,373 |   |       |   | 22,091 |   |   |   | 6 | % |
| Video                            |   |   | 6,591  |   |       |   | 6,968 |   |   |   | (5 | %) |
| Data                             |   |   | 47,725 |   |       |   | 50,933 |   |   |   | (6 | %) |
| Wireless                         |   |   | 4,994  |   |       |   | 4,209 |   |   |   | 19 | % |
| Total Commercial segment revenue |   | $      | 82,683 |   |       |   | 84,201 |   |   |   | (2 | %) |

|                                        |   |   |   |   | Percentage |   |
|---------------------------------------------|--------|--------|--------|--------|------------|--------|
|                                        |   | 2009   |   |   | 2008       |   |   | Change |   |
| Voice                                       |   | $      | 14,393 |   |       |   | 14,509 |   |   |   | (1 | %) |
| Video                                       |   |   | 1,532  |   |       |   | 1,202 |   |   |   | 27 | % |
| Data                                        |   |   | 21,425 |   |       |   | 24,418 |   |   |   | (12 | %) |
| Wireless                                    |   |   | 2,292  |   |       |   | 3,137 |   |   |   | (27 | %) |
| Total Commercial segment Cost of Goods Sold |   | $      | 39,642 |   |       |   | 43,266 |   |   |   | (8 | %) |

|                               |   |   |   |   | Percentage |   |
|------------------------------------|--------|--------|--------|--------|------------|--------|
|                               |   | 2009   |   |   | 2008       |   |   | Change |   |
| Commercial segment adjusted EBITDA |   | $      | 17,047 |   |       |   | 16,066 |   |   |   | 6 | % |

|   | Selected key performance indicators for our Commercial segment follow: |
|--------|------------------------------------------------------------------------|

|                                        |   | September 30, |   | Percentage |
|---------------------------------------------|--------|---------------|--------|------------|
|                                        |   | 2009          |   | 2008       |   | Change |
| Voice:                                      |   |          |   |       |   |   |
| Long-distance minutes carried (in millions) |   | 94.5          |   | 99.1       |   | (5%) |

----

|                                        |   | September 30, |   | Percentage |
|---------------------------------------------|--------|---------------|--------|------------|
|                                        |   | 2009          |   | 2008       |   | Change |
| Voice:                                      |   |          |   |       |   |   |
| Long-distance minutes carried (in millions) |   | 0.9           |   | 0.5        |   | 95% |

----

| ·   | A $6.2 million increase in labor costs, |
|--------------------|-----------------------------------------|

| ·   | $4.1 million in additional expense resulting from our June 1, 2008, acquisition of UUI and Unicom, |
|--------------------|----------------------------------------------------------------------------------------------------|

| ·   | $1.2 million in additional expense incurred in 2009 for the conversion of our customers' wireless phones to our facilities, and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------|

| ·   | A $1.2 million increase in our company-wide success sharing bonus accrual in 2009. |
|--------------------|------------------------------------------------------------------------------------|

| ·   | $2.8 million in additional interest expense resulting from the Galaxy 18 capital lease commencing in May 2008, and |
|--------------------|--------------------------------------------------------------------------------------------------------------------|

| ·   | A $1.3 million increase in interest expense on our Senior Credit Facility to $12.8 million resulting from additional debt from the Additional Incremental Term Loan agreement beginning in May 2008 and the increased interest rate on our Senior Credit Facility beginning in May 2008.  This increase is partially off-set by a $2.5 million decrease in capitalizedinterest to $510,000 in 2009 due to decreased capital expenditures subject to interest capitalization in 2009 and a decrease in the LIBOR rate between 2008 and 2009. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                 |   | 2009   |    |   | 2008   |   |
|------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Operating activities                                 |   | $      | 67,252  |   |   |   | 132,736 |   |
| Investing activities                                 |   |   | (95,302 | )      |   |   | (242,285 | ) |
| Financing activities                                 |   |   | 20,250  |   |   |   | 128,883 |   |
| Net increase (decrease) in cash and cash equivalents |   | $      | (7,800  | )      |   |   | 19,334 |   |

----

----

----

----

----

| Exhibit No. | Description                                                                                                                                                                                                                                                                                                                                                       |
|-------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.161      | First Amendment to the Full-Time Transponder Capacity Agreement (Pre-Launch) between Intelsat Corporation, formerly known as PanAmSat Corporation and GCI Communication Corp. dated February 15, 2008 #                                                                                                                                                           |
| 10.162      | Second Amendment to the Full-Time Transponder Capacity Agreement (Pre-Launch) between Intelsat Corporation, formerly known as PanAmSat Corporation and GCI Communication Corp. dated April 9, 2008 #                                                                                                                                                              |
| 10.163      | Third Amendment to the Full-Time Transponder Capacity Agreement (Pre-Launch) between Intelsat Corporation, formerly known as PanAmSat Corporation and GCI Communication Corp. dated June 4, 2008 #                                                                                                                                                                |
| 10.164      | Fourth Amendment to the Full-Time Transponder Capacity Agreement (Pre-Launch) between Intelsat Corporation, formerly known as PanAmSat Corporation and GCI Communication Corp. dated June 4, 2008 #                                                                                                                                                               |
| 10.165      | Fifth Amendment to the Full-Time Transponder Capacity Agreement (Pre-Launch) between Intelsat Corporation, formerly known as PanAmSat Corporation and GCI Communication Corp. dated September 30, 2008 #                                                                                                                                                          |
| 10.166      | Sixth Amendment to the Full-Time Transponder Capacity Agreement (Pre-Launch) between Intelsat Corporation, formerly known as PanAmSat Corporation and GCI Communication Corp. dated October 31, 2008 #                                                                                                                                                            |
| 10.167      | Seventh Amendment to the Full-Time Transponder Capacity Agreement (Pre-Launch) between Intelsat Corporation, formerly known as PanAmSat Corporation and GCI Communication Corp. dated November 6, 2008 #                                                                                                                                                          |
| 10.168      | Eighth Amendment to the Full-Time Transponder Capacity Agreement (Pre-Launch) between Intelsat Corporation, formerly known as PanAmSat Corporation and GCI Communication Corp. dated June 8, 2009 #                                                                                                                                                               |
| 10.169      | Fifteenth Amendment to Contract for Alaska Access Services between General Communication, Inc. and its wholly owned subsidiary GCI Communication Corp., and MCI Communications Services, Inc. d/b/a Verizon Business Services (successor-in-interest to MCI Network Services, Inc., which was formally known as MCI WorldCom Network Services)dated May 5, 2009 # |
| 18.1        | Letter regarding change in accounting principle                                                                                                                                                                                                                                                                                                                   |
| 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                                                                                                                                                             |
|        |                                                                                                                                                                                                                                                                                                                                                              |
| #           | CONFIDENTIAL PORTION has been omitted pursuant to a request for confidential treatment by us to, and the material has been separately filed with, the Securities and Exchange Commission.  Each omitted Confidential Portion is marked by three asterisks.                                                                                              |
|        |                                                                                                                                                                                                                                                                                                                                                              |

----

| Signature                   |   | Title                                        |   | Date                         |
|-----------------------------|--------|----------------------------------------------|--------|------------------------------|
|                        |   |                                         |   |                         |
|                        |   |                                         |   |                         |
|   /s/ Ronald A. Duncan |   | President and Director                       |   |  November 6, 2009  |
| Ronald A. Duncan            |   | (Principal Executive Officer)                |   |                         |
|                        |   |                                         |   |                         |
|   /s/ G. Wilson Hughes |   | Vice President and Director                  |   |   November 6, 2009      |
| G. Wilson Hughes            |   |                                         |   |                         |
|                        |   |                                         |   |                         |
|   /s/ John M. Lowber   |   | Secretary, Treasurer and Director            |   |   November 6, 2009      |
| John M. Lowber              |   | (Principal Financial and Accounting Officer) |   |                         |

----