----

----

| þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES |
|--------|--------------------------------------------------------------------|
|   | EXCHANGE ACT OF 1934                                               |
|   | For the quarterly period ended September 30, 2010                  |

| ¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934            |
|--------|-----------------------------------------------------------------------------------------------------|
|   | For the transition period from     to      . |

|   | Commission file number   0-13721 |
|--------|-------------------------------------------------|

|   | HICKORY TECH CORPORATION |
|--------|--------------------------|

|   | (Exact name of registrant as specified in its charter) |
|--------|--------------------------------------------------------|

| Minnesota                       | 41-1524393          |
|---------------------------------|---------------------|
| (State or other jurisdiction of | (I.R.S. Employer    |
| incorporation or organization)  | Identification No.) |

|   | 221 East Hickory Street |
|--------|-------------------------|

|   | Mankato, Minnesota  56002-3248 |
|--------|------------------------------------------|

|   | (Address of principal executive offices and zip code) |
|--------|-------------------------------------------------------|

|   | (800) 326-5789 |
|--------|----------------|

|   | (Registrant’s telephone number, including area code) |
|--------|------------------------------------------------------------|

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TABLE OF CONTENTS

| PART I Financial Information |
|------------------------------|

| Item 1. | Financial Statements                                                                                              |   3 |
|---------|-------------------------------------------------------------------------------------------------------------------|---------------|
|    | Consolidated Statements of Operations (unaudited) for the Three and Nine Months Ended September 30, 2010 and 2009 | 3             |
|    | Consolidated Balance Sheets (unaudited) as of September 30, 2010 and December 31, 2009                            | 4             |
|    | Consolidated Statements of Cash Flows (unaudited) for the Nine Months Ended September 30, 2010 and 2009           | 5             |
|    | Condensed Notes to Consolidated Financial Statements (unaudited)                                                  | 6             |
| Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations                             | 15            |
| Item 3. | Quantitative and Qualitative Disclosures about Market Risk                                                        | 27            |
| Item 4. | Controls and Procedures                                                                                           | 27            |
|    |                                                                                                              |          |

| PART II Other Information |
|---------------------------|

| Item 1.  | Legal Proceedings                                           | 27     |
|----------|-------------------------------------------------------------|--------|
| Item 1A. | Risk Factors                                                | 27     |
| Item 2.  | Unregistered Sales of Equity Securities and Use of Proceeds | 28     |
| Item 3.  | Defaults Upon Senior Securities                             | 28     |
| Item 4.  | Removed and Reserved                                        | 28     |
| Item 5.  | Other Information                                           | 28     |
| Item 6.  | Exhibit Listing                                             | 28     |
|     | Signatures                                                  | 29     |
|     | Exhibits                                                    |   |

----

Table of Contents

Item 1.

| HICKORY TECH CORPORATION                                                              |   |
|---------------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF OPERATIONS                                                 |   |
| (Unaudited)                                                                           |   |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                  |   | Three Months Ended September 30 |   |   | Nine Months Ended September 30 |   |
| (Dollars in thousands, except share and per share amounts)                            |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
| Operating revenue:                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Enventis Sector                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Equipment                                                                             |   | $ | 9,954 |   |   | $ | 6,604 |   |   | $ | 27,906 |   |   | $ | 18,788 |   |
| Services                                                                              |   |   | 15,421 |   |   |   | 10,858 |   |   |   | 39,951 |   |   |   | 29,085 |   |
| Total Enventis Sector                                                                 |   |   | 25,375 |   |   |   | 17,462 |   |   |   | 67,857 |   |   |   | 47,873 |   |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Telecom Sector                                                                        |   |   | 18,105 |   |   |   | 17,446 |   |   |   | 52,611 |   |   |   | 52,899 |   |
| Total operating revenue                                                               |   |   | 43,480 |   |   |   | 34,908 |   |   |   | 120,468 |   |   |   | 100,772 |   |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Costs and expenses:                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales, excluding depreciation and amortization                                |   |   | 8,519 |   |   |   | 5,653 |   |   |   | 23,968 |   |   |   | 16,369 |   |
| Cost of services, excluding depreciation and amortization                             |   |   | 16,458 |   |   |   | 13,404 |   |   |   | 45,402 |   |   |   | 37,817 |   |
| Selling, general and administrative expenses                                          |   |   | 6,669 |   |   |   | 5,817 |   |   |   | 18,425 |   |   |   | 16,379 |   |
| Depreciation                                                                          |   |   | 5,356 |   |   |   | 5,068 |   |   |   | 15,900 |   |   |   | 14,967 |   |
| Amortization of intangibles                                                           |   |   | 90 |   |   |   | 272 |   |   |   | 268 |   |   |   | 699 |   |
| Total costs and expenses                                                              |   |   | 37,092 |   |   |   | 30,214 |   |   |   | 103,963 |   |   |   | 86,231 |   |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating income                                                                      |   |   | 6,388 |   |   |   | 4,694 |   |   |   | 16,505 |   |   |   | 14,541 |   |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income and expense:                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest and other income                                                             |   |   | 11 |   |   |   | 14 |   |   |   | 62 |   |   |   | 55 |   |
| Interest expense                                                                      |   |   | (1,128 | ) |   |   | (1,728 | ) |   |   | (3,820 | ) |   |   | (5,155 | ) |
| Total other (expense)                                                                 |   |   | (1,117 | ) |   |   | (1,714 | ) |   |   | (3,758 | ) |   |   | (5,100 | ) |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income before income taxes                                                            |   |   | 5,271 |   |   |   | 2,980 |   |   |   | 12,747 |   |   |   | 9,441 |   |
| Income tax provision                                                                  |   |   | 228 |   |   |   | (3,126 | ) |   |   | 2,767 |   |   |   | (408 | ) |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                            |   | $ | 5,043 |   |   | $ | 6,106 |   |   | $ | 9,980 |   |   | $ | 9,849 |   |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic earnings per share                                                              |   | $ | 0.38 |   |   | $ | 0.47 |   |   | $ | 0.76 |   |   | $ | 0.75 |   |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common shares outstanding                                            |   |   | 13,263,600 |   |   |   | 13,080,538 |   |   |   | 13,215,046 |   |   |   | 13,049,686 |   |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted earnings per share                                                            |   | $ | 0.38 |   |   | $ | 0.47 |   |   | $ | 0.76 |   |   | $ | 0.75 |   |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common and equivalent shares outstanding                             |   |   | 13,264,996 |   |   |   | 13,083,843 |   |   |   | 13,217,325 |   |   |   | 13,049,686 |   |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividends per share                                                                   |   | $ | 0.13 |   |   | $ | 0.13 |   |   | $ | 0.39 |   |   | $ | 0.39 |   |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| The accompanying notes are an integral part of the consolidated financial statements. |   |

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Table of Contents

| HICKORY TECH CORPORATION                                                                                                                   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED BALANCE SHEETS                                                                                                                |   |
| (Unaudited)                                                                                                                                |   |
| (Dollars in thousands except share and per share amounts)                                                                                  |   | September 30, 2010 |   |   | December 31, 2009 |   |
| ASSETS                                                                                                                                     |   |
| Current assets:                                                                                                                            |   |   |   |   |   |   |
|      Cash and cash equivalents                                                                                         |   | $ | 100 |   |   | $ | 2,420 |   |
|      Receivables, net of allowance for doubtful accounts of $1,107 and $643                                            |   |   | 26,895 |   |   |   | 19,729 |   |
|      Inventories                                                                                                       |   |   | 6,591 |   |   |   | 5,069 |   |
|      Deferred income taxes, net                                                                                        |   |   | 2,423 |   |   |   | 2,423 |   |
|      Prepaid expenses                                                                                                  |   |   | 2,218 |   |   |   | 1,751 |   |
|      Other                                                                                                             |   |   | 1,011 |   |   |   | 1,039 |   |
|           Total current assets                                                                |   |   | 39,238 |   |   |   | 32,431 |   |
|                                                                                                                                       |   |   |   |   |   |   |   |   |
| Investments                                                                                                                                |   |   | 4,492 |   |   |   | 4,306 |   |
|                                                                                                                                       |   |   |   |   |   |   |   |   |
| Property, plant and equipment                                                                                                              |   |   | 373,357 |   |   |   | 357,607 |   |
|      Accumulated depreciation                                                                                          |   |   | (218,985 | ) |   |   | (204,129 | ) |
|           Property, plant and equipment, net                                                  |   |   | 154,372 |   |   |   | 153,478 |   |
|                                                                                                                                       |   |   |   |   |   |   |   |   |
| Other assets:                                                                                                                              |   |   |   |   |   |   |   |   |
|      Goodwill                                                                                                          |   |   | 27,303 |   |   |   | 27,423 |   |
|      Intangible assets, net                                                                                            |   |   | 2,757 |   |   |   | 3,025 |   |
|      Deferred costs and other                                                                                          |   |   | 1,606 |   |   |   | 1,820 |   |
|           Total other assets                                                                  |   |   | 31,666 |   |   |   | 32,268 |   |
|                                                                                                                                       |   |   |   |   |   |   |   |   |
| Total assets                                                                                                                               |   | $ | 229,768 |   |   | $ | 222,483 |   |
|                                                                                                                                       |   |   |   |   |   |   |   |   |
| LIABILITIES & SHAREHOLDERS' EQUITY                                                                                                     |   |
| Current liabilities:                                                                                                                       |   |   |   |   |   |   |   |   |
|      Extended term payable                                                                                             |   | $ | 9,813 |   |   | $ | 6,788 |   |
|      Accounts payable                                                                                                  |   |   | 3,571 |   |   |   | 2,883 |   |
|      Accrued expenses and other                                                                                        |   |   | 8,207 |   |   |   | 7,792 |   |
|      Accrued income taxes                                                                                              |   |   | 307 |   |   |   | 642 |   |
|      Deferred revenue                                                                                                  |   |   | 4,580 |   |   |   | 6,016 |   |
|      Financial derivative instruments                                                                                  |   |   | 1,423 |   |   |   | - |   |
|      Current maturities of long-term obligations                                                                       |   |   | 1,188 |   |   |   | 620 |   |
|           Total current liabilities                                                           |   |   | 29,089 |   |   |   | 24,741 |   |
|                                                                                                                                       |   |   |   |   |   |   |   |   |
| Long-term liabilities:                                                                                                                     |   |   |   |   |   |   |   |   |
|      Debt obligations, net of current maturities                                                                       |   |   | 120,795 |   |   |   | 119,871 |   |
|      Financial derivative instruments                                                                                  |   |   | - |   |   |   | 1,908 |   |
|      Accrued income taxes                                                                                              |   |   | 542 |   |   |   | 3,218 |   |
|      Deferred income taxes                                                                                             |   |   | 22,486 |   |   |   | 21,895 |   |
|      Deferred revenue                                                                                                  |   |   | 1,433 |   |   |   | 2,095 |   |
|      Accrued employee benefits and deferred compensation                                                               |   |   | 14,826 |   |   |   | 14,209 |   |
|           Total long-term liabilities                                                         |   |   | 160,082 |   |   |   | 163,196 |   |
|                                                                                                                                       |   |   |   |   |   |   |   |   |
|               Total liabilities                                           |   |   | 189,171 |   |   |   | 187,937 |   |
|                                                                                                                                       |   |   |   |   |   |   |   |   |
| Commitments and contingencies                                                                                                              |   |   |   |   |   |   |   |   |
|                                                                                                                                       |   |   |   |   |   |   |   |   |
| Shareholders' equity:                                                                                                                      |   |   |   |   |   |   |   |   |
|      Common stock, no par value, $.10 stated value                                                                     |   |   |   |   |   |   |   |   |
|           Shares authorized: 100,000,000                                                      |   |   |   |   |   |   |   |   |
|           Shares issued and outstanding:  13,283,723 in 2010 and 13,100,568 in 2009 |   |   | 1,328 |   |   |   | 1,310 |   |
|      Additional paid-in capital                                                                                        |   |   | 13,703 |   |   |   | 12,975 |   |
|      Retained earnings                                                                                                 |   |   | 29,521 |   |   |   | 24,687 |   |
|      Accumulated other comprehensive (loss)                                                                            |   |   | (3,955 | ) |   |   | (4,426 | ) |
|               Total shareholders' equity                                  |   |   | 40,597 |   |   |   | 34,546 |   |
|                                                                                                                                       |   |   |   |   |   |   |   |   |
| Total liabilities and shareholders' equity                                                                                                 |   | $ | 229,768 |   |   | $ | 222,483 |   |
|                                                                                                                                       |   |   |   |   |   |   |   |   |
| The accompanying notes are an integral part of the consolidated financial statements.                                                      |   |

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Table of Contents

| HICKORY TECH CORPORATION                                                                                                             |   |
|--------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS                                                                                                |   |
| (Unaudited)                                                                                                                          |   |
|                                                                                                                                 |   | Nine Months Ended September 30 |   |
| (Dollars in thousands)                                                                                                               |   | 2010 |   |   | 2009 |   |
| OPERATING ACTIVITIES:                                                                                                                |   |   |   |   |   |   |
|      Net income                                                                                                  |   | $ | 9,980 |   |   | $ | 9,849 |   |
|      Adjustments to reconcile net income to net cash provided by operating activities:                           |   |   |   |   |   |   |   |   |
|          Depreciation and amortization                                                       |   |   | 16,168 |   |   |   | 15,666 |   |
|          Accrued patronage refunds                                                           |   |   | (370 | ) |   |   | (422 | ) |
|          Other                                                                               |   |   | 1,044 |   |   |   | 1,237 |   |
|          Changes in operating assets and liabilities, net of effect from acquired net assets |   |   |   |   |   |   |   |   |
|              Receivables                                                 |   |   | (7,884 | ) |   |   | 10,636 |   |
|              Prepaids                                                    |   |   | (467 | ) |   |   | (243 | ) |
|              Inventories                                                 |   |   | (1,522 | ) |   |   | 2,155 |   |
|              Accounts payable and accrued expenses                       |   |   | 358 |   |   |   | (2,606 | ) |
|              Deferred revenue, billings and deposits                     |   |   | (2,096 | ) |   |   | (1,031 | ) |
|              Income taxes                                                |   |   | (2,732 | ) |   |   | (1,600 | ) |
|              Other                                                       |   |   | 427 |   |   |   | 695 |   |
|      Net cash provided by operating activities                                                                   |   |   | 12,906 |   |   |   | 34,336 |   |
|                                                                                                                                 |   |   |   |   |   |   |   |   |
| INVESTING ACTIVITIES:                                                                                                                |   |   |   |   |   |   |   |   |
|      Additions to property, plant and equipment                                                                  |   |   | (17,010 | ) |   |   | (11,331 | ) |
|      Acquisitions, net of cash acquired                                                                          |   |   | 120 |   |   |   | (6,625 | ) |
|      Other                                                                                                       |   |   | 1,257 |   |   |   | - |   |
|      Net cash (used in) investing activities                                                                     |   |   | (15,633 | ) |   |   | (17,956 | ) |
|                                                                                                                                 |   |   |   |   |   |   |   |   |
| FINANCING ACTIVITIES:                                                                                                                |   |   |   |   |   |   |   |   |
|      Net change in extended term payables arrangement                                                            |   |   | 3,025 |   |   |   | (3,483 | ) |
|      Change in cash overdraft                                                                                    |   |   | 756 |   |   |   | - |   |
|      Borrowings on credit facility                                                                               |   |   | 19,900 |   |   |   | - |   |
|      Payments on credit facility and capital lease obligations                                                   |   |   | (18,485 | ) |   |   | (2,494 | ) |
|      Proceeds from issuance of common stock                                                                      |   |   | 357 |   |   |   | 363 |   |
|      Dividends paid                                                                                              |   |   | (5,146 | ) |   |   | (5,083 | ) |
|      Net cash provided by (used in) financing activities                                                         |   |   | 407 |   |   |   | (10,697 | ) |
|                                                                                                                                 |   |   |   |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                                                                                 |   |   | (2,320 | ) |   |   | 5,683 |   |
| Cash and cash equivalents at beginning of the period                                                                                 |   |   | 2,420 |   |   |   | 1,626 |   |
| Cash and cash equivalents at the end of the period                                                                                   |   | $ | 100 |   |   | $ | 7,309 |   |
|                                                                                                                                 |   |   |   |   |   |   |   |   |
| Supplemental disclosure of cash flow information:                                                                                    |   |   |   |   |   |   |   |   |
|      Cash paid for interest                                                                                      |   | $ | 4,063 |   |   | $ | 5,333 |   |
|      Net cash paid for income taxes                                                                              |   | $ | 5,499 |   |   | $ | 1,192 |   |
| Non-cash investing and financing activities:                                                                                         |   |   |   |   |   |   |   |   |
|      Property, plant and equipment acquired with capital leases                                                  |   | $ | 76 |   |   | $ | 417 |   |
|      Change in other comprehensive income (loss) from financial derivatives and post-retirement benefits         |   | $ | 471 |   |   | $ | 511 |   |
|                                                                                                                                 |   |   |   |   |   |   |   |   |
| The accompanying notes are an integral part of the consolidated financial statements.                                                |   |

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Item 1

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Table of Contents

|                                                                |   | Three Months Ended September 30 |       |   | Nine Months Ended September 30 |   |
|---------------------------------------------------------------------|--------|---------------------------------|------------|--------|--------------------------------|--------|
|                                                                |   | 2010                            |       |   | 2009                           |   |   | 2010 |   |   | 2009 |   |
| (Dollars in thousands, except share and earnings per share amounts) |   |                            |       |   |                           |   |   |   |   |   |   |   |
| Net Income                                                          |   | $                               | 5,043      |   |                           | $      | 6,106 |   |   | $ | 9,980 |   |   | $ | 9,849 |   |
|                                                                |   |                            |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding                                 |   |                            | 13,263,600 |   |                           |   | 13,080,538 |   |   |   | 13,215,046 |   |   |   | 13,049,686 |   |
| Stock options (dilutive only)                                       |   |                            | 1,396      |   |                           |   | 3,305 |   |   |   | 2,279 |   |   |   | - |   |
| Stock subscribed (ESPP)                                             |   |                            | -          |   |                           |   | - |   |   |   | - |   |   |   | - |   |
| Total dilutive shares outstanding                                   |   |                            | 13,264,996 |   |                           |   | 13,083,843 |   |   |   | 13,217,325 |   |   |   | 13,049,686 |   |
|                                                                |   |                            |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per share:                                                 |   |                            |       |   |                           |   |   |   |   |   |   |   |   |   |   |   |
|     Basic                                       |   | $                               | 0.38       |   |                           | $      | 0.47 |   |   | $ | 0.76 |   |   | $ | 0.75 |   |
|     Diluted                                     |   | $                               | 0.38       |   |                           | $      | 0.47 |   |   | $ | 0.76 |   |   | $ | 0.75 |   |

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| Shares outstanding on record date |   | 2010   |       |   | 2009   |   |
|-----------------------------------|--------|--------|------------|--------|--------|--------|
| First quarter (Feb. 15)           |   |   | 13,120,514 |   |   |   | 13,000,953 |   |
| Second quarter (May 15)           |   |   | 13,223,197 |   |   |   | 13,041,891 |   |
| Third quarter (Aug. 15)           |   |   | 13,244,504 |   |   |   | 13,056,430 |   |

|                                                      |   | Unrecognized  |   |   | Unrecognized  |   |   | Unrecognized |   |   | Unrealized     |   |   | Accumulated Other |   |
|-----------------------------------------------------------|--------|---------------|--------|--------|---------------|--------|--------|--------------|--------|--------|----------------|--------|--------|-------------------|--------|
|                                                      |   | Net Actuarial |   |   | Prior Service |   |   | Transition   |   |   | Gain/(Loss)    |   |   | Comprehensive     |   |
| (Dollars in thousands)                                    |   | Loss (1)      |   |   | Credit (1)    |   |   | Asset (1)    |   |   | on Derivatives |   |   | Income/(Loss)     |   |
| December 31, 2009                                         |   | $             | (3,380 | )      |          | $      | 213    |         |   | $      | (109           | )      |   | $                 | (1,150 | ) |   |   | (4,426 | ) |
| 2010 Q1 Activity                                          |   |          |   |   |          |   |   |         |   |   |           |   |   |              | 168    |   |   |   | 168 |   |
| Q1 Net Periodic Benefit Cost                              |   |          | 59     |   |          |   | (8     | )            |   |   | 9              |   |   |              |   |   |   |   | 60 |   |
| March 31, 2010                                            |   | $             | (3,321 | )      |          | $      | 205    |         |   | $      | (100           | )      |   | $                 | (982   | ) |   | $ | (4,198 | ) |
| 2010 Q2 Activity                                          |   |          |   |   |          |   |   |         |   |   |           |   |   |              | 131    |   |   |   | 131 |   |
| Q2 Net Periodic Benefit Cost                              |   |          | 59     |   |          |   | (8     | )            |   |   | 9              |   |   |              |   |   |   |   | 60 |   |
| June 30, 2010                                             |   | $             | (3,262 | )      |          | $      | 197    |         |   | $      | (91            | )      |   | $                 | (851   | ) |   | $ | (4,007 | ) |
| 2010 Q3 Activity                                          |   |          |   |   |          |   |   |         |   |   |           |   |   | $                 | (8     | ) |   |   | (8 | ) |
| Q3 Net Periodic Benefit Cost                              |   |          | 59     |   |          |   | (8     | )            |   |   | 9              |   |   |              |   |   |   |   | 60 |   |
| September 30, 2010                                        |   | $             | (3,203 | )      |          | $      | 189    |         |   | $      | (82            | )      |   | $                 | (859   | ) |   | $ | (3,955 | ) |
|                                                      |   |          |   |   |          |   |   |         |   |   |           |   |   |              |   |   |   |   |   |   |
| (1) Amounts pertain to our post-retirement benefit plans. |   |          |   |   |          |   |   |         |   |   |           |   |   |              |   |   |   |

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| (Dollars in thousands)                                          |   | 2010   |   |
|-----------------------------------------------------------------|--------|--------|--------|
| Goodwill as of December 31, 2009                                |   | $      | 27,423 |   |
| Goodwill adjustments associated with the purchase of CP Telecom |   |   | (120   | ) |
| Goodwill as of September 30, 2010                               |   | $      | 27,303 |   |

|                             |   |         |   | As of September 30, 2010 |   |   | As of December 31, 2009 |   |
|----------------------------------|--------|--------------|--------|--------------------------|--------|--------|-------------------------|--------|
|                             |   |         |   | Gross Carrying           |   |   | Accumulated             |   |   | Gross Carrying |   |   | Accumulated |   |
| (Dollars in thousands)           |   | Useful Lives |   | Amount                   |   |   | Amortization            |   |   | Amount |   |   | Amortization |   |
| Definite-Lived Intangible Assets |   |         |   |                     |   |   |                    |   |   |   |   |   |   |   |
| Customer relationships           |   | 1 - 8 years  |   | $                        | 5,299  |   |                    | $      | 4,479 |   |   | $ | 5,299 |   |   | $ | 4,318 |   |
| Other intangibles                |   | 1 - 5 years  |   |                     | 2,830  |   |                    |   | 893 |   |   |   | 2,830 |   |   |   | 786 |   |
| Total                            |   |         |   | $                        | 8,129  |   |                    | $      | 5,372 |   |   | $ | 8,129 |   |   | $ | 5,104 |   |

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| (Dollars in thousands)                     |   |     |   |   |    |   |    | Corporate and |   |          |         |   |
|--------------------------------------------|--------|----------|--------|--------|---------|--------|---------|---------------|--------|---------------|--------------|--------|
| Three Months Ended September 30, 2010      |   | Enventis |   |   | Telecom |   |    | Eliminations  |   |          | Consolidated |   |
| Revenue from unaffiliated customers        |   | $        | 25,375 |   |    | $      | 18,105  |          |   | $             | -            |   |   | $ | 43,480 |   |
| Intersegment revenue                       |   |     | 157    |   |    |   | 562     |          |   |          | (719         | )      |   |   | - |   |
|    Total operating revenue  |   |     | 25,532 |   |    |   | 18,667  |          |   |          | (719         | )      |   |   | 43,480 |   |
|                                       |   |     |   |   |    |   |    |          |   |          |         |   |   |   |   |   |
| Depreciation and amortization              |   |     | 1,535  |   |    |   | 3,881   |          |   |          | 30           |   |   |   | 5,446 |   |
| Operating income (loss)                    |   |     | 3,402  |   |    |   | 3,062   |          |   |          | (76          | )      |   |   | 6,388 |   |
| Interest expense                           |   |     | -      |   |    |   | 11      |          |   |          | 1,117        |   |   |   | 1,128 |   |
| Income tax provision (benefit)             |   |     | 1,378  |   |    |   | 1,237   |          |   |          | (2,387       | )      |   |   | 228 |   |
| Net Income                                 |   |     | 2,023  |   |    |   | 1,818   |          |   |          | 1,202        |   |   |   | 5,043 |   |
| Total assets                               |   |     | 88,350 |   |    |   | 134,745 |          |   |          | 6,673        |   |   |   | 229,768 |   |
| Property, plant and equipment, net         |   |     | 53,988 |   |    |   | 100,191 |          |   |          | 193          |   |   |   | 154,372 |   |
| Additions to property, plant and equipment |   |     | 4,830  |   |    |   | 1,688   |          |   |          | -            |   |   |   | 6,518 |   |
|                                       |   |     |   |   |    |   |    |          |   |          |         |   |   |   |   |   |
|                                       |   |     |   |   |    |   |    |          |   |          |         |   |   |   |   |   |
|                                       |   |     |   |   |    |   |    |          |   | Corporate and |         |   |   |   |   |
| Three Months Ended September 30, 2009      |   | Enventis |   |   | Telecom |   |    | Eliminations  |   |          | Consolidated |   |
| Revenue from unaffiliated customers        |   | $        | 17,462 |   |    | $      | 17,446  |          |   | $             | -            |   |   | $ | 34,908 |   |
| Intersegment revenue                       |   |     | 106    |   |    |   | 367     |          |   |          | (473         | )      |   |   | - |   |
|    Total operating revenue  |   |     | 17,568 |   |    |   | 17,813  |          |   |          | (473         | )      |   |   | 34,908 |   |
|                                       |   |     |   |   |    |   |    |          |   |          |         |   |   |   |   |   |
| Depreciation and amortization              |   |     | 1,459  |   |    |   | 3,856   |          |   |          | 25           |   |   |   | 5,340 |   |
| Operating income (loss)                    |   |     | 1,523  |   |    |   | 3,407   |          |   |          | (236         | )      |   |   | 4,694 |   |
| Interest expense                           |   |     | 3      |   |    |   | 21      |          |   |          | 1,704        |   |   |   | 1,728 |   |
| Income tax provision (benefit)             |   |     | 620    |   |    |   | 1,372   |          |   |          | (5,118       | )      |   |   | (3,126 | ) |
| Net Income                                 |   |     | 901    |   |    |   | 2,016   |          |   |          | 3,189        |   |   |   | 6,106 |   |
| Total assets                               |   |     | 68,300 |   |    |   | 141,845 |          |   |          | 13,791       |   |   |   | 223,936 |   |
| Property, plant and equipment, net         |   |     | 44,335 |   |    |   | 107,604 |          |   |          | 292          |   |   |   | 152,231 |   |
| Additions to property, plant and equipment |   |     | 1,438  |   |    |   | 2,589   |          |   |          | 10           |   |   |   | 4,037 |   |

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| (Dollars in thousands)                     |   |     |   |   |    |   |    | Corporate and |   |          |         |   |
|--------------------------------------------|--------|----------|--------|--------|---------|--------|---------|---------------|--------|---------------|--------------|--------|
| Nine Months Ended September 30, 2010       |   | Enventis |   |   | Telecom |   |    | Eliminations  |   |          | Consolidated |   |
| Revenue from unaffiliated customers        |   | $        | 67,857 |   |    | $      | 52,611  |          |   | $             | -            |   |   | $ | 120,468 |   |
| Intersegment revenue                       |   |     | 387    |   |    |   | 1,459   |          |   |          | (1,846       | )      |   |   | - |   |
|    Total operating revenue  |   |     | 68,244 |   |    |   | 54,070  |          |   |          | (1,846       | )      |   |   | 120,468 |   |
|                                       |   |     |   |   |    |   |    |          |   |          |         |   |   |   |   |   |
| Depreciation and amortization              |   |     | 4,305  |   |    |   | 11,772  |          |   |          | 91           |   |   |   | 16,168 |   |
| Operating income                           |   |     | 7,580  |   |    |   | 8,878   |          |   |          | 47           |   |   |   | 16,505 |   |
| Interest expense                           |   |     | -      |   |    |   | 50      |          |   |          | 3,770        |   |   |   | 3,820 |   |
| Income tax provision (benefit)             |   |     | 3,109  |   |    |   | 3,843   |          |   |          | (4,185       | )      |   |   | 2,767 |   |
| Net Income                                 |   |     | 4,498  |   |    |   | 4,998   |          |   |          | 484          |   |   |   | 9,980 |   |
| Total assets                               |   |     | 88,350 |   |    |   | 134,745 |          |   |          | 6,673        |   |   |   | 229,768 |   |
| Property, plant and equipment, net         |   |     | 53,988 |   |    |   | 100,191 |          |   |          | 193          |   |   |   | 154,372 |   |
| Additions to property, plant and equipment |   |     | 10,801 |   |    |   | 6,209   |          |   |          | -            |   |   |   | 17,010 |   |
|                                       |   |     |   |   |    |   |    |          |   |          |         |   |   |   |   |   |
|                                       |   |     |   |   |    |   |    |          |   |          |         |   |   |   |   |   |
|                                       |   |     |   |   |    |   |    |          |   | Corporate and |         |   |   |   |   |
| Nine Months Ended September 30, 2009       |   | Enventis |   |   | Telecom |   |    | Eliminations  |   |          | Consolidated |   |
| Revenue from unaffiliated customers        |   | $        | 47,873 |   |    | $      | 52,899  |          |   | $             | -            |   |   | $ | 100,772 |   |
| Intersegment revenue                       |   |     | 389    |   |    |   | 844     |          |   |          | (1,233       | )      |   |   | - |   |
|    Total operating revenue  |   |     | 48,262 |   |    |   | 53,743  |          |   |          | (1,233       | )      |   |   | 100,772 |   |
|                                       |   |     |   |   |    |   |    |          |   |          |         |   |   |   |   |   |
| Depreciation and amortization              |   |     | 3,809  |   |    |   | 11,803  |          |   |          | 54           |   |   |   | 15,666 |   |
| Operating income (loss)                    |   |     | 4,381  |   |    |   | 10,500  |          |   |          | (340         | )      |   |   | 14,541 |   |
| Interest expense                           |   |     | 3      |   |    |   | 75      |          |   |          | 5,077        |   |   |   | 5,155 |   |
| Income tax provision (benefit)             |   |     | 1,779  |   |    |   | 4,248   |          |   |          | (6,435       | )      |   |   | (408 | ) |
| Net Income                                 |   |     | 2,600  |   |    |   | 6,199   |          |   |          | 1,050        |   |   |   | 9,849 |   |
| Total assets                               |   |     | 68,300 |   |    |   | 141,845 |          |   |          | 13,791       |   |   |   | 223,936 |   |
| Property, plant and equipment, net         |   |     | 44,335 |   |    |   | 107,604 |          |   |          | 292          |   |   |   | 152,231 |   |
| Additions to property, plant and equipment |   |     | 4,891  |   |    |   | 6,375   |          |   |          | 65           |   |   |   | 11,331 |   |

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|                              |   |   |   |    |   | Weighted Average |   |
|-----------------------------------|--------|--------|--------|---------|--------|------------------|--------|
|                              |   |   | Shares |    |   | Exercise Price   |   |
| Outstanding at January 1, 2010    |   |   |   | 430,950 |   |             | $      | 12.87 |   |
|     Granted   |   |   |   | -       |   |             |   | - |   |
|     Exercised |   |   |   | -       |   |             |   | - |   |
|     Forfeited |   |   |   | -       |   |             |   | - |   |
|     Expired   |   |   |   | 79,250  |   |             |   | 13.92 |   |
| Outstanding at September 30, 2010 |   |   |   | 351,700 |   |             | $      | 12.64 |   |
| Exercisable at September 30, 2010 |   |   |   | 351,700 |   |             | $      | 12.64 |   |

| Range of                   |            |   | Stock Options |   |    | Stock Options |   |   | Weighted Average |   |   | Weighted Average Remaining |   |
|----------------------------|-----------------|--------|---------------|--------|---------|---------------|--------|--------|------------------|--------|--------|----------------------------|--------|
| Exercise Prices            |            |   | Outstanding   |   |    | Exercisable   |   |   | Exercise Price   |   |   | Contractual Life           |   |
|                       | $6.00 - $8.00   |   |          |   | 15,000  |          |   |   | 15,000           |   |   | $                          | 6.95   |   |   |   | 5.92 |   |
|                       | $8.00 - $12.00  |   |          |   | 156,950 |          |   |   | 156,950          |   |   |                       | 10.22  |   |   |   | 3.18 |   |
|                       | $12.00 - $16.00 |   |          |   | 126,000 |          |   |   | 126,000          |   |   |                       | 13.97  |   |   |   | 1.23 |   |
|                       | $16.00 - $21.00 |   |          |   | 53,750  |          |   |   | 53,750           |   |   |                       | 18.18  |   |   |   | 0.47 |   |
|                       |            |   |          |   | 351,700 |          |   |   | 351,700          |   |   | $                          | 12.64  |   |   |   | 2.18 |   |
|                       |            |   |          |   |    |          |   |   |             |   |   |                       |   |   |   |   |   |   |
| Aggregate intrinsic value: |            |   |          |   |    |          |   |   |             |   | $      | 33,900                     |   |   |   |   |   |

| ·   | Level 1 – quoted prices in active markets for identical assets and liabilities. |
|--------------------|---------------------------------------------------------------------------------------|

| ·   | Level 2 – observable inputs other than quoted prices in active markets for identical assets and liabilities. |
|--------------------|--------------------------------------------------------------------------------------------------------------------|

| ·   | Level 3 – unobservable inputs in which there is little or no market data available, which require the reporting entity to develop its own assumptions. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (Dollars in thousands)          |   | Gain Reported in Accumulated |   |                                                    |   | Amount of Gain/Proceeds            |                                   |
|---------------------------------|--------|------------------------------|--------|---------------------------------------------------------|--------|------------------------------------|----------------------------------------|
| Derivative Instruments in       |   | Other Comprehensive Loss     |   | Location of Gain/Proceeds Reclassified from Accumulated |   | Recognized in Income on Derivative |                                   |
| Cash Flow Hedging Relationships |   | 2010                         |   |                                                    | 2009   |                               | Other Comprehensive Income into Income |   | 2010 |   |   | 2009 |   |
|                            |   |                         |   |                                                    |   |                               |                                   |   |   |   |   |   |   |
| Interest Rate Contracts         |   | $                            | 291    |                                                    |   | $                                  | 448                                    |   | Interest Expense |   | $ | - |   |   | $ | - |   |

|                                                            |   | Three Months Ended September 30 |   |   | Nine Months Ended September 30 |   |
|-----------------------------------------------------------------|--------|---------------------------------|--------|--------|--------------------------------|--------|
| (Dollars in thousands)                                          |   | 2010                            |   |   | 2009                           |   |   | 2010 |   |   | 2009 |   |
| Components of net periodic benefit cost                         |   |                            |   |   |                           |   |   |   |   |   |   |   |
| Service cost                                                    |   | $                               | 113    |   |                           | $      | 77 |   |   | $ | 339 |   |   | $ | 189 |   |
| Interest cost                                                   |   |                            | 181    |   |                           |   | 137 |   |   |   | 543 |   |   |   | 366 |   |
| Amortization of transition obligation                           |   |                            | 15     |   |                           |   | 15 |   |   |   | 45 |   |   |   | 45 |   |
| Amortization of prior service cost                              |   |                            | (14    | )      |                           |   | (14 | ) |   |   | (42 | ) |   |   | (42 | ) |
| Recognized net actuarial loss                                   |   |                            | 98     |   |                           |   | 33 |   |   |   | 294 |   |   |   | 60 |   |
| Net periodic benefit cost                                       |   | $                               | 393    |   |                           | $      | 248 |   |   | $ | 1,179 |   |   | $ | 618 |   |
|                                                            |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
|                                                            |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |
| Employer's contributions for current premiums:        |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   | September 30, 2010  |   |
| Contributions made for the nine months ended September 30, 2010 |   |                            |   |   |                           |   |   |   |   |   | $ | 232 |   |
| Expected contributions for remainder of 2010                    |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   | 81 |   |
| Total estimated employer contributions for fiscal year 2010     |   |                            |   |   |                           |   |   |   |   |   |   |   |   | $ | 313 |   |

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| (Dollars in thousands)               |                                 | 2010   |   |
|--------------------------------------|--------------------------------------|--------|--------|
| Property and equipment               |                                 | $      | 3,986  |   |
| Identifiable intangible assets:      |                                 |   |   |   |
|                                 | Customer relationships and contracts |   |   | 1,070 |   |
|                                 | Supplier relationship                |   |   | 2,100 |   |
| Goodwill                             |                                 |   |   | 2,064 |   |
| Other assets and liabilities         |                                 |   | (653   | ) |
| Deferred income tax                  |                                 |   | (2,062 | ) |
| Allocation of purchase consideration |                                 | $      | 6,505  |   |

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Item 2.

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| ENVENTIS SECTOR                                                       |   |
|-----------------------------------------------------------------------|--------|
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                  |   | Three Months Ended September 30 |   |   | % |   |   | Nine Months Ended September 30 |   |   | % |   |
| (Dollars in thousands)                                                |   | 2010 |   |   | 2009 |   |   | Change |   |   | 2010 |   |   | 2009 |   |   | Change |   |
| Operating revenue before intersegment eliminations                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equipment                                                             |   | $ | 9,954 |   |   | $ | 6,604 |   |   |   | 51 | % |   | $ | 27,906 |   |   | $ | 18,788 |   |   |   | 49 | % |
| Services                                                              |   |   | 2,164 |   |   |   | 2,183 |   |   |   | -1 | % |   |   | 6,373 |   |   |   | 7,273 |   |   |   | -12 | % |
|    Equipment and Services                              |   |   | 12,118 |   |   |   | 8,787 |   |   |   |   |   |   |   | 34,279 |   |   |   | 26,061 |   |   |   |   |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fiber and Data                                                        |   |   | 13,257 |   |   |   | 8,675 |   |   |   | 53 | % |   |   | 33,578 |   |   |   | 21,812 |   |   |   | 54 | % |
| Intersegment                                                          |   |   | 157 |   |   |   | 106 |   |   |   | 48 | % |   |   | 387 |   |   |   | 389 |   |   |   | -1 | % |
| Total Enventis operating revenue                                      |   | $ | 25,532 |   |   | $ | 17,568 |   |   |   | 45 | % |   | $ | 68,244 |   |   | $ | 48,262 |   |   |   | 41 | % |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Enventis revenue before intersegment eliminations               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Unaffiliated customers                              |   | $ | 25,375 |   |   | $ | 17,462 |   |   |   |   |   |   | $ | 67,857 |   |   | $ | 47,873 |   |   |   |   |   |
|    Intersegment                                        |   |   | 157 |   |   |   | 106 |   |   |   |   |   |   |   | 387 |   |   |   | 389 |   |   |   |   |   |
|                                                                  |   |   | 25,532 |   |   |   | 17,568 |   |   |   |   |   |   |   | 68,244 |   |   |   | 48,262 |   |   |   |   |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales  (excluding depreciation and amortization)    |   |   | 8,519 |   |   |   | 5,653 |   |   |   | 51 | % |   |   | 23,968 |   |   |   | 16,369 |   |   |   | 46 | % |
| Cost of services  (excluding depreciation and amortization) |   |   | 8,600 |   |   |   | 6,177 |   |   |   | 39 | % |   |   | 22,881 |   |   |   | 16,264 |   |   |   | 41 | % |
| Selling, general and administrative expenses                          |   |   | 3,476 |   |   |   | 2,756 |   |   |   | 26 | % |   |   | 9,510 |   |   |   | 7,439 |   |   |   | 28 | % |
| Depreciation and amortization                                         |   |   | 1,535 |   |   |   | 1,459 |   |   |   | 5 | % |   |   | 4,305 |   |   |   | 3,809 |   |   |   | 13 | % |
|    Total Enventis costs and expenses                   |   |   | 22,130 |   |   |   | 16,045 |   |   |   | 38 | % |   |   | 60,664 |   |   |   | 43,881 |   |   |   | 38 | % |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating income                                                      |   | $ | 3,402 |   |   | $ | 1,523 |   |   |   | 123 | % |   | $ | 7,580 |   |   | $ | 4,381 |   |   |   | 73 | % |
| Net income                                                            |   | $ | 2,023 |   |   | $ | 901 |   |   |   | 125 | % |   | $ | 4,498 |   |   | $ | 2,600 |   |   |   | 73 | % |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital expenditures                                                  |   | $ | 4,830 |   |   | $ | 1,438 |   |   |   | 236 | % |   | $ | 10,801 |   |   | $ | 4,891 |   |   |   | 121 | % |

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| EQUIPMENT AND SERVICES PRODUCT LINE REPORTING                         |   |
|-----------------------------------------------------------------------|--------|
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                  |   | Three Months Ended September 30 |   |   |  % |   |   | Nine Months Ended September 30 |   |   |  % |   |
| (Dollars in thousands)                                                |   | 2010 |   |   | 2009 |   |   | Change |   |   | 2010 |   |   | 2009 |   |   | Change |   |
| Operating revenue before intersegment eliminations:                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equipment                                                             |   | $ | 9,954 |   |   | $ | 6,604 |   |   |   | 51 | % |   | $ | 27,906 |   |   | $ | 18,788 |   |   |   | 49 | % |
| Services                                                              |   |   | 2,164 |   |   |   | 2,183 |   |   |   | -1 | % |   |   | 6,373 |   |   |   | 7,273 |   |   |   | -12 | % |
| Total operating revenue                                               |   | $ | 12,118 |   |   | $ | 8,787 |   |   |   | 38 | % |   | $ | 34,279 |   |   | $ | 26,061 |   |   |   | 32 | % |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales  (excluding depreciation and amortization)    |   |   | 8,519 |   |   |   | 5,728 |   |   |   | 49 | % |   |   | 23,968 |   |   |   | 16,427 |   |   |   | 46 | % |
| Cost of services  (excluding depreciation and amortization) |   |   | 1,666 |   |   |   | 1,664 |   |   |   | 0 | % |   |   | 5,078 |   |   |   | 5,265 |   |   |   | -4 | % |
| Selling, general and administrative expenses                          |   |   | 1,319 |   |   |   | 1,303 |   |   |   | 1 | % |   |   | 3,547 |   |   |   | 3,802 |   |   |   | -7 | % |
| Depreciation and amortization                                         |   |   | 120 |   |   |   | 121 |   |   |   | -1 | % |   |   | 270 |   |   |   | 307 |   |   |   | -12 | % |
|    Total costs and expenses                            |   |   | 11,624 |   |   |   | 8,816 |   |   |   | 32 | % |   |   | 32,863 |   |   |   | 25,801 |   |   |   | 27 | % |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating income                                                      |   | $ | 494 |   |   | $ | (29 | ) |   |   | N/ | A  |   | $ | 1,416 |   |   | $ | 260 |   |   |   | 445 | % |
| Net income                                                            |   | $ | 293 |   |   | $ | (17 | ) |   |   | N/ | A  |   | $ | 858 |   |   | $ | 156 |   |   |   | 450 | % |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital expenditures                                                  |   | $ | 78 |   |   | $ | 62 |   |   |   | 26 | % |   | $ | 212 |   |   | $ | 324 |   |   |   | -35 | % |

| FIBER AND DATA PRODUCT LINE REPORTING                                 |   |
|-----------------------------------------------------------------------|--------|
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                  |   | Three Months Ended September 30 |   |   |  % |   |   | Nine Months Ended September 30 |   |   |  % |   |
| (Dollars in thousands)                                                |   | 2010 |   |   | 2009 |   |   | Change |   |   | 2010 |   |   | 2009 |   |   | Change |   |
| Operating revenue before intersegment eliminations:                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Services                                                              |   | $ | 13,257 |   |   | $ | 8,675 |   |   |   | 53 | % |   | $ | 33,578 |   |   | $ | 21,812 |   |   |   | 54 | % |
| Intersegment                                                          |   |   | 157 |   |   |   | 106 |   |   |   | 48 | % |   |   | 387 |   |   |   | 389 |   |   |   | -1 | % |
| Total operating revenue                                               |   | $ | 13,414 |   |   | $ | 8,781 |   |   |   | 53 | % |   | $ | 33,965 |   |   | $ | 22,201 |   |   |   | 53 | % |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales  (excluding depreciation and amortization)    |   |   | - |   |   |   | (75 | ) |   |   | -100 | % |   |   | - |   |   |   | (58 | ) |   |   | -100 | % |
| Cost of services  (excluding depreciation and amortization) |   |   | 6,934 |   |   |   | 4,513 |   |   |   | 54 | % |   |   | 17,803 |   |   |   | 10,999 |   |   |   | 62 | % |
| Selling, general and administrative expenses                          |   |   | 2,157 |   |   |   | 1,453 |   |   |   | 48 | % |   |   | 5,963 |   |   |   | 3,637 |   |   |   | 64 | % |
| Depreciation and amortization                                         |   |   | 1,415 |   |   |   | 1,338 |   |   |   | 6 | % |   |   | 4,035 |   |   |   | 3,502 |   |   |   | 15 | % |
|    Total costs and expenses                            |   |   | 10,506 |   |   |   | 7,229 |   |   |   | 45 | % |   |   | 27,801 |   |   |   | 18,080 |   |   |   | 54 | % |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating income                                                      |   | $ | 2,908 |   |   | $ | 1,552 |   |   |   | 87 | % |   | $ | 6,164 |   |   | $ | 4,121 |   |   |   | 50 | % |
| Net income                                                            |   | $ | 1,730 |   |   | $ | 918 |   |   |   | 88 | % |   | $ | 3,640 |   |   | $ | 2,444 |   |   |   | 49 | % |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital expenditures                                                  |   | $ | 4,752 |   |   | $ | 1,376 |   |   |   | 245 | % |   | $ | 10,589 |   |   | $ | 4,567 |   |   |   | 132 | % |

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| TELECOM SECTOR                                             |   |
|------------------------------------------------------------|--------|
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   | Three Months Ended September 30 |   |   | % |   |   | Nine Months Ended September 30 |   |   | % |   |
| (Dollars in thousands)                                     |   | 2010 |   |   | 2009 |   |   | Change |   |   | 2010 |   |   | 2009 |   |   | Change |   |
| Operating revenue before intersegment eliminations         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Local Service                      |   | $ | 3,643 |   |   | $ | 3,802 |   |   |   | -4 | % |   | $ | 10,946 |   |   | $ | 11,559 |   |   |   | -5 | % |
|     Network Access                     |   |   | 5,812 |   |   |   | 5,993 |   |   |   | -3 | % |   |   | 17,791 |   |   |   | 18,158 |   |   |   | -2 | % |
|     Long Distance                      |   |   | 800 |   |   |   | 872 |   |   |   | -8 | % |   |   | 2,420 |   |   |   | 2,930 |   |   |   | -17 | % |
|     Broadband                          |   |   | 3,576 |   |   |   | 3,077 |   |   |   | 16 | % |   |   | 10,079 |   |   |   | 8,940 |   |   |   | 13 | % |
|     Internet                           |   |   | 1,294 |   |   |   | 1,233 |   |   |   | 5 | % |   |   | 3,788 |   |   |   | 3,739 |   |   |   | 1 | % |
|     Directory                          |   |   | 912 |   |   |   | 971 |   |   |   | -6 | % |   |   | 2,717 |   |   |   | 3,071 |   |   |   | -12 | % |
|     Bill Processing                    |   |   | 1,148 |   |   |   | 849 |   |   |   | 35 | % |   |   | 2,725 |   |   |   | 2,479 |   |   |   | 10 | % |
|     Intersegment                       |   |   | 562 |   |   |   | 367 |   |   |   | 53 | % |   |   | 1,459 |   |   |   | 844 |   |   |   | 73 | % |
|     Other                              |   |   | 920 |   |   |   | 649 |   |   |   | 42 | % |   |   | 2,145 |   |   |   | 2,023 |   |   |   | 6 | % |
| Total Telecom operating revenue                            |   | $ | 18,667 |   |   | $ | 17,813 |   |   |   | 5 | % |   | $ | 54,070 |   |   | $ | 53,743 |   |   |   | 1 | % |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Telecom revenue before intersegment eliminations     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Unaffiliated customers                   |   | $ | 18,105 |   |   | $ | 17,446 |   |   |   |   |   |   | $ | 52,611 |   |   | $ | 52,899 |   |   |   |   |   |
|    Intersegment                             |   |   | 562 |   |   |   | 367 |   |   |   |   |   |   |   | 1,459 |   |   |   | 844 |   |   |   |   |   |
|                                                       |   |   | 18,667 |   |   |   | 17,813 |   |   |   |   |   |   |   | 54,070 |   |   |   | 53,743 |   |   |   |   |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of services (excluding depreciation and amortization) |   |   | 8,539 |   |   |   | 7,668 |   |   |   | 11 | % |   |   | 24,252 |   |   |   | 22,684 |   |   |   | 7 | % |
| Selling, general and administrative expenses               |   |   | 3,185 |   |   |   | 2,882 |   |   |   | 11 | % |   |   | 9,168 |   |   |   | 8,756 |   |   |   | 5 | % |
| Depreciation and amortization                              |   |   | 3,881 |   |   |   | 3,856 |   |   |   | 1 | % |   |   | 11,772 |   |   |   | 11,803 |   |   |   | 0 | % |
|    Total Telecom costs and expenses         |   |   | 15,605 |   |   |   | 14,406 |   |   |   | 8 | % |   |   | 45,192 |   |   |   | 43,243 |   |   |   | 5 | % |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating Income                                           |   | $ | 3,062 |   |   | $ | 3,407 |   |   |   | -10 | % |   | $ | 8,878 |   |   | $ | 10,500 |   |   |   | -15 | % |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                 |   | $ | 1,818 |   |   | $ | 2,016 |   |   |   | -10 | % |   | $ | 4,998 |   |   | $ | 6,199 |   |   |   | -19 | % |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital expenditures                                       |   | $ | 1,688 |   |   | $ | 2,589 |   |   |   | -35 | % |   | $ | 6,209 |   |   | $ | 6,375 |   |   |   | -3 | % |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Key metrics                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Business access lines              |   |   | 24,468 |   |   |   | 25,542 |   |   |   | -4 | % |   |   |   |   |   |   |   |   |   |   |   |   |
|     Residential access lines           |   |   | 28,028 |   |   |   | 31,385 |   |   |   | -11 | % |   |   |   |   |   |   |   |   |   |   |   |   |
| Total access lines                                         |   |   | 52,496 |   |   |   | 56,927 |   |   |   | -8 | % |   |   |   |   |   |   |   |   |   |   |   |   |
| Long distance customers                                    |   |   | 34,459 |   |   |   | 36,761 |   |   |   | -6 | % |   |   |   |   |   |   |   |   |   |   |   |   |
| Digital Subscriber Line customers                          |   |   | 19,642 |   |   |   | 19,511 |   |   |   | 1 | % |   |   |   |   |   |   |   |   |   |   |   |   |
| Digital TV customers                                       |   |   | 10,301 |   |   |   | 9,386 |   |   |   | 10 | % |   |   |   |   |   |   |   |   |   |   |   |   |

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Signatures

| HICKORY TECH CORPORATION |
|--------------------------|

| By:  /s/ John W. Finke                     |
|------------------------------------------------------|
| John W. Finke, President and Chief Executive Officer |

| By:  /s/ David A. Christensen                                 |
|-------------------------------------------------------------------------|
| David A. Christensen, Senior Vice President and Chief Financial Officer |

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