----

----

| þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES |
|--------|--------------------------------------------------------------------|
|   | EXCHANGE ACT OF 1934                                               |
|   | For the quarterly period ended June 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 Six Months Ended June 30, 2010 and 2009 | 3             |
|    | Consolidated Balance Sheets (unaudited) as of June 30, 2010 and December 31, 2009                           | 4             |
|    | Consolidated Statements of Cash Flows (unaudited) for the Six Months Ended June 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                                                  | 26            |
| Item 4. | Controls and Procedures                                                                                     | 26            |
|    |                                                                                                        |          |

|   | 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 | 27     |
| Item 3.  | Defaults Upon Senior Securities                             | 27     |
| Item 4.  | Removed and Reserved                                        | 27     |
| Item 5.  | Other Information                                           | 27     |
| Item 6.  | Exhibit Listing                                             | 27     |
|     | Signatures                                                  | 28     |
|     | Exhibits                                                    |   |

----

Table of Contents

Item 1
Financial Statements

| HICKORY TECH CORPORATION                                                              |   |
|---------------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF OPERATIONS                                                 |   |
| (Unaudited)                                                                           |   |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                  |   | Three Months Ended |   |   | Six Months Ended |   |
|                                                                                  |   | June 30 |   |   | June 30 |   |
| (Dollars in thousands, except share and per share amounts)                            |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
| Operating revenue:                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Enventis Sector                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|    Equipment                                                           |   | $ | 8,068 |   |   | $ | 5,393 |   |   | $ | 17,952 |   |   | $ | 12,184 |   |
|    Services                                                            |   |   | 13,060 |   |   |   | 9,229 |   |   |   | 24,530 |   |   |   | 18,227 |   |
| Total Enventis Sector                                                                 |   |   | 21,128 |   |   |   | 14,622 |   |   |   | 42,482 |   |   |   | 30,411 |   |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Telecom Sector                                                                        |   |   | 17,140 |   |   |   | 17,781 |   |   |   | 34,506 |   |   |   | 35,453 |   |
| Total operating revenue                                                               |   |   | 38,268 |   |   |   | 32,403 |   |   |   | 76,988 |   |   |   | 65,864 |   |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Costs and expenses:                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales, excluding depreciation and amortization                                |   |   | 6,974 |   |   |   | 4,717 |   |   |   | 15,449 |   |   |   | 10,716 |   |
| Cost of services, excluding depreciation and amortization                             |   |   | 14,766 |   |   |   | 11,948 |   |   |   | 28,944 |   |   |   | 24,413 |   |
| Selling, general and administrative expenses                                          |   |   | 5,560 |   |   |   | 5,406 |   |   |   | 11,756 |   |   |   | 10,562 |   |
| Depreciation                                                                          |   |   | 5,222 |   |   |   | 4,830 |   |   |   | 10,544 |   |   |   | 9,899 |   |
| Amortization of intangibles                                                           |   |   | 89 |   |   |   | 213 |   |   |   | 178 |   |   |   | 427 |   |
| Total costs and expenses                                                              |   |   | 32,611 |   |   |   | 27,114 |   |   |   | 66,871 |   |   |   | 56,017 |   |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating income                                                                      |   |   | 5,657 |   |   |   | 5,289 |   |   |   | 10,117 |   |   |   | 9,847 |   |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other income and expense:                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest and other income                                                             |   |   | 14 |   |   |   | 32 |   |   |   | 51 |   |   |   | 41 |   |
| Interest expense                                                                      |   |   | (1,101 | ) |   |   | (1,719 | ) |   |   | (2,692 | ) |   |   | (3,427 | ) |
|       Total other (expense)                                  |   |   | (1,087 | ) |   |   | (1,687 | ) |   |   | (2,641 | ) |   |   | (3,386 | ) |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income before income taxes                                                            |   |   | 4,570 |   |   |   | 3,602 |   |   |   | 7,476 |   |   |   | 6,461 |   |
| Income tax provision                                                                  |   |   | 1,060 |   |   |   | 1,485 |   |   |   | 2,539 |   |   |   | 2,718 |   |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                            |   | $ | 3,510 |   |   | $ | 2,117 |   |   | $ | 4,937 |   |   | $ | 3,743 |   |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic earnings per share                                                              |   | $ | 0.27 |   |   | $ | 0.16 |   |   | $ | 0.37 |   |   | $ | 0.29 |   |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common shares outstanding                                            |   |   | 13,225,561 |   |   |   | 13,049,238 |   |   |   | 13,190,366 |   |   |   | 13,034,005 |   |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted earnings per share                                                            |   | $ | 0.27 |   |   | $ | 0.16 |   |   | $ | 0.37 |   |   | $ | 0.29 |   |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common and equivalent shares outstanding                             |   |   | 13,230,861 |   |   |   | 13,049,677 |   |   |   | 13,197,666 |   |   |   | 13,034,005 |   |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividends per share                                                                   |   | $ | 0.13 |   |   | $ | 0.13 |   |   | $ | 0.26 |   |   | $ | 0.26 |   |
|                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 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)                                                                            |   | June 30, 2010 |   |   | December 31, 2009 |   |
| ASSETS                                                                                                                               |   |
| Current assets:                                                                                                                      |   |   |   |   |   |   |
|      Cash and cash equivalents                                                                                   |   | $ | 135 |   |   | $ | 2,420 |    |
|      Receivables, net of allowance for doubtful accounts of $723 and $643                                        |   |   | 25,143 |   |   |   | 19,729 |   |
|      Inventories                                                                                                 |   |   | 5,826 |   |   |   | 5,069 |   |
|      Deferred income taxes, net                                                                                  |   |   | 2,423 |   |   |   | 2,423 |   |
|      Prepaid expenses                                                                                            |   |   | 2,215 |   |   |   | 1,751 |   |
|      Other                                                                                                       |   |   | 1,619 |   |   |   | 1,039 |   |
|           Total current assets                                                          |   |   | 37,361 |   |   |   | 32,431 |   |
|                                                                                                                                 |   |   |   |   |   |   |   |   |
| Investments                                                                                                                          |   |   | 4,492 |   |   |   | 4,306 |   |
|                                                                                                                                 |   |   |   |   |   |   |   |   |
| Property, plant and equipment                                                                                                        |   |   | 367,118 |   |   |   | 357,607 |   |
|      Accumulated depreciation                                                                                    |   |   | (213,670 | ) |   |   | (204,129 | ) |
|          Property, plant and equipment, net                                                  |   |   | 153,448 |   |   |   | 153,478 |   |
|                                                                                                                                 |   |   |   |   |   |   |   |   |
| Other assets:                                                                                                                        |   |   |   |   |   |   |   |   |
|      Goodwill                                                                                                    |   |   | 27,303 |   |   |   | 27,423 |   |
|      Intangible assets, net                                                                                      |   |   | 2,847 |   |   |   | 3,025 |   |
|      Deferred costs and other                                                                                    |   |   | 1,606 |   |   |   | 1,820 |   |
|          Total other assets                                                                  |   |   | 31,756 |   |   |   | 32,268 |   |
|                                                                                                                                 |   |   |   |   |   |   |   |   |
| Total assets                                                                                                                         |   | $ | 227,057 |   |   | $ | 222,483 |   |
|                                                                                                                                 |   |   |   |   |   |   |   |   |
| LIABILITIES & SHAREHOLDERS' EQUITY                                                                                               |   |
| Current liabilities:                                                                                                                 |   |   |   |   |   |   |   |   |
|      Extended term payable                                                                                       |   | $ | 6,166 |   |   | $ | 6,788 |   |
|      Accounts payable                                                                                            |   |   | 7,542 |   |   |   | 2,883 |   |
|      Accrued expenses and other                                                                                  |   |   | 6,595 |   |   |   | 7,792 |   |
|      Accrued income taxes                                                                                        |   |   | 424 |   |   |   | 642 |   |
|      Deferred revenue                                                                                            |   |   | 5,936 |   |   |   | 6,016 |   |
|      Current maturities of long-term obligations                                                                 |   |   | 912 |   |   |   | 620 |   |
|          Total current liabilities                                                           |   |   | 27,575 |   |   |   | 24,741 |   |
|                                                                                                                                 |   |   |   |   |   |   |   |   |
| Long-term liabilities:                                                                                                               |   |   |   |   |   |   |   |   |
|      Debt obligations, net of current maturities                                                                 |   |   | 120,343 |   |   |   | 119,871 |   |
|      Financial derivative instruments                                                                            |   |   | 1,410 |   |   |   | 1,908 |   |
|      Accrued income taxes                                                                                        |   |   | 2,449 |   |   |   | 3,218 |   |
|      Deferred income taxes                                                                                       |   |   | 22,452 |   |   |   | 21,895 |   |
|      Deferred revenue                                                                                            |   |   | 1,462 |   |   |   | 2,095 |   |
|      Accrued employee benefits and deferred compensation                                                         |   |   | 14,623 |   |   |   | 14,209 |   |
|          Total long-term liabilities                                                         |   |   | 162,739 |   |   |   | 163,196 |   |
|                                                                                                                                 |   |   |   |   |   |   |   |   |
|             Total liabilities                                                 |   |   | 190,314 |   |   |   | 187,937 |   |
|                                                                                                                                 |   |   |   |   |   |   |   |   |
| Commitments and contingencies                                                                                                        |   |   |   |   |   |   |   |   |
|                                                                                                                                 |   |   |   |   |   |   |   |   |
| Shareholders' equity:                                                                                                                |   |   |   |   |   |   |   |   |
|      Common stock, no par value, $.10 stated value                                                               |   |   |   |   |   |   |   |   |
|          Shares authorized: 100,000,000                                                      |   |   |   |   |   |   |   |   |
|          Shares issued and outstanding:  13,238,713 in 2010 and 13,100,568 in 2009 |   |   | 1,324 |   |   |   | 1,310 |   |
|      Additional paid-in capital                                                                                  |   |   | 13,228 |   |   |   | 12,975 |   |
|      Retained earnings                                                                                           |   |   | 26,198 |   |   |   | 24,687 |   |
|      Accumulated other comprehensive (loss)                                                                      |   |   | (4,007 | ) |   |   | (4,426 | ) |
|             Total shareholders' equity                                        |   |   | 36,743 |   |   |   | 34,546 |   |
|                                                                                                                                 |   |   |   |   |   |   |   |   |
| Total liabilities and shareholders' equity                                                                                           |   | $ | 227,057 |   |   | $ | 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)                                                                                                     |   |
|                                                                                                            |   | Six Months Ended June 30 |   |
| (Dollars in thousands)                                                                                          |   | 2010 |   |   | 2009 |   |
| OPERATING ACTIVITIES:                                                                                           |   |   |   |   |   |   |
|     Net income                                                                                   |   | $ | 4,937 |   |   | $ | 3,743 |    |
|     Adjustments to reconcile net income to net cash provided by operating activities:            |   |   |   |   |   |   |   |   |
|        Depreciation and amortization                                              |   |   | 10,722 |   |   |   | 10,326 |   |
|        Accrued patronage refunds                                                  |   |   | (247 | ) |   |   | (285 | ) |
|        Other                                                                      |   |   | 914 |   |   |   | 827 |   |
|     Changes in operating assets and liabilities                                             |   |   |   |   |   |   |   |   |
|           Receivables                                              |   |   | (5,611 | ) |   |   | 5,612 |   |
|           Prepaids                                                 |   |   | (464 | ) |   |   | (590 | ) |
|           Inventories                                              |   |   | (757 | ) |   |   | 2,775 |   |
|           Accounts payable and accrued expenses                    |   |   | 2,368 |   |   |   | (3,799 | ) |
|           Deferred revenue, billings and deposits                  |   |   | (711 | ) |   |   | (1,094 | ) |
|           Income taxes                                             |   |   | (708 | ) |   |   | 2,201 |   |
|           Other                                                    |   |   | (303 | ) |   |   | 602 |   |
|     Net cash provided by operating activities                                                    |   |   | 10,140 |   |   |   | 20,318 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |
| INVESTING ACTIVITIES:                                                                                           |   |   |   |   |   |   |   |   |
|     Additions to property, plant and equipment                                                   |   |   | (10,492 | ) |   |   | (7,294 | ) |
|     Other                                                                                        |   |   | 152 |   |   |   | - |   |
|     Net cash (used in) investing activities                                                      |   |   | (10,340 | ) |   |   | (7,294 | ) |
|                                                                                                            |   |   |   |   |   |   |   |   |
| FINANCING ACTIVITIES:                                                                                           |   |   |   |   |   |   |   |   |
|     Net change in extended term payables arrangement                                             |   |   | (621 | ) |   |   | 1,964 |   |
|     Change in cash overdraft                                                                     |   |   | 1,115 |   |   |   | - |   |
|     Borrowings on credit facility                                                                |   |   | 9,900 |   |   |   | - |   |
|     Payments on credit facility and capital lease obligations                                    |   |   | (9,171 | ) |   |   | (2,057 | ) |
|     Proceeds from issuance of common stock                                                       |   |   | 119 |   |   |   | 136 |   |
|     Dividends paid                                                                               |   |   | (3,427 | ) |   |   | (3,385 | ) |
|     Net cash (used in) financing activities                                                      |   |   | (2,085 | ) |   |   | (3,342 | ) |
|                                                                                                            |   |   |   |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                                                            |   |   | (2,285 | ) |   |   | 9,682 |   |
| Cash and cash equivalents at beginning of the period                                                            |   |   | 2,420 |   |   |   | 1,626 |   |
| Cash and cash equivalents at the end of the period                                                              |   | $ | 135 |   |   | $ | 11,308 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |
| Supplemental disclosure of cash flow information:                                                               |   |   |   |   |   |   |   |   |
|     Cash paid for interest                                                                       |   | $ | 2,902 |   |   | $ | 3,555 |   |
|     Net cash paid for income taxes                                                               |   | $ | 3,247 |   |   | $ | 517 |   |
| Non-cash investing and financing activities:                                                                    |   |   |   |   |   |   |   |   |
|     Property, plant and equipment acquired with capital leases                                   |   | $ | 35 |   |   | $ | 299 |   |
|     Change in other comprehensive income from financial derivatives and post-retirement benefits |   | $ | 419 |   |   | $ | 517 |   |
|                                                                                                            |   |   |   |   |   |   |   |   |
| The accompanying notes are an integral part of the consolidated financial statements.                           |   |

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Table of Contents

Item 1.

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Table of Contents

|                                                                |   | Three Months Ended June 30 |       |   | Six Months Ended June 30 |   |
|---------------------------------------------------------------------|--------|----------------------------|------------|--------|--------------------------|--------|
| (Dollars in thousands, except share and earnings per share amounts) |   | 2010                       |       |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
|                                                                |   |                       |       |   |                     |   |   |   |   |   |   |   |
| Net Income                                                          |   | $                          | 3,510      |   |                     | $      | 2,117 |   |   | $ | 4,937 |   |   | $ | 3,743 |   |
|                                                                |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding                                 |   |                       | 13,225,561 |   |                     |   | 13,049,238 |   |   |   | 13,190,366 |   |   |   | 13,034,005 |   |
| Stock options (dilutive only)                                       |   |                       | 1,571      |   |                     |   | 439 |   |   |   | 2,488 |   |   |   | - |   |
| Stock subscribed (ESPP)                                             |   |                       | 3,729      |   |                     |   | - |   |   |   | 4,812 |   |   |   | - |   |
| Total dilutive shares outstanding                                   |   |                       | 13,230,861 |   |                     |   | 13,049,677 |   |   |   | 13,197,666 |   |   |   | 13,034,005 |   |
|                                                                |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per share:                                                 |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
|     Basic                                       |   | $                          | 0.27       |   |                     | $      | 0.16 |   |   | $ | 0.37 |   |   | $ | 0.29 |   |
|     Diluted                                     |   | $                          | 0.27       |   |                     | $      | 0.16 |   |   | $ | 0.37 |   |   | $ | 0.29 |   |

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Table of Contents

| 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 |   |

|                                                      |   | 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 | ) |
|                                                      |   |          |   |   |          |   |   |         |   |   |           |   |   |              |   |   |   |   |   |   |
| (1) Amounts pertain to our post-retirement benefit plans. |   |          |   |   |          |   |   |         |   |   |           |   |   |              |   |   |   |

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Table of Contents

| (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 June 30, 2010                                    |   | $      | 27,303 |   |

| (Dollars in thousands)              |         |   | As of June 30, 2010 |   |   | As of December 31, 2009 |   |
|-------------------------------------|--------------|--------|---------------------|--------|--------|-------------------------|--------|
|                                |         |   | Gross Carrying      |   |   | Accumulated             |   |   | Gross Carrying |   |   | Accumulated |   |
|                                | Useful Lives |   | Amount              |   |   | Amortization            |   |   | Amount |   |   | Amortization |   |
| Definite-Lived Intangible Assets    |         |   |                |   |   |                    |   |   |   |   |   |   |   |
|    Customer relationships | 1 - 8 years  |   | $                   | 5,299  |   |                    | $      | 4,425 |   |   | $ | 5,299 |   |   | $ | 4,318 |   |
|    Other intangibles      | 1 - 5 years  |   |                | 2,830  |   |                    |   | 857 |   |   |   | 2,830 |   |   |   | 786 |   |
| Total                               |         |   | $                   | 8,129  |   |                    | $      | 5,282 |   |   | $ | 8,129 |   |   | $ | 5,104 |   |

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Table of Contents

| (Dollars in thousands)                     |   |     |   |   |    |   |    | Corporate and |   |          |         |   |
|--------------------------------------------|--------|----------|--------|--------|---------|--------|---------|---------------|--------|---------------|--------------|--------|
| Three Months Ended June 30, 2010           |   | Enventis |   |   | Telecom |   |    | Eliminations  |   |          | Consolidated |   |
| Revenue from unaffiliated customers        |   | $        | 21,128 |   |    | $      | 17,140  |          |   | $             | -            |   |   | $ | 38,268 |   |
| Intersegment revenue                       |   |     | 97     |   |    |   | 468     |          |   |          | (565         | )      |   |   | - |   |
|    Total operating revenue  |   |     | 21,225 |   |    |   | 17,608  |          |   |          | (565         | )      |   |   | 38,268 |   |
|                                       |   |     |   |   |    |   |    |          |   |          |         |   |   |   |   |   |
| Depreciation and amortization              |   |     | 1,406  |   |    |   | 3,875   |          |   |          | 30           |   |   |   | 5,311 |   |
| Operating income                           |   |     | 2,271  |   |    |   | 2,991   |          |   |          | 395          |   |   |   | 5,657 |   |
| Interest expense                           |   |     | -      |   |    |   | 14      |          |   |          | 1,087        |   |   |   | 1,101 |   |
| Income tax provision (benefit)             |   |     | 921    |   |    |   | 1,208   |          |   |          | (1,069       | )      |   |   | 1,060 |   |
| Net Income                                 |   |     | 1,353  |   |    |   | 1,774   |          |   |          | 383          |   |   |   | 3,510 |   |
| Total assets                               |   |     | 83,416 |   |    |   | 137,074 |          |   |          | 6,567        |   |   |   | 227,057 |   |
| Property, plant and equipment, net         |   |     | 50,901 |   |    |   | 102,325 |          |   |          | 222          |   |   |   | 153,448 |   |
| Additions to property, plant and equipment |   |     | 3,907  |   |    |   | 3,156   |          |   |          | -            |   |   |   | 7,063 |   |
|                                       |   |     |   |   |    |   |    |          |   |          |         |   |   |   |   |   |
|                                       |   |     |   |   |    |   |    |          |   |          |         |   |   |   |   |   |
|                                       |   |     |   |   |    |   |    |          |   | Corporate and |         |   |   |   |   |
| Three Months Ended June 30, 2009           |   | Enventis |   |   | Telecom |   |    | Eliminations  |   |          | Consolidated |   |
| Revenue from unaffiliated customers        |   | $        | 14,622 |   |    | $      | 17,781  |          |   | $             | -            |   |   | $ | 32,403 |   |
| Intersegment revenue                       |   |     | 142    |   |    |   | 234     |          |   |          | (376         | )      |   |   | - |   |
|    Total operating revenue  |   |     | 14,764 |   |    |   | 18,015  |          |   |          | (376         | )      |   |   | 32,403 |   |
|                                       |   |     |   |   |    |   |    |          |   |          |         |   |   |   |   |   |
| Depreciation and amortization              |   |     | 1,201  |   |    |   | 3,827   |          |   |          | 15           |   |   |   | 5,043 |   |
| Operating income (loss)                    |   |     | 1,703  |   |    |   | 3,708   |          |   |          | (122         | )      |   |   | 5,289 |   |
| Interest expense                           |   |     | -      |   |    |   | 21      |          |   |          | 1,698        |   |   |   | 1,719 |   |
| Income tax provision (benefit)             |   |     | 685    |   |    |   | 1,502   |          |   |          | (702         | )      |   |   | 1,485 |   |
| Net Income (loss)                          |   |     | 1,018  |   |    |   | 2,205   |          |   |          | (1,106       | )      |   |   | 2,117 |   |
| Total assets                               |   |     | 62,761 |   |    |   | 143,411 |          |   |          | 17,660       |   |   |   | 223,832 |   |
| Property, plant and equipment, net         |   |     | 40,070 |   |    |   | 108,702 |          |   |          | 307          |   |   |   | 149,079 |   |
| Additions to property, plant and equipment |   |     | 2,262  |   |    |   | 2,351   |          |   |          | 45           |   |   |   | 4,658 |   |

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| (Dollars in thousands)                     |   |     |   |   |    |   |    | Corporate and |   |          |         |   |
|--------------------------------------------|--------|----------|--------|--------|---------|--------|---------|---------------|--------|---------------|--------------|--------|
| Six Months Ended June 30, 2010             |   | Enventis |   |   | Telecom |   |    | Eliminations  |   |          | Consolidated |   |
| Revenue from unaffiliated customers        |   | $        | 42,482 |   |    | $      | 34,506  |          |   | $             | -            |   |   | $ | 76,988 |   |
| Intersegment revenue                       |   |     | 230    |   |    |   | 897     |          |   |          | (1,127       | )      |   |   | - |   |
|    Total operating revenue  |   |     | 42,712 |   |    |   | 35,403  |          |   |          | (1,127       | )      |   |   | 76,988 |   |
|                                       |   |     |   |   |    |   |    |          |   |          |         |   |   |   |   |   |
| Depreciation and amortization              |   |     | 2,770  |   |    |   | 7,891   |          |   |          | 61           |   |   |   | 10,722 |   |
| Operating income                           |   |     | 4,178  |   |    |   | 5,816   |          |   |          | 123          |   |   |   | 10,117 |   |
| Interest expense                           |   |     | -      |   |    |   | 39      |          |   |          | 2,653        |   |   |   | 2,692 |   |
| Income tax provision (benefit)             |   |     | 1,731  |   |    |   | 2,606   |          |   |          | (1,798       | )      |   |   | 2,539 |   |
| Net Income (loss)                          |   |     | 2,475  |   |    |   | 3,180   |          |   |          | (718         | )      |   |   | 4,937 |   |
| Total assets                               |   |     | 83,416 |   |    |   | 137,074 |          |   |          | 6,567        |   |   |   | 227,057 |   |
| Property, plant and equipment, net         |   |     | 50,901 |   |    |   | 102,325 |          |   |          | 222          |   |   |   | 153,448 |   |
| Additions to property, plant and equipment |   |     | 5,971  |   |    |   | 4,521   |          |   |          | -            |   |   |   | 10,492 |   |
|                                       |   |     |   |   |    |   |    |          |   |          |         |   |   |   |   |   |
|                                       |   |     |   |   |    |   |    |          |   |          |         |   |   |   |   |   |
|                                       |   |     |   |   |    |   |    |          |   | Corporate and |         |   |   |   |   |
| Six Months Ended June 30, 2009             |   | Enventis |   |   | Telecom |   |    | Eliminations  |   |          | Consolidated |   |
| Revenue from unaffiliated customers        |   | $        | 30,411 |   |    | $      | 35,453  |          |   | $             | -            |   |   | $ | 65,864 |   |
| Intersegment revenue                       |   |     | 283    |   |    |   | 477     |          |   |          | (760         | )      |   |   | - |   |
|    Total operating revenue  |   |     | 30,694 |   |    |   | 35,930  |          |   |          | (760         | )      |   |   | 65,864 |   |
|                                       |   |     |   |   |    |   |    |          |   |          |         |   |   |   |   |   |
| Depreciation and amortization              |   |     | 2,350  |   |    |   | 7,947   |          |   |          | 29           |   |   |   | 10,326 |   |
| Operating income (loss)                    |   |     | 2,858  |   |    |   | 7,093   |          |   |          | (104         | )      |   |   | 9,847 |   |
| Interest expense                           |   |     | -      |   |    |   | 54      |          |   |          | 3,373        |   |   |   | 3,427 |   |
| Income tax provision (benefit)             |   |     | 1,159  |   |    |   | 2,876   |          |   |          | (1,317       | )      |   |   | 2,718 |   |
| Net Income (loss)                          |   |     | 1,699  |   |    |   | 4,183   |          |   |          | (2,139       | )      |   |   | 3,743 |   |
| Total assets                               |   |     | 62,761 |   |    |   | 143,411 |          |   |          | 17,660       |   |   |   | 223,832 |   |
| Property, plant and equipment, net         |   |     | 40,070 |   |    |   | 108,702 |          |   |          | 307          |   |   |   | 149,079 |   |
| Additions to property, plant and equipment |   |     | 3,453  |   |    |   | 3,786   |          |   |          | 55           |   |   |   | 7,294 |   |

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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 June 30, 2010      |   |   | 351,700 |   |             | $      | 12.64 |   |
| Exercisable at June 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   |   |   |   | 6.17 |   |
|   |                       | $8.00 - $12.00  |   |          |   | 156,950 |          |   |   | 156,950          |   |   |                       | 10.22  |   |   |   | 3.43 |   |
|   |                       | $12.00 - $16.00 |   |          |   | 126,000 |          |   |   | 126,000          |   |   |                       | 13.97  |   |   |   | 1.48 |   |
|   |                       | $16.00 - $21.00 |   |          |   | 53,750  |          |   |   | 53,750           |   |   |                       | 18.18  |   |   |   | 0.72 |   |
|   |                       |            |   |          |   | 351,700 |          |   |   | 351,700          |   |   | $                          | 12.64  |   |   |   | 2.43 |   |
|   |                       |            |   |          |   |    |          |   |   |             |   |   |                       |   |   |   |   |   |   |
|   | Aggregate intrinsic value: |            |   |          |   |    |          |   |   |             |   | $      | -                          |   |   |   |   |   |

| ·   | 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                     |   |                                                          |   | Amount of Gain/Proceeds            |                             |
|---------------------------------|--------|--------------------------------------|--------|---------------------------------------------------------------|--------|------------------------------------|----------------------------------|
| Derivatives in ASC 815          |   | Accumulated Other Comprehensive Loss |   | Location of Gain/Proceeds Reclassified from Accumulated Other |   | Recognized in Income on Derivative |                             |
| Cash Flow Hedging Relationships |   | 2010                                 |   |                                                          | 2009   |                               | Comprehensive Income into Income |   | 2010 |   |   | 2009 |   |
|                            |   |                                 |   |                                                          |   |                               |                             |   |   |   |   |   |   |
| Interest Rate Contracts         |   | $                                    | 299    |                                                          |   | $                                  | 475                              |   | Interest Expense |   | $ | - |   |   | $ | - |   |

|                                                        |   | Three Months Ended June 30 |   |   | Six Months Ended June 30 |   |
|-------------------------------------------------------------|--------|----------------------------|--------|--------|--------------------------|--------|
| (Dollars in thousands)                                      |   | 2010                       |   |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
| Components of net periodic benefit cost                     |   |                       |   |   |                     |   |   |   |   |   |   |   |
| Service cost                                                |   | $                          | 113    |   |                     | $      | 77 |   |   | $ | 226 |   |   | $ | 154 |   |
| Interest cost                                               |   |                       | 181    |   |                     |   | 137 |   |   |   | 362 |   |   |   | 274 |   |
| Amortization of transition obligation                       |   |                       | 15     |   |                     |   | 15 |   |   |   | 30 |   |   |   | 30 |   |
| Amortization of prior service cost                          |   |                       | (14    | )      |                     |   | (14 | ) |   |   | (28 | ) |   |   | (28 | ) |
| Recognized net actuarial loss                               |   |                       | 98     |   |                     |   | 33 |   |   |   | 196 |   |   |   | 66 |   |
| Net periodic benefit cost                                   |   | $                          | 393    |   |                     | $      | 248 |   |   | $ | 786 |   |   | $ | 496 |   |
|                                                        |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
|                                                        |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Employer's contributions for current premiums:              |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   | June 30, 2010 |   |
| Contributions made for the six months ended June 30, 2010   |   |                       |   |   |                     |   |   |   |   |   |   |   |   | $ | 155 |   |
| Expected contributions for remainder of 2010                |   |                       |   |   |                     |   |   |   |   |   |   |   |   |   | 152 |   |
| Total estimated employer contributions for fiscal year 2010 |   |                       |   |   |                     |   |   |   |   |   |   |   |   | $ | 307 |   |

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Table of Contents

| (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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Table of Contents

Item 2.
Management’s

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Table of Contents

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Table of Contents

|                                                                  |   | Three Months Ended June 30 |   |   | %      |   |   | Six Months Ended June 30 |   |   | %      |   |
|-----------------------------------------------------------------------|--------|----------------------------|--------|--------|--------|--------|--------|--------------------------|--------|--------|--------|--------|
| (Dollars in thousands)                                                |   | 2010                       |   |   | 2009   |   |   | Change                   |   |   | 2010   |   |   | 2009 |   |   | Change |   |
| Operating revenue before intersegment eliminations                    |   |                       |   |   |   |   |   |                     |   |   |   |   |   |   |   |   |   |   |
|                                                                  |   |                       |   |   |   |   |   |                     |   |   |   |   |   |   |   |   |   |   |
| Operating revenue                                                     |   |                       |   |   |   |   |   |                     |   |   |   |   |   |   |   |   |   |   |
| Equipment                                                             |   | $                          | 8,068  |   |   | $      | 5,393  |                     |   |   | 50     | %      |   | $ | 17,952 |   |   | $ | 12,184 |   |   |   | 47 | % |
| Services                                                              |   |                       | 2,352  |   |   |   | 2,749  |                     |   |   | -14    | %      |   |   | 4,209 |   |   |   | 5,090 |   |   |   | -17 | % |
|    Equipment and Services                              |   |                       | 10,420 |   |   |   | 8,142  |                     |   |   |   |   |   |   | 22,161 |   |   |   | 17,274 |   |   |   |   |   |
|                                                                  |   |                       |   |   |   |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fiber and Data                                                        |   |                       | 10,708 |   |   |   | 6,480  |                     |   |   | 65     | %      |   |   | 20,321 |   |   |   | 13,137 |   |   |   | 55 | % |
| Intersegment                                                          |   |                       | 97     |   |   |   | 142    |                     |   |   | -32    | %      |   |   | 230 |   |   |   | 283 |   |   |   | -19 | % |
| Total Enventis operating revenue                                      |   | $                          | 21,225 |   |   | $      | 14,764 |                     |   |   | 44     | %      |   | $ | 42,712 |   |   | $ | 30,694 |   |   |   | 39 | % |
|                                                                  |   |                       |   |   |   |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Enventis revenue before intersegment eliminations               |   |                       |   |   |   |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Unaffiliated customers                              |   | $                          | 21,128 |   |   | $      | 14,622 |                     |   |   |   |   |   | $ | 42,482 |   |   | $ | 30,411 |   |   |   |   |   |
|    Intersegment                                        |   |                       | 97     |   |   |   | 142    |                     |   |   |   |   |   |   | 230 |   |   |   | 283 |   |   |   |   |   |
|                                                                  |   |                       | 21,225 |   |   |   | 14,764 |                     |   |   |   |   |   |   | 42,712 |   |   |   | 30,694 |   |   |   |   |   |
|                                                                  |   |                       |   |   |   |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales  (excluding depreciation and amortization)    |   |                       | 6,974  |   |   |   | 4,717  |                     |   |   | 48     | %      |   |   | 15,449 |   |   |   | 10,716 |   |   |   | 44 | % |
| Cost of services  (excluding depreciation and amortization) |   |                       | 7,582  |   |   |   | 4,849  |                     |   |   | 56     | %      |   |   | 14,281 |   |   |   | 10,087 |   |   |   | 42 | % |
| Selling, general and administrative expenses                          |   |                       | 2,992  |   |   |   | 2,294  |                     |   |   | 30     | %      |   |   | 6,034 |   |   |   | 4,683 |   |   |   | 29 | % |
| Depreciation and amortization                                         |   |                       | 1,406  |   |   |   | 1,201  |                     |   |   | 17     | %      |   |   | 2,770 |   |   |   | 2,350 |   |   |   | 18 | % |
|    Total Enventis costs and expenses                   |   |                       | 18,954 |   |   |   | 13,061 |                     |   |   | 45     | %      |   |   | 38,534 |   |   |   | 27,836 |   |   |   | 38 | % |
|                                                                  |   |                       |   |   |   |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating income                                                      |   | $                          | 2,271  |   |   | $      | 1,703  |                     |   |   | 33     | %      |   | $ | 4,178 |   |   | $ | 2,858 |   |   |   | 46 | % |
| Net income                                                            |   | $                          | 1,353  |   |   | $      | 1,018  |                     |   |   | 33     | %      |   | $ | 2,475 |   |   | $ | 1,699 |   |   |   | 46 | % |
|                                                                  |   |                       |   |   |   |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital expenditures                                                  |   | $                          | 3,907  |   |   | $      | 2,262  |                     |   |   | 73     | %      |   | $ | 5,971 |   |   | $ | 3,453 |   |   |   | 73 | % |

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| EQUIPMENT AND SERVICES PRODUCT LINE REPORTING                         |   |
|-----------------------------------------------------------------------|--------|
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |
|                                                                  |   | Three Months Ended June 30 |   |   |  % |   |   |  Six Months Ended June 30   |   |   |  % |   |
| (Dollars in thousands)                                                |   | 2010 |   |   | 2009 |   |   | Change |   |   | 2010 |   |   | 2009 |   |   | Change |   |
| Operating revenue before intersegment eliminations:                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equipment                                                             |   | $ | 8,068 |   |   | $ | 5,393 |   |   |   | 50 | % |   | $ | 17,952 |   |   | $ | 12,184 |   |   |   | 47 | % |
| Services                                                              |   |   | 2,352 |   |   |   | 2,749 |   |   |   | -14 | % |   |   | 4,209 |   |   |   | 5,090 |   |   |   | -17 | % |
| Total operating revenue                                               |   | $ | 10,420 |   |   | $ | 8,142 |   |   |   | 28 | % |   | $ | 22,161 |   |   | $ | 17,274 |   |   |   | 28 | % |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales  (excluding depreciation and amortization)    |   |   | 6,974 |   |   |   | 4,701 |   |   |   | 48 | % |   |   | 15,449 |   |   |   | 10,699 |   |   |   | 44 | % |
| Cost of services  (excluding depreciation and amortization) |   |   | 1,693 |   |   |   | 1,649 |   |   |   | 3 | % |   |   | 3,412 |   |   |   | 3,601 |   |   |   | -5 | % |
| Selling, general and administrative expenses                          |   |   | 1,105 |   |   |   | 1,211 |   |   |   | -9 | % |   |   | 2,228 |   |   |   | 2,499 |   |   |   | -11 | % |
| Depreciation and amortization                                         |   |   | 77 |   |   |   | 104 |   |   |   | -26 | % |   |   | 150 |   |   |   | 186 |   |   |   | -19 | % |
|    Total costs and expenses                            |   |   | 9,849 |   |   |   | 7,665 |   |   |   | 28 | % |   |   | 21,239 |   |   |   | 16,985 |   |   |   | 25 | % |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating income                                                      |   | $ | 571 |   |   | $ | 477 |   |   |   | 20 | % |   | $ | 922 |   |   | $ | 289 |   |   |   | 219 | % |
| Net income                                                            |   | $ | 341 |   |   | $ | 284 |   |   |   | 20 | % |   | $ | 565 |   |   | $ | 173 |   |   |   | 227 | % |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital expenditures                                                  |   | $ | 49 |   |   | $ | 119 |   |   |   | -59 | % |   | $ | 134 |   |   | $ | 262 |   |   |   | -49 | % |

| FIBER AND DATA PRODUCT LINE REPORTING                                 |   |
|-----------------------------------------------------------------------|--------|
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                  |   | Three Months Ended June 30 |   |   |  % |   |   | Six Months Ended June 30 |   |   |  % |   |
| (Dollars in thousands)                                                |   | 2010 |   |   | 2009 |   |   | Change |   |   | 2010 |   |   | 2009 |   |   | Change |   |
| Operating revenue before intersegment eliminations:                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Services                                                              |   | $ | 10,708 |   |   | $ | 6,480 |   |   |   | 65 | % |   | $ | 20,321 |   |    | $  | 13,137 |   |   |   | 55 | % |
| Intersegment                                                          |   |   | 97 |   |   |   | 142 |   |   |   | -32 | % |   |   | 230 |   |   |   | 283 |   |   |   | -19 | % |
| Total operating revenue                                               |   | $ | 10,805 |   |   | $ | 6,622 |   |   |   | 63 | % |   | $ | 20,551 |   |   | $ | 13,420 |   |   |   | 53 | % |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales  (excluding depreciation and amortization)    |   |   | - |   |   |   | 16 |   |   |   | -100 | % |   |   | - |   |   |   | 17 |   |   |   | -100 | % |
| Cost of services  (excluding depreciation and amortization) |   |   | 5,889 |   |   |   | 3,200 |   |   |   | 84 | % |   |   | 10,869 |   |   |   | 6,486 |   |   |   | 68 | % |
| Selling, general and administrative expenses                          |   |   | 1,887 |   |   |   | 1,083 |   |   |   | 74 | % |   |   | 3,806 |   |   |   | 2,184 |   |   |   | 74 | % |
| Depreciation and amortization                                         |   |   | 1,329 |   |   |   | 1,097 |   |   |   | 21 | % |   |   | 2,620 |   |   |   | 2,164 |   |   |   | 21 | % |
|    Total costs and expenses                            |   |   | 9,105 |   |   |   | 5,396 |   |   |   | 69 | % |   |   | 17,295 |   |   |   | 10,851 |   |   |   | 59 | % |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating income                                                      |   | $ | 1,700 |   |   | $ | 1,226 |   |   |   | 39 | % |   | $ | 3,256 |   |   | $ | 2,569 |   |   |   | 27 | % |
| Net income                                                            |   | $ | 1,012 |   |   | $ | 734 |   |   |   | 38 | % |   | $ | 1,910 |   |   | $ | 1,526 |   |   |   | 25 | % |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital expenditures                                                  |   | $ | 3,858 |   |   | $ | 2,143 |   |   |   | 80 | % |   | $ | 5,837 |   |   | $ | 3,191 |   |   |   | 83 | % |

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|                                                       |   | Three Months Ended June 30 |   |   | %      |   |   | Six Months Ended June 30 |   |   | %      |   |
|------------------------------------------------------------|--------|----------------------------|--------|--------|--------|--------|--------|--------------------------|--------|--------|--------|--------|
|                                                       |   | 2010                       |   |   | 2009   |   |   | Change                   |   |   | 2010   |   |   | 2009 |   |   | Change |   |
| Operating revenue before intersegment eliminations         |   |                       |   |   |   |   |   |                     |   |   |   |   |   |   |   |   |   |   |
|     Local Service                      |   | $                          | 3,638  |   |   | $      | 3,880  |                     |   |   | -6     | %      |   | $ | 7,303 |   |   | $ | 7,757 |   |   |   | -6 | % |
|     Network Access                     |   |                       | 5,851  |   |   |   | 5,955  |                     |   |   | -2     | %      |   |   | 11,979 |   |   |   | 12,165 |   |   |   | -2 | % |
|     Long Distance                      |   |                       | 800    |   |   |   | 1,027  |                     |   |   | -22    | %      |   |   | 1,620 |   |   |   | 2,058 |   |   |   | -21 | % |
|     Broadband                          |   |                       | 3,287  |   |   |   | 2,979  |                     |   |   | 10     | %      |   |   | 6,503 |   |   |   | 5,863 |   |   |   | 11 | % |
|     Internet                           |   |                       | 1,262  |   |   |   | 1,252  |                     |   |   | 1      | %      |   |   | 2,494 |   |   |   | 2,506 |   |   |   | 0 | % |
|     Directory                          |   |                       | 888    |   |   |   | 1,023  |                     |   |   | -13    | %      |   |   | 1,805 |   |   |   | 2,100 |   |   |   | -14 | % |
|     Bill Processing                    |   |                       | 802    |   |   |   | 961    |                     |   |   | -17    | %      |   |   | 1,577 |   |   |   | 1,630 |   |   |   | -3 | % |
|     Intersegment                       |   |                       | 468    |   |   |   | 234    |                     |   |   | 100    | %      |   |   | 897 |   |   |   | 477 |   |   |   | 88 | % |
|     Other                              |   |                       | 612    |   |   |   | 704    |                     |   |   | -13    | %      |   |   | 1,225 |   |   |   | 1,374 |   |   |   | -11 | % |
| Total Telecom operating revenue                            |   | $                          | 17,608 |   |   | $      | 18,015 |                     |   |   | -2     | %      |   | $ | 35,403 |   |   | $ | 35,930 |   |   |   | -1 | % |
|                                                       |   |                       |   |   |   |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Telecom revenue before intersegment eliminations     |   |                       |   |   |   |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Unaffiliated customers                   |   | $                          | 17,140 |   |   | $      | 17,781 |                     |   |   |   |   |   | $ | 34,506 |   |   | $ | 35,453 |   |   |   |   |   |
|    Intersegment                             |   |                       | 468    |   |   |   | 234    |                     |   |   |   |   |   |   | 897 |   |   |   | 477 |   |   |   |   |   |
|                                                       |   |                       | 17,608 |   |   |   | 18,015 |                     |   |   |   |   |   |   | 35,403 |   |   |   | 35,930 |   |   |   |   |   |
|                                                       |   |                       |   |   |   |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of services (excluding depreciation and amortization) |   |                       | 7,709  |   |   |   | 7,440  |                     |   |   | 4      | %      |   |   | 15,713 |   |   |   | 15,016 |   |   |   | 5 | % |
| Selling, general and administrative expenses               |   |                       | 3,033  |   |   |   | 3,040  |                     |   |   | 0      | %      |   |   | 5,983 |   |   |   | 5,874 |   |   |   | 2 | % |
| Depreciation and amortization                              |   |                       | 3,875  |   |   |   | 3,827  |                     |   |   | 1      | %      |   |   | 7,891 |   |   |   | 7,947 |   |   |   | -1 | % |
|    Total Telecom costs and expenses         |   |                       | 14,617 |   |   |   | 14,307 |                     |   |   | 2      | %      |   |   | 29,587 |   |   |   | 28,837 |   |   |   | 3 | % |
|                                                       |   |                       |   |   |   |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating Income                                           |   | $                          | 2,991  |   |   | $      | 3,708  |                     |   |   | -19    | %      |   | $ | 5,816 |   |   | $ | 7,093 |   |   |   | -18 | % |
|                                                       |   |                       |   |   |   |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                 |   | $                          | 1,774  |   |   | $      | 2,205  |                     |   |   | -20    | %      |   | $ | 3,180 |   |   | $ | 4,183 |   |   |   | -24 | % |
|                                                       |   |                       |   |   |   |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital expenditures                                       |   | $                          | 3,156  |   |   | $      | 2,351  |                     |   |   | 34     | %      |   | $ | 4,521 |   |   | $ | 3,786 |   |   |   | 19 | % |
|                                                       |   |                       |   |   |   |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Key metrics                                                |   |                       |   |   |   |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Business access lines              |   |                       | 24,479 |   |   |   | 25,034 |                     |   |   | -2     | %      |   |   |   |   |   |   |   |   |   |   |   |   |
|     Residential access lines           |   |                       | 28,839 |   |   |   | 32,334 |                     |   |   | -11    | %      |   |   |   |   |   |   |   |   |   |   |   |   |
| Total access lines                                         |   |                       | 53,318 |   |   |   | 57,368 |                     |   |   | -7     | %      |   |   |   |   |   |   |   |   |   |   |   |   |
| Long distance customers                                    |   |                       | 35,131 |   |   |   | 37,557 |                     |   |   | -6     | %      |   |   |   |   |   |   |   |   |   |   |   |   |
| Digital Subscriber Line customers                          |   |                       | 19,359 |   |   |   | 19,065 |                     |   |   | 2      | %      |   |   |   |   |   |   |   |   |   |   |   |   |
| Digital TV customers                                       |   |                       | 9,841  |   |   |   | 8,895  |                     |   |   | 11     | %      |   |   |   |   |   |   |   |   |   |   |   |   |

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Item 4.  

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Item 1A

Item 2.

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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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