Press Release

MANKATO, Minn–May. 2, 2012– HickoryTech Corporation (NASDAQ: HTCO) today reported that its SuiteSolution CABS Module has been enhanced to comply with the FCC USF/ICC Transformation Order for intercarrier compensation. HickoryTech’s CABS Module is SECABS compliant and is now available for an in-house deployment, which allows service providers full control over the carrier access billing process. The CABS Module includes several new billing reports that identify VoIP minutes and messages to be used for analysis.

The FCC order now requires carriers to report terminating VoIP traffic separately from wireline traffic. The order permits LECs (local exchange carriers) to bill default intercarrier compensation (ICC) for terminating toll VoIP traffic at rates equal to interstate access rates, which are lower than intrastate access rates. Originating toll VoIP traffic will remain rated equal to the intrastate rate. A PVU (percentage of VoIP usage) factor is applied to the carrier’s intrastate traffic to determine how much is considered to be VoIP usage. Within CABS, the VoIP traffic is applied to properly price rate elements based on the type of traffic (terminating or originating) and the tariff filing or FCC order.

The FCC order is part of a multi-year transition of intercarrier compensation to the newly adopted bill-and-keep methodology. The reform provides a mechanism to modernize intercarrier compensation rules and facilitate the transition from an all wireline voice and long distance network to include IP usage.

HickoryTech’s SuiteSolution® is a web-based modular system combining customer relationship manager, back office manager, work flow manager, plant records, trouble reporting, message processing, quote builder, capital credits, workforce management, and carrier access billing (SECABS) to process monthly billings for IP, wireline, Internet/broadband, video, data, or wireless services. SuiteSolution, which is available as a service bureau or an in-house deployment, allows the user to define and enforce procedures for every task an employee performs. For more information, visit www.hickorytech-is.com.

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