5.	Revenue Streams and Concentration s

Revenue Streams

The Company identifies its revenue streams with similar characteristics as follows (in thousands):

	Three Months Ended September 30, 2018		Nine Months Ended September 30, 2018
Local services	$	5,302	$	16,218
Network access		5,120		15,918
Internet		3,775		11,485
Transport services		1,211		3,613
Video and security		689		2,144
Managed services		155		489
Total revenues	$	16,252	$	49,867

ASU

2014

requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. As stated above in Note

Organization and Basis of Financial Reporting

–

Recently Adopted Accounting Pronouncements

, the Company has used a

five

-step process to identify the contract with the customer, identify the performance obligations, determine the transaction price, allocate the transaction price to the performance obligations and recognize revenue when or as the performance obligations are satisfied. The majority of the Company’s revenue is recognized at the point in time control of the service is transferred to the customer. For certain other services, such as unlimited long distance, revenue is recognized over the period of time the service is provided. The Company has implemented the appropriate changes to its business processes, systems and controls to support revenue recognition and disclosures under ASU

2014

09.

The following table identifies revenue generated from customers (in thousands):

	Three Months Ended September 30, 2018		Nine Months Ended September 30, 2018
Local services	$	5,302	$	16,218
Network access		1,131		3,553
Internet		3,775		11,485
Transport services		1,173		3,500
Video and security		689		2,144
Managed services		155		490
Total revenues	$	12,225	$	37,390

The following table summarizes the revenue generated from contracts with customers among each revenue stream as of

September 30, 2018 (

in thousands, except percentages):

	Three Months Ended
	September 30 , 2018		% In-Scope			% Total

Month to month (“MTM”) customers	$	7,492		62.1	%		46.1	%
Competitive local exchange carrier (“CLEC”) business customers		3,447		28.6			21.2
Network access		666		5.5			4.1
Total revenue streams		11,605		96.2			71.4
Global access*		464		3.8			2.9
Total revenue from contracts with customers		12,069		100.0	%		74.3
Indefeasible rights-of-use agreements**		38		n/a			0.2
Managed services**		155		n/a			1.0
Network access**		3,990		n/a			24.5
Total revenues	$	16,252					100.0	%

*Fixed fees charged to MTM customers and CLEC business customers.

** Revenue generated from sources

not

within the scope of ASU

2014

09.

	Nine Months Ended
	September 30, 2018		% In-Scope			% Total

MTM customers	$	22,759		61.7	%		45.6	%
CLEC business customers		10,588		28.7			21.2
Network access		2,076		5.6			4.2
Total revenue streams		35,423		96.0			71.0
Global access*		1,477		4.0			3.0
Total revenue from contracts with customers		36,900		100.0	%		74.0
Indefeasible rights-of-use agreements**		113		n/a			0.2
Managed services**		490		n/a			1.0
Network access**		12,364		n/a			24.8
Total revenues	$	49,867					100.0	%

*Fixed fees charged to MTM customers and CLEC business customers.

** Revenue generated from sources

not

within the scope of ASU

2014

09.

Payment terms vary by customer. The Company typically invoices customers in the month following when the service was provided. The term between invoicing and when payment is due is less than a year and is

not

considered significant. Certain customers are invoiced in advance of the service being provided. Revenue is deferred until the point in time control of the service is transferred to the customer or over the term the service is provided.

Revenue is recognized net of taxes collected on behalf of

third

parties.

As of

September 30, 2018,

the Company had approximately

$8.0

million of unsatisfied performance obligations. As of

September 30, 2018,

the Company expected to recognize approximately

$0.9

million of revenue within the next year and

$7.1

million in the next

years related to such unsatisfied performance obligations. The Company does

not

disclose the value of unsatisfied performance obligations for contracts with an original expected life of

one

year or less or for contracts for which the Company has a right to invoice for services performed.

The deferred revenue balance as of

January 1, 2018,

was

$4.1

million. Approximately

$1.5

million of revenue from that balance was recognized as revenue during the

three

months ended

March 31, 2018,

offset by payments received as of

March 31, 2018,

in advance of control of the service being transferred to the customer.

The deferred revenue balance as of

June 30, 2018,

was

$3.9

million. Approximately

$1.4

million of revenue from that balance was recognized as revenue during the

three

months ended

September 30, 2018,

offset by payments received as of

September 30, 2018,

in advance of control of the service being transferred to the customer.

Revenue Concentrations

Revenues for interstate access services are based on reimbursement of costs and allowed rate of return. Revenues of this nature are received from the National Exchange Carrier Association in the form of monthly settlements. Such revenues amounted to

22.6%

and

21.8%

of the Company’s total revenues for the

nine

months ended

September 30, 2018,

and

2017,

respectively.