Note 10 - Revenue Concentrations

9 Months Ended

Sep. 30, 2012

Concentration Risk Disclosure [Text Block]

10.         Revenue Concentrations

     Revenues for interstate access services are based on reimbursement of costs and an 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 9.9% and 9.3% of the Company’s total revenues for the nine months ended September 30, 2011 and 2012, respectively.

     The Company has a contract through 2012 with TW for the provision of wholesale network connections to TW’s customers in Maine and New Hampshire. Revenue received directly from TW represented approximately 11.7% and 12.3% of the Company’s consolidated revenue for the nine months ended September, 2011 and 2012, respectively.  Additionally, other unrelated telecommunications providers pay the Company access revenue for terminating calls through us to TW’s customers representing approximately 3% to 4% of our consolidated revenue for the nine months ended September 30, 2011 and 2012.

     On April 20, 2012, the Company announced that TW had indicated that it will not renew its existing contract for wholesale network connections provided by the Company. Formal notification of non-renewal was received in June 2012. Accordingly, this contract will expire on December 31, 2012, we are currently negotiating an expected six month transition period into 2013 during which customers will be moved to TW’s facilities.