INS ANNUAL REPORT 2012

What TOMORROW brings INS is working on

TODAY

reliable consultative leader responsive passionate


TODAY

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2011 INs aNNual report

reliable consultative leader responsive passionateCORE VALUES

RELIABLE our network is state-of-the-art and we are vigilant in our customer support. We plan for the future, focus on the details and understand that our customers and partners place their business and careers in our care.

PASSIONATEWe are obsessive about the reputation of our company and our personal responsibility to our clients. Creatively engineering solutions that others thought improbable is the soul of INs.

CONSULTATIVECollaboration is the driving force behind our success. We focus on understanding situations, establishing credibility and offering relevant solutions. We are accountable and responsible when striving for the win-win for all.

LEADERINs is Iowa’s communications

technology leader. We offer end-to-end communications

technology solutions that enable others to connect to

the world.

RESPONSIVE We embrace each interaction as an opportunity to secure trust. We are vigilant about communicating and resolving issues in a timely manner.

Be the leading provider of next generation solutions that

enable success

INS VISION STATEmENT

Provide opportunities to enhance revenue lower costs and simplify operations for our customers.

INS mISSION STATEmENT

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reliable consultative leader responsive passionate reliable consultative leader responsive passionate2011 STATS AND ACCOmPLISHmENTS

2,700 route miles of fiber throughout the state

connecting Iowa since 1989

Internet Bandwidth usage increased 67%

performed 23,385 cable locates

93% = blended INS Customer Satisfaction rate

1,107,282,332 emails processed

95,085,089 Calling Name queries distributed

processed 327,898,923 LNP queries

the only Iowa-based provider to offer end-to-end communications solutions statewide

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reliable consultative leader responsive passionate reliable consultative leader responsive passionate2011 STATS AND ACCOmPLISHmENTS

a 5-ring, diversely routed bi-directional fiber network

59 responsive and highly skilled technicians based all across Iowa

solutions-oriented, forward-thinking network engineers

2,357 customer devices monitored

24/7/365 alarm monitoring

122 Iowa Independent Telecommunication Company Shareholders

connected 46 new Wireless Tower Sites with fiber

368 channels available from the INS Digital Video headend

1,700 route miles are 40 gig capable

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reliable consultative leader responsive passionate reliable consultative leader responsive passionateLETTER fROm THE PRESIDENT/CEO

ron Kellerpresident/Ceo, Iowa Network services

OUR RESULTS

Iowa Network services completed another very successful year in 2011. our consolidated financial statements reflect a strong balance sheet and the ability to consistently generate operating profits in support of the regular and extraordinary dividends declared by the Board of Directors. But producing positive financial results for INs is only part of our story. OUR fOUNDATION

Iowa Network services (INs) was founded in 1986 as one of only three “centralized equal access” companies in the united states. this year we are celebrating our 25th annual meeting. the visionary companies which came together to form INs couldn’t have imagined the changes that have taken place over the past quarter of a century – both to INs and the telecommunications industry overall. our shareholder base has remained relatively constant with 122 current shareholders. But INs has grown to encompass a family of companies dedicated to delivering high-quality products and services to our customers through alliance technologies, alliance Connect, i wireless and pine Island Capital Corporation. those companies have enabled us to realize synergies in offering our products and diversify our revenues and earnings into non- regulated businesses. OUR PRODUCTS AND SERVICES

at the time of our founding, centralized equal access and long distance services were our exclusive focus. since that time, our portfolio has expanded to include a whole host of network management services, Internet offerings, video products and virtual network solutions. our acquisition of alliance technologies has enabled us to offer a full-range of It solutions. alliance Connect gives us the ability to enter into new markets as a competitive local exchange carrier to compete in areas where we don’t currently have a market presence. i wireless has given us the ability to provide Independent telecommunications Companies (ItCs) with an opportunity to participate in the wireless market. all told, those efforts at diversifying our revenue and income streams meant that less than 30% of our revenues came from regulated revenues in 2011. We are continuing to search for products and services offering profit potential for both the ItCs and INs.

OUR CUSTOmERS

the value discipline of INs is to serve our customers well – to under-stand their needs completely and then offer products and services that meet or exceed their expectations. We understand that we are in a highly competitive marketplace and need to have levels of market innovation and operational efficiency to compete. But, in the end, it will be our relationships with customers and a sense of partnership with those customers that will guide us towards long-term success. Collectively we serve two primary customer groups – over 150 Independent telecommunications Companies and approximately 800 enterprise, or business, customers. We also provide services to other carriers, both terrestrial and wireless. In an effort to stay connected to “customers’ needs and learn how well we are serving them, we measure levels of customer satisfaction through an annual survey. the 2011 survey results show overall customer satisfaction ratings of 92% for the ItCs and 94% for our enterprise customers. We are very appreciative of those ratings, but don’t plan on being content with those results. You will see renewed efforts during 2012 to gain an even deeper understanding of customer needs and make numerous changes in our core business practices as we strive to become even easier to do business with for all of our customers. OUR PEOPLE

the foundation of our ability to deliver on our commitments rests with our dedicated employees. It is those knowledgeable, service-oriented individuals who are responsible for our long-term success. at the end of 2011 we utilized a global research firm to conduct our first employee engagement survey. the survey results will assist us in identifying areas where we can continue to improve as an organization. We were especially pleased with the level of employee participation and the actual level of employee engagement scores, which were above us and global norms.

at the time of our founding, centralized equal access and long distance services were our exclusive focus. since that time,

our portfolio has expanded to include a whole host of network management services, Internet offerings, video products and virtual network solutions.

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reliable consultative leader responsive passionate reliable consultative leader responsive passionate

there were some significant changes to the management team during the year. a discussion about 2011 wouldn’t be complete without extending our heartfelt thanks to Dick Vohs, who retired as president/Ceo in July. Dick started at INs in 1993, was named president/Ceo in 2002 and helped shape the organization over those years. During the first half of 2011, tom Beem joined INs as Vice president of sales and I, ron Keller, was hired as the new president/Ceo in July. at alliance technologies, steve sikkink moved from Chief operating officer to assume the role of president. steve is now responsible for all aspects of alliance technologies and has been working hard with his team to improve their financial results and leverage the synergies between our organizations. OUR COmmUNITIES

INs has been an active sponsor of the ripple effect program by providing support to the rural Iowa communities where our customers are based. our charity grant program has offered assistance to countless individuals and organizations in those markets as well. During 2011, INs and our employees increased our level of giving to united Way by a whopping 250% in support of the local community where most of our employees are based. a special team focused on corporate responsibility will be launched during 2012 to look for even more ways to support the communities where we live and conduct business. OUR INDUSTRy

some of the regulatory uncertainty which has been facing the industry for years has finally begun to take shape through the Federal Communications Commission (FCC) access reform measures announced late in the year. the initial changes are likely to have a negative impact on most of the Independent telecommunications Companies. INs, as a centralized equal access carrier, has filed comments to the FCC on their further Notice of proposed rule Making, but the final rules and their impact on INs won’t be known until later in 2012. INs has been an active participant in working to shape proposed rules and regulations into a fair and equitable arrangement. the Great Disconnect, which is a partnership between INs and our state associations, has been a well-recognized tool in pointing out the disparities between the planned broadband service levels to be offered to rural customers versus those in urban areas.

OUR fUTURE

there has been one consistent theme over the years — change. What we’re continuing to experience, however, is how much faster the rate of change is occurring. Companies must realize the need for change and proactively work to continuously improve every aspect of their businesses. It’s certainly true that not all change leads to progress. However, progress is impossible without change. We are taking the initiative to do things differently to ensure the long-term success of INs and our shareholder companies. During 2012 you can expect to see a wide range of initiatives meant to challenge every aspect of our current business model. this will include redesigning our network with a long-term Ip roadmap, rationalizing our existing product portfolio, reviewing our major business processes, scrutinizing our expense management practices, and identifying new market expansion opportunities. along with this, we will be redoubling our efforts to hire, train and retain key talent within the organization to support our current and new customers with a team of customer-focused, performance-oriented employees. But above all, this needs to be a team effort. We’re looking forward to working with you during 2012 as we adapt to the world changing around us. With your support, we’re confident in our mutual success going forward. OUR THANkS

the Board of Directors, the management team and all of the INs employees want to express our appreciation for your ongoing support during 2012. We will strive to exceed the expectations of our Independent telecommunications Companies and enterprise customers in providing competitive product and service offerings. Your support as shareholders enables us to invest in our network, expand our product portfolio and the markets we serve, while continuing to generate favorable financial results and maintain a strong balance sheet. thanks again!

ron Keller,president/Ceo, Iowa Network services

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“We never go wrong when we align ourselves with people who are as committed to the customer experience as we are. When we do that, we can’t fail.”

CUSTOmER TESTImONIALS

Diana Kautzky, Deaf services unlimited

Curt thornberry, technology Director, panora Communications Coop

“The new INS WiFi offering… is responsive, easy to deploy, and a robust service offering. INS’ turnkey solution will allow [Panora Telco] plug and play WiFi

deployments. This is key for us, particularly when staff resources are limited. Because of the simple interface it is easy to offer the service as both a value added

proposition to existing customers and as a pay service for non-customers.”

ron laudner, president and Ceo, omnitel Communications

“We were about to purchase a new protocol analyzer for a significant amount of money. During a training session for our new Metaswitch platform, the INS team helped

us realize we should explore another Metaswitch product – the Subscriber Assurance Server (SAS) -- that would enable us to make call captures at an IP level. By bringing

to our attention the functionality and capabilities of this solution, we were able to save more than $100,000 in hardware and software.”

sheila Navis, executive Director, rural Iowa Independent telephone association

“Since its formation, Iowa Network Services has enabled rural telecommunications companies to maintain their local presence because of the cost efficiencies through this

unique partnership. This collaboration has enabled an ever expanding array of services made available to customers, helped create one of the nation’s best telecommunication

networks anywhere and made significant contribution to the economic vitality of rural Iowa. INS is truly an unsung hero for Iowans across this state.”

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“I have a high respect for INS. Not only are the records complete, you can rest assured it’s all there. It’s one of most reliable billing processes. Because of the diligence INS puts into verifying records, local telecommunications companies can bill the maximum minutes of use.”

CUSTOmER TESTImONIALS

Burnie snoddy, telecommunications Consultant,

Kiesling associates

“…the tech support relationship between South Slope Communications and INS is great. (We have) high level of expectations that INS meets day in and day out. If an issue arises, we always get a quick response from INS. Recently INS began trouble-shooting our Digital Video service and since then we have seen a dramatic decrease in the number of troubles that get escalated to our techs. This results not only in higher customer satisfaction but also in the amount of overtime we pay out for afterhours and weekend techs.”

John tandy, technical support supervisor, south slope Communications

“With the city’s focus on high-growth industries — including financial services, health-care and insurance — it’s important for us to be able to offer businesses leading-edge technologies, such as access to INS’ fiber optic network for data and telecommunications needs.”

Clyde evans, Director of Community and

economic Development, West Des Moines

“I believe INS is the primary reason that so many locally-owned and operated telecom providers are able to provide so many state-of-the-art voice, data and video services to rural Iowans. In addition, INS provides our ITCs with indispensable expertise on network management, interconnection, and other technical issues that would not be available anywhere else.”

Dave Duncan, Cae, president,

Iowa telecommunications association

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reliable consultative leader responsive passionate reliable consultative leader responsive passionateRELIABLE

INs has the highest performing, self-healing statewide voice and data network in Iowa. In a year where overall bandwidth usage increased an astounding 67%, the reliability of the INs data network is no small feat.

In 2011, bandwidth usage grew across the Internet as businesses moved their core operations to the web and consumers ramped up consumption of streaming video and data. Wireless bandwidth increased as well – smartphone usage is at an all-time high, and shows no signs of slowing. all this communication traffic demonstrates how important a fast, reliable network is to Iowans and the rest of the world.

THE INS NETwORk – REDUNDANT, RELIABLE, ExPANSIVE

to meet this rising demand, INs spent 2011 expanding our network by laying more fiber in the ground. the INs network now contains over 2700 route miles of fiber, spread between five diversely routed bi-directional rings throughout the state of Iowa, as well as an additional 100 miles in metro areas including in Quad Cities, Cedar rapids/Marion, Iowa City, and Waterloo/Cedar Falls. the five major rings that make up the INs network, supported by minor rings in metro areas, provide the strong disaster recovery and redundancy that businesses and consumers need for bandwidth hungry applications and consumer streaming video. a fast, reliable connection is integral to meeting the needs of users.

2011 saw 130 miles of existing fiber augmented with additional fiber capacity, upgrading existing routes to support speeds of 10 Gigabits per second, and in some locations, speeds of 40 Gigabits per second. INs also added 4 Gigabits of capacity to our connections to the Internet backbone. these speed upgrades and additional connectivity are important for the continued growth of the network capacity if INs is to meet rising demand.

aside from new fiber and capacity, INs built out fiber to 46 new cellular towers across the state of Iowa. these sites will support the growing demand for wireless data, enhancing smartphone data connectivity throughout rural Iowa.

Internet demands required more capacity and reliability throughout 2011, and this need will only continue to grow. to meet the ongoing requirements to deliver next generation technology, INs will continue to expand our network capacity and assure the reliability of robust Internet connections to the world.

In November 2011, Iowa Network services helped celebrate the West Des Moines

Business Incubator’s one year anniversary. Cutting-edge tenants, ranging from a social

media marketing company to an engineering consulting firm, enjoy reliable, robust

connectivity to the INs fiber optic network.

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Iowa Network services is more than just a network – it’s people. and it’s our people who are able to provide the great customer service and business support that our shareholders and clients have come to expect.

2011 was a year of change for INs. When our shareholders came to us to ask for new revenue streams, we were ready to respond. our team was also busy supporting the Independent telecommunications Companies with new network management tools and our customer support department continued their fine record of service. this is possible because INs engineers, technicians, and customer support staff are compulsively diligent and service-driven. We design, build, and support the voice and data services that our competition find too challenging to broach. We’re responsive to the needs of our customers and shareholders thanks to the great people who work for INs.

INS – RESPONSIVE PEOPLE BUILD POwERfUL CONNECTIONS

the customer support team at INs performed brilliantly in 2011. they managed to field over 100,000 calls over the course of the year, and improved the average response time 5% over the previous year. those calls encompassed over 1.2 million minutes of support, all from our team right here in Iowa. When customers call INs for help, they talk to Iowans.

But we’re not just resting on our laurels by supporting existing products. We’re also developing new technologies to support the telecommunications companies that make up INs.

When the Independent telecommunications Companies asked for a way to monitor bandwidth usage on their networks, we responded by building the Bandwidth Manager, a tool that companies can use to track traffic on their networks. 2011 saw the Bandwidth Manager move out of testing to production, and now Independent telecommunications Companies are clamoring to get signed up for the service.

lastly, INs WiFi and INs Video Web Conferencing were rolled out in 2011 to create additional revenue streams. Both products are performing well and are poised for more growth. telecommunications is an ever-changing industry, so new revenue streams are important to keep INs competitive in the local and national market now and into the future.

But no matter what happens, the INs network is really about the people.

RESPONSIVE

• Internet

• POTS

• DigitalVideo

• Routers

• AnsweringServices

• SmartDevices

• CustomizedSupportServices

• Training

CUSTOmER SUPPORT SERVICES

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reliable consultative leader responsive passionate reliable consultative leader responsive passionateCONSULTATIVE

our core business may be based on miles and miles of fiber optic strands, but we’re more than a web of voice and data lines across the state of Iowa. We serve as a trusted advisor for the Independent telecommunications Companies and our customers, making INs as much a web of knowledge as a communication network. For example, wireless backhaul builds were the fastest growing sector of our business in 2011, and that trend shows no signs of slowing in 2012. Dedicated Internet access was the second largest growing sector. through-out this growth, as more connectivity was added across the state, INs was there to guide local technicians by teaching them the skills they need to implement new technologies. It’s our job to share the knowledge that we have with telecommunications companies and customers.

INS – CONSULTINg fOR THE CONSULTANTS

INs also provides communication. We help connect customers to bridge communications gaps. In 2011, we listened to customers who told us that they prefer one point of contact for all their communication needs. We listened when they informed us they were seeking a trusted, local voice provider who is more responsive.

listening to our customers explains why we worked so closely with our affiliate company, alliance technologies, to create alliance Connect, a new competitive local exchange carrier created to provide the services our business clients need.

We also rolled out a new marketing plan in 2011. this plan will help us spread the INs knowledge and story across the state of Iowa. We started a blog to share information with our customers, conducted workshops and training seminars, attended tradeshows, and sponsored events. We launched Max, the INs Dude, as a new mascot to serve as the face of INs.

so how do you prove to be ‘consultative’? You do it by being a trusted advisor who is knowledgeable and willing to share. and we’re doing our best at INs to spread our experience as far and wide as we can.

“I’ll continue relying heavily on INs for the help and support you’ve given me over the

years working with our mutual friends at telcos around Iowa.”

ANONymOUS CONSULTINg ENgINEER

2011 REVENUE By CUSTOmER TyPE

CARRIER

ENTERPRISE

ITC

wIRELESS

CEA

ATI

5%

7%

21%

25%

28%

15%

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reliable consultative leader responsive passionate reliable consultative leader responsive passionatePASSIONATE

What tomorrow brings, INs is working on today. We’re passionate about creatively engineering solutions that meet the communication needs of today and tomorrow. the network that connects us and telecommunications companies has allowed us to create products that are centrally managed in Des Moines but serve customers around the country. INs is a unique company with a unique customer base, so we rarely find products that work for us right out of the box. We modify, design, and create products that fit our marketplace to bring the best to our customers.

INS – wE’RE PASSIONATE ABOUT TOmORROw

INs is passionate about the needs of the customers—by having a range of products that fit their diverse needs across multiple communication and data platforms. From traditional access bearing long distance, to VoIp, data, entertainment, and even information technology, we continually evaluate our products and respond to the needs of the customers.

Voice products are core business for INs, but as we look to the future, we will look for ways to provide products that allow customers to deliver quality products to their customers and yet remain a viable competitor with costs in line with the competition.

our Internet product set expanded this year as we created new products to allow our customers to manage their bandwidth needs and respond to the needs of their customers. our customers also asked us for a WiFi product they can deploy in their service area, so we developed a product that has potential to become to a statewide INs WiFi network.

INs is able to deliver hundreds of channels of content to video system operators all over Iowa. Many of these customers are Independent telecommunications Companies, but others include municipalities and competitive local exchange carriers. the INs Digital Video headend carries a full range of channels including standard Definition, High Definition, over-the-airs, premiums, and pay-per-View.

Finally, we continue to ramp up capacity at our Westown Communication Center to meet the growing needs of our customer for more off-site storage. as people have requested specialized levels of security for their data, INs has begun the process of acquiring more security accreditation. We’re working on all this, and more, because INs is passionate about meeting the needs of the future. that’s why we’re working on it today.

COmE AND VISIT

to learn more about product and service solutions offered by INs, visit www.IowaNetworkservices.com

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reliable consultative leader responsive passionate reliable consultative leader responsive passionateINS IN THE COmmUNITy

From rural to urban, INs believes in the vitality of Iowa and is a strong community partner supporting many activities. our corporate citizenship ranges from statewide economic development programs to local employee volunteerism.

the ripple effect – a partnership between INs and Iowa area Development Group (IaDG) – completed its fourth year of performance. Its purpose is to provide Independent telecommunications Companies financial and technical assistance to recruit and help fund meaningful and sustain-able rural economic development. In 2011, ripple effect helped leverage $900,000 in usDa financial assistance for the purchase of 28 miles of rail line for the state’s newest short line rail and the construction of a professional office building. the ripple effect direct grant assistance program aided in the engineering and design of a scenic destination bike trail between two communities in southwest Iowa and with the development of mobile tag technology for a consortium of communities in central Iowa. ripple effect technical assistance included the commission of an economic impact analysis titled IMplaN that studied a company’s regional economic effects in northwest Iowa. additionally, assistance was provided for the creation of marketing materials for available development sites and buildings throughout the state.

In the corporate sponsorship arena, INs supported 50 unique events and charities, donated over 70 hours of volunteer time and pledged to give united Way an additional 250% over the previous year. our gift-giving category also increased to over 100 charity grants given to community-based projects throughout Iowa. From playground equipment and educational tools to blanket supplies for kids and hot meals for elderly, over $59,000 was granted to community organizations that were supported by participating shareholder companies.

In 2011, INs recognized eight outstanding high school students as the INs superior student of the Month and awarded each a $250 savings bond. We also honored 118 high school athletes as an INs player of the Week and awarded five college-bound students with a $1,000 scholarship for their winning essays.

INs is proud of the contributions we make to the communities we serve and our commitment will continue to grow. Max, the INs Dude, reflects these core values. He epitomizes the spirit of team INs – caring, responsible and dedicated. Be on the lookout, Max and team INs may be in your neighborhood soon.

4201 Corporate Drive, West Des Moines, IA 50266-5906F 515.830.0125

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reliable consultative leader responsive passionate reliable consultative leader responsive passionateINS fAmILy Of COmPANIES

ALLIANCE TECHNOLOgIES

In June, 2008 INs acquired a 75% majority equity interest in alliance technologies, Inc. – a full service information technology provider. since then, alliance has worked to develop opportunities for their business and INs. alliance exceeded its revenue targets for 2011 while divesting the Full Count segment of business at a substantial gain. steve sikkink, formerly the Coo, was named president of alliance in august and is now responsible for all aspects of the operation.

Considerable efforts were expended in 2011 between alliance technologies and INs. the two organizations launched alliance Connect, a competitive local exchange carrier. this new local voice provider has the authority to deliver service in the Centurylink and Windstream exchanges. alliance Connect began to actively sell its service during the last half of 2011.

throughout the year alliance technologies and INs also worked hard to identify synergies for cross-selling and expense reduction between the two businesses. Implementation efforts will be completed during 2012.

I wIRELESS

i wireless is a partnership between t-Mobile usa and INs with 250 company stores and authorized dealers across Iowa, western Illinois, and eastern Nebraska. In 2011, i wireless experienced disruption from the announcement of the at&t/t-Mobile merger. During that period, i wireless focused on customer retention and win-back. to promote growth, i wireless launched a unified brand initiative, transitioning the post pay and pay In advance product lines to be marketed under MeGatalk by i wireless. the strategy capitalizes on market recognition of the MeGatalk brand and its association with value for the budget-conscious consumer. the unified brand was supported by new product launches to provide market exclusivity. In 2011, i wireless launched a 4G network initiative updating the 3G network to Hspa+/4G technology in the Quad Cities, Cedar rapids, Iowa City and Waterloo markets. the 4G network expansion will continue in 2012.

PINE ISLAND CAPITAL CORPORATION

utilizing professional advisors to oversee our investments in marketable securities is the function of pine Island Capital Corporation. our portfolio is well-diversified among several asset classes seeking both capital appreciation and preservation. Industry benchmarks are established to measure portfolio performance. the aggregate portfolio return for 2011 was a 1.4% loss, which was identical to the weighted average of industry benchmarks for those asset classes. We believe the portfolio is well- diversified to generate acceptable returns in a tax efficient manner over the long term.

INS fAmILy Of COmPANIES

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reliable consultative leader responsive passionate reliable consultative leader responsive passionateROUTE mAPS2011 INs aNNual report

To Chicago

To Kansas City

To Minneapolis

Omaha

Ames

Des Moines

DavenportIowa City

Cedar Rapids

Waterloo

Dubuque

Mason City

Sioux Falls

Sioux City

INS Fiber Optic Network | 3 Node Redundant Internet Backbone | Partner Networks

Statewide Fiber Optic Connections | INS POPs

CEDAR RAPIDS

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E. AIRLINE HWY.

58

HU

DS

ON

RD

.

W. 27th ST.

63

58

GREENHILL RD.

63

380

218

63

TEXAS ST.

58

380

20

21

20

58

63

V43

HE

AR

ST

RD

.

63

57

HU

DS

ON

RD

.

58

V43

6358

20

E. SHAULIS RD.

58

20

RAINBOW DR.

58

E. D

ON

ALD

ST.

380

RIEHL ST.

297

218

OSAGE RD.

V49

V49

UNIVERSITY AVE.

5757218

218

20

V49

VIKING RD.

W. 4th ST.

63

63

63

57

58

218

NE

WE

LL S

T.

20

20

STRAYER RD.

218

58

218

218

380

E. 4

th S

T.

W. 4th ST.

W. SHAULIS RD.

57

57

HU

DS

ON

RD

.

57

S. U

NIO

N R

D.

RD

.

W. 4

th S

T.

20

N. E

LK R

UN

RD

.

281

20

LAFAYETTE ST.

20

218

V49

58

20

HU

DS

ON

RD

.

380

WATERLOO

DAVENPORT

17


reliable consultative leader responsive passionate reliable consultative leader responsive passionatefINANCIAL HIgHLIgHTS

In 2011, peak Internet utilization on the INs network rose 67% to reach 13 Gigabits per second. peak utilization is expected to rise to 20 Gigabits by the end of 2012. to address this need, the INs peering connection to content providers in Chicago will be upgraded from a 1 Gigabit connection to a 10 Gigabit connection in the first quarter of 2012.

INS INTERNET BACkBONE

2008$84,000,000

$86,000,000

$88,000,000

$90,000,000

$92,000,000

$94,000,000

$96,000,000

$98,000,000

$100,000,000

$102,000,000

2009 2010 2011

INS OPERATINg REVENUES INTEgRATED CONNECTION SOLUTIONS fROm THE INS fAmILy Of COmPANIES

LoCaL VoICe

DaTa NeTWork

INformaTIoN TeChNoLogy

m P L S

IT CoNSuLTINg

SCaLaBLe BaNDWIDThhIgh SPeeD

INTerNeT BaNDWIDTh

VIrTuaL NeTWorkS

CuSTom SofTWare

LoNg DISTaNCe

Co-LoCaTIoN

24/7 LoCaL SuPPorT

oNe BILL

harDWare

meTerINg

IP VIDeo

VoIP

WeB DeVeLoPmeNT

18

2011 INs aNNual report mEET THE INS BOARD Of DIRECTORS


Front row left to right: Kevin r. Hranicka, Chairman; ronald Keller, Ceo/president; ronald J. laudnerBack row left to right: edward J. Buchanan; Jerry s. Melick; Justyn M. Miller; Douglas r. Nelson

4201 Corporate DriveWest Des Moines, Ia 50266

www.IowaNetworkservices.com800-Call-INs



TODAY

4201 Corporate DriveWest Des Moines, IA 50266

www.IowaNetworkServices.com

Documents

INS ANNUAL REPORT 2012