November 1st, 2015
Dear Customer,
By the time you receive this letter, we anticipate that the FCC will have approved the
Central Scott Telephone Company and Dixon Telephone Company joint application for the
acquisition of all Dixon Telephone Company assets. Because of the cutoff date for your
November 1st invoice this letter was written in advance so that we can jointly start to message
next steps to our valued customers. If for any reason FCC approval is delayed we will post
status on both company websites.
This is an exciting time for Dixon Telephone Company customers, long term employees and
shareholders. During the coming months the network that now serves over 700 Dixon
Telephone Company customers will undergo a dramatic rebuild resulting in substantially
upgraded Internet capabilities.
Much planning and initial operational steps have already begun behind the scenes. The first two
items impacting customers will take effect on December 1st, 2015. Other than these two
somewhat immediate and necessary changes we see little else that will be altered as we
prepare the overall network for enhanced Internet services:
1. All existing pricing and terms of Dixon High Speed Internet Service will be discontinued.
a. Effective December 1st, 2015 residential customers will all be moved to Central
Scott Telephone’s entry level 3mb by 512kb Home Internet service at $40.49
monthly including the base Internet service charge and a hardware rental fee.
b. Effective December 1st, 2015 business customers will all be moved to Central
Scott Telephone’s entry level 4mb by 1mb Business Internet service at $57.50
monthly including the base Internet service charge and a hardware rental fee.
Any business customers with a static IP will also see a $10.00 monthly fee for
each Static IP (there are few businesses with this feature).
2. Effective December 1st, 2015 analog Premium Channels 15, 17 and 19 will be
discontinued. The few customers who receive HBO, Cinemax or Showtime in a single
channel analog only format will still be able to purchase these premium channels in their
respective multiplex formats. This option is available in conjunction with our Digital Basic
tier at an added cost of $22.95 per month plus set top box rental fees.
These changes will, for less than 10% of our customers, negatively impact pricing. At the same
time 100% of our customers will see either a price reduction or an expansion of their
base Internet service level while the planned upgrades take place.
Page | 1
Expanding capabilities for faster Internet requires channel line-up space that is not available
without item two. Additionally, preparing the Internet product roadmap for customers to take
advantage of higher speed options requires that we first move everyone to the respective
residential and business base (or entry level) offerings with Central Scott Telephone. Once the
upgrade is complete in the first half of 2016 we will be introducing expanded residential speed
offerings of 3, 12, 20 and 50mb and business speed offerings of 4, 8, 20 and 50mb.
Many tasks with lots of work to be completed lie in the days, weeks and months ahead. Despite
planning we will make a mistake or two along the way. Please forgive that moment when it
comes and trust that by late spring or early summer you will have all the benefits of an
upgraded network in place.
Other than item two, on page one of this letter, we see no additional changes in your Cable TV
service over the course of the coming year or two. Pricing, features, underlying technologies
and channel line-ups for Dixon Cable TV differ from the CSTV offerings that Central Scott
Telephone offers today in other areas; but the analog and digital basic tiers with premium
channel line-ups you enjoy with Dixon Telephone will remain the same for the foreseeable
future. Regulated changes will slightly impact Local Phone service pricing over time but one can
also anticipate a consolidation of feature charges into the Local Phone line rate together with a
reduction in Long Distance calling rates during the next year or two.
On another note, soon after FCC approval is obtained, the 843-2901 Dixon Telephone office
number will forward to Central Scott Telephone at 285-9611. While the Dixon Telephone office
will close, to the public, the Drop Box in town for payments will stay.
As we are rapidly approaching the Holiday Season we wish you and yours a Thanksgiving filled
with gratitude, a Merry Christmas and Happy New Year!
With great anticipation,
Page | 2