ADVANCING TECHNOLOGY & RTC NETWORKS President and CEO Report

Greetings RTC Networks community and welcome to your 72nd Annual Meeting!

It is an extraordinary time in our nation’s history in regards to rural broadband internet. The COVID-19 pandemic brought to light how important robust, reliable broadband is to our nation. We learned that broadband internet is an absolute necessity for people to work remotely, learn remotely, seek medical care remotely and to transact commerce remotely. The necessity of broadband internet, for day-to-day life during the pandemic, called attention to the fact that there are several areas throughout the country that lack reliable, robust broadband. Even in ND, a state considered one of the most connected in the nation, we recognized that there are underserved areas that lack broadband services!

RTC Networks has spent much time over the last year in a concerted effort with other Broadband Association of North Dakota (BAND) members, to ensure everyone across our state has access to high speed internet. This work included a significant amount of communication with our state legislators, the State Information Technology Department (ITD), and the Governor to gain access to federal funds given to each state to build broadband to those who are unserved or underserved.

Jeanette Hoff

President, RTC Networks Board of Directors

Agriculture (USDA) to build broadband infrastructure to underserved areas outside of our traditional service area. We are excited to announce that we have been awarded another grant to provide broadband infrastructure to additional underserved areas in Richland and Wibaux County, MT including the community of Wibaux, MT. Additionally, the RTC Networks Board of Directors has authorized an investment to build broadband infrastructure in the city of Fairview, MT. These investments will add over 1,000 subscribers to our service area, making RTC Networks even stronger!

to, at a lower cost! Please call one of our friendly, knowledgeable, helpful customer service representatives to learn more about these new offerings!

In other exciting news, the RTC Networks Board of Directors has voted to retire over $1.8 million in a general capital credit retirement for those who received service from RTC Networks in 1996 and 1997. These dollars are a direct benefit from doing business with your cooperative.

In closing, we offer congratulations to the employees listed on the back cover of this booklet for their service milestones to RTC Networks. We also extend a sincere “thank you” to all the employees on pages 16 to 19 for the talents they share each and every day. Their daily efforts in delivering the best service possible to each memberowner is what drives RTC Networks’ success! Last but not least, thank you for your continued loyalty and support of RTC Networks.

We look forward to serving you over the next year!

Shane Hart

CEO/General Manager

To address the broadband inconsistencies across the nation, over the last couple of years the federal government has awarded several billion dollars in grants and low interest loans to companies who are building, and will build, broadband infrastructure to unserved and underserved areas of the country. Moving forward, more funds will be available through various programs such as: American Rescue Plan Act (ARPA), and the Broadband Equity, Access and Deployment Program (BEAD). These programs are in addition to the traditional programs RTC Networks has used through USDA’s Rural Utility Service Program.

Last year, we told you that RTC Networks was awarded grant funding from the United States Department of

In 2022, RTC Networks worked with other broadband services providers, to advocate for continued federal Universal Service Fund (USF) support of these networks long after they are built. USF support is vital for the continued maintenance and operation of the fiber and electronics necessary to make these networks work! Without USF support, there would be a degradation in the network over time. Continued USF support is extremely important to RTC Networks in order for us to maintain our network!

RTC Networks is always looking for ways to improve its products and services offerings. For example, we are proud to now offer a new cloudbased phone system to our business customers. This new product offers several new features including an app individuals can use on their mobile devices to make their desk landline phones completely accessible from anywhere at any time! We are also excited to offer a Voice Over Internet Protocol (VOIP) landline telephone service to customers’ homes. This VOIP service offers the same quality of service our subscribers are used

Broadband Growth

Jeanette Hoff President, RTC Networks Board of Directors Shane Hart CEO/General Manager

% OF BROADBAND CUSTOMERS BY SPEED

Rtc Networks

REVENUES & EXPENSES

RTC NETWORKS ASSETS & LIABILITIES

Audit Statement

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of Reservation Telephone Cooperative and its subsidiaries as of December 31, 2022 and 2021, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

— Moss Adams, LLP