Overview


We provide digital infrastructure and communications services in the United
States and internationally, including in the Caribbean region, with a focus on
smaller markets, many of which are rural or remote, with a growing demand for
infrastructure investments, Through our operating subsidiaries, we primarily
provide: (i) carrier and enterprise communications services, such as terrestrial
and submarine fiber optic transport, and communications tower facilities; and
(ii) fixed and mobile telecommunications connectivity to residential, business
and government customers, including a range of high-speed internet and data
services, fixed and mobile wireless solutions, and video and voice services.

At the holding company level, we oversee the allocation of capital within and
among our subsidiaries, affiliates, new investments, and stockholders. We have
developed significant operational expertise and resources that we use to augment
the capabilities of our individual operating subsidiaries in our local markets.
We have built a platform of resources and expertise to support our operating
subsidiaries and to improve their quality of service with greater economies of
scale and expertise than would typically be available at the operating
subsidiary level. We provide management, technical, financial, regulatory, and
marketing services to our operating subsidiaries and typically receive a
management fee calculated as a percentage of their revenues, which is eliminated
in consolidation. We also actively evaluate potential acquisitions, investment
opportunities and other strategic transactions, both domestic and international,
and generally look for those that we believe fit our profile of
telecommunications businesses and have the potential to complement our "glass
and steel" and "first to fiber" approach in markets while generating steady
excess cash flows over extended periods of time. We use the cash generated from
our operations to re-invest in organic growth in our existing businesses, to
make strategic investments in additional businesses, and to return cash to our
investors through dividends or stock repurchases.

For further information about our financial segments and geographical information about our operating revenues and assets, see Notes 1 and 14 to the Consolidated Financial Statements included in this Report.

As of December 31, 2022, we offer the following types of services to our customers:

Mobility Telecommunications Services. We offer mobile communications services

? over our wireless networks and related equipment(such as handsets) to both our

business and consumer subscribers.

Fixed Telecommunications Services. We provide fixed data and voice

telecommunications services to business and consumer customers. These

? services include consumer broadband and high speed data solutions for

businesses. For some markets, fixed services also include video services and

revenue derived from support under certain government programs.

Carrier Telecommunication Services. We deliver services to other

? telecommunications providers such as the leasing of critical network

infrastructure, such as tower and transport facilities, wholesale roaming, site

maintenance and international long-distance services.

Managed Services. We provide information technology services such as network,

? application, infrastructure and hosting services to both our business and

consumer customers to complement our fixed Services in our existing markets.

Through December 31, 2022, we have identified two operating segments to manage and review our operations and to facilitate investor presentations of our results. These two operating segments are as follows:

International Telecom. . In our international markets, we offer fixed services,

? mobility services, carrier services and managed services to customers in

Bermuda, the Cayman Islands, Guyana and the US Virgin Islands.




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US Telecom. In the United States, we offer fixed services, carrier services,

? and managed services to business and consumer customers in Alaska and the

western United States. As of December 31, 2022 we provided mobility services to

retail customers in the western United States

The following chart summarizes the operating activities of our principal subsidiaries, the segments in which we report our revenue and the markets we served as of December 31, 2022:



       Segment                 Services                  Markets              Tradenames
International Telecom    Mobility Services        Bermuda, Guyana, US       One, GTT, Viya
                                                  Virgin Islands
                         Fixed Services           Bermuda, Cayman           One, Logic,
                                                  Islands, Guyana, US       GTT, Viya
                                                  Virgin Islands
                         Carrier Services         Bermuda, Guyana, US       One, GTT, Viya
                                                  Virgin Islands
                         Managed Services         Bermuda, Cayman           Fireminds, One,
                                                  Islands, US Virgin        Logic, GTT,
                                                  Islands, Guyana           Viya
US Telecom               Mobility Services        United States (rural      Choice, Choice
                                                  markets)                  NTUA Wireless
                         Fixed Services           United States             Alaska
                                                                            Communications,
                                                                            Commnet,
                                                                            Choice, Choice
                                                                            NTUA Wireless,
                                                                            Sacred Wind
                                                                            Communications,
                                                                            Ethos
                         Carrier Services         United States             Alaska
                                                                            Communications,
                                                                            Commnet,
                                                                            Essextel,
                                                                            Sacred Wind
                                                                            Communications
                         Managed Services         United States             Alaska
                                                                            Communications,
                                                                            Choice



Acquisition of Sacred Wind Enterprises



On November 7, 2022, we, via our newly formed wholly owned subsidiary Alloy,
Inc. ("Alloy"), acquired all of the issued and outstanding stock of Sacred Wind
Enterprises, Inc. ("Sacred Wind"), a rural telecommunications provider in New
Mexico (the "Sacred Wind Transaction") for $44.4 million of consideration. As
part of the Sacred Wind Transaction, we transferred consideration of $18.0
million of cash, net of $9.4 million of cash acquired, $14.8 million of
redeemable noncontrolling interests, and $3.7 million of contingent
consideration, less $1.5 million of receivables related to working capital
adjustments. As part of the Sacred Wind Transaction, we contributed all of our
ownership interests in our Commnet business to Alloy. Subsequent to the
transaction, the former Sacred Wind shareholders will own 6% of the Alloy
equity. The equity is classified as redeemable noncontrolling interests in our
financial statements because the holders have an option, beginning in 2026, to
put the equity interest to a subsidiary of the Company at the then fair market
value. The redeemable noncontrolling interests do not have preference relative
to other equity units and participate in gains and losses in Alloy. The
contingent consideration is earned based on certain operating metrics of Sacred
Wind beginning in 2025 through 2027. The fair value of the contingent
consideration was calculated using discounted cash flow analysis based on a
range of probability weighted outcomes. The Company funded the acquisition

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with borrowing under its CoBank Credit Facility and assumed $31.6 million of
Sacred Wind debt, to the United States of America administered through the Rural
Utilities Service.

We believe that the acquisition of Sacred Wind will expand our infrastructure
reach and broadband services in the rural Southwest and increase our wholesale
carrier, residential and business broadband services.

Acquisition of Alaska Communications



On July 22, 2021, we completed the acquisition of Alaska Communications Systems
Group, Inc. ("Alaska Communications"), a publicly listed company, for
approximately $339.5 million in cash, net of cash acquired, (the "Alaska
Transaction"). Alaska Communications provides broadband telecommunication and
managed information technology services to customers in the State of Alaska and
beyond using its statewide and interstate telecommunications network.

In conjunction with the Alaska Transaction, we entered into an agreement with
affiliates and investment funds managed by Freedom 3 Capital, LLC as well as
other institutional investors (collectively the "Freedom 3 Investors"). The
Freedom 3 Investors contributed $71.5 million in conjunction with the Alaska
Transaction (the "Freedom 3 Investment"). The Freedom 3 Investment consists of
common and preferred equity instruments in our subsidiary which holds the
ownership of Alaska Communications.  We accounted for the Freedom 3 Investment
as a redeemable noncontrolling interest in our consolidated financial statements
and we also entered into a financing transaction drawing $220 million on a new
credit facility to complete the Alaska Transaction. As a result of the Alaska
Transaction, we own approximately 52% of the common equity of Alaska
Communications and control its operations and management.  Beginning on July 22,
2021, the results of Alaska Communications are included in our US Telecom
segment.

See Liquidity and Capital Resources for a discussion regarding the credit agreement used to help finance the Alaska Transaction.

Disposition of International Solar Business


In January 2021, we completed the sale of 67% of the outstanding equity in our
business that owns and operates distributed generation solar power projects
operated under the Vibrant name in India (the "Vibrant Transaction").  The
post-sale results of our ownership interest in Vibrant are recorded through the
equity method of accounting within the Corporate and Other operating segment.

We will continue to present the historical results of our Renewable Energy segment for comparative purposes.



The operations of Vibrant did not qualify as discontinued operations because the
disposition did not represent a strategic shift that had a major effect on our
operations and financial results.

FirstNet Agreement



In July 2019, we entered into a Network Build and Maintenance Agreement with
AT&T Mobility, LLC ("AT&T") that we amended in August 2020, May 2021 and August
2022 (the "FirstNet Agreement"). In connection with the FirstNet Agreement, we
are building a portion of AT&T's network for the First Responder Network
Authority ("FirstNet") in or near our current operating areas in the Western
United States.  Pursuant to the FirstNet Agreement and subject to certain
limitations contained therein, all cell sites must be completed and accepted
within a specified period of time.  We expect that total construction revenue
related to FirstNet will approximate $80 million to $85 million.  Since
inception of the project through December 31, 2022, we have recorded $62.6
million in construction revenue, including $15.8 million during 2022.  In 2023,
we expect to record additional construction revenue and related costs, as sites
are completed.  Revenues from construction are expected to have minimal impact
on operating income. The network build portion of the FirstNet Agreement
continued during the COVID-19 pandemic, but the overall timing of the build

schedule has been delayed.

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Following acceptance of a cell site, AT&T will own the cell site and we will
assign to AT&T any third-party tower lease applicable to such cell site.  If the
cell site is located on a communications tower we own, AT&T will pay us pursuant
to a separate lease agreement for an initial term of eight years. In addition to
building the network, we will provide ongoing equipment and site maintenance and
high-capacity transport to and from these cell sites for an initial term ending
in 2029.

AT&T will continue to use our wholesale domestic mobility network for roaming
services at a fixed rate per site during the construction period until such time
as the cell site is transferred to AT&T.  Thereafter, revenue from the
maintenance, leasing and transport services provided to AT&T is expected to
generally offset revenue from wholesale mobility roaming services.  We are
currently receiving revenue from the FirstNet Transaction and expect overall
operating income contributions from the FirstNet Transaction to have a
relatively steady impact going forward.

Universal Service Fund and Connect America Fund Phase II Programs


We recognize revenue from several government funded programs including the USF,
a subsidy program managed by the Federal Communications Commission ("FCC"), and
the Alaska Universal Service Fund ("AUSF"), a similar program managed by the
Regulatory Commission of Alaska (the "RCA"). USF funds are disbursed to
telecommunication providers through four programs: the High Cost Program; the
Low Income Program ("Lifeline Program"); the Schools and Libraries Program
("E-Rate Program"); and the Rural Health Care Support Program.

We also recognize revenue from the Connect America Fund Phase II program ("CAF
II") which offers subsidies to carriers to expand broadband coverage in
designated areas. Under CAF II, our US Telecom segment will receive an aggregate
of $27.4 million annually through December 2025 and an aggregate of $7.7 million
annually from January 2026 through July 2028.

Both the USF and CAFII programs are subject to certain operational and reporting
compliance requirements. We believe we are in compliance with these requirements
as of December 31, 2022.

In 2018, the FCC initiated a proceeding to replace the High Cost Program support
received by Viya in the US Virgin Islands with a new Connect USVI Fund. On
November 16, 2020, the FCC announced that Viya was not the recipient of the
Connect USVI Fund award and authorized funding to be issued to the new awardee
in June 2021. Pursuant to the terms of the program and effective in July 2021,
Viya's annual USF support was reduced from $16.4 million to $10.9 million. In
July 2022, this support was reduced again to $5.5 million for the annual period
through June 2023. As the program currently stands, Viya will not receive High
Cost Program support subsequent to June 2023.

RDOF ("Rural Digital Opportunities Fund")



We expect to receive approximately $20.1 million over 10 years to provide
broadband and voice coverage to over 10,000 households in the United States (not
including Alaska) under the 2020 Rural Digital Opportunity Fund Phase I Auction
("RDOF"). We recorded $2.0 million of revenue from the RDOF program during

the
year ended December 31, 2022.

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Construction Grants

We have also been awarded construction grants to build network connectivity for
eligible communities. The funding of these grants, used to reimburse us for our
construction costs, is generally distributed upon completion of a project.
Completion deadlines begin in June 2023 and once these projects are constructed,
we are obligated to provide service to the participants. We expect to meet all
requirements associated with these grants.  A roll forward of our grant awards
is below (in thousands).

                                    Amount
Grants awarded, December 31, 2021 $  11,067
New grants                           73,384
Cancelled grants                    (4,254)

Grants awarded, December 31, 2022 $ 80,197


In addition, we partner with tribal governments to obtain grants under the
Tribal Broadband Connectivity Program ("TBCP").  The TBCP is a program
administered by the National Telecommunications and Information Administration
to deploy broadband connectivity on tribal lands.  We were identified as a sub
recipient of TBCP grants totaling $145.5 million as of December 31, 2022.

Replace and Remove Program


On July 15, 2022, we were notified that we were an approved participant in the
Federal Communication Commission's Secure and Trusted Communications Networks
Reimbursement Program (the "Replace and Remove Program"), designed to reimburse
providers of communications services for reasonable costs incurred in the
required removal, replacement, and disposal of covered communications equipment
or services, that have been deemed to pose a national security risk, from their
networks.  Pursuant to the Replace and Remove Program, we were allocated up to
approximately $207 million in reimbursement amounts to cover documented and
approved costs to remove and securely destroy all prohibited communications
equipment and services in our U.S. networks and replace such equipment. The
Replace and Remove Program requires that we complete our first request for
reimbursement for services performed under the program no later than July 14,
2023 and that we complete the project no later than one year from submitting our
initial reimbursement request. We are currently assessing the impact of this
program on our financial statements and anticipate that we will be able to meet
the deadlines and requirements of the program. At December 31, 2022, we
established a receivable for $5.7 million of costs for which we expect to be
reimbursed under the program.

CARES Act

As of December 31, 2020, we received $16.3 million of funding under the
Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") to construct
network infrastructure within our US Telecom segment. During the year ended
December 31, 2021, we received an additional $2.4 million of funding for the
same purpose. The construction was completed as of December 31, 2021 and $18.4
million of the funding was recorded as a reduction to property, plant and
equipment with a subsequent reduction to depreciation expense. The remaining
$0.3 million was recorded as a reduction to operating expense in the year ended
December 31, 2021.

CBRS Auction

During the third quarter of 2020, we participated in the FCC's Citizens
Broadband Radio Service (CBRS) auction for Priority Access Licenses (PALs) in
the 3.5 GHz spectrum band. These PALs are licensed on a county-by-county basis
and are awarded for a 10-year renewable term. We were a winning bidder for PALs
located strategically throughout the United States at a total net cost of $19.3
million. In connection with the awarded licenses, we will have to achieve
certain CBRS spectrum build out obligations. We currently expect to comply with
all applicable requirements related to these licenses.

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Presentation of Revenue

Effective July 1, 2021, we began to categorize Mobility revenue and Fixed
revenue as either "consumer" or "business" based upon the characteristics of our
subscribers.  Effective October 1, 2021, our statement of operations separately
reflected Construction revenue. All periods presented have been adjusted to
conform to these presentation updates.

Presentation of Operating Expenses



Effective January 1, 2021, we changed our presentation of operating expenses in
the Condensed Consolidated Statements of Operations by combining the previously
disclosed Termination and Access Fees with Engineering and Operations as the
newly represented Cost of Communications Services and Other. In addition, the
previously disclosed Sales, Marketing and Customer Service expenses are now
combined with the previously disclosed General and Administrative expenses
within the newly represented Selling, General and Administrative expenses. The
change in presentation was made to better align our results with industry
standards. Cost of construction services continues to be broken out separately
and all depreciation and amortization continues to be shown separately.

Discussion of Results of Operations for the fiscal year ended December 31, 2021 compared to December 31, 2020


A discussion regarding our results of operations for the fiscal year ended
December 31, 2021 compared to 2020 can be found under Item 7 of our Annual
Report on Form 10-K for the fiscal year ended December 31, 2021, filed with the
SEC on March 16, 2022, which is available on the SEC's website at www.sec.gov
and our Investor Relations website at https://.ir.atni.com under the "Financials
& Filings" section.

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Selected Segment Financial Information

The following represents selected segment information for the years ended December 31, 2022 and 2021 (in thousands):



                                     For the Year Ended December 31, 2022

                              International         US         Renewable      Corporate and
                                 Telecom         Telecom        Energy          Other (1)        Consolidated
Revenue
Communication Services
Mobility - Business          $        14,830    $    1,228    $         -    $             -    $       16,058
Mobility - Consumer                   87,601         6,359              -                  -            93,960
Total Mobility                       102,431         7,587              -                  -           110,018
Fixed - Business                      69,903       126,735              -                  -           196,638
Fixed - Consumer                     163,408        78,338              -                  -           241,746
Total Fixed                          233,311       205,073              -                  -           438,384
Carrier Services                      13,459       128,864              -                  -           142,323
Other                                  1,450            46              -                  -             1,496
Total Communication
Services Revenue                     350,651       341,570              -                  -           692,221
Construction                               -        15,762              -                  -            15,762
Other
Managed Services                       4,930        12,832              -                  -            17,762
Total Other Revenue                    4,930        12,832              -                  -            17,762
Total Revenue                        355,581       370,164              -                  -           725,745

Operating income (loss)               52,011       (5,655)          (801)           (37,613)             7,942


                                    For the Year Ended December 31, 2021

                              International         US        Renewable      Corporate and
                                 Telecom         Telecom        Energy         Other (1)        Consolidated
Revenue
Communication Services
Mobility - Business          $         6,983    $    1,402    $        -    $             -    $        8,385
Mobility - Consumer                   86,384         7,532             -                  -            93,916
Total Mobility                        93,367         8,934             -                  -           102,301
Fixed - Business                      67,458        53,283             -                  -           120,741
Fixed - Consumer                     166,005        41,897             -                  -           207,902
Total Fixed                          233,463        95,180             -                  -           328,643
Carrier Services                       9,937       107,793             -                  -           117,730
Other                                    946             -             -                  -               946
Total Communication
Services Revenue                     337,713       211,907             -                  -           549,620
Construction                               -        35,889             -                  -            35,889
Other
Renewable Energy                           -             -           417                  -               417
Managed Services                       5,146        11,635             -                  -            16,781
Total Other Revenue                    5,146        11,635           417                  -            17,198
Total Revenue                        342,859       259,431           417                  -           602,707

Operating income (loss)               33,899      (14,016)       (2,459)           (32,450)          (15,026)


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(1) Reconciling items refer to corporate overhead costs and consolidating

adjustments.

A comparison of our segment results for the years ended December 31, 2022 and 2021 is as follows:

International Telecom. Revenues within our International Telecom segment
increased $12.7 million, or 3.7%, to $355.6 million from $342.9 million for the
years ended December 31, 2022 and 2021, respectively, as a result of improved
retail and marketing strategies which drove an increase in subscribers and
equipment sales within all of our international markets.  In addition, our US
Virgin Islands and Bermuda markets recognized an increase in Carrier Services
revenue as a result of increased transport and access services as well as an
increase in roaming revenues due to increased tourism in those markets.  These
increases, however, were partially offset by a $4.1 million reduction in federal
high cost support revenues in the US Virgin Islands.

Operating expenses within our International Telecom segment decreased by $5.4
million, or 1.7%, to $303.6 million from $309.0 million for the years ended
December 31, 2022 and 2021, respectively.  The decrease was primarily the result
of a $20.6 million impairment of goodwill associated with our US Virgin Island
operations during the year ended December 31, 2021 partially offset by a $6.8
million increase in equipment expenses and a $4.7 million increase in retail and
marketing costs in 2022.

As a result, our International Telecom segment's operating income increased $18.1 million, or 53.4%, to $52.0 million from $33.9 million for the years ended December 31, 2022 and 2021, respectively.

US Telecom. Revenue within our US Telecom segment increased by $110.8 million,
or 42.7%, to $370.2 million from $259.4 million for the years ended December 31,
2022 and 2021, respectively.  Of this increase $141.0 million was a result of a
full year of our Alaska operations, which were acquired on July 22, 2021, being
included in our 2022 results partially offset by a $20.1 million reduction in
construction revenue related to the FirstNet Transaction as well as a reduction
in roaming revenue due to the restructuring of certain carrier contracts in our
western United States operations.

Operating expenses within our US Telecom segment increased $102.5 million to
$375.9 million from $273.4 million for the years ended December 31, 2022 and
2021, respectively, as a result of a full year of our Alaska operations, which
were acquired on July 22, 2021, being included in our 2022 results and increases
in expenses being incurred in connection with increased data transport and other
costs primarily in connection with the fully constructed cell sites as part of
the FirstNet Transaction build-out of rural broadband operations.  These
increases were partially offset by decreases in FirstNet construction costs of
$20.3 million and transaction-related expenses, primarily related to the Alaska
Transaction, of $9.7 million.

As a result of the above, our US Telecom segment's operating loss decreased by $8.3 million to a loss of $5.7 million from a loss of $14.0 million for the years ended December 31, 2022 and 2021, respectively.



Renewable Energy. Until the completion of the Vibrant Transaction on January 27,
2021, we distributed generation solar power to commercial and industrial
customers under the Vibrant name in India.  Accordingly, we did not generate
revenue or incur operating expenses within our Renewable Energy segment
subsequent to that date.  For the year ended December 31, 2021, we generated
revenue, incurred operating expenses and reported an operating loss of $0.4
million, $2.9 million and $2.5 million, respectively.

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The following represents a year over year discussion and analysis of our results
of operations for the years ended December 31, 2022 and 2021 (in thousands):

                                                       Year Ended            Amount of      Percent
                                                     December 31,            Increase       Increase
                                                   2022          2021       (Decrease)     (Decrease)

REVENUE:

Communication services                          $  692,221    $  549,620
$   142,601          25.9 %
Construction                                        15,762        35,889       (20,127)        (56.1)
Other                                               17,762        17,198            564           3.3
Total revenue                                      725,745       602,707        123,038          20.4
OPERATING EXPENSES (excluding depreciation
and amortization unless otherwise
indicated):
Cost of communication services and other           312,895       249,322         63,573          25.5
Cost of construction revenue                        15,763        36,055       (20,292)        (56.3)
Selling, general and administrative                231,805       188,283   

     43,522          23.1
Transaction-related charges                          4,798        10,221        (5,423)        (53.1)
Depreciation and amortization                      135,137       102,731         32,406          31.5
Amortization of intangibles from
acquisitions                                        13,016         7,775          5,241          67.4
Goodwill impairment                                      -        20,587       (20,587)       (100.0)
Loss on disposition of long-lived assets             4,389         2,759   

      1,630          59.1
Total operating expenses                           717,803       617,733        100,070          16.2
Income (loss) from operations                        7,942      (15,026)         22,968         152.9
OTHER INCOME (EXPENSE):
Interest income                                        174           132             42          31.8
Interest expense                                  (20,417)       (9,614)       (10,803)       (112.4)
Other income                                         4,245         1,821          2,424         133.1
Other expense, net                                (15,998)       (7,661)        (8,337)       (108.8)

INCOME (LOSS) BEFORE INCOME TAXES                  (8,056)      (22,687)   

     14,631          64.5
Income tax benefit                                   (473)       (1,878)          1,405          74.8
NET INCOME (LOSS)                                  (7,583)      (20,809)         13,226          63.6
Net (income) loss attributable to
noncontrolling interests, net of tax:                1,938       (1,299)          3,237         249.2
NET INCOME (LOSS) ATTRIBUTABLE TO ATN
INTERNATIONAL, INC. STOCKHOLDERS                $  (5,645)    $ (22,108)

$ 16,463 74.5 %

Communications services revenue

Mobility Revenue. Our Mobility revenue consists of retail revenue generated within both our International Telecom and US Telecom segments by providing retail mobile voice and data services over our wireless networks as well as through the sale and repair services of related equipment, such as handsets and other accessories, to our retail subscribers.


Mobility revenue increased by $7.7 million, or 7.5%, to $110.0 million for the
year ended December 31, 2022 from $102.3 million for the year ended December 31,
2021. All $7.7 million of this increase is related to a net increase in revenue
from business customers.

The increase in Mobility revenue, within our segments, consisted of the following:

International Telecom. Within our International Telecom segment, Mobility

? revenue increased by $9.0 million, or 9.6%, to $102.4 million for the year


   ended December 31, 2022 from $93.4 million for the year


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ended December 31, 2021. Mobility revenue increased in each of our markets as

total revenue from business customers increased $7.8 million with the remaining

$1.2 million of increase being attributable to consumer customers. These

increases were the result of improved retail and marketing strategies which led

to an increase in subscribers and a $4.1 million increase in equipment sales.

US Telecom. Mobility revenue within our US Telecom segment decreased by $1.3

million, or 14.6%, to $7.6 million from $8.9 million for the years ended

? December 31, 2022 and 2021, respectively. Substantially all of the $1.3 million

decrease related to a decrease in revenue from consumers within our retail

operations due to a decrease in subscribers.




We expect that Mobility revenue within our International Telecom segment may
increase as a result of an increase in subscribers. However, such growth may be
partially offset due to increased competition. We expect that Mobility revenue
within our US Telecom segment will decrease over time as we put more emphasis on
other revenue sources.

Fixed Revenue. Fixed revenue is primarily generated by broadband, voice, and
video service revenues provided to retail and business customers over our
wireline networks. Fixed revenue within our US Telecom segment also includes
awards from the Connect America Fund Phase II program in the western United
States and Alaska, as well as revenue from the Alaska Universal Service Fund.
Within our International Telecom segment, Fixed revenue also includes funding
under the FCC's High Cost Program in the US Virgin Islands.

Fixed revenue increased by $109.8 million, or 33.4%, to $438.4 million from
$328.6 million for the years ended December 31, 2022 and 2021, respectively. Of
this increase, $75.9 million and $33.9 million relate to increases in revenue
from business and consumer customers, respectively. The increase in Fixed
revenue, within our segments, consisted of the following:

International Telecom. Within our International Telecom segment, Fixed revenue

decreased by $0.2 million, or 0.1%, to $233.3 million from $233.5 million for

the years ended December 31, 2022 and 2021, respectively, as increases in fixed

? broadband subscribers in all of our international markets and data pricing

increases in certain markets were offset by the previously disclosed and

scheduled $4.1 million reduction in revenue from the FCC's High Cost Program in

the US Virgin Islands.

US Telecom. Fixed revenue within our US Telecom segment increased by $109.9

million, or 115.4%, to $205.1 million from $95.2 million for the years ended

December 31, 2022 and 2021, respectively. Of this increase $104.8 million was a

? result of a full year of our Alaska operations, which were acquired on July 22,

2021, being included in our 2022 results. In addition, we recognized a $5.7

million increase within the western United States as a result of an increase in

usage for both business and consumer subscribers to support our subscribers'

increased demand for remote working.


Fixed revenue within our International Telecom segment may further decrease as a
result of the future scheduled step downs in USF funding in the US Virgin
Islands and a decrease in demand for our video services due to subscribers using
alternative methods to receive video content. Such decreases, however, may be
offset as a result of an increase in demand for broadband and other data
services from consumers, businesses and government, driven by such trends as the
popularity of video and audio streaming, demand for cloud services and smart
home, business and city solutions as well as macro-economic and population
growth in places like the Cayman Islands and Guyana.

Within our US Telecom segment, Fixed revenue is expected to increase as both our
Alaska operations and our western United States operations, including the impact
of the Sacred Wind Transaction, further deploy broadband access to both
consumers and businesses.

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Carrier Services Revenue. Carrier Services revenue is generated by both our
International Telecom and US Telecom segments. Within our International Telecom
segment, Carrier Services revenue includes international long-distance services,
roaming revenues generated by other carriers' customers roaming into our retail
markets, transport services and access services provided to other
telecommunications carriers. Within our US Telecom segment, Carrier Services
revenue includes services provided under the FirstNet Transaction, wholesale
roaming revenues, the provision of network switching services, tower lease
revenue and other services provided to other carriers.

Carrier Services revenue increased by $24.6 million, or 20.9%, to $142.3 million from $117.7 million for the years ended December 31, 2022 and 2021, respectively. The increase, within our segments, consisted of the following:

International Telecom. Within our International Telecom segment, Carrier

Services revenue increased by $3.6 million, or 36.4%, to $13.5 million, from

? $9.9 million for the years ended December 31, 2022 and 2021, respectively, as a

result of a $2.2 million increase in transport and access services and in

tourism, primarily within the US Virgin Islands and Bermuda, that resulted in a

$1.4 million increase in roaming revenues.

US Telecom. Carrier Services revenue within our US Telecom segment increased by

$21.1 million, or 19.6%, to $128.9 million from $107.8 million, for the years

ended December 31, 2022 and 2021, respectively. Of this increase, $35.0 million

was primarily related to a full year of our Alaska operations, which were

? acquired on July 22, 2021, being included in our 2022 results and a $0.6

million increase in our wholesale long-distance voice services business. These

increases were partially offset by a decrease of $14.5 million in our western

United States operations primarily as a result of the restructure of certain

carrier contracts.




Within our International Telecom segment, Carrier Services revenue may continue
to increase if tourism continues to move toward a return to pre-pandemic levels.
However, within our International Telecom segment, we expect that Carrier
Services revenue from our international long-distance business in Guyana may
decrease as consumers seek to use alternative technology services to place
long-distance calls. Further, such revenue may decline as the result of the
implementation, by the Government of Guyana, of passed legislation which
terminates our right to be the exclusive provider of domestic Fixed and
international long-distance service in Guyana. While the loss of our exclusive
rights in Guyana may cause an immediate reduction in our Carrier Services
revenue, the complete impact of the new legislation to our operations will not
be fully known until the Government of Guyana makes the terms and conditions of
licenses issued to two of our competitors available to us. Over the longer term,
such declines in Carrier Services revenue may be offset by increased Fixed
revenue from broadband services to consumers and enterprises in Guyana,
increased Mobility revenue from an increase in regulated local calling rates in
Guyana or possible economic growth within that country.

Within our US Telecom segment, Carrier Services revenue may decrease as a result of the impact of continued reduced contractual wholesale roaming rates and imposed revenue caps with our Carrier customers.



Other Communications Services Revenue. Other Communications Services revenue
includes miscellaneous services that the operations within our International
Telecom segment provide to retail subscribers. Other Communications Services
revenue increased to $1.5 million from $0.9 million for the years ended December
31, 2022 and 2021, respectively.

Construction Revenue



Construction revenue represents revenue generated within our US Telecom segment
for the construction of network cell sites related to the FirstNet Agreement.
During the years ended December 31, 2022 and 2021, Construction revenue
decreased to $15.8 million from $35.9 million, respectively, as a result of a
decrease in the number of sites completed during 2022 as compared to 2021. As of
December 31, 2022, 75% of the cell sites related to the FirstNet Agreement were
completed and we expect to substantially complete the build by the end of 2023.

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Other Revenue

Renewable Energy Revenue. As a result of the Vibrant Transaction, we did not
generate any renewable energy revenue during the year ended December 31, 2022
and generated $0.4 million of renewable energy revenue during the year ended
December 31, 2021.

Managed Services Revenue. Managed Services revenue is generated within both our
International and US Telecom segments and includes network, application,
infrastructure, and hosting services. Managed Services revenue increased by $1.0
million, or 6.0%, to $17.8 million from $16.8 million for the years ended
December 31, 2022 and 2021, respectively.

International Telecom. Managed Services revenue in our International Telecom
segment decreased $0.2 million to $4.9 million, or 3.9%, from $5.1 million for
the years ended December 31, 2022 and 2021, respectively.

US Telecom. Within our US Telecom segment, Managed Services revenue increased
$1.2 million, or 10.3%, to $12.8 million from $11.6 million for the years ended
December 31, 2022 and 2021, respectively, primarily related to a full year of
our Alaska operations, which were acquired on July 22, 2021, being included in
our 2022 results.

We expect that Managed Services revenue may increase in both our US and International Telecom segments as a result of our continued effort to sell certain Managed Services solutions to both our consumer and business customers in all of our markets.



Operating expenses

Cost of communication services and other. Cost of communication services and
other are charges that we incur for voice and data transport circuits (in
particular, the circuits between our Mobility sites and our switches), internet
capacity, video programming costs, access fees we pay to terminate our calls,
telecommunication spectrum fees and direct costs associated within our managed
services businesses. These costs also include expenses associated with
developing, operating, upgrading and supporting our telecommunications networks,
including the salaries and benefits paid to employees directly involved in the
development and operation of those businesses, as well as credit loss allowances
and the cost of handsets and customer resale equipment incurred by our retail
businesses.

Cost of communication services and other increased by $63.6 million, or 25.5%,
to $312.9 million from $249.3 million for the years ended December 31, 2022 and
2021, respectively. The net increase in cost of communication services and
other, within our segments, consisted of the following:

International Telecom. Within our International Telecom segment, cost of

communication services and other increased by $3.3 million, or 2.4%, to $140.1

million from $136.8 million, for the years ended December 31, 2022 and 2021,

? respectively. This increase was the result of a $6.8 million increase in

equipment expenses, primarily the cost of handsets, as a result of improved

retail and marketing strategies which led to an increase in subscribers and

handset sales, partially offset by a reduction in regulatory costs in certain

markets.

US Telecom. Cost of communication services and other within our US Telecom

segment increased by $60.6 million, or 53.8%, to $173.3 million from $112.7

million for the years ended December 31, 2022 and 2021, respectively. Of this

increase, $60.2 million was a result of a full year of our Alaska operations,

which were acquired on July 22, 2021, being included in our 2022 results, a

? $2.3 million increase in data transport and other costs primarily in connection

with the fully constructed cell sites as part of the FirstNet Transaction and

an $0.8 million increase within our wholesale long-distance voice services

business to support its increased revenues. These increases were partially


   offset by a $2.3 million decrease in our private network business which
   terminated its operations in early 2022.


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We expect that cost of communication services and other may increase within our
International Telecom segment due to an expected increase in roaming costs if
tourism continues to return to pre-pandemic levels. Within the US Telecom
segment, these expenses are expected to increase in connection with our expected
increase in fixed revenue, an increase in the expenses associated with our
funding award under the CARES Act and anticipated expenses in connection with
our performance related to the construction phase of our FirstNet Transaction
which is expected to be completed in 2023. In addition, we expect cost of
services may increase as a result of continued inflationary pressure, issues
facing the global supply chain and geopolitical uncertainty.

Cost of construction revenue. Cost of construction revenue includes the expenses
incurred in connection with the construction of and the delivery to AT&T of cell
sites in accordance with our FirstNet Agreement. During the year ended December
31, 2022 and 2021, cost of construction revenue decreased to $15.8 million from
$36.1 million as a result of a decrease in the number of sites completed during
2022 as compared to 2021. As of December 31, 2022, 75% of the cell sites related
to the FirstNet Agreement and we expect to substantially complete the build by
the end of 2023.

Selling, general and administrative expenses. Selling, general and
administrative expenses include salaries and benefits we pay to sales personnel,
customer service expenses and the costs associated with the development and
implementation of our promotional and marketing campaigns. Selling, general and
administrative expenses also include salaries, benefits and related costs for
general corporate functions including executive management, finance and
administration, legal and regulatory, facilities, information technology and
human resources as well as internal costs associated with our performance of
due-diligence and integration related costs associated with acquisition
activities.

Selling, general and administrative expenses increased by $43.5 million, or 23.1%, to $231.8 million from $188.3 million for the years ended December 31, 2022 and 2021, respectively. The net increase in selling, general and administrative expenses, within our segments, consisted of the following:

International Telecom. Within our International Telecom segment, our selling,

general and administrative expenses increased by $8.3 million, or 8.7%, to

? $104.2 million from $95.9 million for the years ended December 31, 2022 and

2021, respectively. This increase was incurred within all of our international


   markets primarily as a result of an increase in our sales and marketing
   capabilities to support the expansion of our subscriber base.

US Telecom. Selling, general and administrative expenses increased within our

US Telecom segment by $33.3 million, or 53.0%, to $96.1 million from $62.8

million, for the years ended December 31, 2022 and 2021, respectively. Of this

? increase, $39.2 million was the result of a full year of our Alaska operations,

which were acquired on July 22, 2021, being included in our 2022 results and an

increase in such costs in connection with the First Net Transaction partially

offset by an $8.8 million reduction of costs within our private network

business which terminated its operations in early 2022.

Renewable Energy. During the years ended December 31, 2022 and 2021, our

? Renewable Energy segment incurred $0.1 million and $0.6 million of selling,

general and administrative expenses, respectively, as a result of the Vibrant

Transaction.

Corporate Overhead. Selling, general and administrative expenses within our

corporate overhead increased by $2.4 million, or 8.3%, to $31.4 million from

? $29.0 million, for the years ended December 31, 2022 and 2021, respectively,

primarily related to an increase in professional fees and integration costs

associated with the completion of the Alaska Transaction.


We expect that selling, general and administrative expenses may increase in our
international telecom segment to support our expanded operations. Within the US
Telecom segment, we expect an increase in these costs as a result of expected
costs associated with the impact of the construction phase of the FirstNet
Transaction, the Sacred Wind Transaction, our commitments under the Cares Act
funding and other network expansions in Alaska and the southwest US. Our
Corporate Overhead segment may also experience an increase in these expenses to
support our expanding

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operations. In addition, we expect our selling, general, and administrative expenses may increase as a result of continued inflationary pressure, issues facing the global supply chain and geopolitical uncertainty.



Transaction-related charges. Transaction-related charges include the external
costs, such as legal, tax, accounting and consulting fees directly associated
with acquisition and disposition-related activities, which are expensed as
incurred. Transaction-related charges also include certain internal personnel
costs incurred as a result of the completion of an acquisition or disposition.
Transaction-related charges do not include employee salary and travel-related
expenses, incurred in connection with acquisitions or dispositions or any
integration-related costs.

We incurred $4.8 million and $10.2 million of transaction-related charges during the years ended December 31, 2022 and 2021, respectively.



 Depreciation and amortization expenses. Depreciation and amortization expenses
represent the depreciation and amortization charges we record on our property
and equipment.

Depreciation and amortization expenses increased by $32.4 million, or 31.5%, to
$135.1 million from $102.7 million for the years ended December 31, 2022 and
2021, respectively.  The net increase in depreciation and amortization expenses,
within our segments, consisted primarily of the following:

International Telecom. Depreciation and amortization expenses increased within

our International Telecom segment by $2.7 million, or 5.0%, to $56.6 million

? from $53.9 million, for the years ended December 31, 2022 and 2021,

respectively. Increases were incurred in all of our international markets as a

result of recent capital expenditures used to expand and upgrade our network

operations.

US Telecom. Depreciation and amortization expenses increased within our US

Telecom segment by $31.4 million, or 72.0%, to $75.0 million from $43.6

million, for the years ended December 31, 2022 and 2021, respectively,

? primarily as a result of a full year of our Alaska operations, which were

acquired on July 22, 2021, being included in our 2022 results, the Sacred Wind

Transaction, which was completed in November 2022, and the depreciation expense

recorded on recent capital expenditures.

Renewable Energy. Our Renewable Energy segment did not record any depreciation

? and amortization expense during the year ended December 31, 2022 as a result of

the Vibrant Transaction. This segment incurred $0.2 million of depreciation and

amortization expenses during the year ended December 31, 2021.

Corporate Overhead. Depreciation and amortization expenses decreased within our

corporate overhead by $1.6 million, or 31.4%, to $3.5 million from $5.1

? million, for the years ended December 31, 2022 and 2021, respectively,

primarily as a result of certain assets becoming fully depreciated in recent

periods.

We expect depreciation and amortization expense to increase within our International Telecom and US Telecom segments as we acquire tangible assets to expand or upgrade our telecommunications networks.


Amortization of intangibles from acquisitions. Amortization of intangibles from
acquisitions include the amortization of customer relationships and trade names
related to our completed acquisitions.

Amortization of intangibles from acquisitions increased by $5.2 million to $13.0 million from $7.8 million for the years ended December 31, 2022 and 2021, respectively, primarily as a result of the Alaska Transaction which was completed on July 22, 2021.

We expect that amortization of intangibles from acquisitions will decrease as such costs continue to amortize.



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Goodwill Impairment. During the year ended December 31, 2021, we recorded a $20.6 million impairment charge within out International Telecom segment. See Note 7 to the Consolidated Financial Statements in this report.



Loss on disposition of long-lived assets. During the year ended December 31,
2022, we recorded a loss on the disposition of long-lived assets of $4.4
million. Of this amount, $2.5 million was incurred in our US Telecom segment
relating to the disposal of certain assets while $1.2 million was incurred in
our International Telecom segment as a result of the disposal of certain assets.
The remaining $0.7 million pertains to the final settlement of the Vibrant
Transaction within our Renewable Energy segment.

During the year ended December 31, 2021, we recorded a loss on the disposition
of long-lived assets of $2.8 million, primarily related to the Vibrant
Transaction and the disposal of certain telecommunications licenses within the
US Telecom segment.

Interest income. Interest income represents interest earned on our cash, cash
equivalents, restricted cash and short-term investment balances. Interest income
was $0.2 million and $0.1 million for the years ended December 31, 2022 and
2021, respectively.

Interest expense.  We incur interest expense on the 2019 CoBank Credit Facility,
the Alaska Credit and Term Facilities (beginning in July 2021 and in conjunction
with the completion of the Alaska Transaction), the Viya Debt, the One
Communications Debt and the Receivables Credit Facility (each as defined below).
Beginning in November 2022, and in conjunction with the Sacred Wind Transaction,
interest expense includes interest expense on the Sacred Wind Term Debt. In
addition, interest expense also includes commitment fees, letter of credit fees
and the amortization of debt issuance costs.

Interest expense increased to $20.4 million from $9.6 million for the years
ended December 31, 2022 and 2021, respectively, as additional interest expense
was incurred as a result of a full year of our Alaska operations, which were
acquired on July 22, 2021, and new borrowings under the 2019 CoBank Credit
Facility, the Alaska Credit Facility and the Receivables Credit Facility as well
as an increase in interest rates.

We expect that interest expense may increase in future periods as a result of increased interest rates and borrowings.



Other income (expenses).  For the year ended December 31, 2022, other income
(expenses) was $4.3 million of income primarily related to $5.7 million of gains
from our noncontrolling investments partially offset by $0.9 million of
increased expenses associated with certain employee benefit plans and $0.9
million of losses on foreign currency transactions.

For the year ended December 31, 2021, other income (expenses) was $1.8 million
of income primarily related to $2.8 million of income related to certain
employee benefit plans and other miscellaneous income partially offset by $0.9
million relating to losses on foreign currency transactions.

Income taxes. Our effective tax rate for the years ended December 31, 2022 and 2021 was 5.9% and 8.3%, respectively.



Our effective tax rate for the year ended December 31, 2022 was primarily
impacted by the following items: (i) a $4.1 million net increase of unrecognized
tax positions, (ii) a $2.1 million net increase for permanently non-deductible
expenses, (iii) a $2.1 million net increase related to valuation allowances
placed on certain deferred tax assets and (iv) the mix of income generated among
the jurisdictions in we operate along with the exclusion of losses in
jurisdictions where valuation allowances have been established for deferred tax
assets as required by ASC 740-270-30-36(a).

Our effective tax rate for the year ended December 31, 2021 was primarily impacted by the following items: (i) a $0.9 million provision related to certain transactional charges incurred in connection with acquisitions for which there



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is no tax benefit, (ii) a $2.5 million net increase of unrecognized tax
positions, (iii) a $1.7 million net increase for permanently non-deductible
expenses, and (iv) the mix of income generated among the jurisdictions in which
we operate along with the exclusion of losses in jurisdictions where valuation
allowances have been established for deferred tax assets as required by ASC
740-270-30-36(a), primarily in the US Virgin Islands.

Our effective tax rate is based upon estimated income before provision for
income taxes for the year, composition of the income in different countries, and
adjustments, if any, in the applicable quarterly periods for potential tax
consequences, benefits and/or resolutions of tax contingencies. Our consolidated
tax rate will continue to be impacted by any transactional or one-time items in
the future and the mix of income in any given year generated among the
jurisdictions in which we operate. While we believe we have adequately provided
for all tax positions, amounts asserted by taxing authorities could materially
differ from our accrued positions as a result of uncertain and complex
application of tax law and regulations. Additionally, the recognition and
measurement of certain tax benefits include estimates and judgment by
management. Accordingly, we could record additional provisions or benefits for
US federal, state, and foreign tax matters in future periods as new information
becomes available.

Net income attributable to noncontrolling interests, net of tax. Net income
attributable to noncontrolling interests, net of tax reflected an allocation of
$1.9 million of losses and $1.3 million of income generated by our less than
wholly owned subsidiaries for the years ended December 31, 2022 and 2021,
respectively. Changes in net income attributable to noncontrolling interests,
net of tax, within our segments, consisted of the following:

International Telecom. Within our International Telecom segment, net income

attributable to noncontrolling interests, net of tax decreased by $0.9 million,

or 12.0%, to an allocation of $6.6 million of income from an allocation of $7.5

? million of income for the years ended December 31, 2022 and 2021, respectively,

primarily as a result of reduced profitability at certain less than wholly


   owned subsidiaries partially offset by an increase in our ownership and
   profitability in other international markets.


   US Telecom. Within our US Telecom segment, net income attributable to

noncontrolling interests, net of tax increased by $3.1 million, or 56.4%, to an

allocation of losses of $8.6 million from an allocation of losses of $5.5

? million for the years ended December 31, 2022 and 2021, respectively, as a

result of the Alaska Transaction, which was completed on July 22, 2021, reduced

profitability in certain less than wholly owned subsidiaries within our US

Mobility operations and the impact of the Sacred Wind Transaction.


Net income (loss) attributable to ATN International, Inc. stockholders. Net
income (loss) attributable to ATN International, Inc. stockholders was a loss of
$5.6 million for the year ended December 31, 2022 as compared to a loss of $22.1
million for the year ended December 31, 2021.

On a per diluted share basis, net income (loss) was a loss of $0.67 per diluted
share for the year ended December 31, 2022 as compared to a loss of $1.52 per
diluted share for the year ended December 31, 2021. Such per share amounts were
negatively impacted by accrued preferred dividends of $4.9 million and $2.0
million.

Regulatory and Tax Issues



We are involved in a number of regulatory and tax proceedings. A material and
adverse outcome in one or more of these proceedings could have a material
adverse impact on our financial condition and future operations.  For discussion
of ongoing proceedings, see Note 11 to the Consolidated Financial Statements in
this Report.

Liquidity and Capital Resources



Historically, we have met our operational liquidity needs and have funded our
capital expenditures and acquisitions through a combination of cash-on-hand,
internally generated funds, proceeds from dispositions, borrowings under our
credit facilities and seller financings. We believe our current cash, cash
equivalents, short term investments

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and availability under our current credit facilities will be sufficient to meet
our cash needs for at least the next twelve months for working capital needs and
capital expenditures.

Total liquidity. As of December 31, 2022, we had approximately $59.7 million in
cash, cash equivalents, and restricted cash. Of this amount, $19.4 million was
held by our foreign subsidiaries and is indefinitely invested outside the United
States. In addition, we had approximately $421.9 million of debt, net of
unamortized deferred financing costs, as of December 31, 2022. How and when we
deploy our balance sheet capacity will figure prominently in our longer-term
growth prospects and stockholder returns.

Uses of Cash


Acquisitions and investments. We have historically funded our acquisitions with
a combination of cash-on-hand, borrowings under our credit facilities as well as
equity investor and seller financings.

Sacred Wind Transaction. On November 7, 2022, we assumed $31.6 million of debt
in connection with the Sacred Wind Transaction. See Acquisition of Sacred Wind
Enterprises.

Alaska Transaction. On July 22, 2021, Alaska Communications entered into a new
debt financing in connection with the Alaska Transaction. See Acquisition of
Alaska Communications System Group, Inc.

We continue to explore opportunities to expand our telecommunications business
or acquire new businesses in the United States, the Caribbean and elsewhere.
Such acquisitions may require external financing. While there can be no
assurance as to whether, when or on what terms we will be able to acquire any
such businesses or make such investments, such acquisitions may be completed
through the issuance of shares of our capital stock, payment of cash or
incurrence of additional debt. From time to time, we may raise capital ahead of
any definitive use of proceeds to allow us to move more quickly and
opportunistically if an attractive investment materializes.

Cash used in investing activities. Cash used in investing activities was $167.2
million and $426.6 million for the years ended December 31, 2022 and 2021,
respectively. The net decrease in cash used for investing activities of $259.4
million was primarily the result of a decrease in the amount of cash used for
acquisitions from $339.5 million used in 2021 for the Alaska Transaction to
$18.0 million used in 2022 for the Sacred Wind Transaction. Other decreases
included a $4.3 million reduction in cash used for the purchase of strategic
investments. Partially offsetting these decreases in the usage of cash, was an
increase in capital expenditures of $61.9 million.

Cash provided by financing activities. Cash provided by financing activities
decreased by $278.3 million to $43.4 million from $321.7 million for the years
ended December 31, 2022 and 2021, respectively. This decrease was primarily
related to the reduction in borrowings, net of repayments under our credit
facilities of $232.0 million and were primarily related to the Alaska and
FirstNet Transactions. In addition, during 2021, $71.5 million of cash was
provided by a minority shareholder in connection with the Alaska Transaction.
These reductions in cash provided by financing activities were partially offset
by the reductions in cash used for the repurchase of our common stock and the
purchase of non-controlling interests (relating to our Bermuda operations) of
$9.6 million and $8.4 million, respectively.

Working Capital. Historically, we have internally funded our working capital
needs. Pursuant to the FirstNet Agreement, AT&T has the option to repay
construction costs, with interest, over an eight-year period. To fund the
working capital needs created by AT&T's option to extend its payment terms, we
completed the Receivables Credit Facility, as discussed below, on March 26,
2020.

Capital expenditures. Historically, a significant use of our cash has been for
capital expenditures to expand and upgrade our telecommunications networks and
business support systems.

For the years ended December 31, 2022 and 2021, we spent approximately $168.0
million and $106.1 million, respectively, on capital expenditures relating to
our telecommunications networks and business support systems of which

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$7.9 million and $9.7 million, respectively, are reimbursable under various government programs. The following notes our capital expenditures, by operating segment, for these periods (in thousands):



                                               Capital Expenditures

                             International       US        Corporate and
Year ended December 31,         Telecom        Telecom       Other (1)       Consolidated
2022                      $         70,385  $   96,589  $          1,045  $       168,019
2021                                49,985      53,235             2,922          106,142

(1) Corporate and other items refer to corporate overhead costs and consolidating

adjustments.




We are continuing to invest in our telecommunication networks along with our
operating and business support systems in many of our markets.  For the year
ended December 31, 2023, such investments are expected to total approximately
$160 million to $170 million, net of reimbursable amounts, and will primarily
relate to network expansion and upgrades which are expected to further drive
subscriber and revenue growth in future periods.

See Liquidity and Capital Resources- Material Cash Obligations and Sources below for a discussion of our future cash commitments related to the RDOF program.



Income taxes. We have historically used cash-on-hand to make payments for income
taxes. Our policy is to allocate capital where we believe we will get the best
returns and to date has been to indefinitely reinvest the undistributed earnings
of our foreign subsidiaries. As we continue to reinvest our remaining foreign
earnings, no additional provision for income taxes has been made on accumulated
earnings of foreign subsidiaries.

Dividends.  For the year ended December 31, 2022, our Board of Directors
declared $11.3 million of dividends to our stockholders which includes a $0.21
per share dividend declared on December 19, 2022 and paid on January 6, 2023.
The $0.21 per share dividend declared on December 19, 2022 represents an
increase from the $0.17 per share dividend declared in previous quarters. We
have declared quarterly dividends since the fourth quarter of 1998.

Stock Repurchase Plan. On September 19, 2016, our Board of Directors authorized
the repurchase of up to $50.0 million of our common stock from time to time on
the open market or in privately negotiated transactions (the "2016 Repurchase
Plan"). We repurchased $0.9 million and $10.5 million of our common stock under
the 2016 Repurchase Plan during the years ended December 31, 2022 and 2021,
respectively. As of December 31, 2022, we had $19.5 million authorized and
available for share repurchases under the 2016 Repurchase Plan.

Sources of Cash



Cash provided by operations. Cash provided by operating activities was $102.9
million for the year ended December 31, 2022 as compared to $80.5 million for
the year ended December 31, 2021. The increase of $22.4 million was primarily
related to an increase in net income of $13.2 million (which includes an
increase in depreciation and amortization expenses of $37.6 million). Partially
offsetting this increase was additional cash used for operating assets and
liabilities of $8.4 million.

CoBank Credit Facility

On April 10, 2019, we entered into a credit facility, with CoBank, ACB and a syndicate of other lenders (as amended, the "2019 CoBank Credit Facility").

The


2019 CoBank Credit Facility provides for a $200 million revolving credit
facility that includes (i) up to $75 million for standby or trade letters of
credit and (ii) up to $10 million under a swingline sub-facility.  Approximately
$26.0 million of performance letters of credit have been issued and remain
outstanding and undrawn as of December 31, 2022.  The 2019 CoBank Credit
Facility matures on April 10, 2024.

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Amounts borrowed under the 2019 CoBank Credit Facility bear interest at a rate
equal to, at our option, either (i) the London Interbank Offered Rate ("LIBOR")
plus an applicable margin ranging between 1.25% to 2.25% or (ii) a base rate
plus an applicable margin ranging from 0.25% to 1.25%.  Swingline loans bear
interest at the base rate plus the applicable margin for base rate loans. The
base rate is equal to the higher of (i) 1.00% plus the higher of (x) LIBOR for
an interest period of one month and (y) LIBOR for an interest period of one
week; (ii) the Federal Funds Effective Rate (as defined in the 2019 CoBank
Credit Facility) plus 0.50% per annum; and (iii) the Prime Rate (as defined in
the 2019 CoBank Credit Facility). The applicable margin is determined based on
the Total Net Leverage Ratio (as defined in the 2019 CoBank Credit Facility).
Under the terms of the 2019 CoBank Credit Facility, we must also pay a
commitment fee ranging from 0.150% to 0.375% of the average daily unused portion
of the 2019 CoBank Credit Facility over each calendar quarter.

On November 7, 2022, we further amended the 2019 CoBank Credit Facility to allow for the incurrence of certain indebtedness related to payment guarantees in connection with its Replace and Remove project.

On December 28, 2022, we further amended the 2019 CoBank Credit Facility, effective November 7, 2022, to allow for certain transactions contemplated with our recently completed acquisition of Sacred Wind Enterprises, Inc.



 The 2019 CoBank Credit Facility contains customary representations, warranties
and covenants, including a financial covenant that imposes a maximum ratio of
indebtedness to EBITDA as well as covenants limiting additional indebtedness,
liens, guaranties, mergers and consolidations, substantial asset sales,
investments and loans, sale and leasebacks, transactions with affiliates and
fundamental changes.  Our investments in "unrestricted" subsidiaries and certain
dividend payments to our stockholders are not limited unless the Total Net
Leverage Ratio is equal to or greater than 1.75 to 1.0.  The Total Net Leverage
Ratio is measured each fiscal quarter and is required to be less than or equal
to 2.75 to 1.0.  In the event of a Qualifying Acquisition (as defined in the
2019 CoBank Credit Facility), the Total Net Leverage Ratio increases to 3.25 to
1.0 for the subsequent three fiscal quarters.

The 2019 CoBank Credit Facility also provides for the incurrence by us of
incremental term loan facilities, when combined with increases to revolving loan
commitments, in an aggregate amount not to exceed $200 million (the
"Accordion").  Amounts borrowed under the Accordion are also subject to proforma
compliance with a net leverage ratio financial covenant.

As of December 31, 2022, we were in compliance with all of the financial
covenants of the 2019 CoBank Credit Facility, had $99.0 million outstanding in
borrowings and, net of the $26.0 million of outstanding performance letters of
credit, had $75.0 million of availability under the 2019 CoBank Credit Facility.
As of December 31, 2022, there were no outstanding interest rate hedge
agreements associated with the 2019 CoBank Credit Facility.

Letter of Credit Facility



On November 14, 2022, we entered into General Agreement of Indemnity to issue
performance Standby Letters of Credit on behalf of us and our subsidiaries. As
of December 31, 2022, no Standby Letters of Credit had been issued under this
agreement.

Alaska Credit Facility

On July 22, 2021, Alaska Communications entered into a Credit Agreement (the "Alaska Credit Facility") with Fifth Third Bank, National Association, as Administrative Agent, and a syndicate of lenders to provide a $35.0 million revolving facility (the "Alaska Revolving Facility") and a $210.0 million initial term loan facility (the "Alaska Term Loan").


On December 23, 2022, Alaska Communications entered into a First Amendment
Agreement (the "ACS Amendment'). The ACS Amendment amends the Alaska Credit
Facility to increase its Revolving Credit Commitment from $35.0 million to $75.0
million and Term Loan Commitment from $210 million to $230 million. As a part of
the

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transaction, the Term Loan commitment was fully funded as the outstanding Revolving Credit Commitment balance was transferred. As a result, $75.0 million is available under the Revolving Credit Commitment as of December 31, 2022. Principal payments on the Term Loan commence in the fourth quarter of 2023.


In addition to the above changes, the amendment replaced the calculation of
interest from an applicable margin applied to LIBOR with the same applicable
margin applied to the Secured Overnight Financing Rate ("SOFR") plus a 10-basis
point adjustment.

As of December 31, 2022, $230.0 million was outstanding under the Alaska Term Loan and there were no outstanding borrowings under the Alaska Revolving Facility. Both facilities mature on July 22, 2026.

We capitalized $7.3 million of fees associated with the Alaska Credit Facility which are being amortized over the life of the debt and $5.4 million were unamortized as of December 31, 2022.



The Alaska Credit Facility also provides for incremental facilities up to an
aggregate principal amount of the greater of $70.0 million and Alaska
Communications' trailing twelve-month Consolidated EBITDA (as defined in the
Alaska Credit Facility).

The key terms and conditions of the Alaska Credit Facility include the following:

Amounts outstanding bear an interest rate of LIBOR, or a LIBOR replacement rate

as applicable, plus a margin ranging from 3.00% to 4.00% based on Alaska

? Communications' Consolidated Total Net Leverage Ratio (as defined in the Credit

Agreement) or an alternate base rate may be selected at a margin that is 1%

lower than the counterpart LIBOR margin;

Principal repayments are due quarterly commencing in the fourth quarter of 2023

in quarterly amounts as follows: from the fourth quarter of 2023 through the

? third quarter of 2024, $1.4 million; and from the fourth quarter of 2024

through the third quarter of 2026, $2.9 million. The remaining unpaid balance


   is due on the final maturity date;



Alaska Communications is required to maintain financial ratios as defined in

the Alaska Credit Facility, including (a) a maximum Consolidated Net Total

? Leverage Ratio of 4.00 to 1, stepping down to 3.75 to 1 beginning with the

second quarter of 2024; and (b) a minimum Consolidated Fixed Charge Coverage

Ratio of not less than 1.25 to 1; and

The Alaska Credit Facility is non-recourse to us and is secured by

? substantially all of the personal property and certain material real property

owned by Alaska Communications.




Alaska Communication's interest rate swap, which had been designated as a cash
flow hedge with an interest rate of 1.6735%, expired on June 30, 2022. As of
December 31, 2022, there are no outstanding interest rate hedge agreements
associated with the Alaska Credit Facility.

Alaska Term Facility



On June 15, 2022, Alaska Communications Systems Holdings, the parent company of
Alaska Communications, entered a secured lending arrangement with Bristol Bay
Industrial, LLC. (the "Alaska Term Facility").

The Alaska Term Facility provides for a secured delayed draw term loan in an
aggregate principal amount of up to $7.5 million and the proceeds may be used to
pay certain invoices from a contractor for work performed in connection with a
fiber build. Interest on the Alaska Term Facility accrues at a fixed rate of
4.0% and is payable commencing on

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December 31, 2022. Scheduled quarterly payments of principal commence on March 31, 2023. The Alaska Term Facility matures on June 30, 2024.

The Alaska Term Facility contains events of default customary for facilities of this type.

As of December 31, 2022, we had $7.5 million outstanding and no available borrowings under the Alaska Term Facility.

FirstNet Receivables Credit Facility

On March 26, 2020, Commnet Finance, a wholly owned subsidiary of Commnet Wireless, entered into a receivables credit facility with us, Commnet Wireless, and CoBank, ACB (the "Receivables Credit Facility").


The Receivables Credit Facility provides for a senior secured delayed draw term
loan in an aggregate principal amount of up to $75.0 million and the proceeds
may be used to acquire certain receivables from Commnet Wireless.  The
receivables to be financed and sold under the Receivables Credit Facility, which
provide the loan security, relate to the obligations of AT&T under the FirstNet
Agreement.

On December 23, 2022, CoBank amended the Receivables Credit Facility and extended the delayed draw period to December 31, 2023.

The maturity date for each loan will be set by CoBank and will match the weighted average maturity of the certain receivables financed.

Interest on the loans accrues at a fixed annual interest rate to be quoted by CoBank.

The Receivables Credit Facility contains customary events of termination, representations and warranties, affirmative and negative covenants and events of default customary for facilities of this type.



As of December 31, 2022, we had $46.2 million outstanding, of which $6.2 million
was current, and $22.3 million of availability under the Receivables Credit
Facility. We capitalized $0.8 million in fees associated with the Receivables
Credit Facility which are being amortized over the life of the debt and $0.6
million were unamortized as of December 31, 2022.

Sacred Wind Term Debt



In connection with the Sacred Wind acquisition completed on November 7, 2022, we
assumed $31.6 million of term debt (the "Sacred Wind Term Debt") with the United
States of America acting through the Administrator of the Rural Utilities
Service ("RUS"). The loan agreements are dated as of October 23, 2006 and March
17, 2016. RUS provides financial assistance in the form of loans under the Rural
Electrification Act of 1936 to furnish or improve telecommunications and/or
broadband services in rural areas.

The Sacred Wind Term Debt is secured by substantially all assets and an underlying mortgage to the United States of America. These mortgage notes are to be repaid in equal monthly installments covering principal and interest beginning after date of issue and expiring by 2035.


The Sacred Wind Term Debt contains certain restrictions on the declaration or
payment of dividends, redemption of capital stock or investment in affiliated
companies without the consent by the RUS noteholders. The agreements also
contain a financial covenant which Sacred Wind Enterprises was not in compliance
with as of December 31, 2021. Sacred Wind Enterprises submitted a corrective
action plan to comply with the financial covenant

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as of December 31, 2025. On May 5, 2022, Sacred Wind Enterprise's corrective action plan was accepted by the RUS. As of December 31, 2022, we were in compliance with the plan.



As of December 31, 2022, $31.4 million was outstanding under the Sacred Wind
Term Debt. Of that amount, $3.2 million was current and $28.2 million was long
term.

Viya Debt

We, and certain of our subsidiaries, have entered into a $60.0 million loan
agreement (the "Viya Debt") with Rural Telephone Finance Cooperative ("RTFC").
The Viya Debt agreement contains customary representations, warranties and
affirmative and negative covenants (including limitations on additional debt,
guaranties, sale of assets and liens) and a financial covenant that limits the
maximum ratio of indebtedness to annual operating cash flow to 3.5 to 1.0 (the
"Net Leverage Ratio").  This covenant is tested on an annual basis at the end of
each fiscal year. Interest is paid quarterly at a fixed rate of 4.0% per annum
and principal repayment is not required until maturity on July 1,
2026. Prepayment of the Viya Debt may be subject to a fee under certain
circumstances. The debt is secured by certain assets of our Viya subsidiaries
and is guaranteed by us.

We paid a fee of $0.9 million in 2016 to lock the interest rate at 4% per annum
over the term of the Viya Debt.  The fee was recorded as a reduction to the Viya
Debt carrying amount and is being amortized over the life of the loan.

As of December 31, 2022, $60.0 million of the Viya Debt remained outstanding and $0.3 million of the rate lock fee was unamortized.

On May 5, 2022, RTFC agreed to amend the Net Leverage Ratio to 7.0 to 1.0 through the maturity date of July 1, 2026. We were in compliance with the Net Leverage Ratio as of December 31, 2022.

One Communications Debt



We had an outstanding loan from HSBC Bank Bermuda Limited (the "One
Communications Debt") which matured and was repaid in full on December 22, 2022.
This loan bore interest at the one-month LIBOR plus a margin ranging between
2.5% to 2.75% per annum paid quarterly.

Factors Affecting Sources of Liquidity



Internally generated funds. The key factors affecting our internally generated
funds are demand for our services, competition, regulatory developments,
economic conditions in the markets where we operate our businesses and industry
trends within the telecommunications industry.

Restrictions under Credit Facility. Our 2019 CoBank Credit Facility contains
customary representations, warranties and covenants, including covenants
limiting additional indebtedness, liens, guaranties, mergers and consolidations,
substantial asset sales, investments and loans, sale and leasebacks,
transactions with affiliates and fundamental changes.

In addition, the 2019 CoBank Credit Facility contains a financial covenant that
imposes a maximum ratio of indebtedness to EBITDA. As of December 31, 2022, we
were in compliance with all of the financial covenants of the 2019 CoBank Credit
Facility.

Capital markets. Our ability to raise funds in the capital markets depends on, among other things, general economic conditions, the conditions of the telecommunications industry, our financial performance, the state of the



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capital markets and our compliance with SEC requirements for the offering of
securities. We may file a new "universal" shelf registration statement with the
SEC, to register potential future offerings of our securities.

Foreign Currency



We translate the assets and liabilities of our foreign subsidiaries from their
respective functional currencies, primarily the Guyana Dollar, to US Dollars at
the appropriate rates as of the balance sheet date. Changes in the carrying
value of these assets and liabilities attributable to fluctuations in rates are
recognized in foreign currency translation adjustment, a component of
accumulated other comprehensive income on our balance sheet. Income statement
accounts are translated using the monthly average exchange rates during the
year. Monetary assets and liabilities denominated in a currency that is
different from a reporting entity's functional currency must first be remeasured
from the applicable currency to the legal entity's functional currency. The
effect of this remeasurement process is reported in other income within our
income statement. During the years ended December 31, 2022 and 2021, we recorded
$0.9 million in losses on foreign currency transactions. We will continue to
assess the impact of our exposure to the Guyana Dollar.

Inflation



Several of our markets have experienced an increase in operating costs, some of
which we believe, is attributable to inflation. If inflation continues or
worsens, it could negatively impact our Company by increasing our operating
expenses. Inflation may lead to cost increases in multiple areas across our
business, for example, rises in the prices of raw materials and manufactured
goods, increased energy rates, as well as increased wage pressures and other
expenses related to our employees. In particular, where we have agreed to
undertake infrastructure build outs on a fixed budget for our carrier customers
or by accepting government grants, inflation may result in build costs that
exceed our original budget given the long delays experienced in procuring
equipment and materials due to global supply chain delays. To the extent that we
are unable to pass on these costs through increased prices, revised budget
estimates, or offset them in other ways, they may impact our financial condition
and cash flows.

Material Cash Obligations and Sources


Capital Expenditures. We are continuing to invest in our telecommunication
networks along with our operating and business support systems in many of our
markets.  Such investments include the upgrade and expansion of both our
mobility and fixed telecommunications networks as well as our service delivery
platforms. For 2023, we expect capital expenditures to be approximately $160
million to $170 million (net of reimbursable amounts), and will primarily relate
to network expansion and upgrades which are expected to further drive subscriber
and revenue growth in future periods. We expect to fund our 2023 capital
expenditures primarily from our current cash balances, cash generated from
operations and our existing credit facilities including the Receivables Credit
Facility.

Long-term Debt. To service our previously described debt facilities, we will be
required to make future minimum principal repayments (not including interest,
commitment fees or letter of credit fees) of $12.4 million in 2023 and then
$121.9 million, $21.6 million, $280.3 million, $10.9 million during 2024 through
2027, respectively, and then $27.0 million in subsequent years.

Lease Commitments. We have operating and financing leases for towers, land,
corporate offices, retail facilities, and data transport capacity. In order to
comply with our lease agreements, we will be required to pay $20.8 million in
2023 and then $19.2 million, $15.8 million, $11.0 million and $8.6 million
during 2024 through 2027, respectively, and then $79.1 million in subsequent
years.

FirstNet Agreement. In connection with the FirstNet Agreement, we are building a
portion of AT&T's network for the First Responder Network Authority ("FirstNet")
in or near our current operating area in the Western United States. We expect to
incur construction costs of approximately $22 million during 2023 in order to
complete the network build portion of that agreement. Following acceptance of
the cell sites, AT&T will own the sites and we will assign to AT&T any
third-party tower lease applicable to such cell site.  If the cell site is

located on a communications

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tower we own, AT&T will pay us pursuant to a separate lease agreement for an
initial term of eight years. In addition to building the network, we will
provide ongoing equipment and site maintenance and high-capacity transport to
and from these cell sites for an initial term ending in 2029.

Connect America Fund II (CAF II). We are a recipient under the Connect America
Fund Phase II program which will offer subsidies to us in order to expand our
broadband coverage in designated areas. In connection with this program, we are
expecting to spend $12.5 million in capital expenditures during the year ended
December 31, 2023 (which is included in our capital expenditure estimates for
the US Telecom segment above) and then an additional $11.3 million during the
years ended December 31, 2024 and 2025 in order to meet our build-out
obligations under this program. We are not expecting any commitments under the
CAFII program after 2025.

Rural Digital Opportunity Fund Phase I Auction (RDOF).  We participated in the
RDOF auction and expect to receive funding to provide broadband and voice
coverage to over 10,000 households in the United States (not including Alaska)
under this program.  We do not anticipate any spending under the RDOF program
during the year ended December 31, 2023, but anticipate spending approximately
$2.0 million in capital expenditures during the year ended December 31, 2024
under this program.

Citizens Broadband Radio Service Auction (CBRS).  We participated in CBRS
auction for Priority Access Licenses (PALs) in the 3.5 GHz spectrum band. These
PALs are licensed on a county-by-county basis and are awarded for a 10-year
renewable term. In connection with the awarded licenses, we will have to achieve
certain CBRS spectrum build out obligations. We currently expect to comply with
all applicable requirements related to these licenses but cannot currently
estimate the cost of building our network in the covered areas.  If we do not
comply with such requirements in a certain area within that 10-year timeframe,
our PAL for that area will be forfeited.

Construction grants. We have also been awarded construction grants to build
network connectivity for eligible communities. The funding of these grants, used
to reimburse us for our construction costs, is distributed upon completion of a
project. As of December 31, 2022, $80.2 million of such construction obligations
remain with completion deadlines beginning in July 2023 (which is included in
our capital expenditure estimates for the US Telecom segment above). Once these
projects are constructed, we are obligated to provide service to the
participants.

Software licensing, maintenance and other business support systems. We have
committed to agreements with vendors to provide us with software licensing and
maintenance services as well as other business support systems. These agreements
expire primarily during the year ended December 31, 2023 and will require us to
pay approximately $7.1 million, $2.4 million and $1.8 million, $0.7 million and
$0.7 million during the next five years and then $15.9 million thereafter.

Circuits and other transport costs. We expect to pay $28.7 million, $26.9
million, $33.2 million, $15.1 million and $15.0 million during the years ended
December 31, 2023, 2024, 2025, 2026 and 2027, respectively, for circuit and
other telecommunication transport costs. Thereafter, we are obligated to pay an
additional $11.6 million for such services

Sources of Cash. In addition to future internally generated funds, as of
December 31, 2022, we have $75.0 million, $22.3 million and $75.0 million
available to us under the CoBank Credit Facility, the Receivables Credit
Facility and the Alaska Revolving Facility, respectively, and may be able to
raise funds in the capital markets by filing a "universal" shelf registration
statement with the SEC.

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Critical Accounting Estimates

We have based our discussion and analysis of our financial condition and results
of operations on our Consolidated Financial Statements, which have been prepared
in accordance with accounting principles generally accepted in the United States
of America ("GAAP"). We base our estimates on our operating experience and on
various conditions existing in the market and we believe them to be reasonable
under the circumstances. Our estimates form the basis for making judgments about
the carrying values of assets and liabilities that are not readily apparent from
other sources. Actual results may differ materially from these estimates under
different assumptions or conditions.

We have identified the critical accounting estimates that we believe require
significant judgment in the preparation of our Consolidated Financial
Statements. We consider these accounting estimates to be critical because
changes in the assumptions or estimates we have selected have the potential of
materially impacting our financial statements.

Revenue Recognition. In determining the appropriate amount of revenue to
recognize for a particular transaction, we apply the criteria established by the
authoritative guidance for revenue recognition and defer those items that do not
meet the recognition criteria. As a result of the cutoff times of our billing
cycles, we are often required to estimate the amount of revenues earned but not
billed from the end of each billing cycle to the end of each reporting period.
These estimates are based primarily on rate plans in effect and historical
evidence with each customer or carrier. Adjustments affecting revenue can and
occasionally do occur in periods subsequent to the period when the services were
provided, billed and recorded as revenue, however, historically, these
adjustments have not been material.

We apply our judgment when assessing the ultimate realization of receivables,
including assessing the probability of collection and the current credit-
worthiness of customers. We establish an allowance for credit losses on trade
receivables sufficient to cover probable and reasonably estimable losses. Our
estimate of the allowance for credit losses on trade receivables considers
collection experience, aging of the accounts receivable, the credit quality of
the customer and, where necessary, other macro-economic factors.

Goodwill and Long-Lived Intangible Assets. In accordance with the authoritative
guidance regarding the accounting for impairments or disposals of long-lived
assets and the authoritative guidance for the accounting for goodwill and other
intangible assets, we evaluate the carrying value of our long-lived assets,
including property and equipment, whenever events or changes in circumstances
indicate that the carrying amount of an asset may not be recoverable. An
impairment loss exists when estimated undiscounted cash flows attributable to
non-current assets subject to depreciation and amortization and discounted cash
flows for intangible assets not subject to amortization are less than their
carrying amount. For long lived assets other than goodwill, if an asset is
deemed to be impaired, the amount of the impairment loss recognized represents
the excess of the asset's carrying value as compared to its estimated fair
value, based on management's assumptions and projections.

Our estimates of the future cash flows attributable to our long-lived assets and
the fair value of our businesses involve significant uncertainty. Those
estimates are based on management's assumptions of future results, growth trends
and industry conditions. If those estimates are not met, we could have
additional impairment charges in the future, and the amounts may be material.

We also assess the carrying value of goodwill and indefinite-lived intangible
assets on an annual basis or more frequently if events or changes in
circumstances indicate that the carrying value of goodwill may not be
recoverable. The carrying value of each reporting unit, including goodwill
assigned to that reporting unit, is compared to its fair value. If the carrying
value of the reporting unit, including goodwill, exceeds the fair value of the
reporting unit, an impairment charge is recorded equal to the excess, but not
more than the total amount of goodwill allocated to the reporting unit.

We assess the recoverability of the value of our telecommunications licenses
using either a market or income approach. We believe that our telecommunications
licenses generally have an indefinite life based on historical ability to renew
such licenses, that such renewals may be obtained indefinitely and at little
cost, and that the related technology used is not expected to be replaced in the
foreseeable future. If the value of these assets was impaired by some factor,

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such as an adverse change in the subsidiary's operating market, we may be
required to record an impairment charge. We test the impairment of our
telecommunications licenses annually or more frequently if events or changes in
circumstances indicate that such assets might be impaired. The impairment test
consists of a comparison of the fair value of telecommunications licenses with
their carrying amount on a license by license basis.

We performed our annual impairment assessment of our goodwill and
indefinite-lived intangible assets (telecommunications licenses) for the years
ended December 31, 2022 and 2021. See Note 7 for a discussion of our impairment
of a portion of our goodwill within our International Telecom segment during the
year ended December 31, 2021. No impairment was recognized during the year ended
December 31, 2022.

Contingencies. We are subject to proceedings, lawsuits, tax audits and other
claims related to lawsuits and other legal and regulatory proceedings that arise
in the ordinary course of business as further described in Note 13 to the
Consolidated Financial Statements included in this Report. We are required to
assess the likelihood of any adverse judgments or outcomes to these matters as
well as the potential ranges of probable losses. A determination of the amount
of loss accruals required, if any, for these contingencies is made after careful
analysis of each individual issue. We consult with legal counsel and other
experts where necessary in connection with our assessment of any contingency.
The required accrual for any such contingency may change materially in the
future due to new developments or changes in each matter.  We believe that some
adverse outcome is probable and have accordingly accrued $14.7 million as of
December 31, 2022 for these matters.

Recent Accounting Pronouncements

See Note 2 to the Consolidated Financial Statements included in this Report.

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