Property Tax Pass Through-Related Questions

What is a property tax pass-through?

A property tax pass through is a monthly fee applied to enterprise, carrier, and residential & small business customers in states within the Lumos Networks footprint. This fee allows for the recovery of a portion of the property taxes imposed by state and local jurisdictions on upgraded Lumos Networks facilities as well as currently owned Lumos Networks facilities.

How much is the pass through?

The pass through will be applied on services in the Enterprise and IP Services categories, and is equal to 7% of the monthly recurring charges of the service(s) being provided due after the application of any applicable discounts.

Is this property tax pass through new?

Yes. Unlike many of its industry peers and competitors Lumos Networks has not previously included a property tax pass through in the calculation of monthly billing statements. By adopting the industry standard of passing through certain taxes to its customers Lumos Networks will be able to maintain the high service standards that its customer have come to expect as high speed internet connectivity and Ethernet connectivity become essential to the customer experience.

Why hasn’t Lumos Networks imposed this pass through before?

While most diversified telecommunication companies have instituted similar surcharges on their customer bills in the past – Lumos Networks has not done so. Passing through various specific costs has been standard industry practice for years. Lumos Networks has invested heavily in its networks over the past few years as we have focused our efforts on upgrading and enhancing our network infrastructure in order to provide the high speeds and improved reliability of our service to reflect the mission critical nature of Ethernet and Internet services that our customers have come to expect. In just the last 2 years alone, we’ve invested more than $200 million to build, upgrade and enhance current Lumos FTTC and Enterprise capabilities. The pass through will allow for the recovery of a portion of the new and existing property taxes imposed by state and local jurisdictions on these investments and on existing facilities owned and maintained by Lumos Networks, while enabling Lumos Networks to continue such investments in an ongoing effort to bring a world-class fiber network to our customers.

Do other providers have similar charges on their customer bills?

Yes. Similar pass throughs and surcharges are standard industry practice.

How is the property tax pass through determined?

The property tax pass through will be applied to any Enterprise and IP Services products, and is equal to 7% of the monthly recurring charge amount due after the application of any applicable discounts.

Pricing Questions

When will these changes take effect?

The property tax pass through will begin with the April billing cycle or sooner.

Can I modify my current plan to maintain my current bill?

Yes, your Lumos Networks account executive will work with you to determine the plan which best meets your needs.

Customer Impact related questions

Does Lumos Networks anticipate the loss of customers as a result of this pass through?

At this point in time, we do not anticipate a loss of customers since we are bringing our billing practices in line with industry and peer standards. In addition, we believe the improved speeds and reliability in our network and in our footprint are superior to other offerings and that our customers will recognize the difference in our performance and standards versus those of our competitors. As always Lumos Networks will continue to work with all customers to determine how best to meet their needs.

How many Lumos Networks customers will this change impact?

The property tax pass through affects Enterprise, Carrier, and residential customers that use our Enterprise and IP Services products.

Service related questions

Will this change impact the quality of service provided by Lumos Networks?

Yes, they will continue to improve. Lumos Networks prides itself on providing its customers with the best available network and increasingly as Ethernet connectivity, internet connectivity and wireless connectivity become embedded and mission critical requirements for our consumers, they will experience an ever improving delivery of these services.

We will continue to be the local provider of choice by remaining focused on our core values, putting customers first, and continually enhancing the customer experience by providing superior communications services with most modern network ensuring the highest levels of service are always available to our customers in the markets we serve.

Can I change providers?

Customers may elect to find an alternative provider if they so choose while honoring contractual commitments to Lumos Networks.

Will there be a penalty for changing providers?

If under contract, you will be subject to early termination fees.

Who should I call if I have questions?

Lumos Networks looks forward to assisting you in this matter. As always we encourage you to call our customer care team at 1-800-320-6144 or send an email correspondence to help@lumos.net.

Miscellaneous questions

Should customers or investors be concerned about Lumos Networks?

Our customers know that we have been providing the latest technology available to our markets across the Mid-Atlantic region for more than a hundred years. We will continue to do so by remaining focused on our core values, most importantly customer first, and enhancing the customer experience by providing fiber-based network solutions with excellence and integrity.

Will Lumos Networks be making a more formal statement to its customers or shareholders at any time?

No further statements are scheduled.

Lumos Networks provides fiber internet, voice, and IP connectivity over a dense fiber-based network serving enterprise and carrier customers in areas around and including Roanoake, VA, Richmond, VA, Daleville, VA, Waynesboro, VA, Hampton Roads, VA, Virginia Beach, VA, Lynchburg, VA, Charleston, WV, Huntington, WV, Beckley, WV, Parkersburg, WV, Clarksburg, WV, Morgantown, WV, Wheeling, WV, Pittsburgh, PA, Harrisburg, PA, Altoona, PA, Hagerstown, MD, and Washington, D.C.