SkyLine has had an outstanding year. We have made exciting strides as we continue to be the technology company in our region. It is often said of weather in the High Country, “If you do not like the weather, just hang around for a few minutes, as it will change.” This can also be said of the telecom industry. Change is a constant, and we continue to work tirelessly making the necessary advancements in our network to accommodate the growing needs of our customers. While change is a known constant, another constant is our unwavering commitment to customer service.

Financials

Our 2013 financial performance demonstrates our keen ability to make disciplined decisions concerning capital expenditures while simultaneously expanding our fiber-based network.

Our consolidated net margin for the 2013 year was $7,205,940. Our balance sheet remains very solid, as over 10 million dollars of new plant was placed in service which increased our total plant to more than $200 million. This latest expansion was completed without additional external debt.

The company’s cash reserves remain strong as the Board of Directors approved over $1.2 million dollars in capital credit refunds to members and estates in 2013.

Fiber-to the-Premise (FTTP)

There seems to be a never-ending demand for bandwidth.  One of SkyLine’s key initiatives is to build a high-capacity, all-fiber network, and that process began in 2005 with a plan to extend fiber to every customer throughout our service area. We are well on our way to having this monumental project complete. With over 77 percent of our member base now having access to fiber facilities, we plan to have complete fiber-optic coverage throughout our service area within the next few years. Fiber facilities ensure you will receive the fastest Internet speeds available anywhere, and have access to the latest telecommunications technologies including video, home security and home automation.

Highlights of Operation

Affiliates

SkyLine continues to responsibly invest its equity in various telecommunications service companies such as Carolina West Wireless, Access/On Multimedia, Inc. and VisionsWest, LLC.

Carolina West Wireless continues to enhance its network and service offerings. By the end of the fourth quarter, the company plans to launch 4G LTE service to select locations in Ashe and surrounding counties, with the remaining footprint deployed in 2015 and 2016. The new Apple iPad will be offered in the fourth quarter, along with new LTE Android devices.

It is worth noting that earlier this year, stakeholders of Clear Stream Communications, of which SkyLine owned a 30-percent share, sold its capital stock to Carolina West Wireless for operational efficiency purposes. Access/On Multimedia (AOM) is a regional fiber network that provides high-capacity data circuits across a multi-state region.

New Offerings

We continue to make enhancements to SkyBest TV services and our local channel, SkyZhone HD. This channel allows us to deliver local programming and community events, which further strengthens our commitment to being a community-based tele-communications provider. Enriching the lives of those we serve through community involvement and personal service makes us unique in the corporate world.

Offering a local channel has prompted us to launch a new business entity called “The Video Exchange.” This is a website where content for TV channels can be bought and sold, with a percentage of revenues from each transaction being retained by the company. “The Video Exchange” was created out of a need to supply content to our local channel and now will fill the content need for similar companies. SkyLine continuously looks for ways to fill customer needs while synchronously creating new sources of revenue.

Later this fall, we will increase broadband download speeds up to 1 gigabit per second. This is over 50 times the speed of a regular Internet connection, and is another example of our commitment to continuously broaden our network.

And lastly, we are excited to announce plans to open a new  Customer Service Center in West Jefferson in 2015. This center will feature the latest technology and operational efficiencies and will allow us to more effectively demonstrate the value of fiber technologies with state-of-the-art, hands-on devices.

Employees

Behind every successful company lies an employee base that is well-trained and dedicated to meeting the needs of its customers. SkyLine employees live among those we serve, which means we take a more personal approach in taking care of the needs of our customers. We feel this is an essential element that sets us apart from our competitors.

The Future

Our experienced and forward-looking Board of Directors has positioned our company well for the future. We operate with a focus on expanding our network to accommodate the ever-changing needs of our customers, while providing customer service that is second to none. As technology evolves, we are here to deliver that technology to our customers through an enhanced, all-fiber network.

We thank you for your continued support of SkyLine, and we are grateful for the trust you have placed in us to be your telecommunications provider.