EXHIBIT 12 CAROLINA TELEPHONE AND TELEGRAPH COMPANY COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Unaudited) - -------------------------------------------- ---------------------------------- ---------------------------------- Quarter Ended Year-to-Date June 30, June 30, --- ------------- -- ------------- --- ------------- -- ------------- 1998 1997 1998 1997 - -------------------------------------------- --- ------------- -- ------------- --- ------------- -- ------------- (in thousands) Earnings Income before income taxes $ 53,146 $ 55,047 $ 94,350 $ 102,542 Capitalized interest (12) (118) (29) (156) - -------------------------------------------- --- ------------- -- ------------- --- ------------- -- ------------- Subtotal 53,134 54,929 94,321 102,386 - -------------------------------------------- --- ------------- -- ------------- --- ------------- -- ------------- Fixed charges Interest charges 5,407 5,604 10,638 10,960 Interest factor of operating rents 293 331 585 663 - -------------------------------------------- --- ------------- -- ------------- --- ------------- -- ------------- Total fixed charges 5,700 5,935 11,223 11,623 - -------------------------------------------- --- ------------- -- ------------- --- ------------- -- ------------- Earnings, as adjusted $ 58,834 $ 60,864 $ 105,544 $ 114,009 --- ------------- -- ------------- --- ------------- -- ------------- Ratio of earnings to fixed charges 10.32 10.26 9.40 9.81 --- ------------- -- ------------- --- ------------- -- ------------- Note: These ratios were computed by dividing fixed charges into the sum of earnings (after certain adjustments) and fixed charges. Earnings include income before income taxes, less capitalized interest. Fixed charges include interest on all debt (including amortization of debt issuance costs) and the interest component of operating rents.