EXHIBIT 12 CAROLINA TELEPHONE AND TELEGRAPH COMPANY COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Unaudited) - -------------------------------------------- ---------------------------------- ---------------------------------- Quarter Ended Year-to-Date September 30, September 30, --- ------------- -- ------------- --- ------------- -- ------------- 1998 1997 1998 1997 - -------------------------------------------- --- ------------- -- ------------- --- ------------- -- ------------- (in thousands) Earnings Income before income taxes $ 52,915 $ 51,681 $ 147,265 $ 154,223 Capitalized interest (35) 105 (64) (51) - -------------------------------------------- --- ------------- -- ------------- --- ------------- -- ------------- Subtotal 52,880 51,786 147,201 154,172 - -------------------------------------------- --- ------------- -- ------------- --- ------------- -- ------------- Fixed charges Interest charges 4,502 5,808 15,140 16,768 Interest factor of operating rents 337 331 922 994 - -------------------------------------------- --- ------------- -- ------------- --- ------------- -- ------------- Total fixed charges 4,839 6,139 16,062 17,762 - -------------------------------------------- --- ------------- -- ------------- --- ------------- -- ------------- Earnings, as adjusted $ 57,719 $ 57,925 $ 163,263 $ 171,934 --- ------------- -- ------------- --- ------------- -- ------------- Ratio of earnings to fixed charges 11.93 9.44 10.16 9.68 --- ------------- -- ------------- --- ------------- -- ------------- 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.