8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

October 6, 2006

Date of report (Date of earliest event reported)

NEW ULM TELECOM, INC.

(Exact name of registrant as specified in its charter)

Minnesota	0-3024	41-0440990
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

27 North Minnesota Street

New Ulm, MN 56073

(Address of principal executive offices, including zip code)

(507) 354-4111

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2):

o    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.01 Completion of Acquisition or Deposition of Assets

See Item 8.01, Other Events

Item 8.01 Other Events

On October 6, 2006, New Ulm Telecom, Inc. (the “Company”) received the proceeds from the sale of its 9.88% investment in Midwest Wireless Holdings L.L.C. (Midwest) which was acquired by Alltel Corporation (Alltel) on October 2, 2006. Under the terms of the acquisition of Midwest by Alltel, 90% of the proceeds were distributed at closing, with an additional 4% to be distributed six months later, and the final 6% to be distributed 18 months later, subject to certain contingencies. Accordingly, the Company expects to receive additional payments of approximately $3 million in April 2007 and $5 million in April 2008, subject in each case to the contingencies in the agreement. The Company expects to pay $25 million in taxes related to the sale of its interest in Midwest.

On October 6, 2006, the Company’s Board of Directors declared a special dividend of $2.75 per share payable on October 25, 2006 to shareholders of record as of October 20, 2006. On October 6, 2006, the Company had 5,115,435 shares outstanding.

The Company also announced that it intends to use approximately $18 million of the proceeds, after payment of taxes of approximately $25 million, in connection with its purchase of one third of Hector Communications Corporation, which the Company expects to close prior to year-end.

Pending use of the remaining proceeds, the Company is investing in short-term government securities.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

99.1 Press release dated October 6, 2006

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	New Ulm Telecom, Inc.
Date: October 10, 2006	By:	/s/ Nancy Blankenhagen
		Nancy Blankenhagen Chief Financial Officer

EX-99.1

EXHIBIT 99-1

NEWS RELEASE NEWS RELEASE NEWS RELEASE

FROM: NU-Telecom FOR RELEASE: Immediate

27 N. Minnesota

New Ulm, MN 56073 CONTACT: Bill Otis

Tele. 507-354-4111 NU-Telecom

507-354-4111

E-mail: billotis@nu-telcom.net

New Ulm Telecom, Inc. reports receipt of funds from sale of Midwest Wireless, announces Special Dividend.

NEW ULM, Minn., New Ulm Telecom, Inc. (OTCBB:NULM) announced today that on Friday, October 6, 2006, it received proceeds of approximately $74 million from the sale of its 9.88% interest in Midwest Wireless Holdings, L.L.C. (Midwest) which was acquired by Alltel Corporation (Alltel).

Under the terms of the acquisition between Alltel and Midwest, 90% of the proceeds were distributed at closing, with an additional 4% to be distributed six months later, and the final 6% 18 months later, subject to certain contingencies. Accordingly, New Ulm expects to receive additional payments of approximately $3 million in April 2007 and $5 million in April 2008, subject to certain contingencies.

In connection with the receipt of the funds from the sale of Midwest Wireless, the New Ulm Telecom, Inc. Board of Directors announced that it is declaring a special dividend of $2.75 per share payable on October 25, 2006 to shareholders of record as of October 20, 2006. This special dividend represents approximately 42% of the Company’s after-tax gain from the sale of its Midwest Wireless units. On October 6, 2006, the Company had 5,115,435 shares outstanding.

New Ulm Telecom, Inc. also announced that it intends to use approximately $18 million of the proceeds, after payment of taxes of approximately $25 million, in connection with its purchase of one third of Hector Communications Corporation, which New Ulm expects to close prior to year-end.

Pending use of the remaining proceeds, the Company is investing in short-term government securities.

CAUTIONARY STATEMENT

The Private Securities Litigation Reform Act of 1995 contains certain safe harbor provisions regarding forward-looking statements. These statements may include, without limitation, statements with respect to anticipated future operating and financial performance, growth opportunities and growth rates, acquisition and divestiture opportunities, business strategies, business and competitive outlook and other similar forecasts and statements of expectation. Words such as expects, anticipates, intends, plans, believes, seeks, estimates and should, and variations of these words and similar expressions, are intended to identify these forward-looking statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from such statements.

Due to the uncertainties listed and the fact that any forward-looking statements made by New Ulm Telecom, Inc. and its management are based on estimates, projections, beliefs and assumptions of management, they are not guarantees of future performance. Except as required by law, New Ulm Telecom, Inc. disclaims any obligation to update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information, or otherwise.