Income Taxes
The Company defers direct subscriber activation costs on subscribers whose activation falls within the SAB 101
guidelines. The activation costs are deferred when incurred, and then amortized using the straight-line method over 30
months, which is the estimated average life of a subscriber.  Direct subscriber activation costs also include the
activation charge from Sprint, and credit check fees.  These fees are charged to the Company by Sprint at approximate
$12.50 per subscriber.
Total revenue was $105.9 million in 2003, an increase of $12.9 million or 13.9%.  Total revenues included $70.0
million of wireless revenues, an increase of $12.0 million or 20.7%; wireline revenues of $29.0 million, an increase of
$0.3 million or 0.9%; and other revenues of $7.0 million, an increase of $0.6 million or 9.7%.
Within wireless revenues, the PCS operation contributed $69.8 million, an increase of $11.6 million, or 20.8%.  PCS
service revenues were $44.4 million, an increase of $10.9 million or 32.4%.  Service revenue growth was driven by the
increase in subscribers, totaling 85,139 at December 31, 2003, an increase of 17,297 or 25.5%, compared to 67,842
subscribers at year-end 2002. The company had churn of 2.1% in 2003 compared to 2.8% in 2002.  The decline in the
churn rate is the result of tightening the credit screening for new subscribers as well as continued efforts to improve the
after sales support. Competition in the wireless industry continues to have a significant impact on the results of the
Company’s PCS operation.
PCS travel revenue, including reseller revenue, which is compensation between Sprint and its PCS Affiliates for use of
the other party’s network, was $16.8 million, an increase of $0.3 million or 1.8%.  Travel revenue is impacted by the
geographic size of the Company’s network service area, the overall number of Sprint wireless customers, their travel
patterns and the travel exchange rate.  The rate received on travel was $0.058 per minute in 2003, compared to $0.10
per minute in 2002.  As a part of the amended management agreement signed on January 30, 2004, Sprint and the
Company agreed to maintain the travel rate at $0.058 per minute through December 31, 2006.
2003 compared to 2002
Results of Continuing Operations
The Company does not have any unrecorded off-balance sheet transactions or arrangements, however, the Company
has commitments under operating leases and is subject to certain capital calls under one of its investments.
Other
subsidy.  The Company does not receive any revenues from the sale of handsets and accessories by national retailers.
The Company classifies these handset subsidy charges as a cost of goods expense.
Through December 31, 2003, the Agreement provided that Sprint retains 8% of collected service revenues from
subscribers based in the Company's markets and from non-Sprint wholesale subscribers who roam onto the Company's
network.  The amount of revenue retained by Sprint is recorded as an offset to the revenues recorded.  All revenues
derived from the sale of handsets and accessories by the Company and from certain roaming services (outbound
roaming and travel revenues from Sprint and its PCS Affiliate subscribers) are retained by the Company.
45 ■ 2003 ANNUAL REPORT
SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
participates in the Sprint national and regional distribution programs in which national retailers sell Sprint wireless
products and services.  In order to facilitate the sale of Sprint wireless products and services, national retailers purchase
wireless handsets from Sprint for resale and receive compensation from Sprint for Sprint wireless products and services
sold.  For industry competitive reasons, Sprint subsidizes the price of these handsets by selling the handsets at a price