SHENANDOAH TELECOMMUNICATIONS COMPANY ■ 54
SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The Company is required to participate in national and regional third party distribution programs formulated and
negotiated by Sprint.  Sprint has entered into reseller agreements which may impact the Company.  These distribution
and reseller programs may have an adverse effect on the results of the Company.
The Company relies on Sprint for the development of new products and services to remain competitive in the wireless
industry.  Examples of these services are text messaging, video, and push to talk walkie-talkie features.  If these
services do not work properly or if Sprint should not continue to develop new competitive products, the results could
have a material adverse impact on the results of the Company.
The Company has limited control over the service plans and marketing promotions offered to Sprint customers in the
competitive wireless telecommunications industry.  Sprint controls the marketing plans, advertising message and
market promotions offered in the Company’s market area.  As a result, the plans and promotions offered may have a
material adverse effect on the Company’s results of operations.
Wireless Local Number Portability (WLNP) permits a subscriber to change wireless service providers in the same
market area while retaining their existing telephone number.  This Federal Communications Commission mandate was
effective November 24, 2003 in the 100 largest metropolitan areas and will be effective in all areas of the United States
on May 24, 2004.  Although the initial impact of WLNP appears to be insignificant, there may be a significant future
impact to the Company’s operation. As a result of WLNP, portions of the PCS subscriber base may migrate to other
wireless providers, thereby contributing to increased churn.  Alternatively, the implementation of WLNP may allow the
Company to attract additional subscribers from other wireless providers.
The net balance of PCS travel revenue and expense could change significantly due to changes in service plan offerings,
changes in the travel settlement rate, changes in travel habits by the subscribers in the Company’s market areas or other
Sprint subscribers and numerous other factors beyond the Company’s control.  The Company is continuing to monitor
the financial strength of the other PCS Affiliates of Sprint, as to their ability to maintain their segment of the Sprint
network may impact the ability of the Company to add new subscribers. Two other Sprint PCS Affiliates are currently
operating under bankruptcy protection.
The Company is dependent on Sprint for the reporting of a significant majority of PCS revenues, particularly travel and
service revenue.  Controls and processes are continually refined, so the Company can monitor, review, test, and
validate information being reported to the Company by Sprint.  It is the Company’s policy to estimate and reflect the
information supplied by Sprint in the financial statements in the respective periods.  Corrections, if any, are made no
earlier than the period in which the parties agree to the corrections and as noted in these financial statements, there are
several dispute settlements, true-ups of estimates and corrections which are recorded in the period the issue has been
resolved.  The Company is at risk for reporting errors that may be made by Sprint.
The Company is one of eleven PCS Affiliates of Sprint, and accordingly, is impacted by decisions and requirements
adopted by Sprint in regard to its wireless operation.  Management continually reviews its relationship with Sprint as
new developments and requirements are added.  Note 7 to the accompanying consolidated financial statements contains
a detailed description of the significant contractual relationship.
RISKS