SHENANDOAH TELECOMMUNICATIONS COMPANY ■ 56
SHENANDOAH TELECOMMUNICATIONS COMPANY AND SUBSIDIARIES
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The third component of interest rate risk is marked increases in interest rates which may adversely impact the rate at
which the Company may borrow funds for growth in the future.  Although this risk is real, it is not significant at this
time as the Company has adequate cash for operations, payment of debt and near-term capital projects.
Management does not view market risk as having a significant impact on the Company's results of operations, although
future results could be adversely impacted if interest rates were to escalate markedly and the company required external
financing.  Since the Company does not currently have significant investments in publicly traded stock, currently there
is limited risk related to the Company’s available for sale securities.  General economic conditions impacted by
regulatory changes, competition or other external influences may play a higher risk to the Company’s overall results.
As of December 31, 2003, the Company has $7.3 million invested in privately held companies directly or through
investments with portfolio managers.  Most of the companies are early stage and significant increases in interest rates
could have an adverse impact on their results, ability to raise capital and viability.  The Company’s market risk is
limited to the funds previously invested and an additional $1.8 million committed under contracts the Company has
signed with portfolio managers.
Evaluation of Disclosure Controls and Procedures
The Company maintains disclosure controls and procedures that are designed to ensure that information required to be
disclosed in Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in
the Commission’s rules and forms, and that such information is accumulated and communicated to management
including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding
required disclosure.
As of the end of the period covered by this report, December 31, 2003 (the “Evaluation Date”), we carried out an
evaluation, under the supervision and with the participation of the Company’s management, including our Chief
Executive Officer and Chief Financial Officer of the effectiveness of the design and operation of our disclosure
controls and procedures.  Based upon that evaluation, the Chief Executive Officer and the Chief Financial Officer
concluded that our disclosure controls and procedures were effective as of the Evaluation Date.
Under our agreements with Sprint, Sprint provides us with billing, collections, customer care, certain network
operations and other back office services. As a result, Sprint remits to the Company approximately 61% of the
Company’s total revenues.  In addition, approximately 42% of the expenses reflected in the Company’s consolidated
financial statements relate to charges by or through Sprint for expenses such as billing, collections and customer care,
roaming expense, long-distance, and travel.  Due to this relationship, the Company necessarily relies on Sprint to
provide accurate, timely and sufficient data and information to properly record our revenues, expenses and accounts
receivable, which underlie a substantial portion of our periodic financial statements and other financial disclosures.
Information provided by Sprint includes reports regarding the subscriber accounts receivable in our markets.  Sprint
provides us monthly accounts receivable, billing and cash receipts information on a market level, rather than a
subscriber level.  We review these various reports to identify discrepancies or errors.  However, under our agreements
with Sprint, we are entitled to only a portion of the receipts, net of items such as taxes, government surcharges, certain