Through December 31, 2003, the Agreement provided that Sprint retains 8% of all collected service revenue from
subscribers with their service home in the Company's territory, and 8% of the roaming revenue generated by non-Sprint
wireless subscribers who use the Company's network.  With the adoption of the new Amended Agreement, the
Company will record its service revenue and receive payment from Sprint based on billed revenue, net of the 8% of
billed revenue retained by Sprint, customer credits and allocated write offs.
The Company receives and pays travel fees for inter-market usage of the network by Sprint wireless subscribers not
homed in a market in which they may use the service.  Sprint and its PCS Affiliates pay the Company for the use of its
network by their wireless subscribers, while the Company pays Sprint and its PCS Affiliates reciprocal fees for
Company subscribers using other segments of the network not operated by the Company.  The rates paid on inter-
market travel were reduced during 2001.  The inter-market travel rate was $0.20 per minute from inception of the
Sprint agreement through April 30, 2001, $0.15 per minute from May 1, 2001 through September 30, 2001, and $0.12
per minute from October 1, 2001 through December 31, 2001.  The rate was further reduced to $0.10 per minute as of
The wireless market is characterized by significant risks as a result of rapid changes in technology, increasing
competition and the cost associated with the build-out and enhancement of Sprint’s nationwide digital wireless
network.  Sprint provides back-office and other services including travel clearing-house functions to the Company.  In
the past, there was no prescribed formula defined in the agreements with Sprint for the calculation of the fee charged to
the Company for these services.  Sprint adjusted these fees at least annually.  This situation changed with the execution
of an amendment to the Agreement which occurred on January 31, 2004, retroactive to January 1, 2004 (the Amended
Agreement). The Amended Agreement provides greater certainty to the Company for certain future expenses and
revenues during the term of the agreement and simplifies the methods used to settle revenue and expenses between the
Company and Sprint.  The Company's PCS subsidiary is dependent upon Sprint's ability to execute certain functions
such as billing, customer care, collections and other operating activities under the Company's agreements with Sprint.
Due to the high degree of integration within many of the Sprint systems, and the Company’s dependency on these
systems, in many cases it would be difficult for the Company to perform these services in-house or to outsource the
services to another provider.  If Sprint was unable to perform any such service, the change could result in increased
operating expenses and have an adverse impact on the Company's operating results and cash flow.  Additionally, the
Company's ability to attract and maintain a sufficient customer base is critical to generating positive cash flow from
operations and ultimately profitability for its PCS operation.  Changes in technology, increased competition, or
economic conditions in the wireless industry or the economy in general, individually and/or collectively, could have an
adverse effect on the Company's financial position and results of operations.
Historically, Sprint determined monthly service charges at the beginning of each calendar year.  Sprint calculated the
costs to provide these services for its network partners and required a final settlement against the charges actually paid.
If the costs to provide these services were less than the amounts paid by the Sprint’s network partners, Sprint issued a
credit for these amounts.  If the costs to provide the services were more that the amounts paid by Sprint’s network
partners, Sprint charged the network partners for these amounts.  For the years presented, the Company recorded the