sold.  For industry competitive reasons, Sprint subsidizes the price of these handsets by selling the handsets at a price
below cost.  Under the Company's agreements with Sprint, when a national retailer sells a handset purchased from
Sprint to a subscriber in the Company's territories, the Company is obligated to reimburse Sprint for the handset
Income taxes are accounted for under the asset and liability method.  Deferred tax assets and liabilities are recognized
for the future tax consequences attributable to differences between financial statement carrying amounts of existing
assets and liabilities and their respective tax bases.  Deferred tax assets and liabilities are measured using enacted tax
rates expected to apply to taxable income in the years in which those temporary differences are expected to be
recovered or settled.  The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in
the period that includes the enactment date.  The Company evaluates the recoverability of tax assets generated on a
state-by-state basis from net operating losses apportioned to that state.  Management uses a more likely than not
threshold to make that determination and has established a valuation allowance against the tax assets, in case they are
not recoverable.  For 2003, the Company added an additional reserve of $0.2 million to its valuation allowance due to
the uncertainty of the recoverability of the net operating loss carry-forwards in certain states.  The valuation allowance
now stands at $0.9 million as of December 31, 2003.  Management will evaluate the effective rate of taxes based on
apportionment factors, the Company’s operating results, and the various state income tax rates.  Currently,
management anticipates the normalized effective income tax rate to be approximately 39%.
Income Taxes