Significant Transactions
The Company had several significant transactions during 2003.  The largest was the sale of its 66% interest in the
Virginia 10 RSA cellular operation, as described above.  The Company originally entered into the agreement with
Verizon Wireless in November 2002. The Company was the general partner of the limited partnership which operated
an analog cellular network in the six-county area of Northwestern Virginia, including Clarke, Frederick, Page,
Rappahannock, Shenandoah, and Warren counties, and the city of Winchester.  The sales price was $37.0 million plus
the Company’s 66% share of the partnership’s working capital, which was approximately $1.7 million. The Company
was required to do a working capital true up following the closing, from which the Company recorded a charge for $23
thousand after taxes.  In the fourth quarter the Company recorded an additional charge for taxes of $0.2 million to
reflect the consolidated effective tax rate based on the final operating results for the year.
The wireless industry in the late 1990’s became increasingly competitive and the Company was not immune to these
industry issues.  The Clear PaySM program, introduced by Sprint as a no-deposit offering in 2001, attracted high credit
risk customers in the Company’s markets.  As the results began to materialize, the Company implemented deposits on
this program (mid-April 2002), and experienced high levels of customer turnover (churn) and uncollectable accounts.
The write-offs of uncollectable accounts peaked in the third quarter of 2002.  During the fourth quarter of 2002 there
was some evidence that the strengthened credit policy was having a favorable impact.  Nonetheless, the 2002 net loss
in the PCS operation was $5.4 million, as compared to $5.5 million in 2001. Despite the disappointing financial results
for 2002, the PCS customer base grew by over 40%.  While the PCS operation was adding customers, the cellular
operation continued to lose its local customer base.
The growing belief that national branding was critical to our wireless operations, the expectation that roaming revenues
from our analog cellular operation would not continue to grow, and the increase in the number of wireless competitors
in our markets, prompted the Company to exit the cellular business in order to focus on our PCS operations.  The
Company entered into an agreement on November 21, 2002, to sell its 66% ownership interest in the Virginia 10 RSA
cellular operation which was classified as a discontinued operation. The closing occurred February 28, 2003. The
Company received $37.0 million in proceeds, including $5.0 million in escrow for two years and $1.7 million for
working capital.
In many respects, 2003 was a successful year.  Churn and levels of uncollectable accounts in the PCS operation
returned to more acceptable levels.  PCS revenues reached $67.0 million, and total revenues reached $105.9 million.
The PCS operation recognized a small profit for the year, including favorable adjustments associated with settlement of
disputed items with Sprint.  Excluding the favorable adjustments, the PCS operation recognized a profit in the fourth
quarter.  With improved operating cash flow and reduced capital spending in 2003, the Company prepaid $4.6 million
in debt, selecting those notes with nominal prepayment penalties.  Additionally, after receiving the cash and paying
taxes on the gain of the sale of the Virginia 10 partnership interest, the Company invested the remaining proceeds in
liquid financial instruments, available for future deployment.  Additionally, the Company has been successful at
decreasing its dependency on wireline revenues. Wireline revenues, at $29.0 million in 2003 compared to $18.6 million
in 1998, were 27.4% of total revenues in 2003 compared to 76.6% in 1998.
Entering 2004, the Company is pleased with the milestone of a profitable quarter in the PCS operation, but recognizes