On January 30, 2004, the Company, a PCS Affiliate of Sprint, signed agreements with Sprint that resolved disputed
items and documented changes in the management and operating agreements between the two companies related to the
operations of the nationwide Sprint PCS network.  The agreements provide the Company with the ability to better
estimate the future costs of certain operating expenses and in the Company’s opinion improve the contract between
Sprint and itself.  Under the agreements:
1. Sprint agreed to compensate the Company for lost travel revenue related to usage by Sprint customers in
the Company’s territory for the period prior to 2003, and change the method of allocating certain
software maintenance fees between Sprint and its Affiliates  for fees recorded in 2002 and 2003. These
items had the effect of increasing operating income by $0.7 million in the 4th quarter of 2003.
2. The method used to price certain services performed by Sprint on behalf of the Company was simplified.
The CCPU (cash cost per user) rate for the periods 2004 through 2006 was set at $7.70 per user per
month.  This fee covers customer service, billing, collections, network operations and other costs to
support the customer.  However, Sprint may discontinue such services if Sprint is discontinuing such
services to all other Sprint PCS affiliates and Sprint’s own end-users.  It is estimated that this rate will
decrease the amount the Company will pay Sprint compared to payments under the previous method by
approximately $120,000 per month in 2004.
3. There will be a maximum until the year 2007, on the non-direct Costs per Gross Additions (CPGA) at the
greater of 6.3% of the Sprint published CPGA rate or $25.  With the volatility of CPGA, the Company
cannot determine the amount of potential savings, but the change does provide more certainty in
estimating future costs.
1. Certain access revenue rate elements billed by the Company to interexchange carriers were disputed and
subsequently refunded to the carriers.  During 2003, the Company recorded a reduction in access revenue
of $1.2 million from interexchange customers related to the disputed access revenue the Company
previously billed for switching facilities and the local exchange network.  The disputes cover a two-year
period beginning in 2001 through and including the second quarter of 2003.  The total amount of the
reduction related to 2003 was $0.7 million.
2. The Company changed its employee vacation policy so that employees now earn and use their vacation
benefits in the same year.  Previously, vacation benefits were earned in the year prior to the year the
benefits were available to the employee.  As a result of this change in employee benefit policy, the
Company did not accrue employee vacation expense for 2004 in 2003, thereby reducing its benefit
expenses by $0.5 million for the 2003 year.
3. The Company adjusted its estimate of deferred revenue for the PCS operation in the fourth quarter of
2003.  The adjustment decreased deferred revenue by $0.6 million and increased revenue in 2003 by the
same amount.
4. The Company received a reimbursement from Sprint of $0.2 million related to 2002 for its portion of the
E911 surcharge collected from PCS subscribers.  The reimbursement is to offset the Company’s portion
of handset costs incurred to make the customers’ phones E911 compliant.  This entry decreased cost of
goods expenses.
Reflected in the 2003 results are several unusual items, which should be noted in understanding the financial results of
the Company for 2003.
4. For the period 2004 through 2006, the travel and reseller rates between the Company and Sprint were set
at $0.058 per minute for voice and $0.002 per kilobyte for data.  Without this agreement the voice travel
rate for 2004 would have decreased to $0.041.  Since the Company is in a net receivable position related
to travel with Sprint, the impact on net travel and reseller revenue would have been a reduction of $1.5