a cost to retain the existing customers and deter churn.
For the Company’s wireless customers that purchase and activate their service through a channel not covered by EITF
00-21, the wireless customers generally pay an activation fee to the Company when they initiate service.  The
Company defers the activation fee revenue (except when a special promotion reduces or waives the fee) over the
average life of its subscribers, which is estimated to be 30 months.  The Company recognizes service revenue from its
subscribers as they use the service.  The Company provides a reduction of recorded revenue for billing adjustments and
the portion of revenue (8%) that is retained by Sprint.  The Company also reduces recorded revenue for rebates and
discounts given to subscribers on wireless handset sales in accordance with ("EITF") Issue No. 01-9 “Accounting for
Consideration Given by a Vendor to a Subscriber (Including a Reseller of the Vendor's Products).” The Company
Revenue Recognition
Bad Debt expense summary, net of recoveries for the three years ended December 31, 2003:
In thousands
2003 2002 2001
PCS subscribers $1,716 $ 3,744 $ 1,241
Interexchange carriers 48 488 -
Other subscribers and entities 71 170 82
Total bad debt expense $1,835 $ 4,402 $ 1,323
carrier accounts, but due to the telecommunication industry down-turn of the last few years, the Company experienced
write-offs in this area of the business totaling $0.5 million in 2002, due to bankruptcy filings of several significant
telecommunications companies.  In 2003, the inter-carrier segment of the business improved and the Company
recovered $240 thousand of bad debt from the sale of certain accounts that were previously written-off.
2003 2002 2001