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 deferred tax assets, in case
they may not be recoverable.
Revenue recognition: The Company recognizes revenue when pervasive evidence of an arrangement exists, services
have been rendered or products have been delivered, the price to the buyer is fixed and determinable and collectibility
is reasonably assured.  Revenues are recognized by the Company based on the various types of transactions generating
the revenue.  For equipment sales, revenue is recognized when the sales transaction is complete.  For services, revenue
is recognized as the services are performed.
Beginning in 2000, coinciding with the inception of activation fees in its PCS segment, nonrefundable PCS activation
fees and the portion of the activation costs deemed to be direct costs of acquiring new customers (primarily activation
costs and credit analysis costs) were deferred and recognized ratably over the estimated life of the customer
relationship of 30 months in accordance with the Securities and Exchange Commission's Staff Accounting Bulletin
SHENANDOAH TELECOMMUNICATIONS COMPANY ■ 20