text: 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. 
  
  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 
  million had the $0.041 rate been in effect in 2003. Beginning in 2007, the Sprint travel and reseller rate 
  will be changed annually to equal 90% of Sprint’s retail yield from the prior year. Sprint’s retail yield 
  will be determined based on Sprint’s average revenue per PCS user for voice services divided by the 
  average minutes of use per user. 
  
  41 ■ 2003 ANNUAL REPORT 