text: **Note 7. Significant Contractual Relationship (Continued)**
  
  As an exclusive PCS Affiliate of Sprint, the Company has the exclusive right to build, own and maintain its portion of 
  Sprint’s nationwide PCS network, in the aforementioned areas, to Sprint's specifications. The initial term of the 
  Agreement is for 20 years and is automatically renewable for three 10-year options, unless terminated by either party 
  under provisions outlined in the Agreement. 
  
  Under the Sprint agreements, Sprint provides the Company significant support services such as customer service, 
  billing, collections, long distance, national network operations support, inventory logistics support, use of the Sprint 
  brand names, national advertising, national distribution and product development. Additionally, the Company derives 
  substantial travel revenue and incurs substantial travel expenses when Sprint and Sprint’s PCS Affiliate partners’ 
  subscribers incur minutes of use in the Company’s territory and when the Company’s subscribers incur minutes of use 
  in Sprint and Sprint’s PCS Affiliate partners’ territories. These transactions are recorded as travel revenue, network 
  operating cost and travel cost, cost of equipment and selling and marketing expense in the Company’s consolidated 
  statements of income. Cost of service related to access to the nationwide network, including travel transactions and 
  long distance expenses, are recorded in network operating costs. The costs of services such as billing, collections and 
  customer service are included in selling, general and administrative costs. Cost of equipment transactions between the 
  Company and Sprint relate to inventory purchased and subsidized costs of handsets. These costs also include 
  transactions related to subsidized costs on handsets and commissions paid to Sprint for sales of handsets through 
  Sprint’s national distribution programs. 