text: **Note 1. Summary of Significant Accounting Policies (Continued)**
  
  101, (SAB No.101). Effective July 1, 2003, the Company adopted Emerging Issues Task Force ("EITF") No. 00-21, 
  "Accounting for Revenue Arrangements with Multiple Element Deliverables." The EITF guidance addresses how to 
  account for arrangements that may involve multiple revenue-generating activities, i.e., the delivery or performance of 
  multiple products, services, and/or rights to use assets. In applying this guidance, separate contracts with the same 
  party, entered into at or near the same time, will be presumed to be a bundled transaction, and the consideration will be 
  measured and allocated to the separate units based on their relative fair values. The adoption of EITF 00-21 has 
  required evaluation of each arrangement entered into by the Company for each sales channel. The Company will 
  continue to monitor arrangements with its sales channels to determine if any changes in revenue recognition would 
  need to be made in the future. The adoption of EITF 00-21 has resulted in substantially all of the activation fee 
  revenue generated from Company-owned retail stores and associated direct costs being recognized at the time the 
  related wireless handset is sold and is classified as equipment revenue and cost of equipment, respectively. Upon 
  adoption of EITF 00-21, previously deferred revenues and costs will continue to be amortized over the remaining 
  estimated life of a subscriber, not to exceed 30 months. Revenue and costs for activations at other retail locations will 
  continue to be deferred and amortized over their estimated lives as prescribed by SAB 101. The adoption of EITF 00- 
  21 had the effect of increasing equipment revenue by $68 thousand and increasing costs of activation by $23 thousand 
  in 2003, which otherwise would have been deferred and amortized. The amounts of deferred revenue under SAB 101 at 
  December 31, 2003, 2002 and 2001 were $1.2 million, $1.5 million and $1.2 million, respectively. The deferred costs 
  at December 31, 2003, 2002 and 2001 were $0.4 million, $0.7 million and $0.7 million, respectively. 