text: PCS equipment sales were $2.1 million, an increase of $0.4 million or 26.6%. The equipment sales are net of $1.7 
  million of rebates and discounts given at the time of sale. Rebates and discounts continue to be required to meet 
  significant industry competition for subscriber additions and subscriber retention. These discounts and rebates are 
  primarily transacted in the form of instant rebates, providing a second phone free when a customer purchases one, or 
  providing free phones if the subscriber signs up for a specific contract term and a specific service plan. 
  
  In accordance with Sprint’s requirements, the Company launched third generation (3G 1X) wireless service in August 
  2002. 3G 1X is the first of a four-stage migration path that will enable additional voice capacity and increased data 
  speeds for subscribers. The network upgrades completed in 2002 were software changes, channel card upgrades, and 
  some new network elements required for packet data. The Company’s base stations were outfitted with network card 
  enhancements, thereby allowing the Company to provide 3G 1X service without wholesale change-outs of base 
  stations. 3G 1X is backwards compatible with the existing 2G network, thereby allowing continued use of current 
  customer handsets. The impact of 3G 1X-network enhancements on revenues became more pronounced in 2003, as 
  use of new 3G services and features generated approximately $1.0 million for the year, compared to $0.2 million in 
  2002. The growth in 3G revenue is the result of more subscribers on 3G plans and the increase in popularity of camera 
  phones during 2003. 