FairPoint Communications 2004 Annual Report Download - page 535

The Partnership has an arrangement with Illinois Valley Cellular RSA 2, Inc. (Switching Company) to provide switching services to the
Partnership. The stockholders of the Switching Company own 53% of the Partnership. In 2002, switching and toll roaming services of
$546,600 and $1,716,618, respectively, were provided to the Partnership. These services in 2001 were $455,250 and $1,592,348,
respectively, and in 2000 were $423,525 and $1,004,834, respectively. The Switching Company received $511,669, $334,881, and
$293,108 of access and billing and collecting services from the Partnership in 2002, 2001, and 2000, respectively.
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Financial instruments that potentially subject the Partnership to concentrations of credit risk consist principally of cash equivalents and
accounts receivable. The Partnership grants credit to cellular customers located primarily within its portion of the Illinois RSA 2 cellular
geographic service area, to other cellular carriers, and to other telecommunications carriers.
The Partnership maintains its cash in bank deposit accounts which, at times, may exceed federally insured limits. The Partnership has
not experienced any losses in such accounts. The Partnership believes it is not exposed to any significant credit risk on cash and cash
equivalents.
Retail service revenues are derived from customers located primarily within the Partnership's portion of the Illinois RSA 2 cellular
geographic service area. The Partnership grants credit to these customers, substantially all of whom are local residents of this geographic
area.
Roamer cellular revenues are derived under arrangements with other wireless carriers (roaming partners) whose customers use the
Partnership's network to place or complete calls. Roaming revenues from Verizon Wireless accounted for 21%, 31%, and 22% of total
operating revenues in 2002, 2001, and 2000, respectively.
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Future minimum rental payments under leases for facilities have initial non-cancelable lease terms at December 31, 2002 as follows:
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2003 $32,612 $154,200
2004 30,103 145,200
2005 30,104 130,400
2006 30,104 113,180
2007 20,069 65,750
Thereafter — —
Total minimum lease payments $142,992 $608,730
Less amount representing interest 25,085
Present value of minimum lease payments including current maturities of $21,287 $117,907
The cell site leases are renewable for four additional five-year periods under similar terms at the end of the initial term. Lease terms
provide for certain adjustments of the payments in the renewal periods.