FairPoint Communications 2002 Annual Report Download - page 452

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ORANGE COUNTY - POUGHKEEPSIE LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2002 AND 2001
(DOLLARS IN THOUSANDS)
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1. ORGANIZATION AND MANAGEMENT
ORANGE COUNTY - POUGHKEEPSIE LIMITED PARTNERSHIP - Orange County -
Poughkeepsie Limited Partnership (the "Partnership") was formed in 1987.
The principal activity of the Partnership is providing wholesale cellular
service to resellers who operate principally in the Orange County and
Poughkeepsie, New York service areas.
The partners and their respective ownership percentages as of December 31,
2002 are as follows:
Managing and general partner:
Verizon Wireless of the East LP* 85.0%
Limited partners:
Taconic Telephone Corporation ("Taconic") 7.5%
Warwick Valley Telephone Company ("Warwick") 7.5%
* Prior to August 15, 2002 NYNEX Mobile LP 2 was the managing and general
partner of the Partnership. On August 15, 2002 NYNEX Mobile LP 2
transferred its 85% partnership interest to its affiliate, Verizon
Wireless of the East LP. Verizon Wireless of the East LP is a partnership
between Verizon Wireless of Georgia LLC (the General Partner) and Verizon
Wireless Acquisition South LLC (the LP), which hold a controlling interest
and Price Communications which has a preferred interest. Verizon Wireless
of the East LP is a partnership which is consolidated by Cellco
Partnership (d/b/a Verizon Wireless) ("Cellco").
GENERAL PARTNER (FORMATION OF CELLCO) - On April 3, 2000, Bell Atlantic
and Vodafone Group Plc ("Vodafone") consummated their previously announced
agreement to combine their U.S. wireless operations. In accordance with
the terms of the U.S. Wireless Alliance Agreement (the "Alliance
Agreement") dated September 21, 1999 between the two companies, Vodafone
contributed its U.S. wireless operations, its 50% ownership interest in
PrimeCo Personal Communications L.P. ("PrimeCo") and debt to Cellco
Partnership, in exchange for a 65.1% interest in Cellco. Bell Atlantic
also contributed its 50% ownership interest in PrimeCo, and retained a
34.9% interest. Bell Atlantic maintained control of Cellco. As of April 3,
2000, Cellco began conducting business as Verizon Wireless.
On June 30, 2000, Bell Atlantic and GTE Corporation ("GTE Corp.")
completed a merger of equals under a definitive merger agreement entered
into on July 27, 1998 (the "Merger"). On June 30, 2000, the newly merged
entity changed its name to Verizon Communications, Inc. ("Verizon
Communications"). Under the Alliance Agreement, Verizon Communications
contributed GTE
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Corp.'s wireless net assets and operations increasing its partnership
interest to 55% and decreasing Vodafone's partnership interest to 45%.