FairPoint Communications 2004 Annual Report Download - page 517

ORANGE COUNTY - POUGHKEEPSIE LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2004, 2003, AND 2002
(Dollars in Thousands)
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, 2004 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 (the “General Partner”). Verizon Wireless of the East LP is a
partnership between Verizon Wireless of Georgia LLC and Verizon Wireless Acquisition South LLC, 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”).
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Revenue Recognition - The Partnership earns revenue by providing access to the network (access revenue) and for usage of the network (airtime/usage
revenue), which includes roaming and long distance revenue. In general, access revenue is billed one month in advance and is recognized when earned;
the unearned portion is classified in advance billings. Airtime/usage revenue, roaming revenue and long distance revenue are recognized when service is
rendered and included in unbilled revenue until billed. The Partnership’s revenue recognition policies are in accordance with the Securities and
Exchange Commission’s (“SEC”) Staff Accounting Bulletin (“SAB”) No. 101, Revenue Recognition in Financial Statements and Staff Accounting
Bulletin (“SAB”) No. 104, Revenue Recognition.
Approximately 98% of the Partnership’s 2004, 2003 and 2002 revenue is affiliate revenue due to the fact that Cellco is the Partnership’s primary reseller.
The wholesale rates charged to Cellco do not necessarily reflect current market rates. The Partnership continues to re-evaluate the rates and expects these
rates to be reduced in the future consistent with market trends and the terms of the limited partnership agreement (See Note 4).
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