FairPoint Communications 2005 Annual Report Download - page 239

ORANGE COUNTY - POUGHKEEPSIE LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 2005, 2004, AND 2003
(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 metropolitan service areas.
The partners and their respective ownership percentages as of December 31, 2005, 2004 and 2003 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%
* Verizon Wireless of the East LP (the “General Partner”) 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
Use of Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets
and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could
differ from those estimates. Estimates are used for, but not limited to, the accounting for: allocations, allowance for uncollectible accounts receivable,
unbilled revenue, fair value of financial instruments, depreciation and amortization, useful lives and impairment of assets, accrued expenses, taxes, and
contingencies. Estimates and assumptions are periodically reviewed and the effects of any material revisions are reflected in the financial statements in the
period that they are determined to be necessary.
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 roaming rates charged by the Partnership to Cellco do not necessarily reflect current market
rates.
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