Question-and-Answer Session
Operator
(Operator instructions) We will go first to Phil Cusick with Bear Stearns.
Phil Cusick – Bear Stearns
Hi guys, do you hear me?
Jim Quarforth
Yes, hi Phil.
Phil Cusick – Bear Stearns
Thank for taking my question. I guess a couple since I jumped in first. First of all, can you talk about little bit more on the Sprint usage versus the $8 million minimum and remind us when those rates come down and reset and is there – it could be higher in April, but then it could drop back down on a rate reset later.
Jim Quarforth
Sure. Let me break it down to the various elements, Phil. The home voice gets reset on July 1 of this year. It was flat for a year, and then after July 1, it will get reset every six months and to review that, that's based on the actual, it's 60% of the change of the Sprint revenue yield is the calculation. The travel voice is based on 90% of the Sprint revenue yield and that also will adjust on July 1 and adjust every six months. The data, there is two data elements, there is the travel data which is 90% of Sprint's data revenue yield and that gets adjusted every quarter. You may recall, to go back to schedule two of the agreement that we had filed, there was this set rate per megabyte every quarter through July of 2009. In 2009, then what happens is you actually go through the calculation of the 90% of their revenue yield, and then the home data again is on a different schedule that is 50% of Sprint data ARPU as defined by the contract, so that will adjust on a quarterly basis as well.
Phil Cusick – Bear Stearns
So, in April, it was above $8 million, nothing is going to reset again until July 1, so ?
Jim Quarforth
No, you do have some seasonality, for example, probably the best example would be there are a lot of students, lot of universities in this market area, so typically because the students leave in mid-May, you will see a little bit of drop off in usage and then it picks up again probably in the latter part of August. And then, you have the same experience probably in the end of December time frame.
Phil Cusick – Bear Stearns
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