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									                                                                                                  Vcall
                      Transcript of                                                               601 Moorefield Park Dr.
                                                                                                  Richmond, VA 23236
                   NTELOS Inc. (NTLO)                                                             Phone: 888-301-5399
     Fourth Quarter 2008 Earnings Conference Call                                                 Fax: 804-327-7554
                 February 27, 2009
                                                                                                  info@vcall.com
                                                                                                  www.vcall.com
                                                                                                  www.investorcalendar.com
Participants
    James S. Quarforth, Chief Executive Officer and President
    Michael B. Moneymaker, Executive Vice President and Chief Financial Officer
    Wes Wampler, Director of Investor Relations

Presentation
    Operator
    Greetings, ladies and gentlemen and welcome to the NTELOS' Fourth Quarter 2008
    Earnings Conference Call. At this time, all participants are on a listen-only mode and
    a brief question and answer session will follow the formal presentation. If anyone
    should require operator assistance during the conference, please press *0 on your
    telephone keypad. As a reminder, this conference is being recorded.

    It is now my pleasure to introduce your host Mr. Wes Wampler, Director of Investor
    Relations. Thank you, Mr. Wampler, you may now begin.

    Wes Wampler – NTELOS Inc. – Director of Investor Relations
    Thank you. Good morning and welcome to the NTELOS Fourth Quarter 2008
    Earnings Conference Call. The topics for today's call include an overview of business
    activities and financial highlights for the fourth quarter and year 2008. Speaking on
    the call today will be James S. Quarforth, Chief Executive Officer of NTELOS and
    Michael B. Moneymaker, Executive Vice President and Chief Financial Officer.

    We will begin with comments from Mike and Jim and then we’ll take any questions
    you may have. We ask that questions on this call be from current investors or
    analysts and that any media questions be later directed to Mike Minnis, our Director of
    Public Relations.

    Before we continue, I would like to point out that certain of the statements contained in
    our earnings release and on this conference call are forward-looking statements that
    are subject to risks and uncertainties that could cause actual results to differ materially
    from those described. Please refer to the earnings release for a special note
    regarding forward-looking statements.

    Also, in an effort to provide useful information to investors, our comments today
    include non-GAAP financial measures. For details on these measures, including why
    we use them and reconciliations to the most comparable GAAP measures, please
    refer to our earnings release on our website at www.ntelos.com or to the 8-K filing
    provided to the SEC.

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                                                                                Transcript:
                                                                       NTELOS Inc. (NTLO)
                                              Fourth Quarter 2008 Earnings Conference Call
                                                                         February 27, 2009
                                                                                          Vcall
                                                                                          601 Moorefield Park Dr.
With that, I will now turn the call over to Mike Moneymaker, CFO of NTELOS.
                                                                                          Richmond, VA 23236

Michael B. Moneymaker – NTELOS Inc. – Executive Vice President and Chief                  Phone: 888-301-5399
Financial Officer                                                                         Fax: 804-327-7554
Thank you, Wes, and good morning. We are pleased to announce fourth quarter
2008 operating revenues of $140.6 million, operating income of $31.5 million, and net     info@vcall.com
income of $6.4 million, or $0.15 per share.                                               www.vcall.com
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We are also pleased to announce the declaration of a quarterly cash dividend in
amount of $0.26 per share to be paid on April 13, 2009 to stockholders of record on
March 19, 2009.

Operating revenues, operating income, net income, and earnings per share for the
year ended December 31, 2008, were $539.8 million, $119.5 million, $47.2 million,
and $1.12 per share on a diluted EPS basis, respectively.

Adjusted EBITDA was $56.5 million for the fourth quarter of 2008 and $227.1 million
for the year ended December 31, 2008, increases of 13.9% and 11.9%, respectively,
over the comparable periods of 2007.

Looking next at our key operating performance metrics. For comparability purposes
the following 2008 to 2007 comparisons will be based on the pro forma results and
metrics for the periods prior to April 1, 2008, each adjusted to reflect the changes in
gross versus net reporting of handset insurance revenues and cost as a result of our
previously disclosed new contracts for such services that went into effect on April 1,
2008. Please refer to the earnings release and Form 10-K and previously filed Form
10-Qs for actual results for the periods and further discussion on this change in gross
versus net reporting.

Our pro forma year-over-year increase in wireless subscriber revenues was 9% and
11.4% for the fourth quarter and year of 2008, respectively. This growth was
achieved through subscriber growth of 28,213 net add and pro forma total ARPU
growth of $1.01 year-over-year driven by continued growth in data ARPU.

We were pleased with the strength in gross adds during the quarter as total gross
adds were 48,964 and postpay gross adds were 26,076, increases of 10.4% and
24%, respectively, over the fourth quarter of 2007 gross additions.

Our pro forma total and postpay ARPU for the fourth quarter of 2008 improved $0.68
and $2.37, respectively, over the comparable ARPU for the fourth quarter of 2007.
These improvements reflect continued growth in data ARPU driven by increased sales
of smart phones and air cards which represented 21% of our postpay gross additions
in the second half of 2008.

CPGA was $380 for the fourth quarter of 2008 as compared to $373 for the third
quarter of 2008 and $336 for the fourth quarter of 2007.




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                                                                       NTELOS Inc. (NTLO)
                                              Fourth Quarter 2008 Earnings Conference Call
                                                                         February 27, 2009
                                                                                         Vcall
As mentioned earlier we continue to see strong growth in sales of smart phone and air
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cards since our launch of EV-DO high speed data offerings. The increase sales of
                                                                                         Richmond, VA 23236
smart phones and air cards have resulted in a higher CPGA costs since the launch of
our EV-DO offerings in the second quarter of 2008. However, the continued growth in      Phone: 888-301-5399
the sales mix of these devices fuel the growth in gross additions and ARPU in 2008       Fax: 804-327-7554
and would continue to drive data ARPU growth in the future.
                                                                                         info@vcall.com
CCPU was $34.22 for 4Q '08, an increase of 6.5% over pro forma CCPU for 4Q '07.          www.vcall.com
                                                                                         www.investorcalendar.com
Pro forma CCPU was $32.27 for the year 2008, an increase of 5.1% over pro forma
CCPU for 2007. These increases reflected success of our national no-roam product
which contributed to higher end collect costs of $6.2 million and $25.4 million for 4Q
'08 and year 2008, respectively, as compared to $5.5 million and $20.4 million for 4Q
'07 and year 2007, respectively.

Retention costs, net of related equipment revenues from existing customers, were
$3.4 million, a 2% decrease from 4Q '07 and $11.1 million for 2008, a 7% decrease
from the year 2007.

Wireless bad debt expense was 3.8% of wireless subscriber revenues for 4Q '08 as
compared to 4.5% for 4Q '07. Wireless bad debt expense was 2.8% of wireless
subscriber revenues for the year 2008 as compared to 3.2% for the year 2007.

CCPU increases also reflect the costs from addition of 160 new cell sites in 2008 and
higher network cost associated with the additional backhaul cost associated with new
T1s added to cell sites upgraded to EV-DO Rev A. Total access and cell site
expenses grew from $9.5 million in 4Q '07 to $11.9 million in 4Q '08 reflecting the
impact of the new cell sites, EV-DO upgrade, and additional network traffic. For the
year 2008, the same costs were $42.6 million as compared to $36.4 million for 2007.

Looking next at wireline, our wireline segment recognized adjusted EBITDA of $17.5
million in 4Q '08 versus $16.7 million in 4Q '07 and $69 million for the year 2008
versus $65.3 million for the year 2007. Adjusted EBITDA for a competitive wireline
segments was $25.3 million for the year 2008, a 21% increase over 2007 driven by
growth in wireline strategic product revenues which grew 11% over 2007.

We offered a voluntary early retirement plan to eligible employees within our wireline
segment that resulted in the reduction of 22 employees effective June 30, 2008, for
which we recognized the cost savings in the second half of 2008.

Looking next at our liquidity. Adjusted EBITDA less expenditures for property, plant,
and equipment for the year 2008 was $94.6 million, up from $93.4 million for the year
2007.

Our capital expenditures were at $132.5 million for the year 2008 as compared to
$109.6 million for 2007. Total incremental capital expenditures for the EV-DO
upgrade were approximately $35 million and approximately $27 million 2008 and 2007
respectively and only $3 million of incremental capital expenditure related to our
planned EV-DO upgrade remains to be spent in 2009.



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                                                                       NTELOS Inc. (NTLO)
                                              Fourth Quarter 2008 Earnings Conference Call
                                                                         February 27, 2009
                                                                                         Vcall
Cash provided by operating activities was $185.3 million for the year of 2008, an
                                                                                         601 Moorefield Park Dr.
increase of 29% over 2007 cash flows of $143.9 million reflective of record levels of
                                                                                         Richmond, VA 23236
adjusted EBITDA and positive changes in working capital.
                                                                                         Phone: 888-301-5399
Our 2009 guidance for cash income tax payment is expected be between $16 million         Fax: 804-327-7554
and $20 million, a reduction of $16 million from the previous guidance issued in
January 2009 reflecting the projected impact of the American Recovery and                info@vcall.com
Reinvestment Act of 2009 that extended the accelerated tax depreciation deduction        www.vcall.com
                                                                                         www.investorcalendar.com
for assets placed in service in 2009.

Our ratio of total debt at December 31, 2008 to adjusted EBITDA for the year 2008
was 2.68 to 1 down from a ratio of 3.03 to 1 as of December 31, 2007.

I am also pleased to report the total debt net of $65.7 million of cash on hand at
December 31, 2008 was $542.2 million. At $542.2 million this represents a ratio to
adjusted EBITDA for the year of 2008 up 2.39 to 1 down from 2.76 to 1 as of
December 31, 2007.

With that, let me now turn the discussion over to Jim Quarforth, our CEO, who will
provide an update on our latest business and operational developments.

James S. Quarforth – NTELOS Inc. – Chief Executive Officer and President
Thank you, Mike.

As Mike has pointed out, we had another solid quarter posting an adjusted EBITDA of
$56.5 million and finishing the year with adjusted EBITDA of $227.1 million with
margin expansion in both our wireless and wireline businesses. We are very pleased
with these results particularly in this economic climate. Further, we are optimistic
entering 2009 with good momentum, many catalyst for growth coupled with a strong
cash position, low debt ratio, and the ability to continue to grow without the need to
access the capital markets.

I plan to discuss our EV-DO and cell site deployments activities and our retail
operations, the Sprint wholesale revenue, and an update on the first quarter 2009.

2008 was a year of incredible accomplishment with over 833 cell sites converted to
EV-DO Rev A and 160 cell sites added to our coverage. We ended the year with 70%
of our cell sites with EV-DO capability.

In the fourth quarter, we provided EV-DO to four new markets including Danville and
Martinsville, Virginia and Bluefield and Beckley, West Virginia. We also completed
part of our upgrade to EV-DO in both the Richmond and Norfolk, Virginia markets.
Richmond and Norfolk, our largest markets, will be completely upgraded in the second
quarter 2009. We expect to see nice productivity in smart phone and air card
penetration and the associated data revenue from these market launches during
2009.

We finished 2008 with 84 company retail stores with an increase of 9% or 12% during
the year. The growth in this distribution channel has further strengthened our

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                                                                        NTELOS Inc. (NTLO)
                                               Fourth Quarter 2008 Earnings Conference Call
                                                                          February 27, 2009
                                                                                           Vcall
differentiated retail selling strategy. We currently plan to further expand this
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distribution channel by an additional six to eight stores during 2009.
                                                                                           Richmond, VA 23236

We continue to be pleased with the demand for EV-DO products in the markets we             Phone: 888-301-5399
have launched as evidenced by the $2.80 or 49% increase in postpay data ARPU last          Fax: 804-327-7554
year. This high speed service offering has added strength to our postpay offerings
and sales effectiveness.                                                                   info@vcall.com
                                                                                           www.vcall.com
                                                                                           www.investorcalendar.com
Our data take rate of gross postpay additions increased to 65% in the fourth quarter,
take rates for smart phones and data cards were 19% in the fourth quarter.

We introduced six new handsets and two new smart phones during the fourth quarter.
The new handset introductions during 2008 have provided significant strength to our
postpay offering resulting in increased postpay sales in the third and fourth quarter of
2008 and continuing into 2009.

While churn was higher in the third and fourth quarter due to economic conditions, we
have seen consistent increased sales as a result of our value market position and the
many catalysts for growth including EV-DO network capability, expanded coverage,
entry into new markets, more retail distribution, and better handset selection. The
increased sales have continued into 2009.

Our revenue from Sprint wholesale relationship grew $8.1 million or 34% year-over-
year and $5 million or 18% sequentially from the third quarter of 2008. This increase
is primarily from increased usage from travel data as a result of the EV-DO
implementation and increased coverage in the wholesale area.

Travel data revenue grew $9 million or 347% year-over-year and $4.8 million or 72%
sequentially from the third quarter of 2008. Voice revenue, including home and travel;
have increased approximately 3% year-over-year. We expect to see continued
increases in our wholesale revenues to the first half of 2009 as a result of the EV-DO
market turn up in the fourth quarter 2008 and the expanded coverage completed last
year.

While we expect continued increases in data usage in to the future, our travel data
rate will be reset on July 1st based on 90% of Sprint’s data revenue yield. We
anticipate the new rate, which is reflective of the revenues and volumes from the EV-
DO network, will be significantly lower than the current travel data rate. As a result,
and reflected in our 2009 guidance, we expect our billing would drop to the $9 million
minimum for the second half of the year.

We continue to be encouraged by the data usage growth rates and anticipate data will
continue to be catalyst for future growth.

In addition to the EV-DO deployment, the substantial network expansion will be a
catalyst for wholesale revenue growth as evidenced by our fourth quarter annualized
revenue per cell site of $178,000 compared to $160,000 in the third quarter for an
increase of 11%.



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                                                                                 Transcript:
                                                                        NTELOS Inc. (NTLO)
                                               Fourth Quarter 2008 Earnings Conference Call
                                                                          February 27, 2009
                                                                                             Vcall
We are seeing similar characteristics in the first quarter of 2009 that we saw in the last
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two quarters. First, our churn levels continue to be at similar levels as the last half of
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2008. Second, we also continue to see higher sales similar to the last two quarters.
While the fourth and first quarters are seasonally higher prepay sales quarters, we          Phone: 888-301-5399
have definitely seen a higher mix of postpay sales during as compared to previous            Fax: 804-327-7554
years.
                                                                                             info@vcall.com
We are clearly receiving more consideration for postpay customers due to our value           www.vcall.com
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proposition in the market as well as our EV-DO capabilities.

In January, we introduced the capability to flash a customer’s phone so they can use
their phone on the NTELOS network. This will save the company subsidy costs while
allowing the customer to enjoy the best value in wireless.

As I mentioned earlier, we finished 2008 with a solid quarter. We are very pleased
with finishing the year with an EBITDA of over $227 million or 12% growth. We are
also pleased with our free cash flow which has allowed us to continue to invest in our
business and also increase our dividend level last year by 24%.

As we look at 2009, we are very optimistic about our ability to demonstrate good
growth in a challenging economic environment. As we reported on our January 29th
guidance release, we expect 2009 to be a year of substantial free cash flow growth
with a projected growth range between 25% and 35%.

Our position as a value player will continue to give us more consideration from
customers looking for a quality network at the right price. Our work to implement EV-
DO across our markets in 2008 has already paid nice rewards in acquiring new
postpay customers increasing our postpay data ARPU. Our management team is
seasoned and has a track record for consistently performing well in difficult and good
times.

Our financial results last year are a confirmation of the catalyst we have for growth
into the future. Our investments in network expansion in the past few years and the
implementation in EV-DO last year have and will continue to provide nice growth for
both our retail and wholesale wireless businesses.

Our retail business continues to see strength in customer addition, growth in data
penetration, and data ARPU. This growth is further supported by increased retail
distribution presence, improved handset selections, and improved product offerings
due to our EV-DO capabilities.

The wireline business is well positioned to continue its double digit revenue growth as
competitive strategic products such as metro ethernet, integrated access, and
carrier’s carrier services. The RLEC has achieved enviable DSL penetration currently
at 46% which is the best defense to offsetting line loss revenue.

Our long term strategic investments in IPTV are showing impressive results with over
22% penetration of homes passed in the first 15 months was 75% of the customers
taking the triple play.

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                                                                        NTELOS Inc. (NTLO)
                                               Fourth Quarter 2008 Earnings Conference Call
                                                                          February 27, 2009
                                                                                             Vcall
                                                                                             601 Moorefield Park Dr.
We believe our catalyst, our market position, and our seasoned management team
                                                                                             Richmond, VA 23236
will provide our company the unique opportunity to grow our business in 2009.
                                                                                             Phone: 888-301-5399
At this point, we’ll now take questions and ask the operator to give instructions.           Fax: 804-327-7554

Operator                                                                                     info@vcall.com
Thank you. Ladies and gentlemen, we will now be conducting a question and answer             www.vcall.com
                                                                                             www.investorcalendar.com
session. If you would like to ask a question, please press *1 on your telephone
keypad. A confirmation tone will indicate your line is in the question queue. You may
press *2 if you would like to remove your question from the queue. For participants
using speaker equipment, it may be necessary to pick up your handset before
pressing the * keys. One moment please while we pool for questions.

Thank you. Our first question is coming from David Coleman of RBC Capital Markets.

David Coleman – RBC Capital Markets
Great. Thanks a lot. You mentioned that smart phones and air cards were about
19% of, I guess, gross subscriber additions in the fourth quarter. Can you provide the
total percent of the total handsets and devices in service that are smart phones and
air cards and I have a followup after that.

James S. Quarforth – NTELOS Inc. – Chief Executive Officer and President
As far as the mix, we ended the quarter with about 8% of the mix as smart phone and
air cards.

David Coleman – RBC Capital Markets
Okay. And then I guess from a… have you looked at your cost to deliver a megabyte
of data over your EV-DO network? And given the step down in the travel data rate
through the Sprint wholesale contract, how does the cost to deliver a megabyte of
data compares to the revenue that you would be receiving from Sprint under that
contract when the rates do step down?

James S. Quarforth – NTELOS Inc. – Chief Executive Officer and President
Sure. I mean, we’re obviously familiar with our cost for generation of both a data
megabyte and a voice minute. I think what's important here is that we take travel
data. For example, we will garner 90% of Sprint's data revenue yield and its important
going forward now that we have or in the summer when we have 100% EV-DO
capability, it's important from a wholesale relationship that our customer has the ability
to generate a margin. And that’s similar to what we have done previously with our
travel voice which is also set at 90% of the revenue, voice revenue data yield. So we
are very comfortable with the cost structure there and the associated margin and
more importantly with that variable structure as we’ve had in the past. It really
provides an incentive to our wholesale customers to continue to grow that market.

David Coleman – RBC Capital Markets
Okay. Thank you. And then just as far as the credit facility you mentioned in the past
the RP basket and the possibility of amending that to allow you to increase the
dividend, any work on that that you can talk about?

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                                                                         NTELOS Inc. (NTLO)
                                                Fourth Quarter 2008 Earnings Conference Call
                                                                           February 27, 2009
                                                                                              Vcall
                                                                                              601 Moorefield Park Dr.
James S. Quarforth – NTELOS Inc. – Chief Executive Officer and President
                                                                                              Richmond, VA 23236
No changes as far as anything in placed today. Really, it’s kind of a project for 2009.
It’s just to continue to evaluate the market and to the extent there are opportunities to     Phone: 888-301-5399
address I think the restricted payment basket. I think the big picture, the credit facility   Fax: 804-327-7554
itself, I think we would look into those and pursue those. I think right now I think the
market is such that it's… could you go out and do something I think the answer is yes         info@vcall.com
I think it just would be very expensive today and given the restricted payment basket         www.vcall.com
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gives a sufficient flexibility to increase the dividend as we have done so. We really do
not see that as a constraint today and our preference is to continue to watch and
monitor the market and hopefully see better market conditions that would result in our
less costly amendment or revision at a future date.

David Coleman – RBC Capital Markets
Great. Thank you.

Operator
Thank you. Our next question is coming from Ric Prentiss of Raymond James.

Ric Prentiss – Raymond James & Associates
Hi. Good morning, guys.

James S. Quarforth – NTELOS Inc. – Chief Executive Officer and President
Hi, Ric.

Ric Prentiss – Raymond James & Associates
A couple of questions. I apologize, I missed the beginning. I was on another call, but
can you talk to wireless ARPU a little bit, what you’re seeing there? It was down a
little bit versus what we were looking for but still pretty strong on the local side as far
as what's happening to voice versus what's happening to data. Yes, that’s the first
question.

James S. Quarforth – NTELOS Inc. – Chief Executive Officer and President
Yeah, good question, Ric. First of all, historically you typically see a dip from third to
fourth quarter because most of your adds in the fourth quarter come in the last several
weeks, so you have mismatch, if you will, on the customer additions to the revenue.
So if you go back in time, you’ll see that pattern. We did, if you look at year-over-year
postpay, ARPU actually went up $2.37 and that's on a pro forma basis with the new
handset agreement, insurance agreement. And then on a blended basis, we went up
about $0.68 year-over-year, again, from a pro forma basis. We have had, as we
reported before, pressure on the prepay ARPU started in or it was really have been
throughout 2008 coming from two different sources. One, you may recall that we had
actually lowered our prepay rates structure back in late 2007 as a competitive
repositioning effort. And then secondly, I think in the third and fourth quarter, you saw
some pressure on prepay due to the economy where people want to keep their
handsets but they’re looking to reduce their cost a bit. But we’re very pleased with the
lift in data ARPU, that $2.80 on postpay year-over-year, which is about a 49% growth
rate.



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                                                                                 Transcript:
                                                                        NTELOS Inc. (NTLO)
                                               Fourth Quarter 2008 Earnings Conference Call
                                                                          February 27, 2009
                                                                                            Vcall
Ric Prentiss – Raymond James & Associates
                                                                                            601 Moorefield Park Dr.
Okay. So that seems pretty nice even in a tough competitive environment seeing
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some upward movement on the ARPU side. Data, where do you see data heading
over the next couple of quarters to a couple of years? Can you get up to or what            Phone: 888-301-5399
would it take to get up to Sprint's level? I think on the CDMA side, Sprint says they       Fax: 804-327-7554
are doing about $18 worth of data ARPU?
                                                                                            info@vcall.com
James S. Quarforth – NTELOS Inc. – Chief Executive Officer and President                    www.vcall.com
                                                                                            www.investorcalendar.com
I mean, clear we think that's where the opportunity is and I think if you look at the
increase in our postpay sales as a percentage of the mix in the third quarter, fourth
quarter, and continuing into the first quarter. We’re getting more consideration than
we've ever gotten before because of the availability of smart phones and EV-DO
network. If you went back over the last three, four, or five years and compared it to
where we are today from a network capabilities standpoint, this is the first time that
this company has been at par or in better position than our competition from a
capability standpoint so we’re incredibly excited about that and we’re seeing again as
I mentioned the customer consideration as a result of that. It's allowed us also to
bolster our business-to-business channel and sell more into that channel which is a
channel that really didn’t start developing until we got into data. Clearly, Sprint has a
big enterprise business so there’s an element of their data ARPU that is going to be
more difficult for us to achieve. But clearly we’re expecting to see an acceleration of
data ARPU throughout 2009.

Michael B. Moneymaker – NTELOS Inc. – Executive Vice President and Chief
Financial Officer
And again as a reminder Virginia East, the Richmond and the Hampton roads
markets, we turned up about half of the cell sites to EV-DO Rev A in November. So
again, over half of covered pops. We have not been operational under our EV-DO
Rev A network but for less than two months and the remaining half of that market will
turn up in the second quarter. So, we are pretty bullish that when your largest two
markets had not turned up EV-DO for a full quarter’s worth that we have had nice
growth in data ARPU and that’s really without the benefit of our most urban markets
that we have.

Ric Prentiss – Raymond James & Associates
That’s great. Thanks. And my final question hits right on that same point. There was
some speculation on Leap coming to town in the Virginia East area. Our job search
checks that we did have seen that’s pretty benign, just some engineers that are doing
some work may be in the area. What have you seen as far as Leap in the Richmond
and Norfolk kind of area? What you think their time to entry would be?

James S. Quarforth – NTELOS Inc. – Chief Executive Officer and President
Sure. I am not sure it’s changed much from what we reported before, Ric. As you
pointed out, there is some structuring work taking place in that market, but clearly,
once Leap decides that they want to enter that market, it typically takes about 12 to 18
months to actually build a market. So you are clearly looking at some time in 2010 if
they were to start today. And obviously, we've indicated that we've done some things
in the past to reposition our prepay business. We did some repricing of our products
back in late 2007. We do have a new prepay billing platform that's going in place in

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                                                                                Transcript:
                                                                       NTELOS Inc. (NTLO)
                                              Fourth Quarter 2008 Earnings Conference Call
                                                                         February 27, 2009
                                                                                           Vcall
the third quarter of this year that gives us more capabilities and then we have some
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other things that we are working on in preparation to compete very effectively with
                                                                                           Richmond, VA 23236
Leap or anyone else that comes in the market with a similar product.
                                                                                           Phone: 888-301-5399
Ric Prentiss – Raymond James & Associates                                                  Fax: 804-327-7554
Great. Thanks, guys. Have a good weekend.
                                                                                           info@vcall.com
James S. Quarforth – NTELOS Inc. – Chief Executive Officer and President                   www.vcall.com
                                                                                           www.investorcalendar.com
Thank you.

Operator
Thank you. Our next question coming from Tom Seitz of Barclays Capital.

Tom Seitz – Barclays Capital
Yes. Thanks for taking the question. A lot of the RLECs are talking about potentially
an acceleration in consolidation and I know that tax agreement doesn’t end till 2010,
but if that M&A activity steps up, are there things that you can do in 2009 to get ready
to make that asset available for sale if an offer that might be attractive to you comes
along?

James S. Quarforth – NTELOS Inc. – Chief Executive Officer and President
Yes, I mean, Tom, I think what you’re referring to is a punitive corporate tax if the
company were to split its assets between wireless and wireline and that tax goes
away or that obstacle goes away in May 2010. We clearly operate as two business
units today and they have separate organizations and about the only thing that's
common are some support systems but even within that they’re somewhat separated.
Clearly, it’s something that we’re watching. I would also tell you that there’s a… it’s
almost a little bit of trend back towards blended companies as well. So I think one of
the things we’re pretty excited about here is that this company has… one, is
performing very well, it’s incredibly healthy. We’re performing well in both wireless
and wireline and we have a lot of different alternatives available to us. And so we’re
going to be looking at what's in the best interest of our shareholders long-term and if
that's consolidation then it’s consolidation. If it’s continued to organic growth or
acceleration of our own business development, those are things that we’ll be looking
at.

Tom Seitz – Barclays Capital
Okay. Great. Thank you very much.

Operator
Thank you. Our next question is coming from Batya Levi of UBS.

Batya Levi – UBS
Thanks a lot. I wanted to ask you about your guidance for revenue growth. I guess
one worry out there is that you have an optimistic view for 2009 given the weak
economic environments we’re in? Can you give us a sense of the strengthening
growth as we saw in the fourth quarter continues in through January and February?
Is churn starting to come down? And on the ARPU side, you talked about the
potential for data acceleration, but can you give a little bit more color on how voice

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                                                                                 Transcript:
                                                                        NTELOS Inc. (NTLO)
                                               Fourth Quarter 2008 Earnings Conference Call
                                                                          February 27, 2009
                                                                                             Vcall
ARPU is holding up and any change in the family plans that you’ve see? Thanks a
                                                                                             601 Moorefield Park Dr.
lot.
                                                                                             Richmond, VA 23236

James S. Quarforth – NTELOS Inc. – Chief Executive Officer and President                     Phone: 888-301-5399
Sure. Yes, I guess we did provide guidance on the revenue at the end of January and          Fax: 804-327-7554
we’re very comfortable with that guidance and we think that that’s going to be
supportive from a lot of different areas as you mentioned, both in customer additions        info@vcall.com
and ARPU. We have seen churn stay at similar levels in January that they were in the         www.vcall.com
                                                                                             www.investorcalendar.com
third and fourth quarter, which obviously is coming from the economy. I think the real
good news here is that we not only have seen more gross sales that has allowed us to
meet our net numbers and show growth but also the sales have included a much
higher percentage of postpay which as you know are much higher value customers
and then approximately 19% to 20% of postpay sales are taking the smart phones or
data cards which has allowed us to grow our data ARPU. So we’re very pleased with
what we’re seeing there. We think that we certainly have the tools available to us to
manage through a difficult economy and meet our guidance numbers.

Batya Levi – UBS
And on the voice ARPU side, do you see any pressure there?

James S. Quarforth – NTELOS Inc. – Chief Executive Officer and President
We are seeing the pressure on the prepay and of course, we saw some pressure
there that was… we designed in ourselves, if you will, at the end of 2007, when we
put out some new products to better position the competitiveness of the prepay
product. So overtime, as you have more and more folks converting to that new
product, you put some downward pressure on that. In addition in the third and fourth
quarter, we’ve seen some pressure on that prepay product as a result of, again, folks
who want to keep their wireless phone but they need to reduce their cost. So, we've
seen a little pressure there. Postpay seems to be holding up and we’re very pleased
with that and we are also, again, pleased with the take rates and the growth in data
ARPU.

Michael B. Moneymaker – NTELOS Inc. – Executive Vice President and Chief
Financial Officer
Batya, just to add, I think when you look at our guidance on revenues, do keep in
mind that if you’re comparing 2007 to 2008, the handset insurance reset was between
$11 million and $12 million of grossed up revenue and expense in '07 and $2 million
to $3 million in the first quarter that went away on and as reported starting April 1, '08
on a net basis. So when you look at our reported results for '07 to '08, keep in mind
that you had a significant drop off due to the netting of those revenues starting April 1.
When you compare '08 to '09, except for the one quarter, you’ll have a truer growth
pattern. Another good example of that is I think some people are looking at our ARPU
being down and as we have stated here on the call our reported ARPU was down
based on the netting of the gross versus net of this handset insurance. But as we
have said, ARPU is up, it’s improving, it’s up year-over-year, it’s up quarter-over-
quarter, and so we’re pleased with that growth, but one must be careful to make sure
they're looking at the pro forma results there in light of that change in the method of
reporting.



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                                                                                 Transcript:
                                                                        NTELOS Inc. (NTLO)
                                               Fourth Quarter 2008 Earnings Conference Call
                                                                          February 27, 2009
                                                                                             Vcall
Batya Levi – UBS
                                                                                             601 Moorefield Park Dr.
Alright. That’s right. And just one followup on margins, do you think we can expect
                                                                                             Richmond, VA 23236
wireless margins to move up to 40% again with the strength we’re seeing in the ARPU
in the first half of the year or do you expect the higher mix of smart phone sales to        Phone: 888-301-5399
pressure that maybe initially and then have a more back end loaded for margin                Fax: 804-327-7554
expansion for the year?
                                                                                             info@vcall.com
James S. Quarforth – NTELOS Inc. – Chief Executive Officer and President                     www.vcall.com
                                                                                             www.investorcalendar.com
I think certainly in longer term, we would expect to see margin expansion. The
offsetting items or the pressures on that in 2009, it’s somewhat similar to what you
saw on the last half of 2008 that is that one, you’re going to have the higher run rate of
your T1 expense associated with EV-DO and as we ramped up an added T1 at each
cell site during 2008, we… that's a compounding effect. So for example, if you were
to annualize the access expense of the fourth quarter of 2008 versus fourth quarter of
2007, there’s about a $6 million delta there that you are going to, in effect, have to
absorb in 2009. Additionally, the more successful we are in penetrating the market
with smart phones and air cards, there’ll be some initial pressure there but obviously,
both of those the offsetting good news is that we’re seeing very nice growth in
penetration numbers which is going to move our revenue and our ARPU up. So, it’s
really a good problem to have but it will take some time.

Batya Levi – UBS
Okay. Thanks a lot.

Operator
Thank you. As a reminder, ladies and gentlemen, if you’d like to ask some questions,
you may press *1 on your telephone keypad at this time. Thank you. Our next
question is coming from Mike McCormick of JP Morgan.

Mike McCormick – J.P. Morgan
Hi, guys. Thanks. You’ve talked about some of the initiatives that you might put into
place to combat some of these all-you-can-eat prepaid players. Could you just give
us sense for your thoughts on how we should be thinking about longer term ARPU
trends and then secondly, the travel data piece seems to be a tremendous growth
driver, obviously, I was just wondering what you are thoughts on the process that
unfolds here with EV-DO rolled out, obviously, and it's an opportunity for growth. But
Sprint continues to lose pretty good numbers of subscribers so just thinking about how
that should trend over some period of time? Thanks.

James S. Quarforth – NTELOS Inc. – Chief Executive Officer and President
Sure. Yes. Regarding repositioning any plans that we might have from a competitive
standpoint and ARPUs, clearly as you… the expectation is that as you have more
aggressive pricing, you would have an expectation to have higher volumes and that's
kind of the unlimited model that you see out there. We think we are positioned very
well today and realize that we have about 29% of our customers are prepay. So
some are in the universe that are at risk are based out of that 29%. On Sprint,
clearly… of course, a lot of the customers they’ve lost have been on the iDEN side.
We actually, as we reported here earlier, our voice revenues have actually gone up in
our market over 2008 which would suggest that they’re holding their own or maybe

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                                                                                Transcript:
                                                                       NTELOS Inc. (NTLO)
                                              Fourth Quarter 2008 Earnings Conference Call
                                                                         February 27, 2009
                                                                                           Vcall
even improving a little bit in our particular markets. Now nation-wise, if they continue
                                                                                           601 Moorefield Park Dr.
to lose CDMA customers that can have some impact on your travel revenues, both
                                                                                           Richmond, VA 23236
voice and data. I would tell you that with their hybrid phones that they have out there
now that operate both on CDMA and iDEN network is actually a catalyst for additional       Phone: 888-301-5399
usage and we would expect that to be somewhat of an offsetting element to the              Fax: 804-327-7554
revenue stream. So if you think about where Sprint has gone nationwide over the last
years from a customer perspective and relate that to our revenues, our revenues have       info@vcall.com
grown. So I think we’re pretty comfortable at where our guidance is today and we           www.vcall.com
                                                                                           www.investorcalendar.com
would expect to execute on it.

Mike McCormick – J.P. Morgan
Great. Thank you.

Operator
Thank you. Our next question is coming from Ric Prentiss of Raymond James.

Ric Prentiss – Raymond James & Associates
Hi, guys. I can't wait for this earning season to end so we’ll keep asking questions.
Question, a couple of clean up ones. LTE has been a topic throughout the whole
earning season. Verizon “accelerating their trials” announcing it in Barcelona. What
are your thoughts about the migration path for you beyond Rev A? Is LTE needed?
Is it something in your study period? Just what are your thoughts on LTE?

James S. Quarforth – NTELOS Inc. – Chief Executive Officer and President
Sure. It’s certainly something we’re looking at, Ric. Historically, if you look at our
markets, our markets are typically markets where new technologies from the larger
vendors don’t come in these markets until later. They’re focused on New York and
Boston and LA, which really gives an opportunity to evaluate what's being rolled out,
what are the take rates to the customers, are they willing to pay up for the additional
speed and for the devices. So we really benefit from being quick followers so we will
continue look at it. Clearly, there’s more speed in Rev A than… once you turn up Rev
A, you have the ability to continue to increase speed by adding additional backhaul
capacity. So that's a natural path for us to go first before we make the investment in
the LTE. I think we’re several years off before we would be looking at making that
investment.

Ric Prentiss – Raymond James & Associates
On both the wireless side and on the RLEC side, what are your initial thoughts on the
whole rural broadband initiative from the government eligibility process that you might
go through and any thoughts about applying for some of that stim money?

Michael B. Moneymaker – NTELOS Inc. – Executive Vice President and Chief
Financial Officer
We certainly are aware and have had internal meetings. We just had a board meeting
yesterday; spoke to the board about it. I mean, at this point, we really are in a mode
of watching it carefully, watching developments. We really need more clarity as to
what is underserved or an unserved market. What does that mean? How are the
ramp programs or how will the different programs work in the way of the grants?
What will the application process be? But certainly, we serve a rural market and there

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                                                                                Transcript:
                                                                       NTELOS Inc. (NTLO)
                                              Fourth Quarter 2008 Earnings Conference Call
                                                                         February 27, 2009
                                                                                            Vcall
could be opportunities there to improve upon the quality of the broadband service that
                                                                                            601 Moorefield Park Dr.
we can provide in our region and perhaps in areas of growth where… to date, the cost
                                                                                            Richmond, VA 23236
on a less populated area might have meant as it’s sit, underserved or unserved. So
we’re watching it carefully but there really is just not enough clarity yet to know what    Phone: 888-301-5399
that may mean in our region.                                                                Fax: 804-327-7554

Ric Prentiss – Raymond James & Associates                                                   info@vcall.com
And then do you guys still have some, I think, WiMax spectrum. Does Clearwire have          www.vcall.com
                                                                                            www.investorcalendar.com
any your markets and is Sprint going to what to maybe have some discussions on
WiMax network in your areas?

James S. Quarforth – NTELOS Inc. – Chief Executive Officer and President
Sure. To our knowledge, Clearwire does not have any. We actually sold them some
spectrum in Richmond market a couple of years ago. But you are correct. We do
have the spectrum that could be used for WiMax in our market. Certainly, that’s
something that I think Sprint and Clearwire are looking at; however, these markets are
somewhat rural in nature and, again, I think it maybe some time before you're going to
see that application here.

Ric Prentiss – Raymond James & Associates
Sure. As Sprint thinks through the travel aspect of a mobile WiMax network, it might
kind of fit into your providing the 3G data and 2G voice; it might be something of
interest to them, though.

James S. Quarforth – NTELOS Inc. – Chief Executive Officer and President
Yes. I mean clearly, that's something that if Sprint or any other carrier had an interest
in, we would love to build that and wholesale that network to them and that's what
we’ve done historically. We think it's a good business model and we like owning
spectrum and like building networks and it’s something we’ll be continuing to evaluate.

Ric Prentiss – Raymond James & Associates
Great. Thanks guys.

Operator
Thank you. There are no further questions at this time. I would like to hand the floor
back over to management for any closing comments.

Wes Wampler – NTELOS Inc. – Director of Investor Relations
Thank you. And as a reminder, a replay of this call and an archive of the audio
webcast will be available. Please refer to our Investor Relations website for details.
Please also feel free to contact us any time with questions. Media should contact
Mike Minnis at 540-946-7290. Investors, please contact me, Wes Wampler, at 540-
949-3447. Thank you again for joining us this morning and this concludes our call.

Operator
This concludes today's teleconference. You may disconnect your lines at this time.
Thank you for your participation.




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