##### Table of Contents









UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549


Form 10-K


|           |  |                                                                                             
|---------- |  | --------------------------------------------------------------------------------------------
|(Mark One) |  |                                                                                             
|þ          |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934    
|          
|           |  | For the fiscal year ended December 31, 2005                                                 
|          
|OR        
|o          |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934
|          
|           |  | For the transition period
    from           to                                             

Commission file number: 000-29633


NEXTEL PARTNERS, INC.


(Exact name of registrant as specified in its charter)


|                                                                   |  |                                         
|------------------------------------------------------------------ |  | ----------------------------------------
|Delaware                                                           |  | 91-1930918                              
|(State or other jurisdiction of
    incorporation or organization) |  | (I.R.S. Employer
    Identification No.)

4500 Carillon Point


Kirkland, Washington 98033


(425) 576-3600


(Address of principal executive offices, zip code and
registrants telephone number, including area code)


Securities registered pursuant to Section 12(b) of the
Act:


None


Securities registered pursuant to Section 12(g) of the
Act:


Class A Common Stock, $0.001 par value


þ o


o þ


þ o


S-K 10-K 10-K. o


12b-2


þ o o


12b-2 o þ






|                           |  |                                      
|-------------------------- |  | -------------------------------------
|Outstanding Title of Class |  | Number of Shares on February 28, 2006
|                           |  |                                      
|Class A Common Stock       |  | 208,764,059 shares                   
|Class B Common Stock       |  | 84,632,604 shares                    

DOCUMENTS INCORPORATED BY REFERENCE:












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##### 










NEXTEL PARTNERS, INC.


FORM 10-K


Table of Contents


|                 |  |                                                                                                                      |     |      |     |  |  | 
|---------------- |  | -------------------------------------------------------------------------------------------------------------------- | --- | ---- | --- |  |  | 
|                 |  |                                                                                                                      |     | Page |    
|                 |  |                                                                                                                      |     |      |    
|PART I          
|Item 1.          |  | Business                                                                                                             |     |      | 3   | 
|Item 1A.         |  | Risk Factors                                                                                                         |     |      | 28  | 
|Item 1B.         |  | Unresolved Staff Comments                                                                                            |     |      | 40  | 
|Item 2.          |  | Properties                                                                                                           |     |      | 40  | 
|Item 3.          |  | Legal Proceedings                                                                                                    |     |      | 40  | 
|Item 4.          |  | Submission of Matters to a Vote of Security
    Holders                                                              |     |      | 43  | 
|                
|PART II         
|Item 5.          |  | Market for Registrants Common Equity,
    Related Stockholder Matters and Issuer Purchases of Equity
    Securities |     |      | 44  | 
|Item 6.          |  | Selected Financial Data                                                                                              |     |      | 45  | 
|Item 7.          |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operation                             |     |      | 50  | 
|Item 7A.         |  | Quantitative and Qualitative Disclosures
    about Market Risk                                                       |     |      | 72  | 
|Item 8.          |  | Financial Statements and Supplementary
    Data                                                                      |     |      | 75  | 
|Item 9.          |  | Changes in and Disagreements With
    Accountants on Accounting and Financial Disclosure                             |     |      | 113 | 
|Item 9A.         |  | Controls and Procedures                                                                                              |     |      | 113 | 
|Item 9B.         |  | Other Information                                                                                                    |     |      | 113 | 
|                
|PART III        
|Item 10.         |  | Directors and Executive Officers of the
    Registrant                                                               |     |      | 113 | 
|Item 11.         |  | Executive Compensation                                                                                               |     |      | 119 | 
|Item 12.         |  | Security Ownership of Certain Beneficial
    Owners and Management and Related Stockholder Matters                   |     |      | 132 | 
|Item 13.         |  | Certain Relationships and Related
    Transactions                                                                   |     |      | 135 | 
|Item 14.         |  | Principal Accounting Fees and Services                                                                               |     |      | 138 | 
|                
|PART IV         
|Item 15.         |  | Exhibits, Financial Statement Schedules                                                                              |     |      | 141 | 
|Signatures       |  |                                                                                                                      | 142 |     
|EXHIBIT 10.14(A)
|EXHIBIT 10.21(A)
|EXHIBIT 10.66(A)
|EXHIBIT 10.75(A)
|EXHIBIT 10.80(a)
|EXHIBIT 10.80(b)
|EXHIBIT 10.82   
|Exhbit 10.84(a) 
|Exhibit 10.85(a)
|EXHIBIT 10.86   
|EXHIBIT 21      
|EXHIBIT 23.1    
|EXHIBIT 31.1    
|EXHIBIT 31.2    
|EXHIBIT 32.1    
|EXHIBIT 32.2    



2



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PART I







|        |         
|------- | --------
|Item 1. | Business

10-K,


10-K


Overview


® sm e-mail.




3



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| |   |                                                                                                                                                                                                                                                                                                                  
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | digital cellular voice, including advanced calling features such
    as speakerphone, conference calling, voicemail, call forwarding
    and additional line service;                                                                                                                                            
|
| |  | Direct
    Connect®
    service, the digital walkie-talkie service that allows customers
    to instantly connect with business associates, family and
    friends without placing a phone call;                                                                                                                 
|
| |  | short messaging, the service that utilizes the Internet to keep
    customers connected to clients, colleagues and family with text,
    numeric and two-way messaging; and                                                                                                                                      
|
| |  | Nextel
    Online®
    services, which provide customers with Internet-ready handsets
    access to the World Wide Web and an organizations internal
    database, as well as web-based applications such as
    e-mail, address books,
    calendars and advanced
    Javatm
    enabled business applications.



Strategic Alliance with Nextel






| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Nextel Brand and Differentiated Marketing Programs. We
    have the exclusive right to build, operate and provide fully
    integrated digital wireless communication services using the
    integrated Digital Enhanced Network, or iDEN, platform developed
    by Motorola, Inc. (Motorola) and the Nextel brand
    name in all of our markets.                                                                                                                                                                                                                                                       
|
| |  | Integrated Nationwide Network. Our network is
    operationally seamless with Sprint Nextels iDEN network,
    enabling our respective customers to utilize the same voice and
    data services when operating on either companys iDEN
    network.                                                                                                                                                                                                                                                                                                                                                      
|
| |  | Exclusive Roaming Arrangement. We have the exclusive
    right to provide wireless communication services to Sprint
    Nextels iDEN customers who roam into our markets. Pursuant
    to our operating agreements with Nextel WIP, Sprint
    Nextels iDEN subscribers generate revenue for us when they
    roam into our markets, and we pay Sprint Nextel when our
    subscribers roam into its markets. For the year ended
    December 31, 2005, we earned $211.6 million in roaming
    revenues from Sprint Nextel customers who utilized our portion
    of the Nextel Digital Wireless Network.
|
| |  | Coordinated Infrastructure Development. In exchange for a
    fee, based on Sprint Nextels cost to provide the service,
    we have the right to utilize portions of Sprint Nextels
    iDEN network infrastructure, including certain switching
    facilities and network monitoring systems, until our customer
    volume makes it advantageous for us to build our own. The
    operating agreements with Nextel WIP also provide us access to
    technology improvements resulting from Sprint Nextels
    research and development.                                                              
|
| |  | Supplier Relationships. Sprint Nextel assists us in
    obtaining substantially the same terms it receives from
    suppliers of equipment and services. We also have the ability to
    develop our own relationships with suppliers of our choice.                                                                                                                                                                                                                                                                                                                                                        
|
| |  | National Accounts. Numerous offices and branches of
    legacy Nextels national accounts have become our customers
    when we have launched service in their area.                                                                                                                                                                                                                                                                                                                                                                                                                                        
|
| |  | International Roaming. We have the ability to either
    operate under Nextels international roaming agreements or,
    under certain circumstances, to require Nextel WIP to provide us
    with comparable international roaming capabilities under its
    agreements with international carriers. Accordingly, our
    customers are able to travel worldwide and still receive the
    benefits of their Sprint Nextel iDEN-                                                                                                                                                                          

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| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | based service. For example, in coordination with Sprint Nextel,
    our customers have the ability to roam in the Mexico market area
    where NII Holdings, Inc. offers iDEN-based services and also in
    the Canadian market areas where TELUS offers iDEN-based
    services. Furthermore, by using the Motorola i920 and i930
    handsets, dual mode handsets that operate on both the iDEN
    technology and the GSM 900 MHz standard, our customers
    receive digital roaming services on iDEN 800 MHz and GSM
    900 MHz networks in over 80 countries.





point-to






www.nextelpartners.com


Business Strategy






| |   |                                                           
| | - | ----------------------------------------------------------
| |  | Strive for 100% partner satisfaction.                     
|
| |  | Strive for 100% customer satisfaction.                    
|
| |  | Achieve targeted revenue growth with a low cost structure.

5



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| |   |                                                       
| | - | ------------------------------------------------------
| |  | Achieve win-win results through the power of teamwork.
|
| |  | Work smart while remaining humble.                    



Provide Differentiated Package of Wireless Services. four-in




one-on coast-to sm


Deliver Unparalleled Customer Service. four-in


Target Business Customers. business-to




6



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Maintain a Robust, Reliable Network.








Maintain Effective Pricing Strategy with Focus on Mid-Sized
and Rural Markets.




7



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Markets




|          |  |                                                                             |  |               |            | 
|--------- |  | --------------------------------------------------------------------------- |  | ------------- | ---------- | 
|Region    |  | Markets(1)                                                                  |  | Licensed Pops |           
|          |  |                                                                             |  |               |           
|Northeast |  | Central PA (Wilkes-Barre/ Scranton/ Harrisburg/ York/ Lancaster)            |  |               | 2,958,580  | 
|          |  | Syracuse/ Utica-Rome/ Binghamton/ Elmira, NY                                |  |               | 2,064,814  | 
|          |  | Buffalo/ Jamestown, NY                                                      |  |               | 1,477,499  | 
|          |  | Western PA (Altoona/ Johnstown/ State College/ Williamsport)                |  |               | 1,351,301  | 
|          |  | Rochester, NY                                                               |  |               | 1,215,557  | 
|          |  | Albany/ Glens Falls, NY                                                     |  |               | 1,196,059  | 
|          |  | Burlington, VT                                                              |  |               | 711,939    | 
|          |  | Erie, PA                                                                    |  |               | 372,245    | 
|          |  |                                                                             |  |               |           
|          |  | Total                                                                       |  |               | 11,347,994 | 
|          |  |                                                                             |  |               |           
|Midwest   |  | Nebraska (Omaha/ Lincoln)                                                   |  |               | 1,852,085  | 
|          |  | Green Bay, WI                                                               |  |               | 1,726,194  | 
|          |  | Eastern Iowa (Waterloo/ Dubuque/ Davenport/ Cedar Rapids/ Iowa
    City)    |  |               | 1,683,014  | 
|          |  | E. Minnesota/ W. Wisconsin (Duluth/ Rochester/ Eau Claire/
    La Crosse)   |  |               | 1,502,128  | 
|          |  | Central Iowa (Des Moines)                                                   |  |               | 1,400,726  | 
|          |  | Idaho (Idaho Falls/ Pocatello/ Boise/ Twin Falls)                           |  |               | 1,087,188  | 
|          |  | Western IL (Peoria/ Springfield/ Decatur)                                   |  |               | 1,060,400  | 
|          |  | North Dakota/ Western Minnesota (Fargo/ Grand Forks)                        |  |               | 987,494    | 
|          |  | Sioux City/ Sioux Falls IA/ SD                                              |  |               | 844,418    | 
|          |  | Central IL (Champaign/ Bloomington)                                         |  |               | 727,836    | 
|          |  |                                                                             |  |               |           
|          |  | Total                                                                       |  |               | 12,871,483 | 
|          |  |                                                                             |  |               |           
|South     |  | Arkansas (Fayetteville/ Fort Smith/ Pine Bluff/ Little Rock)                |  |               | 2,465,485  | 
|          |  | South Texas (McAllen/ Harlingen/ Brownsville/ Corpus Christi/
    Victoria) |  |               | 2,126,321  | 
|          |  | West Virginia (Charleston)                                                  |  |               | 2,048,519  | 
|          |  | East Texas/ Northern Louisiana (Tyler/ Longview/ Shreveport/
    Monroe)    |  |               | 2,041,183  | 
|          |  | Indiana (Terre Haute/ Evansville/ Owensboro)                                |  |               | 1,972,669  | 
|          |  | Louisville, KY                                                              |  |               | 1,893,110  | 
|          |  | West Texas (Amarillo/ Abilene/ Lubbock/ Odessa-Midland/
    San Angelo)     |  |               | 1,800,983  | 
|          |  | Virginia (Roanoke/ Lynchburg/ Charlottesville)                              |  |               | 1,733,552  | 
|          |  | Southern Louisiana (Lafayette/ Lake Charles)                                |  |               | 1,663,877  | 
|          |  | Lexington, KY                                                               |  |               | 1,517,133  | 
|          |  | Mississippi (Hattiesburg/ Jackson)                                          |  |               | 1,457,341  | 
|          |  | Georgia (Macon-Warner Robins/ Albany)                                       |  |               | 1,338,108  | 
|          |  | Pensacola, FL                                                               |  |               | 1,206,948  | 

8



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|                  |  |                                                             |  |               |            | 
|----------------- |  | ----------------------------------------------------------- |  | ------------- | ---------- | 
|Region            |  | Markets(1)                                                  |  | Licensed Pops |           
|                  |  |                                                             |  |               |           
|                  |  | Mobile, AL                                                  |  |               | 1,067,069  | 
|                  |  | Central Texas (Temple-Killeen/ Waco/ Bryan-College Station) |  |               | 927,875    | 
|                  |  | Tennessee (Bristol/ Johnson City/ Kingsport, VA/ TN)        |  |               | 794,304    | 
|                  |  | Tallahassee, FL                                             |  |               | 745,623    | 
|                  |  | Montgomery, AL                                              |  |               | 741,949    | 
|                  |  | Augusta, GA                                                 |  |               | 610,480    | 
|                  |  | Columbus, GA                                                |  |               | 429,960    | 
|                  |  |                                                             |  |               |           
|                  |  | Total                                                       |  |               | 28,582,489 | 
|                  |  |                                                             |  |               |           
|Noncontinental US |  | Hawaii (all islands)                                        |  |               | 1,262,840  | 
|                  |  |                                                             |  |               |           
|                  |  | Total                                                       |  |               | 54,064,806 | 
|                  |  |                                                             |  |               |           






|    |                                                                                                                                                                                                                                                                                                                                                                
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | We may, from time to time, reconfigure our markets to take
    advantage of build-out and management synergies and marketing
    opportunities. Accordingly, the way we group our markets may
    increase or decrease the total number of markets and,
    correspondingly, increase or decrease the population estimates
    for the newly configured market.





General Business


Revenues. 10-K.


Distribution Channels.


9



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Business Developments




| |                                 
| | --------------------------------
| | Customer Products and Solutions.

Products. tm


sm first-of sm


sm back-up sm push-to sm




® four-in tm tm tm


Wireless Data Solutions.




10



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Walkie-Talkie Services.






Capital Structure Transactions.


Debt Redemption. 1 2


Credit Facility Refinancing.


The Nextel WIP Operating Agreements






11



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| |   |                                                                                                                                                                                                                                
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | use of some of Sprint Nextels switching facilities in
    exchange for a per-minute fee based on Nextels national
    average cost for such service, including financing and
    depreciation costs;                         
|
| |  | monitoring of switches owned by us on a
    24-hour per day basis
    by Sprint Nextels network monitoring center in exchange
    for a fee based on pro-rata costs;                                                          
|
| |  | use of Sprint Nextels back-office systems in order to
    support customer activation, billing and customer care for
    national accounts in exchange for fees based on Nextels
    national average cost for such services;
|
| |  | use of the Nextel brand name and certain trademarks and service
    marks, and the marketing and advertising materials developed by
    Sprint Nextel, in exchange for a marketing services fee
    described below;           
|
| |  | access to technology enhancements and improvements; and                                                                                                                                                                        
|
| |  | assisting us in contracting with Sprint Nextels suppliers
    on substantially the same terms as Sprint Nextel wherever
    possible.                                                                                         





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | our marketing service fee, which started accruing in January
    2003, was 0.5% of gross monthly service revenues, excluding
    roaming revenues, from January 1, 2003 through
    December 31, 2004 and increased to 1.0% of gross monthly
    service revenues, excluding roaming revenues, thereafter; and                                                                                                                                                                                                                                                  
|
| |  | when a Sprint Nextel subscriber roams on our portion of the
    network we receive a certain percentage of the service revenues
    generated by the roaming subscriber. That percentage was 90% of
    the service revenues in 2000, 85% in 2001 and 80% in 2002 and
    thereafter, subject to upward or downward adjustment based on
    the relative customer satisfaction levels of Sprint Nextel and
    us as measured by a customer satisfaction survey administered on
    a regular basis by a third-party vendor engaged by Sprint Nextel
    and us.





| |   |                                                                                                                                                                             
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | we generally are required to offer the full complement of
    products and services offered by Sprint Nextel in comparable
    service areas;                               
|
| |  | we must abide by Sprint Nextels standard pricing structure
    (principally home-rate roaming), but we need not charge the same
    prices as Sprint Nextel;               
|
| |  | we must meet minimum network performance and customer care
    thresholds; and                                                                                              
|
| |  | we must adhere to standards in other operating areas, such as
    frequency design, site acquisition, construction, cell site
    maintenance and marketing and advertising.





| |   |                                                                                          
| | - | -----------------------------------------------------------------------------------------
| |  | integration of our cell sites into Sprint Nextels national
    switching infrastructure;
|
| |  | shared coverage of Direct Connect service to communities of
    interest;                
|
| |  | minimized costs to us and to Sprint Nextel; and                                          
|
| |  | maximized quality of service to our customers and to Sprint
    Nextels customers.      

12



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Overview of the U.S. Wireless Communications Industry
















13



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The Nextel Digital Wireless Network










14



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one-to push-to








Competition


T-Mobile




| |   |                                                                                                                                                                            
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the continued satisfactory performance of the iDEN technology
    especially in relation to emerging next generation wireless
    technologies;                            
|
| |  | the maintenance and competitive coverage of areas throughout our
    markets;                                                                                              
|
| |  | the establishment and maintenance of roaming service among our
    market areas and those of Nextel; and                                                                   
|
| |  | the development of cost-effective direct and indirect channels
    of distribution for our products and services on our portion of
    the Nextel Digital Wireless Network.



15



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17



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Public Safety Spectrum Realignment.


18



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19



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Regulation


Federal Regulation


SMR Regulation.








| |   |                                                                                                                                                                                                                                                    
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the smaller portion of the radio spectrum allocated to SMR;                                                                                                                                                                                        
|
| |  | the assignment of SMR frequencies on a non-contiguous basis;                                                                                                                                                                                       
|
| |  | regulations and procedures that initially served to spread
    ownership of SMR licenses among a large number of operators in
    each market, further limiting the amount of SMR spectrum
    available to any particular operator; and           
|
| |  | older SMR technology, which employed analog transmission and a
    single site, high-power transmitter configuration, precluding
    the use of any given SMR frequency by more than one caller at a
    time within a given licensed service area.

one-to one-to






20



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pre-1997




Federal Regulation of Wireless Operators.




21



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23



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24



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State Regulation and Local Approvals.






Employees




Available Information


www.NextelPartners.com. 10-K, 10-Q, 8-K,


25



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Executive Officers of the Registrant




|               |  |     |    |  |          |                                                             
|-------------- |  | --- | -- |  | -------- | ------------------------------------------------------------
|Name           |  | Age |    |  | Position
|               |  |     |    |  |         
|John Chapple   |  |     | 52 |  |          | President, Chief Executive Officer and Chairman of the Board
|Barry Rowan    |  |     | 49 |  |          | Executive Vice President, Chief Financial Officer           
|David Aas      |  |     | 52 |  |          | Vice President, Chief Technology Officer                    
|Donald Manning |  |     | 45 |  |          | Vice President, General Counsel and Secretary               
|James Ryder    |  |     | 36 |  |          | Vice President, Chief Operating Officer                     
|Philip Gaske   |  |     | 47 |  |          | Vice President, Customer Care                               

John Chapple


Barry Rowan summa cum laude


David Aas


26



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Donald Manning 11-state


James Ryder


Philip Gaske




Forward-Looking Statements


Our forward-looking statements are subject to a variety of
factors that could cause actual results to differ materially
from current expectations.






| |   |                                                                                                                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | our business plan, its advantages and our strategy for
    implementing our plan;                                                                                                                           
|
| |  | the success of efforts to improve and enhance, and
    satisfactorily address any issues relating to, our network
    performance;                                                                          
|
| |  | the characteristics of the geographic areas and occupational
    markets that we are targeting in our portion of the Nextel
    Digital Wireless Network;                                                   
|
| |  | our ability to attract and retain customers;                                                                                                                                                                
|
| |  | our anticipated capital expenditures, funding requirements and
    contractual obligations, including our ability to access
    sufficient debt or equity capital to meet operating and
    financing needs;

27



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| |   |                                                                                                                                                                                                                                                                                                                                                                            
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the availability of adequate quantities of system infrastructure
    and subscriber equipment and components to meet our service
    deployment, marketing plans and customer demand;                                                                                                                                                                                      
|
| |  | no significant adverse change in Motorolas ability or
    willingness to provide handsets and related equipment and
    software applications or to develop new technologies or features
    for us, or in our relationship with it;                                                                                                                                      
|
| |  | our ability to achieve and maintain market penetration and
    average subscriber revenue levels;                                                                                                                                                                                                                                                                          
|
| |  | our ability to successfully scale, in some circumstances in
    conjunction with third parties under our outsourcing
    arrangements, our billing, collection, customer care and similar
    back-office operations to keep pace with customer growth,
    increased system usage rates and growth in levels of accounts
    receivables being generated by our customers;
|
| |  | the development and availability of new handsets with expanded
    applications and features, including those that operate using
    the 6:1 voice coder, and market acceptance of such handsets and
    service offerings;                                                                                                                                                
|
| |  | the availability and cost of acquiring additional spectrum;                                                                                                                                                                                                                                                                                                                
|
| |  | the quality and price of similar or comparable wireless
    communications services offered or to be offered by our
    competitors, including providers of PCS and cellular services
    including, for example, two-way walkie- talkie services that
    have been introduced by several of our competitors;                                                             
|
| |  | future legislation or regulatory actions relating to SMR
    services, other wireless communications services or
    telecommunications services generally;                                                                                                                                                                                                                
|
| |  | the potential impact on us of the reconfiguration of the
    800 MHz band required by the Orders;                                                                                                                                                                                                                                                                          
|
| |  | delivery and successful implementation of any new technologies
    deployed in connection with any future enhanced iDEN or next
    generation or other advanced services we may offer;                                                                                                                                                                                    
|
| |  | the costs of compliance with regulatory mandates, particularly
    the requirement to deploy location-based 911 capabilities and
    wireless number portability; and                                                                                                                                                                                                      
|
| |  | the anticipated closing of the acquisition of our shares of
    Class A common stock by Sprint Nextel.                                                                                                                                                                                                                                                                     






|         |             
|-------- | ------------
|Item 1A. | Risk Factors

The following risk factors and other information included in
this Annual Report on
Form 10-K should
be carefully considered. The risks and uncertainties described
below are not the only ones we face. Additional risks and
uncertainties not presently known to us or that we currently
deem immaterial also may impair our business operations. If any
of the following risks occur, our business, operating results
and financial condition could be seriously harmed.




| |                                                                                                                
| | ---------------------------------------------------------------------------------------------------------------
| | If Sprint Nextel experiences financial or operational
    difficulties, our business may be adversely affected.

10-K


28



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| |                                                                                                                                      
| | -------------------------------------------------------------------------------------------------------------------------------------
| | Nextel WIP is obligated to purchase all of our outstanding
    Class A common stock as a result of the Sprint Nextel
    transaction.

The completion of the acquisition is subject to customary
regulatory approvals including the approval of the FCC. If the
FCC fails to approve the transfer of control of our licenses to
Sprint Nextel or substantially delays its approval, our ability
to successfully operate our business could be impaired.




| |                                                                                                                                                                                                                             
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our highly leveraged capital structure and other factors
    could limit both our ability to obtain additional financing and
    our growth opportunities and could adversely affect our business
    in several other ways.

1 2 1 2






| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | it limits our ability to obtain additional financing, if needed,
    to implement any enhancement of our portion of the Nextel
    Digital Wireless Network, including any enhanced iDEN services,
    to expand wireless voice capacity, enhanced data services or
    potential next-generation mobile wireless services,
    to cover our cash flow deficit or for working capital, other
    capital expenditures, debt service requirements or other
    purposes;
|
| |  | it will require us to dedicate a substantial portion of our
    operating cash flow to fund interest expense on our credit
    facility and other indebtedness, reducing funds available for
    our operations or other purposes;                                                                                                                                                                                                                                       
|
| |  | it makes us vulnerable to interest rate fluctuations because our
    credit facility term loan bears interest at variable
    rates; and                                                                                                                                                                                                                                                                                                                                 
|
| |  | it limits our ability to compete with competitors who are not as
    highly leveraged, especially those who may be able to price
    their service packages at levels below those which we can or are
    willing to match.                                                                                                                                                                                                                                              



29



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| |                                                                                                                                                                                                                                                       
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We have a history of operating losses, may incur operating
    losses in the future and may not be able to generate the
    earnings necessary to fund our operations, sustain the continued
    growth of our business or repay our debt obligations.





| |                                                                                                                   
| | ------------------------------------------------------------------------------------------------------------------
| | Our existing debt agreements contain restrictive and
    financial covenants that limit our operating flexibility.





| |   |                                                                               
| | - | ------------------------------------------------------------------------------
| |  | incur additional debt;                                                        
|
| |  | pay dividends or distributions on, or redeem or repurchase,
    capital stock;
|
| |  | create liens on assets;                                                       
|
| |  | make investments, loans or advances;                                          
|
| |  | issue or sell capital stock of certain of our subsidiaries;                   
|
| |  | enter into transactions with affiliates; or                                   
|
| |  | engage in any business other than telecommunications.                         



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| |                                                                                                                                              
| | ---------------------------------------------------------------------------------------------------------------------------------------------
| | Our future performance will depend on our and
    Nextels ability to succeed in the highly competitive
    wireless communications industry.





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | If the wireless communications technology that we and Nextel use
    does not continue to perform in a manner that meets customer
    expectations, or if Sprint Nextel abandons, sells or otherwise
    decreases or eliminates its support of the Nextel Digital
    Wireless Network and the iDEN technology, we will be unable to
    attract and retain customers. Customer acceptance of the
    services we offer is and will continue to be affected by
    technology-based differences and by the operational performance
    and reliability of system transmissions on the Nextel Digital
    Wireless Network. If we are unable to address and satisfactorily
    resolve performance or other transmission quality issues as they
    arise, including transmission quality issues on Sprint
    Nextels portion of the Nextel Digital Wireless Network, we
    may have difficulty attracting and retaining customers, which
    would adversely affect our revenues.
|
| |  | As personal communication services and cellular operators, such
    as Verizon Wireless, Cingular and Alltel, begin to offer two-way
    radio dispatch services, our historical competitive advantage of
    being uniquely able to combine that service with our mobile
    telephone service may be impaired. Further, some of our
    competitors have attempted to compete with Direct Connect by
    offering unlimited
    mobile-to-mobile
    calling plan features and reduced rate calling plan features for
    designated groups. If these calling plan modifications are
    perceived by our existing and potential customers as viable
    substitutes for our differentiated services, our business may be
    adversely affected.                                                                                                                                                                                                                                  
|
| |  | Because the Nextel Digital Wireless Network does not currently
    provide roaming or similar coverage on a nationwide basis that
    is as extensive as is available through most cellular and
    personal communication services providers, we may not be able to
    compete effectively against those providers.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|
| |  | In addition, some of our competitors provide their customers
    with handsets with both digital and analog capability, which
    expands their coverage, while we have only digital capability.
    We cannot be sure that we, either alone or together with Sprint
    Nextel, will be able to achieve comparable system coverage or
    that a sufficient number of customers or potential customers
    will be willing to accept system coverage limitations as a
    trade-off for our multi-function wireless communications package.                                                                                                                                                                                                                                                                                                                                                                                                                                         
|
| |  | We do not have the extensive direct and indirect channels of
    products and services distribution that are available to some of
    our competitors. The lack of these distribution channels could
    adversely affect our operating results. Although we have
    expanded our distribution channels to include retail locations,
    we cannot assure you that these distribution channels will be
    successful. Moreover, many of our competitors have established
    extensive networks of retail locations, including locations
    dedicated solely to their products, and multiple distribution
    channels and, therefore, have access to more potential customers
    than we do.                                                                                                                                                                                                                                                                                    
|
| |  | Because of their greater resources and potentially greater
    leverage with multiple suppliers, some of our competitors may be
    able to offer handsets and services to customers at prices that
    are below the prices that we can offer for comparable handsets
    and services. If we cannot, as a result, compete effectively
    based on the price of our product and service offerings, our
    revenues and growth may be adversely affected.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          

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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The wireless telecommunications industry is experiencing
    significant technological change. Our digital technology could
    become obsolete or it may not be a suitable platform for the
    implementation of new and emerging technologies and service
    offerings. We rely on digital technology that is not compatible
    with, and that competes with, other forms of digital and
    non-digital voice communication technology.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|
| |  | Competition among these differing technologies could result in
    the following: segment the user markets, which could reduce
    demand for specific technologies, including our technology;
    reduce the resources devoted by third-party suppliers, including
    Motorola, which supplies all of our current digital technology,
    to developing or improving the technology for our systems; and
    otherwise adversely affect market acceptance of our services.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|
| |  | We offer our subscribers access to digital two-way mobile data
    and Internet connectivity under the brand name Nextel Online. We
    cannot be sure that these services will continue to perform
    satisfactorily, be utilized by a sufficient number of our
    subscribers or produce sufficient levels of customer
    satisfaction or revenues. Because we have less spectrum than
    some of our competitors, and because we have elected to defer
    the implementation of next-generation services, any digital
    two-way mobile data and Internet connectivity services that we
    may offer could be significantly limited compared to those
    services offered by other wireless communications providers with
    larger spectrum positions. The success of these new services
    will be jeopardized if: we are unable to offer these new
    services profitably; these new service offerings adversely
    impact the performance or reliability of the Nextel Digital
    Wireless Network; we, Sprint Nextel or third-party developers
    fail to develop new applications for our customers; or we
    otherwise do not achieve a satisfactory level of customer
    acceptance and utilization of these services.
|
| |  | We expect that as the number of wireless communications
    providers in our market areas increases, including providers of
    both digital and analog services, our competitors prices
    in these markets will decrease. We may encounter further market
    pressures to reduce our digital wireless network service
    offering prices; restructure our digital wireless network
    service offering packages to offer more value; or respond to
    particular short-term, market-specific situations, for example,
    special introductory pricing or packages that may be offered by
    new providers launching their services in a particular market. A
    reduction in our pricing would likely have an adverse effect on
    our revenues and operating results.                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|
| |  | Because of the numerous features we offer and the fact that
    Motorola is our sole source of handsets (with the exception of
    our Blackberry handsets, which are available only from RIM), our
    mobile handsets are, and are likely to remain, significantly
    more expensive than mobile analog telephones and are, and are
    likely to remain, somewhat more expensive than digital cellular
    or personal communication services telephones that do not
    incorporate a comparable multi-function capability. The higher
    cost of our equipment may make it more difficult or less
    profitable to attract customers who do not place a high value on
    our multi-service offering. This may reduce our growth
    opportunities or profitability.                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|
| |  | Consolidation has and may continue to result in additional
    large, well-capitalized competitors with substantial financial,
    technical, marketing and other resources. For example, the
    acquisition of AT&T Wireless by Cingular Wireless, which
    closed in October 2004, created the largest wireless phone
    provider in the United States, with significantly more resources
    and a larger customer base than we or any other competing
    company. In addition, in August 2005, Sprint acquired Nextel and
    Alltel Communications acquired regional wireless service
    provider Western Wireless. Late in 2005, Alltel announced the
    acquisition of Midwest Wireless, a cellular and PCS licensee.
    This concentration of resources in the marketplace could result
    in increased cost efficiency for the acquiring companies,
    allowing them to obtain more favorable terms from their
    suppliers, which could enable them to discount their handsets or
    services to customers.                                                                                                                                                                                                                 

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| |                                                                                                                                                                                            
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Any failure to effectively integrate our portion of the
    Nextel Digital Wireless Network with Sprint Nextels
    portion would have an adverse effect on our results of
    operations.







| |                                                                                                                                                                                                           
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Difficulties in operating our portion of the Nextel
    Digital Wireless Network could increase the costs of operating
    the network, which would adversely affect our ability to
    generate revenues.





| |   |                                                                                                           
| | - | ----------------------------------------------------------------------------------------------------------
| |  | select and acquire appropriate sites for our transmission
    equipment, or cell sites;                   
|
| |  | purchase and install low-power transmitters, receivers and
    control equipment, or base radio equipment;
|
| |  | build out the physical infrastructure;                                                                    
|
| |  | obtain interconnection services from local telephone service
    carriers on a timely basis; and          
|
| |  | test the cell site.                                                                                       





| |   |                                                                                                                                                                                                                                                                                                           
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | lease or obtain rights to sites for the location of our base
    radio equipment;                                                                                                                                                                                                                         
|
| |  | obtain necessary zoning and other local approvals with respect
    to the placement, construction and modification of our
    facilities;                                                                                                                                                                 
|
| |  | acquire additional necessary radio frequencies from third
    parties or exchange radio frequency licenses with Nextel WIP;                                                                                                                                                                               
|
| |  | commence and complete the construction of sites for our
    equipment in a timely and satisfactory manner; or                                                                                                                                                                                             
|
| |  | obtain necessary approvals, licenses or permits from federal,
    state or local agencies, including land use regulatory approvals
    and approvals from the Federal Aviation Administration and
    Federal Communications Commission with respect to the
    transmission towers that we will be using.



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| |                                                                                                                                                                                                                                                                         
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | If we do not offer services that Nextel WIP requires us to
    offer or we fail to meet performance standards, we risk
    termination of our agreements with Nextel WIP, which would
    eliminate our ability to carry out our current business plan and
    strategy.





| |                                                                                                                                                                                    
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We may be required to implement material changes to our
    business operations to the extent these changes are adopted by
    Nextel, which may not be beneficial to our business.





| |                                                                                                                                                                                                                                                      
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The iDEN transmission technology used by us and Nextel is
    different from that used by most other wireless carriers, and,
    as a result, we might not be able to keep pace with industry
    standards if more widely used technologies advance.







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| |                                                                                                                                                                                                            
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We are dependent on Motorola for telecommunications
    equipment necessary for the operation of our business, and any
    failure of Motorola to perform would adversely affect our
    operating results.









| |                                                                                                                                        
| | ---------------------------------------------------------------------------------------------------------------------------------------
| | Costs and other aspects of a future deployment of advanced
    digital technology could adversely affect our operations and
    growth.



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| |                                                                                                                                 
| | --------------------------------------------------------------------------------------------------------------------------------
| | We may not be able to obtain additional spectrum, which
    may adversely impact our ability to implement our business
    plan.





| |                                                                                               
| | ----------------------------------------------------------------------------------------------
| | Our network may not have sufficient capacity to support
    our anticipated subscriber growth.





| |   |                                                                                                                                          
| | - | -----------------------------------------------------------------------------------------------------------------------------------------
| |  | our ability to economically expand the capacity and coverage of
    our network;                                                         
|
| |  | the ability to obtain additional spectrum when and where
    required;                                                                   
|
| |  | the availability of wireless handsets of the appropriate model
    and type to meet the demands and preferences of our
    customers; and
|
| |  | the ability to obtain and construct additional cell sites and
    obtain other infrastructure equipment.                                 





| |                                                                                                         
| | --------------------------------------------------------------------------------------------------------
| | Potential systems limitations on adding subscribers may
    adversely affect our growth and performance.





| |   |                                                                                                                                                                                                                                                
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | inadequate or inefficient systems or business processes and
    related support functions, especially related to customer
    service and accounts receivable collection; and                                                                  
|
| |  | an inappropriately long length of time between a customers
    order and activation of service for that customer, especially
    because the current activation time for our new customers is
    longer than that of some of our competitors.



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| |                                                                                                                                                                                                                                                                                                                                
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | If an event constituting a change of control or
    fundamental change occurs under our indentures, we may be
    required to redeem or repurchase all of our outstanding notes
    even if our credit facility prohibits such redemption or
    repurchase or we lack the resources to make such redemption or
    repurchase.





| |                                                                                                                                                                       
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We are dependent on our current key personnel, and our
    success depends upon our continued ability to attract, train and
    retain additional qualified personnel.





| |                                                                                                                                         
| | ----------------------------------------------------------------------------------------------------------------------------------------
| | Concerns that the use of wireless telephones may pose
    health and safety risks may discourage the use of our wireless
    telephones.









| |                                                                                                                                                                          
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Regulatory authorities exercise considerable power over
    our operations, which could be exercised against our interests
    and impose additional unanticipated costs.



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| |                                                                                                                        
| | -----------------------------------------------------------------------------------------------------------------------
| | We were not able to meet a December 31, 2005 FCC
    deadline with respect to A-GPS handset subscriber
    penetration.









| |                                                                                                                                                                        
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Nextel WIP has contractual approval rights that allow it
    to exert significant influence over our operations, and it can
    acquire additional shares of our stock.





| |   |                                                                                                                                                                                                               
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | make a material change in our technology;                                                                                                                                                                     
|
| |  | modify our business objectives in any way that is inconsistent
    with our objectives under our material agreements, including our
    operating agreements with Nextel WIP;                                 
|
| |  | dispose of all or substantially all of our assets;                                                                                                                                                            
|
| |  | make a material change in or broaden the scope of our business
    beyond our current business objectives; or                                                                                                 
|
| |  | enter into any agreement the terms of which would be materially
    altered in the event that Nextel WIP either exercises or
    declines to exercise its rights to acquire additional shares of
    our stock

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| |  |                                                                                                                      
| |  | ---------------------------------------------------------------------------------------------------------------------
| |  | under the terms of the amended and restated shareholders
    agreement or our restated certificate of incorporation.

WIP-designated






| |                                                                                                                                                                                              
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Significant stockholders represented on our board of
    directors can exert significant influence over us and may have
    interests that conflict with those of our other
    stockholders.









| |                                                                                                     
| | ----------------------------------------------------------------------------------------------------
| | Anti-takeover provisions could prevent or delay a change
    of control that stockholders may favor.



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| |                                                                                                                                                                                                                                                                                                                                                                                  
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Regulations to which we are subject may affect the ability
    of some of our investors to have an equity interest in us.
    Additionally, our restated certificate of incorporation contains
    provisions that allow us to redeem shares of our securities in
    order to maintain compliance with applicable federal and state
    telecommunications laws and regulations.








|         |                          
|-------- | -------------------------
|Item 1B. | Unresolved Staff Comments








|        |           
|------- | ----------
|Item 2. | Properties










|        |                  
|------- | -----------------
|Item 3. | Legal Proceedings

et al


40



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et al et al et al et al et al et al


41



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et al C-695


et al et al et al






| |   |                                                                                                                                                                                                                                                                                                                  
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The changes that Nextel and Sprint had announced they were
    planning to make with respect to branding after the close of the
    Sprint Nextel merger would violate the joint venture agreement
    if we could not use the same brand identity that Nextel used
    after the merger, i.e., the Sprint brand.
|
| |  | Other operational changes that we believed Nextel and Sprint
    planned to implement after the Sprint Nextel merger (including,
    without limitation, changes with respect to marketing and
    national accounts) would violate the joint venture agreement.                                                 
|
| |  | The operations of the combined Sprint Nextel could violate our
    exclusivity rights under the joint venture agreement.                                                                                                                                                                                         
|
| |  | Nextel and Nextel WIP had not complied with their obligation to
    permit us to participate in and contribute to discussions
    regarding branding and a variety of other operational matters.                                                                                                                 





42



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|        |                                                    
|------- | ---------------------------------------------------
|Item 4. | Submission of Matters to a Vote of Security Holders





|                 |  |       |             | 
|---------------- |  | ----- | ----------- | 
|                 |  | Votes |            
|                 |  |       |            
|For              |  |       | 158,199,276 | 
|Against          |  |       | 57,691      | 
|Abstain          |  |       | 99,286      | 
|Broker Non-votes |  |       | 27,379,260  | 



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PART II







|        |                                                                                                                     
|------- | --------------------------------------------------------------------------------------------------------------------
|Item 5. | Market for Registrants Common Equity, Related
    Stockholder Matters and Issuer Purchases of Equity
    Securities

Market for Common Stock




Quarterly Common Stock Price Ranges for the Year Ended:


|                  |  |      |       |  |     |   |       | 
|----------------- |  | ---- | ----- |  | --- | - | ----- | 
|                  |  | High |       |  | Low |  
|                  |  |      |       |  |     |  
|December 31, 2005 |  |      |       |  |     |   |       | 
|First Quarter     |  | $    | 21.99 |  |     | $ | 19.08 | 
|Second Quarter    |  | $    | 26.81 |  |     | $ | 21.76 | 
|Third Quarter     |  | $    | 27.40 |  |     | $ | 23.76 | 
|Fourth Quarter    |  | $    | 28.00 |  |     | $ | 24.29 | 
|December 31, 2004 |  |      |       |  |     |   |       | 
|First Quarter     |  | $    | 15.20 |  |     | $ | 11.65 | 
|Second Quarter    |  | $    | 16.80 |  |     | $ | 12.47 | 
|Third Quarter     |  | $    | 17.50 |  |     | $ | 13.70 | 
|Fourth Quarter    |  | $    | 20.32 |  |     | $ | 15.82 | 

Number of Stockholders of Record




Dividends




Equity Compensation Plan




44



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|        |                        
|------- | -----------------------
|Item 6. | Selected Financial Data

10-K. 10-K. 10-K.


|                                                                                                      |                                                                                                                          |                                          |           |           |      |   |           |           |   |             |           |          |   |      |          |          |   |   |          |          |  
|----------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------ | ---------------------------------------- | --------- | --------- | ---- | - | --------- | --------- | - | ----------- | --------- | -------- | - | ---- | -------- | -------- | - | - | -------- | -------- | -
|                                                                                                      |                                                                                                                          | For the Year Ended December 31,          |          
|                                                                                                      |                                                                                                                          |                                          |          
|                                                                                                      |                                                                                                                          | 2005                                     |           |           | 2004 |   |           | 2003      |   |             | 2002      |          |   | 2001 |         
|                                                                                                      |                                                                                                                          |                                          |           |           |      |   |           |           |   |             |           |          |   |      |         
|                                                                                                      |                                                                                                                          |                                          |           |           |      |   |           |           |   | (Unaudited) |          
|                                                                                                      |                                                                                                                          | (In thousands, except per share amounts) |          
|Consolidated Statements of Operations Data:                                                           |                                                                                                                          |                                          |           |           |      |   |           |           |   |             |           |          |   |      |          |          |   |   |          |         
|Operating revenues:                                                                                   |                                                                                                                          |                                          |           |           |      |   |           |           |   |             |           |          |   |      |          |          |   |   |          |         
|                                                                                                      | Service revenues(1)                                                                                                      |                                          | $         | 1,695,017 |      |   | $         | 1,291,352 |   |             | $         | 964,386  |   |      | $        | 646,169  |   |   | $        | 363,573  |  
|                                                                                                      | Equipment revenues(1)                                                                                                    |                                          |           | 106,634   |      |   |           | 85,784    |   |             |           | 60,826   |   |      |          | 28,229   |   |   |          | 15,735   |  
|                                                                                                      |                                                                                                                          |                                          |           |           |      |   |           |           |   |             |           |          |   |      |         
|Total revenues                                                                                        |                                                                                                                          |                                          | 1,801,651 |           |      |   | 1,377,136 |           |   |             | 1,025,212 |          |   |      | 674,398  |          |   |   | 379,308  |         
|                                                                                                      |                                                                                                                          |                                          |           |           |      |   |           |           |   |             |           |          |   |      |         
|Operating expenses:                                                                                   |                                                                                                                          |                                          |           |           |      |   |           |           |   |             |           |          |   |      |          |          |   |   |          |         
|                                                                                                      | Cost of service revenues (excludes depreciation of $137,488,
    $121,644, $109,572, $85,750, and $62,899, respectively) |                                          |           | 432,248   |      |   |           | 361,059   |   |             |           | 322,475  |   |      |          | 271,420  |   |   |          | 196,002  |  
|                                                                                                      | Cost of equipment revenues(1)                                                                                            |                                          |           | 178,261   |      |   |           | 152,557   |   |             |           | 121,036  |   |      |          | 90,840   |   |   |          | 61,146   |  
|                                                                                                      | Selling, general and administrative                                                                                      |                                          |           | 615,944   |      |   |           | 492,335   |   |             |           | 402,300  |   |      |          | 313,668  |   |   |          | 210,310  |  
|                                                                                                      | Stock-based compensation (primarily selling, general and
    administrative related)                                     |                                          |           | 639       |      |   |           | 755       |   |             |           | 1,092    |   |      |          | 12,670   |   |   |          | 30,956   |  
|                                                                                                      | Depreciation and amortization(2)                                                                                         |                                          |           | 170,133   |      |   |           | 149,708   |   |             |           | 135,417  |   |      |          | 101,185  |   |   |          | 76,491   |  
|                                                                                                      |                                                                                                                          |                                          |           |           |      |   |           |           |   |             |           |          |   |      |         
|Total operating expenses                                                                              |                                                                                                                          |                                          | 1,397,225 |           |      |   | 1,156,414 |           |   |             | 982,320   |          |   |      | 789,783  |          |   |   | 574,905  |         
|                                                                                                      |                                                                                                                          |                                          |           |           |      |   |           |           |   |             |           |          |   |      |         
|Income (Loss) from operations                                                                         |                                                                                                                          |                                          | 404,426   |           |      |   | 220,722   |           |   |             | 42,892    |          |   |      | (115,385 | )        |   |   | (195,597 | )       
|                                                                                                      |                                                                                                                          |                                          |           |           |      |   |           |           |   |             |           |          |   |      |         
|Other income (expense):                                                                               |                                                                                                                          |                                          |           |           |      |   |           |           |   |             |           |          |   |      |          |          |   |   |          |         
|                                                                                                      | Interest expense, net of capitalized interest(3)                                                                         |                                          |           | (94,901   | )    |   |           | (106,500  | ) |             |           | (152,294 | ) |      |          | (164,583 | ) |   |          | (126,096 | )
|                                                                                                      | Interest income                                                                                                          |                                          |           | 7,759     |      |   |           | 2,891     |   |             |           | 2,811    |   |      |          | 7,091    |   |   |          | 32,473   |  
|                                                                                                      | Gain (loss) on early retirement of debt                                                                                  |                                          |           | (17,707   | )    |   |           | (54,971   | ) |             |           | (95,093  | ) |      |          | 4,427    |   |   |          |         |  
|                                                                                                      |                                                                                                                          |                                          |           |           |      |   |           |           |   |             |           |          |   |      |         
|Income (Loss) before income tax provision and cumulative
    effect of change in accounting principle |                                                                                                                          |                                          | 299,577   |           |      |   | 62,142    |           |   |             | (201,684  | )        |   |      | (268,450 | )        |   |   | (289,220 | )       
|Income tax (provision) benefit                                                                        |                                                                                                                          |                                          | 305,775   |           |      |   | (8,396    | )         |   |             | (7,811    | )        |   |      | (18,188  | )        |   |   |         |         
|                                                                                                      |                                                                                                                          |                                          |           |           |      |   |           |           |   |             |           |          |   |      |         
|Income (Loss) before cumulative effect of change in
    accounting principle                          |                                                                                                                          |                                          | 605,352   |           |      |   | 53,746    |           |   |             | (209,495  | )        |   |      | (286,638 | )        |   |   | (289,220 | )       
|Cumulative effect of change in accounting principle                                                   |                                                                                                                          |                                          |          |           |      |   |          |           |   |             |          |          |   |      |         |          |   |   | (1,787   | )       
|                                                                                                      |                                                                                                                          |                                          |           |           |      |   |           |           |   |             |           |          |   |      |         
|Net Income (Loss)                                                                                     |                                                                                                                          |                                          | 605,352   |           |      |   | 53,746    |           |   |             | (209,495  | )        |   |      | (286,638 | )        |   |   | (291,007 | )       
|Mandatorily redeemable preferred stock dividends(3)                                                   |                                                                                                                          |                                          |          |           |      |   |          |           |   |             | (2,141    | )        |   |      | (3,950   | )        |   |   | (3,504   | )       
|                                                                                                      |                                                                                                                          |                                          |           |           |      |   |           |           |   |             |           |          |   |      |         
|Net Income (Loss) attributable to common stockholders                                                 |                                                                                                                          | $                                        | 605,352   |           |      | $ | 53,746    |           |   | $           | (211,636  | )        |   | $    | (290,588 | )        |   | $ | (294,511 | )       
|                                                                                                      |                                                                                                                          |                                          |           |           |      |   |           |           |   |             |           |          |   |      |         
|Net Income (Loss) per share attributable to common
    stockholders                                   |                                                                                                                          |                                          |           |           |      |   |           |           |   |             |           |          |   |      |          |          |   |   |          |         
|                                                                                                      | Basic                                                                                                                    |                                          | $         | 2.24      |      |   | $         | 0.20      |   |             | $         | (0.84    | ) |      | $        | (1.19    | ) |   | $        | (1.21    | )
|                                                                                                      |                                                                                                                          |                                          |           |           |      |   |           |           |   |             |           |          |   |      |         
|                                                                                                      | Diluted                                                                                                                  |                                          | $         | 1.96      |      |   | $         | 0.19      |   |             | $         | (0.84    | ) |      | $        | (1.19    | ) |   | $        | (1.21    | )
|                                                                                                      |                                                                                                                          |                                          |           |           |      |   |           |           |   |             |           |          |   |      |         
|Weighted average number of shares outstanding                                                         |                                                                                                                          |                                          |           |           |      |   |           |           |   |             |           |          |   |      |          |          |   |   |          |         
|                                                                                                      | Basic                                                                                                                    |                                          |           | 270,462   |      |   |           | 263,671   |   |             |           | 252,440  |   |      |          | 244,933  |   |   |          | 242,472  |  
|                                                                                                      |                                                                                                                          |                                          |           |           |      |   |           |           |   |             |           |          |   |      |         
|                                                                                                      | Diluted                                                                                                                  |                                          |           | 309,440   |      |   |           | 304,985   |   |             |           | 252,440  |   |      |          | 244,933  |   |   |          | 242,472  |  
|                                                                                                      |                                                                                                                          |                                          |           |           |      |   |           |           |   |             |           |          |   |      |         

45



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|                                                      |  |                    |           |  |      |   |           |      |  |             |           |   |  |      |           |  |  |   |           | 
|----------------------------------------------------- |  | ------------------ | --------- |  | ---- | - | --------- | ---- |  | ----------- | --------- | - |  | ---- | --------- |  |  | - | --------- | 
|                                                      |  | As of December 31, |          
|                                                      |  |                    |          
|                                                      |  | 2005               |           |  | 2004 |   |           | 2003 |  |             | 2002      |   |  | 2001 |          
|                                                      |  |                    |           |  |      |   |           |      |  |             |           |   |  |      |          
|                                                      |  |                    |           |  |      |   |           |      |  | (Unaudited) |          
|                                                      |  | (In thousands)     |          
|Consolidated Balance Sheet Data:                      |  |                    |           |  |      |   |           |      |  |             |           |   |  |      |           |  |  |   |           | 
|Cash and cash equivalents, and short-term investments |  | $                  | 165,027   |  |      | $ | 264,579   |      |  | $           | 268,811   |   |  | $    | 195,029   |  |  | $ | 557,285   | 
|Property, plant and equipment, net                    |  |                    | 1,079,050 |  |      |   | 1,042,718 |      |  |             | 1,025,096 |   |  |      | 1,000,076 |  |  |   | 845,934   | 
|FCC operating licenses, net                           |  |                    | 376,254   |  |      |   | 375,470   |      |  |             | 371,898   |   |  |      | 348,440   |  |  |   | 283,728   | 
|Total assets                                          |  |                    | 2,293,928 |  |      |   | 1,975,699 |      |  |             | 1,889,310 |   |  |      | 1,735,925 |  |  |   | 1,821,721 | 
|Current liabilities                                   |  |                    | 208,432   |  |      |   | 205,659   |      |  |             | 185,425   |   |  |      | 161,567   |  |  |   | 127,972   | 
|Long-term debt                                        |  |                    | 1,226,608 |  |      |   | 1,632,518 |      |  |             | 1,653,539 |   |  |      | 1,424,600 |  |  |   | 1,327,829 | 
|Series B redeemable preferred stock(3)                |  |                    |          |  |      |   |          |      |  |             |          |   |  |      | 34,971    |  |  |   | 31,021    | 
|Total stockholders equity (deficit)                  |  |                    | 819,197   |  |      |   | 51,315    |      |  |             | (27,205   | ) |  |      | 66,907    |  |  |   | 314,186   | 
|Total liabilities and stockholders equity            |  | $                  | 2,293,928 |  |      | $ | 1,975,699 |      |  | $           | 1,889,310 |   |  | $    | 1,735,925 |  |  | $ | 1,821,721 | 

|                                            |  |                                 |          |   |      |   |          |      |  |             |          |   |  |      |          |   |  |   |          |  
|------------------------------------------- |  | ------------------------------- | -------- | - | ---- | - | -------- | ---- |  | ----------- | -------- | - |  | ---- | -------- | - |  | - | -------- | -
|                                            |  | For the Year Ended December 31, |         
|                                            |  |                                 |         
|                                            |  | 2005                            |          |   | 2004 |   |          | 2003 |  |             | 2002     |   |  | 2001 |         
|                                            |  |                                 |          |   |      |   |          |      |  |             |          |   |  |      |         
|                                            |  |                                 |          |   |      |   |          |      |  | (Unaudited) |         
|                                            |  | (In thousands)                  |         
|Consolidated Statements of Cash Flows Data: |  |                                 |          |   |      |   |          |      |  |             |          |   |  |      |          |   |  |   |          |  
|Net cash from operating activities          |  | $                               | 379,812  |   |      | $ | 202,466  |      |  | $           | 87,154   |   |  | $    | (116,469 | ) |  | $ | (153,894 | )
|Net cash from investing activities          |  | $                               | (132,815 | ) |      | $ | (131,620 | )    |  | $           | (214,504 | ) |  | $    | (201,648 | ) |  | $ | (260,249 | )
|Net cash from financing activities          |  | $                               | (244,078 | ) |      | $ | (45,982  | )    |  | $           | 182,448  |   |  | $    | 81,280   |   |  | $ | 224,950  |  

|                                       |  |                                 |           |  |      |   |           |      |  |   |           |  |  |      |         |   |  |   |         |  
|-------------------------------------- |  | ------------------------------- | --------- |  | ---- | - | --------- | ---- |  | - | --------- |  |  | ---- | ------- | - |  | - | ------- | -
|                                       |  | For the Year Ended December 31, |          
|                                       |  |                                 |          
|                                       |  | 2005                            |           |  | 2004 |   |           | 2003 |  |   | 2002      |  |  | 2001 |        
|                                       |  |                                 |           |  |      |   |           |      |  |   |           |  |  |      |        
|                                       |  | (Dollars in thousands)          |          
|                                       |  | (Unaudited)                     |          
|Other Data:                            |  |                                 |           |  |      |   |           |      |  |   |           |  |  |      |         |   |  |   |         |  
|Covered Pops (end of period)(millions) |  |                                 | 42        |  |      |   | 40        |      |  |   | 38        |  |  |      | 36      |   |  |   | 33      |  
|Subscribers (end of period)            |  |                                 | 2,017,700 |  |      |   | 1,602,400 |      |  |   | 1,233,200 |  |  |      | 877,800 |   |  |   | 515,900 |  
|Adjusted EBITDA(4)                     |  | $                               | 575,198   |  |      | $ | 371,185   |      |  | $ | 179,401   |  |  | $    | (1,530  | ) |  | $ | (88,150 | )
|Net capital expenditures(5)            |  | $                               | 199,975   |  |      | $ | 164,584   |      |  | $ | 161,845   |  |  | $    | 250,841 |   |  | $ | 374,001 |  






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Effective July 1, 2003, we adopted Emerging Issues Task
    Force (EITF), Issue
    No. 00-21,
    Accounting for Revenue Arrangements with Multiple
    Deliverables, and elected to apply the provisions
    prospectively to our existing customer arrangements. See
    Managements Discussion and Analysis of Financial
    Condition and Results of Operations  Critical
    Accounting Policies for a more detailed description of the
    impact of our adoption of this policy.                                                                         
|   
|(2) | Effective January 2002, we no longer amortize the cost of FCC
    licenses as a result of implementing Statement of Financial
    Accounting Standards (SFAS) No. 142,
    Goodwill and Other Intangible Assets. See
    Managements Discussion and Analysis of Financial
    Condition and Results of Operations-Critical Accounting
    Policies and Note 1 of the Notes to Consolidated
    Financial Statements included elsewhere herein under the caption
    FCC Licenses for a more detailed description of the
    impact and adoption of SFAS No. 142.
|   
|(3) | In May 2003, the FASB issued SFAS No. 150,
    Accounting for Certain Financial Instruments with
    Characteristics of both Liabilities and Equity. This
    statement establishes standards for how an issuer classifies and
    measures in its statement of financial position certain
    financial instruments with                                                                                                                                                                                                                                              

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|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | characteristics of both liabilities and equity. It requires that
    an issuer classify a financial instrument that is within the
    scope of the statement as a liability (or an asset in some
    circumstances) because that financial instrument embodies an
    obligation of the issuer. This statement was effective for all
    freestanding financial instruments entered into or modified
    after May 31, 2003; otherwise it was effective at the
    beginning of the first interim period beginning after
    June 15, 2003. We identified that our Series B
    mandatorily redeemable preferred stock was within the scope of
    this statement and reclassified it to long-term debt and began
    recording the Series B mandatorily redeemable preferred
    stock dividends as interest expense beginning July 1, 2003.
    We redeemed all of our outstanding Series B mandatorily
    redeemable preferred stock on November 21, 2003 and
    currently have no other preferred stock outstanding.                                                                                                                                                                                                                                                                                                                                                                                                  
|   
|(4) | The term EBITDA refers to a financial measure that
    is defined as earnings (loss) before interest, taxes,
    depreciation and amortization; we use the term Adjusted
    EBITDA to reflect that our financial measure also excludes
    cumulative effect of change in accounting principle, loss from
    disposal of assets, gain (loss) from early extinguishment of
    debt and stock-based compensation. Adjusted EBITDA is commonly
    used to analyze companies on the basis of leverage and
    liquidity. However, Adjusted EBITDA is not a measure determined
    under generally accepted accounting principles, or GAAP, in the
    United States of America and may not be comparable to similarly
    titled measures reported by other companies. Adjusted EBITDA
    should not be construed as a substitute for operating income or
    as a better measure of liquidity than cash flow from operating
    activities, which are determined in accordance with GAAP. We
    have presented Adjusted EBITDA to provide additional information
    with respect to our ability to meet future debt service, capital
    expenditure and working capital requirements. The following
    schedule reconciles Adjusted EBITDA to net cash from operating
    activities reported on our Consolidated Statements of Cash
    Flows, which we believe is the most directly comparable GAAP
    measure:

|                                                                                              |  |                                 |         |   |      |   |         |      |  |   |         |   |  |      |          |   |  |   |          |  
|--------------------------------------------------------------------------------------------- |  | ------------------------------- | ------- | - | ---- | - | ------- | ---- |  | - | ------- | - |  | ---- | -------- | - |  | - | -------- | -
|                                                                                              |  | For the Year Ended December 31, |        
|                                                                                              |  |                                 |        
|                                                                                              |  | 2005                            |         |   | 2004 |   |         | 2003 |  |   | 2002    |   |  | 2001 |         
|                                                                                              |  |                                 |         |   |      |   |         |      |  |   |         |   |  |      |         
|                                                                                              |  | (Unaudited)                     |        
|                                                                                              |  | (In thousands)                  |        
|Net cash from operating activities (as reported on Consolidated
    Statements of Cash Flows) |  | $                               | 379,812 |   |      | $ | 202,466 |      |  | $ | 87,154  |   |  | $    | (116,469 | ) |  | $ | (153,894 | )
|Adjustments to reconcile to Adjusted EBITDA:                                                  |  |                                 |         |   |      |   |         |      |  |   |         |   |  |      |          |   |  |   |          |  
|Cash paid interest expense, net of capitalized amount                                         |  |                                 | 95,167  |   |      |   | 114,815 |      |  |   | 103,485 |   |  |      | 98,777   |   |  |   | 70,138   |  
|Interest income                                                                               |  |                                 | (7,759  | ) |      |   | (2,891  | )    |  |   | (2,811  | ) |  |      | (7,091   | ) |  |   | (32,473  | )
|Change in working capital and other                                                           |  |                                 | 107,978 |   |      |   | 56,795  |      |  |   | (8,427  | ) |  |      | 23,253   |   |  |   | 28,079   |  
|                                                                                              |  |                                 |         |   |      |   |         |      |  |   |         |   |  |      |         
|Adjusted EBITDA                                                                               |  | $                               | 575,198 |   |      | $ | 371,185 |      |  | $ | 179,401 |   |  | $    | (1,530   | ) |  | $ | (88,150  | )
|                                                                                              |  |                                 |         |   |      |   |         |      |  |   |         |   |  |      |         



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(5) | Net capital expenditures exclude capitalized interest and are
    offset by net proceeds from the sale and leaseback transactions
    of telecommunication towers and related assets to third parties
    accounted for as operating leases. Net capital expenditures as
    defined are not a measure determined under GAAP in the United
    States of America and may not be comparable to similarly titled
    measures reported by other companies. Net capital expenditures
    should not be construed as a substitute for capital expenditures
    reported on the Consolidated Statements of Cash Flows, which is
    determined in accordance with GAAP. We report net capital
    expenditures in this manner because we believe it reflects the
    net cash used by us for capital expenditures and to satisfy the
    reporting requirements for our debt covenants. The following
    schedule reconciles net capital expenditures to capital
    expenditures

47



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| |                                                                                                                          
| | -------------------------------------------------------------------------------------------------------------------------
| | reported on our Consolidated Statements of Cash Flows, which we
    believe is the most directly comparable GAAP measure:

|                                                                                                |  |                                 |         |   |      |   |         |      |  |   |         |   |  |      |         |   |  |   |         |  
|----------------------------------------------------------------------------------------------- |  | ------------------------------- | ------- | - | ---- | - | ------- | ---- |  | - | ------- | - |  | ---- | ------- | - |  | - | ------- | -
|                                                                                                |  | For the Year Ended December 31, |        
|                                                                                                |  |                                 |        
|                                                                                                |  | 2005                            |         |   | 2004 |   |         | 2003 |  |   | 2002    |   |  | 2001 |        
|                                                                                                |  |                                 |         |   |      |   |         |      |  |   |         |   |  |      |        
|                                                                                                |  | (Unaudited)                     |        
|                                                                                                |  | (In thousands)                  |        
|Capital expenditures (as reported on Consolidated Statements of
    Cash Flows)                 |  | $                               | 233,853 |   |      | $ | 156,843 |      |  | $ | 179,794 |   |  | $    | 274,911 |   |  | $ | 398,611 |  
|Less: cash paid portion of capitalized interest                                                 |  |                                 | (1,620  | ) |      |   | (1,242  | )    |  |   | (1,283  | ) |  |      | (1,993  | ) |  |   | (5,449  | )
|Less: cash proceeds from sale and lease-back transactions
    accounted for as operating leases |  |                                 | (15,439 | ) |      |   | (1,939  | )    |  |   | (6,860  | ) |  |      | (2,562  | ) |  |   | (10,425 | )
|Change in capital expenditures accrued or unpaid                                                |  |                                 | (16,819 | ) |      |   | 10,922  |      |  |   | (9,806  | ) |  |      | (19,515 | ) |  |   | (8,736  | )
|                                                                                                |  |                                 |         |   |      |   |         |      |  |   |         |   |  |      |        
|Net capital expenditures                                                                        |  | $                               | 199,975 |   |      | $ | 164,584 |      |  | $ | 161,845 |   |  | $    | 250,841 |   |  | $ | 374,001 |  
|                                                                                                |  |                                 |         |   |      |   |         |      |  |   |         |   |  |      |        

Additional Reconciliations of Non-GAAP Financial Measures
(Unaudited)


10-K




| |                                
| | -------------------------------
| | ARPU  Average Revenue Per Unit



48



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|                                                                            |  |                                 |           |   |      |   |           |      |  |   |          |   |  |      |         |   |  |   |         |  
|--------------------------------------------------------------------------- |  | ------------------------------- | --------- | - | ---- | - | --------- | ---- |  | - | -------- | - |  | ---- | ------- | - |  | - | ------- | -
|                                                                            |  | For the Year Ended December 31, |          
|                                                                            |  |                                 |          
|                                                                            |  | 2005                            |           |   | 2004 |   |           | 2003 |  |   | 2002     |   |  | 2001 |        
|                                                                            |  |                                 |           |   |      |   |           |      |  |   |          |   |  |      |        
|                                                                            |  | (In thousands, except ARPU)     |          
|ARPU (without roaming revenues)                                             |  |                                 |           |   |      |   |           |      |  |   |          |   |  |      |         |   |  |   |         |  
|Service revenues (as reported on Consolidated Statements of
    Operations) |  | $                               | 1,695,017 |   |      | $ | 1,291,352 |      |  | $ | 964,386  |   |  | $    | 646,169 |   |  | $ | 363,573 |  
|Adjust: activation fees deferred and recognized for
    SAB No. 101         |  |                                 | (2,036    | ) |      |   | (3,748    | )    |  |   | (1,006   | ) |  |      | 3,197   |   |  |   | 2,398   |  
|Add: activation fees reclassed for EITF No. 00-21(1)                        |  |                                 | 20,966    |   |      |   | 11,310    |      |  |   | 4,256    |   |  |      |        |   |  |   |        |  
|Less: roaming and other revenues                                            |  |                                 | (236,176  | ) |      |   | (163,022  | )    |  |   | (115,893 | ) |  |      | (80,452 | ) |  |   | (58,545 | )
|                                                                            |  |                                 |           |   |      |   |           |      |  |   |          |   |  |      |        
|Service revenues for ARPU                                                   |  | $                               | 1,477,771 |   |      | $ | 1,135,892 |      |  | $ | 851,743  |   |  | $    | 568,914 |   |  | $ | 307,426 |  
|                                                                            |  |                                 |           |   |      |   |           |      |  |   |          |   |  |      |        
|Average units (subscribers)                                                 |  |                                 | 1,809     |   |      |   | 1,410     |      |  |   | 1,051    |   |  |      | 694     |   |  |   | 360     |  
|                                                                            |  |                                 |           |   |      |   |           |      |  |   |          |   |  |      |        
|ARPU                                                                        |  | $                               | 68        |   |      | $ | 67        |      |  | $ | 68       |   |  | $    | 68      |   |  | $ | 71      |  
|                                                                            |  |                                 |           |   |      |   |           |      |  |   |          |   |  |      |        

|                                                                            |  |                                 |           |   |      |   |           |      |  |   |         |   |  |      |         |   |  |   |         |  
|--------------------------------------------------------------------------- |  | ------------------------------- | --------- | - | ---- | - | --------- | ---- |  | - | ------- | - |  | ---- | ------- | - |  | - | ------- | -
|                                                                            |  | For the Year Ended December 31, |          
|                                                                            |  |                                 |          
|                                                                            |  | 2005                            |           |   | 2004 |   |           | 2003 |  |   | 2002    |   |  | 2001 |        
|                                                                            |  |                                 |           |   |      |   |           |      |  |   |         |   |  |      |        
|                                                                            |  | (In thousands, except ARPU)     |          
|ARPU (including roaming revenues)                                           |  |                                 |           |   |      |   |           |      |  |   |         |   |  |      |         |   |  |   |         |  
|Service revenues (as reported on Consolidated Statements of
    Operations) |  | $                               | 1,695,017 |   |      | $ | 1,291,352 |      |  | $ | 964,386 |   |  | $    | 646,169 |   |  | $ | 363,573 |  
|Adjust: activation fees deferred and recognized for
    SAB No. 101         |  |                                 | (2,036    | ) |      |   | (3,748    | )    |  |   | (1,006  | ) |  |      | 3,197   |   |  |   | 2,398   |  
|Add: activation fees reclassed for EITF No. 00-21(1)                        |  |                                 | 20,966    |   |      |   | 11,310    |      |  |   | 4,256   |   |  |      |        |   |  |   |        |  
|Less: other revenues                                                        |  |                                 | (24,548   | ) |      |   | (4,312    | )    |  |   |        |   |  |      | (981    | ) |  |   | (458    | )
|                                                                            |  |                                 |           |   |      |   |           |      |  |   |         |   |  |      |        
|Service revenues for ARPU                                                   |  | $                               | 1,689,399 |   |      | $ | 1,294,602 |      |  | $ | 967,636 |   |  | $    | 648,385 |   |  | $ | 365,513 |  
|                                                                            |  |                                 |           |   |      |   |           |      |  |   |         |   |  |      |        
|Average units (subscribers)                                                 |  |                                 | 1,809     |   |      |   | 1,410     |      |  |   | 1,051   |   |  |      | 694     |   |  |   | 360     |  
|                                                                            |  |                                 |           |   |      |   |           |      |  |   |         |   |  |      |        
|ARPU                                                                        |  | $                               | 78        |   |      | $ | 77        |      |  | $ | 77      |   |  | $    | 78      |   |  | $ | 85      |  
|                                                                            |  |                                 |           |   |      |   |           |      |  |   |         |   |  |      |        






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | As described below under Managements Discussion and
    Analysis of Financial Condition and Results of
    Operations-Critical Accounting Policies, on July 1,
    2003, we adopted EITF Issue
    No. 00-21,
    Accounting for Revenue Arrangements with Multiple
    Deliverables, and elected to apply the provisions
    prospectively to our existing customer arrangements. Subsequent
    to that date, each month we recognize the activation fees,
    handset equipment revenues and equipment costs that had been
    previously deferred in accordance with Staff Accounting Bulletin
    (SAB) No. 101. Based on EITF Issue
    No. 00-21, we now
    recognize the activation fees that were formerly deferred and
    recognized as services revenues as equipment revenues.

49



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##### Table of Contents





| |                                      
| | -------------------------------------
| | LRS  Lifetime Revenue per Subscriber



|                                      |  |                                 |       |   |      |   |       |      |  |   |       |   |  |      |       |   |  |   |       |  
|------------------------------------- |  | ------------------------------- | ----- | - | ---- | - | ----- | ---- |  | - | ----- | - |  | ---- | ----- | - |  | - | ----- | -
|                                      |  | For the Year Ended December 31, |      
|                                      |  |                                 |      
|                                      |  | 2005                            |       |   | 2004 |   |       | 2003 |  |   | 2002  |   |  | 2001 |      
|                                      |  |                                 |       |   |      |   |       |      |  |   |       |   |  |      |      
|ARPU                                  |  | $                               | 68    |   |      | $ | 67    |      |  | $ | 68    |   |  | $    | 68    |   |  | $ | 71    |  
|Divided by: churn                     |  |                                 | 1.4   | % |      |   | 1.4   | %    |  |   | 1.6   | % |  |      | 1.6   | % |  |   | 1.6   | %
|                                      |  |                                 |       |   |      |   |       |      |  |   |       |   |  |      |      
|Lifetime revenue per subscriber (LRS) |  | $                               | 4,857 |   |      | $ | 4,786 |      |  | $ | 4,250 |   |  | $    | 4,250 |   |  | $ | 4,438 |  
|                                      |  |                                 |       |   |      |   |       |      |  |   |       |   |  |      |      








|        |                                                                                         
|------- | ----------------------------------------------------------------------------------------
|Item 7. | Managements Discussion and Analysis of Financial
    Condition and Results of Operation

10-K,


10-K.


10-K


Overview




50



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##### Table of Contents



e-mail.






| |   |                                                                                                                                                                                                                                                                                                   
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | digital cellular voice, including advanced calling features such
    as speakerphone, conference calling, voicemail, call forwarding
    and additional line service;                                                                                                                             
|
| |  | Direct Connect service, the digital walkie-talkie service that
    allows customers to instantly connect with business associates,
    family and friends without placing a phone call;                                                                                                           
|
| |  | short messaging, the service that utilizes the Internet to keep
    customers connected to clients, colleagues and family with text,
    numeric and two-way messaging; and                                                                                                                       
|
| |  | Nextel Online services, which provide customers with
    Internet-ready handsets access to the World Wide Web and an
    organizations internal database, as well as web-based
    applications such as
    e-mail, address books,
    calendars and advanced Java enabled business applications.



1 4








| |   |                                                                                                                                                                                                         
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Growing our subscriber base approximately 26% by adding
    approximately 415,300 net new customers to end the year
    with over 2,017,700 customers compared to 1,602,400 as of
    December 31, 2004.

51



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| |   |                                                                                                                                                                                
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Growing our service revenues approximately 31% to
    $1,695.0 million for 2005 compared to $1,291.4 million
    for 2004.                                                     
|
| |  | Increasing Adjusted EBITDA 55% to $575.2 million for 2005
    compared to $371.2 million for 2004.                                                                             
|
| |  | Generating $379.8 million net cash from operating
    activities during 2005 compared to $202.5 million during
    2004.                                                       
|
| |  | Remaining one of the industry leaders in LRS with an LRS of
    $4,857 for 2005 compared to $4,786 for 2004.                                                                   
|
| |  | Refinancing and reducing our senior credit facility and
    receiving credit rating upgrades, including an investment grade
    rating of BBB- from S&P on our credit facility.
|
| |  | Redeeming for cash the remainder of our outstanding
    11% senior notes due 2010 in April 2005 and our
    121/2% senior
    discount notes due 2009 in November 2005.        







| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Opened 62 new company-owned stores bringing the total stores
    operating throughout the country to 135 at December 31,
    2005 compared to 73 stores at December 31, 2004.                                                                                                                                                                                                                                                                                                                                                            
|
| |  | Implemented redesigned customer invoices to improve the look and
    feel of the invoice in order to better serve the customers
    needs.                                                                                                                                                                                                                                                                                                                                                                                              
|
| |  | In conjunction with Nextel, launched service which enables
    instant group walkie-talkie conversations nationwide; Nextel
    WiFi
    HotSpotsm
    service, which delivers features focused on remote-access needs
    to business travelers; Mobile Email Enhanced, the first email
    service for Java-enabled mobile phones with full synchronization
    and a PDA-like feel; MapQuest Find Me GPS-enabled
    wireless service; and Nextel Direct
    Sendsm
    Picture which allows picture sharing on walkie-talkie calls.
|
| |  | Introduced over a dozen new wireless handsets by
    Motorola  the i265, i325IS, v505, v180, i275, i355,
    i605, i836, i560, i760, i850, i930 and i870.                                                                                                                                                                                                                                                                                                                                                                               
|
| |  | Launched the
    7100itm
    Blackberry handset featuring phone, wireless
    e-mail, Bluetooth and
    GPS navigation.                                                                                                                                                                                                                                                                                                                                                                                                                  

RESULTS OF OPERATIONS




| |                                                                          
| | -------------------------------------------------------------------------
| | Year Ended December 31, 2005 Compared to Year Ended
    December 31, 2004



| |         
| | --------
| | Revenues





52



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|                             |  |                                     |           |  |              |  |              |              |  |   |              |  |  |               |     |   |          |   |         |  |  |  |    |  
|---------------------------- |  | ----------------------------------- | --------- |  | ------------ |  | ------------ | ------------ |  | - | ------------ |  |  | ------------- | --- | - | -------- | - | ------- |  |  |  | -- | -
|                             |  | For the Year                        |           |  |              |  | For the Year |              |  |   |              | 
|                             |  | Ended                               |           |  | % of         |  |              | Ended        |  |   | % of         |  |  | 2005 vs 2004? |    
|                             |  | December 31,                        |           |  | Consolidated |  |              | December 31, |  |   | Consolidated |  |  |               |    
|                             |  | 2005                                |           |  | Revenues     |  |              | 2004         |  |   | Revenues     |  |  | $ Change      |     |   | % Change |  
|                             |  |                                     |           |  |              |  |              |              |  |   |              |  |  |               |     |   |          |  
|                             |  | (Dollars in thousands, except ARPU) |          
|Service and roaming revenues |  | $                                   | 1,695,017 |  |              |  | 94           | %            |  | $ | 1,291,352    |  |  |               | 94  | % |          | $ | 403,665 |  |  |  | 31 | %
|Equipment revenues           |  |                                     | 106,634   |  |              |  | 6            | %            |  |   | 85,784       |  |  |               | 6   | % |          |   | 20,850  |  |  |  | 24 | %
|                             |  |                                     |           |  |              |  |              |              |  |   |              |  |  |               |     |   |          |  
|Total revenues               |  | $                                   | 1,801,651 |  |              |  | 100          | %            |  | $ | 1,377,136    |  |  |               | 100 | % |          | $ | 424,515 |  |  |  | 31 | %
|                             |  |                                     |           |  |              |  |              |              |  |   |              |  |  |               |     |   |          |  
|ARPU(1)                      |  | $                                   | 68        |  |              |  |              |              |  | $ | 67           |  |  |               |     |   |          |   |         |  |  |  |    |  
|                             |  |                                     |           |  |              |  |              |              |  |   |              |  |  |               |     |   |          |  






|    |                                                                                                                                                                                                          
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | See Item 6, Selected Financial Data 
    Additional Reconciliations of Non-GAAP Financial Measures
    (Unaudited) for more information regarding our use of ARPU
    as a non-GAAP financial measure.



53



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00-21, Accounting for Revenue Arrangements with Multiple
Deliverables, 00-21


|                                                                                      |  |                    |           |   |      |   |           |  
|------------------------------------------------------------------------------------- |  | ------------------ | --------- | - | ---- | - | --------- | -
|                                                                                      |  | For the Year Ended |          
|                                                                                      |  | December 31,       |          
|                                                                                      |  |                    |          
|                                                                                      |  | 2005               |           |   | 2004 |  
|                                                                                      |  |                    |           |   |      |  
|                                                                                      |  | (In thousands)     |          
|Revenues:                                                                             |  |                    |           |   |      |   |           |  
|Service revenues (as reported on Consolidated Statements of
    Operations)           |  | $                  | 1,695,017 |   |      | $ | 1,291,352 |  
|Previously deferred activation fees recognized
    (SAB No. 101)                      |  |                    | (2,036    | ) |      |   | (3,748    | )
|Activation fees to equipment revenues (EITF No. 00-21)                                |  |                    | 20,966    |   |      |   | 11,310    |  
|                                                                                      |  |                    |           |   |      |  
|Total service revenues without SAB No. 101 and EITF
    No. 00-21                     |  | $                  | 1,713,947 |   |      | $ | 1,298,914 |  
|                                                                                      |  |                    |           |   |      |  
|Equipment revenues (as reported on Consolidated Statements of
    Operations)         |  | $                  | 106,634   |   |      | $ | 85,784    |  
|Previously deferred equipment revenues recognized
    (SAB No. 101)                   |  |                    | (11,427   | ) |      |   | (20,258   | )
|Activation fees from service revenues (EITF No. 00-21)                                |  |                    | (20,966   | ) |      |   | (11,310   | )
|                                                                                      |  |                    |           |   |      |  
|Total equipment revenues without SAB No. 101 and
    EITF No. 00-21                   |  | $                  | 74,241    |   |      | $ | 54,216    |  
|                                                                                      |  |                    |           |   |      |  
|Cost of equipment revenues (as reported on Consolidated
    Statements of Operations) |  | $                  | 178,261   |   |      | $ | 152,557   |  
|Previousy deferred cost of equipment revenues recognized
    (SAB No. 101)            |  |                    | (13,463   | ) |      |   | (24,006   | )
|                                                                                      |  |                    |           |   |      |  
|Total cost of equipment revenues without
    SAB No. 101 and EITF No. 00-21           |  | $                  | 164,798   |   |      | $ | 128,551   |  
|                                                                                      |  |                    |           |   |      |  





| |                         
| | ------------------------
| | Cost of Service Revenues





54



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| |                           
| | --------------------------
| | Cost of Equipment Revenues



00-21)


|                                  |  |                    |          |   |      |   |          |  
|--------------------------------- |  | ------------------ | -------- | - | ---- | - | -------- | -
|                                  |  | For the Year Ended |         
|                                  |  | December 31,       |         
|                                  |  |                    |         
|                                  |  | 2005               |          |   | 2004 |  
|                                  |  |                    |          |   |      |  
|                                  |  | (In thousands)     |         
|Equipment revenues billed         |  | $                  | 74,241   |   |      | $ | 54,216   |  
|Cost of equipment revenues billed |  |                    | (164,798 | ) |      |   | (128,551 | )
|                                  |  |                    |          |   |      |  
|Total gross subsidy for equipment |  | $                  | (90,557  | ) |      | $ | (74,335  | )
|                                  |  |                    |          |   |      |  



| |                                             
| | --------------------------------------------
| | Selling, General and Administrative Expenses







| |   |                                                                                                                                                                                                                                     
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | $7.6 million increase in advertising and media expenses as
    a result of general marketing campaigns and additional expenses
    incurred as the result of Sprint Nextels refusal to allow
    us to use the Sprint Nextel brand;

55



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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | $2.8 million increase in facility and lease costs primarily
    for the additional company-owned stores put in operation during
    2005; and                                                                                                                                                                                                                                                                                                                
|
| |  | $20.8 million increase in commissions, commission bonuses
    and residuals paid to account representatives and the indirect
    sales channel due primarily to the indirect sales channel adding
    20% more customers in 2005 than in 2004. The indirect sales
    channel will remain a vital part of our distribution and we
    expect to see continued growth from this channel in 2006 coupled
    with significant growth from company-owned stores.





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | $43.2 million increase in support of our information
    systems, facilities and corporate expenses, including
    approximately $12.4 million in expenses incurred in
    conjunction with the put process and legal proceedings with
    Sprint Nextel and Nextel WIP (see Item 3, Legal
    Proceedings above for additional information);                                                                                                                                                                                                                                                                                                                                                                                                                                  
|
| |  | $2.4 million increase due to hiring additional staff and
    operating expenses to support our growing customer base and
    related activities in Las Vegas, Nevada and Panama City Beach,
    Florida; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|
| |  | $46.8 million increase in expenses for service and repair,
    billing, bad debt expense, collection and customer retention
    expenses including handset upgrades to support a larger and
    growing customer base. Bad debt expense as a percent of service
    revenues for 2005 was 1.9% compared to 1.0% for the same period
    in 2004 due mainly to higher activation rates from
    consumer-credit customers. The programs tailored for these
    consumer-credit customers include prescribed spending limits,
    enrollment fees and upfront deposits, as well as additional
    monthly recurring charges that in aggregate help to limit the
    potential bad debt exposure from customer-credit customers,
    which we expect to continue to add during 2006.





| |   |                                                                                                                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | increased costs to support our growing customer base, including
    costs associated with billing, bad debt expense, collections,
    customer retention, customer care activities and handset
    upgrades;
|
| |  | increased marketing and advertising expenses to offset the loss
    of national advertising of the Nextel brand name exclusively;                                                                           
|
| |  | increased costs associated with opening additional retail
    stores; and                                                                                                                                   
|
| |  | costs related to the pending acquisition of us by Sprint Nextel.                                                                                                                                            



| |                                 
| | --------------------------------
| | Stock-Based Compensation Expense





| |                                      
| | -------------------------------------
| | Depreciation and Amortization Expense



56



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| |                                     
| | ------------------------------------
| | Interest Expense and Interest Income

1 2




| |                                 
| | --------------------------------
| | Loss on Early Retirement of Debt

1 2 1 2






| |                     
| | --------------------
| | Income Tax Provision







| |                                               
| | ----------------------------------------------
| | Net Income Attributable to Common Stockholders



57



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| |                                                                          
| | -------------------------------------------------------------------------
| | Year Ended December 31, 2004 Compared to Year Ended
    December 31, 2003



| |         
| | --------
| | Revenues

Revenue Recognition in Financial
Statements.






|                             |  |                                     |           |  |              |  |              |              |  |   |              |  |  |              |     |   |          |   |         |  |  |  |    |  
|---------------------------- |  | ----------------------------------- | --------- |  | ------------ |  | ------------ | ------------ |  | - | ------------ |  |  | ------------ | --- | - | -------- | - | ------- |  |  |  | -- | -
|                             |  | For the Year                        |           |  |              |  | For the Year |              |  |   |              | 
|                             |  | Ended                               |           |  | % of         |  |              | Ended        |  |   | % of         |  |  | 2004 vs 2003 |    
|                             |  | December 31,                        |           |  | Consolidated |  |              | December 31, |  |   | Consolidated |  |  |              |    
|                             |  | 2004                                |           |  | Revenues     |  |              | 2003         |  |   | Revenues     |  |  | $ Change     |     |   | % Change |  
|                             |  |                                     |           |  |              |  |              |              |  |   |              |  |  |              |     |   |          |  
|                             |  | (Dollars in thousands, except ARPU) |          
|Service and roaming revenues |  | $                                   | 1,291,352 |  |              |  | 94           | %            |  | $ | 964,386      |  |  |              | 94  | % |          | $ | 326,966 |  |  |  | 34 | %
|Equipment revenues           |  |                                     | 85,784    |  |              |  | 6            | %            |  |   | 60,826       |  |  |              | 6   | % |          |   | 24,958  |  |  |  | 41 | %
|                             |  |                                     |           |  |              |  |              |              |  |   |              |  |  |              |     |   |          |  
|Total revenues               |  | $                                   | 1,377,136 |  |              |  | 100          | %            |  | $ | 1,025,212    |  |  |              | 100 | % |          | $ | 351,924 |  |  |  | 34 | %
|                             |  |                                     |           |  |              |  |              |              |  |   |              |  |  |              |     |   |          |  
|ARPU(1)                      |  | $                                   | 67        |  |              |  |              |              |  | $ | 68           |  |  |              |     |   |          |   |         |  |  |  |    |  
|                             |  |                                     |           |  |              |  |              |              |  |   |              |  |  |              |     |   |          |  






|    |                                                                                                                                                                                                          
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | See Item 6, Selected Financial Data 
    Additional Reconciliations of Non-GAAP Financial Measures
    (Unaudited) for more information regarding our use of ARPU
    as a non-GAAP financial measure.

58



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00-21


|                                                                                      |  |                    |           |   |      |   |         |  
|------------------------------------------------------------------------------------- |  | ------------------ | --------- | - | ---- | - | ------- | -
|                                                                                      |  | For the Year Ended |          
|                                                                                      |  | December 31,       |          
|                                                                                      |  |                    |          
|                                                                                      |  | 2004               |           |   | 2003 |  
|                                                                                      |  |                    |           |   |      |  
|                                                                                      |  | (In thousands)     |          
|Revenues:                                                                             |  |                    |           |   |      |   |         |  
|Service revenues (as reported on Consolidated Statements of
    Operations)           |  | $                  | 1,291,352 |   |      | $ | 964,386 |  
|Activation fees deferred (SAB No. 101)                                                |  |                    |          |   |      |   | 3,319   |  
|Previously deferred activation fees recognized
    (SAB No. 101)                      |  |                    | (3,748    | ) |      |   | (4,325  | )
|Activation fees to equipment revenues (EITF No. 00-21)                                |  |                    | 11,310    |   |      |   | 4,256   |  
|                                                                                      |  |                    |           |   |      |  
|Total service revenues without SAB No. 101 and EITF
    No. 00-21                     |  | $                  | 1,298,914 |   |      | $ | 967,636 |  
|                                                                                      |  |                    |           |   |      |  
|Equipment revenues (as reported on Consolidated Statements of
    Operations)         |  | $                  | 85,784    |   |      | $ | 60,826  |  
|Equipment revenues deferred (SAB No. 101)                                             |  |                    |          |   |      |   | 19,947  |  
|Previously deferred equipment revenues recognized
    (SAB No. 101)                   |  |                    | (20,258   | ) |      |   | (25,380 | )
|Activation fees from service revenues (EITF No. 00-21)                                |  |                    | (11,310   | ) |      |   | (4,256  | )
|                                                                                      |  |                    |           |   |      |  
|Total equipment revenues without SAB No. 101 and
    EITF No. 00-21                   |  | $                  | 54,216    |   |      | $ | 51,137  |  
|                                                                                      |  |                    |           |   |      |  
|Cost of equipment revenues (as reported on Consolidated
    Statements of Operations) |  | $                  | 152,557   |   |      | $ | 121,036 |  
|Cost of equipment revenues deferred (SAB No. 101)                                     |  |                    |          |   |      |   | 23,266  |  
|Previously deferred cost of equipment revenues recognized
    (SAB No. 101)           |  |                    | (24,006   | ) |      |   | (29,705 | )
|                                                                                      |  |                    |           |   |      |  
|Total cost of equipment revenues without
    SAB No. 101 and EITF No. 00-21           |  | $                  | 128,551   |   |      | $ | 114,597 |  
|                                                                                      |  |                    |           |   |      |  

00-21.




| |                         
| | ------------------------
| | Cost of Service Revenues



59



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| |                           
| | --------------------------
| | Cost of Equipment Revenues





|                                  |  |                    |          |   |      |   |          |  
|--------------------------------- |  | ------------------ | -------- | - | ---- | - | -------- | -
|                                  |  | For the Year Ended |         
|                                  |  | December 31,       |         
|                                  |  |                    |         
|                                  |  | 2004               |          |   | 2003 |  
|                                  |  |                    |          |   |      |  
|                                  |  | (In thousands)     |         
|Equipment revenues billed         |  | $                  | 54,216   |   |      | $ | 51,137   |  
|Cost of equipment revenues billed |  |                    | (128,551 | ) |      |   | (114,597 | )
|                                  |  |                    |          |   |      |  
|Total gross subsidy for equipment |  | $                  | (74,335  | ) |      | $ | (63,460  | )
|                                  |  |                    |          |   |      |  



| |                                             
| | --------------------------------------------
| | Selling, General and Administrative Expenses







| |   |                                                                                                                                                                         
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | $14.5 million increase in advertising and media expenses as
    a result of general marketing campaigns along with sponsorship
    of NASCAR in conjunction with Nextel;
|
| |  | $2.1 million increase in facility and lease costs primarily
    for the more than 30 new company-owned stores put in operation
    during 2004; and                     
|
| |  | $11.5 million increase in commissions, commission bonuses
    and residuals paid to account representatives and the indirect
    sales channel.                         





| |   |                                                                                                                                                                                                                                                                                                 
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | $10.5 million increase due to hiring additional staff and
    operating expenses to support our growing customer base and
    related activities in Las Vegas, Nevada and Panama City Beach,
    Florida;                                                                                       
|
| |  | $50.3 million increase in expenses for service and repair,
    billing, collection and customer retention expenses including
    handset upgrades to support a larger and growing customer base,
    offset by a $24.3 million decrease in bad debt due to
    improved collection activity; and
|
| |  | $25.4 million increase in support of our information
    systems, facilities and corporate expenses.                                                                                                                                                                                            



| |                                 
| | --------------------------------
| | Stock-Based Compensation Expense





| |                                      
| | -------------------------------------
| | Depreciation and Amortization Expense



60



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| |                                     
| | ------------------------------------
| | Interest Expense and Interest Income

1 2




| |                                 
| | --------------------------------
| | Loss on Early Retirement of Debt



1 2




| |                     
| | --------------------
| | Income Tax Provision

Goodwill
and Other Intangible Assets,




| |                                                      
| | -----------------------------------------------------
| | Net Income (Loss) Attributable to Common Stockholders





| |                                
| | -------------------------------
| | Liquidity and Capital Resources



61



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| |                                   
| | ----------------------------------
| | Statement of Cash Flows Discussion

|                                   |  |                        |          |   |      |   |          |          |  |   |          |   |  |  |      |   
|---------------------------------- |  | ---------------------- | -------- | - | ---- | - | -------- | -------- |  | - | -------- | - |  |  | ---- | --
|                                   |  | ?For the Year Ended    |          |   |      |   |         
|                                   |  | December 31,           |          |   |      |   |         
|                                   |  |                        |          |   |      |   |         
|                                   |  | 2005                   |          |   | 2004 |   |          | $ Change |  |   | % Change |  
|                                   |  |                        |          |   |      |   |          |          |  |   |          |  
|                                   |  | (Dollars in thousands) |         
|Net cash from operating activities |  | $                      | 379,812  |   |      | $ | 202,466  |          |  | $ | 177,346  |   |  |  | 88   | % 
|Net cash from investing activities |  | $                      | (132,815 | ) |      | $ | (131,620 | )        |  | $ | (1,195   | ) |  |  | (1   | )%
|Net cash from financing activities |  | $                      | (244,078 | ) |      | $ | (45,982  | )        |  | $ | (198,096 | ) |  |  | (431 | )%





| |   |                                                                                                                                                                                                              
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | a $214.1 million increase in income generated from
    operating activities, excluding changes in current assets and
    liabilities; and                                                                    
|
| |  | a $20.0 million increase in accounts payable, accrued
    expenses, other current liabilities, other current and long-term
    assets and advances to Nextel WIP due to the timing of payments;
    offset by
|
| |  | a $22.8 million increase in our on-hand subscriber
    equipment inventory due primarily to adding new phone
    models; and                                                                                 
|
| |  | a $34.0 million increase in our accounts receivable balance
    from customers due to 26% growth in number of subscribers in
    2005 compared to the same period in 2004.                                   





| |   |                                                                                                                                                                                                                                                                                                                                                          
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | a $77.0 million increase in capital expenditures as a
    result of adding 546 cell sites in 2005 compared to 478 cell
    sites during 2004; offset by                                                                                                                                                                                                  
|
| |  | a $1.5 million net decrease in FCC licenses acquired and
    other investing activities; and                                                                                                                                                                                                                                                             
|
| |  | a $339.4 million decrease in purchases of short-term
    investments offset by a $265.1 million decrease in cash
    proceeds from the sale and maturities of short-term investments
    used to fund the increase in capital expenditures and to redeem
    the
    121/2% senior
    discount notes due 2009 and refinance the tranche C term
    loan.





| |   |                                                                                                                                                                                                                                                                
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | a $174.6 million decrease in proceeds from refinancing the
    credit facility and issuing $25.0 million of
    81/8% senior
    notes due 2011 in May 2004; and                                                                                               
|
| |  | a $67.7 million increase in cash used in 2005 for
    refinancing the credit facility, repurchase for cash in open
    market purchases of our 11% senior notes due 2010, and
    redemption of our outstanding
    121/2% senior
    notes due 2009; offset by
|
| |  | a $28.6 million increase in proceeds from stock options
    exercised and employee purchases of stock;                                                                                                                                                         
|
| |  | a $13.5 million increase in proceeds from sale-leaseback
    transactions; and                                                                                                                                                                                 
|
| |  | a $2.1 million net decrease in debt and equity issuance
    costs and other financing activities.                                                                                                                                                              



| |                                  
| | ---------------------------------
| | Capital Needs and Funding Sources



62



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|                              |  |                        |         |  |      |   |         |      |  |   |         |  |  |      |         |  |            |   |         |       |  |   |           |  |  |   |           | 
|----------------------------- |  | ---------------------- | ------- |  | ---- | - | ------- | ---- |  | - | ------- |  |  | ---- | ------- |  | ---------- | - | ------- | ----- |  | - | --------- |  |  | - | --------- | 
|                              |  | Payments Due by Period |        
|                              |  |                        |        
|Contractual Obligations       |  | 2006                   |         |  | 2007 |   |         | 2008 |  |   | 2009    |  |  | 2010 |         |  | Thereafter |   |         | Total | 
|                              |  |                        |         |  |      |   |         |      |  |   |         |  |  |      |         |  |            |   |         |       | 
|                              |  | (In thousands)         |        
|Long-term debt(1)             |  | $                      |        |  |      | $ | 4,125   |      |  | $ | 193,810 |  |  | $    | 5,500   |  |            | $ | 5,500   |       |  | $ | 1,004,375 |  |  | $ | 1,213,310 | 
|Interest on long-term debt(2) |  |                        | 75,630  |  |      |   | 76,038  |      |  |   | 75,694  |  |  |      | 73,031  |  |            |   | 72,676  |       |  |   | 76,563    |  |  |   | 449,632   | 
|Operating leases              |  |                        | 103,650 |  |      |   | 89,702  |      |  |   | 78,737  |  |  |      | 67,953  |  |            |   | 38,442  |       |  |   | 53,901    |  |  |   | 432,385   | 
|Capital lease obligations(3)  |  |                        | 5,227   |  |      |   | 5,227   |      |  |   | 5,227   |  |  |      | 5,227   |  |            |   |        |       |  |   |          |  |  |   | 20,908    | 
|Purchase obligations(4)       |  |                        | 292     |  |      |   |        |      |  |   |        |  |  |      |        |  |            |   |        |       |  |   |          |  |  |   | 292       | 
|                              |  |                        |         |  |      |   |         |      |  |   |         |  |  |      |         |  |            |   |         |       | 
|Total contractual obligations |  | $                      | 184,799 |  |      | $ | 175,092 |      |  | $ | 353,468 |  |  | $    | 151,711 |  |            | $ | 116,618 |       |  | $ | 1,134,839 |  |  | $ | 2,116,527 | 
|                              |  |                        |         |  |      |   |         |      |  |   |         |  |  |      |         |  |            |   |         |       | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes $550.0 million of the tranche D term loan
    outstanding as of December 31, 2005 and does not reflect
    the principal repayment of $50 million we made in March
    2006.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   
|(2) | Includes interest on the remaining $100 million in swaps of
    approximately ($832,000) for 2006. These amounts include
    estimated payments based on managements expectation as to
    future interest rates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   
|(3) | Includes interest.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   
|(4) | Included in the Purchase obligations caption above
    are minimum amounts due under our most significant agreements
    for telecommunication services required for back-office support.
    Amounts actually paid under some of these agreements may be
    higher due to variable components of these agreements. In
    addition to the amounts reflected in the table, we expect to pay
    significant amounts to Motorola for infrastructure, handsets and
    related services in future years. Potential amounts payable to
    Motorola are not shown above due to the uncertainty surrounding
    the timing and extent of these payments. See notes to the
    consolidated financial statements appearing elsewhere in this
    Annual Report on
    Form 10-K for
    amounts paid to Motorola for the years ended December 31,
    2005 and 2004.

63



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##### Table of Contents





| |                   
| | ------------------
| | Sources of Funding





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | proceeds from cash equity contributions and commitments of
    $202.8 million in January and September of 1999;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|
| |  | the offering of 14% senior discount notes due 2009 for
    initial proceeds of $406.4 million in January 1999, less
    $167.7 million (principal amount at maturity) for the
    partial redemption of these notes in April 2000,
    $86.1 million (principal amount at maturity) repurchased
    for cash in May and June 2003, $375.8 million (principal
    amount at maturity) as of June 30, 2003 repurchased
    pursuant to a tender offer commenced in June 2003,
    $16.5 million (principal amount at maturity) and
    $4.8 million (principal amount at maturity) repurchased for
    cash in July 2003 and December 2003, respectively, and
    $1.8 million (principal amount at maturity) redeemed in
    March 2004;
|
| |  | term loans incurred in the aggregate principal amount of
    $375.0 million in January and September 1999 and January
    2002, which we refinanced in May 2004 and increased to
    $700.0 million and reduced to $550.0 million in May
    2005;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|
| |  | the contribution by Nextel WIP of FCC licenses valued at
    $178.3 million, in exchange for Class B common stock
    and Series B preferred stock in January and September 1999
    and September 2000, less redemption of all the Series B
    preferred stock for $38.9 million in November 2003;                                                                                                                                                                                                                                                                                                                                                                                                                                   
|
| |  | the contribution by Motorola of a $22.0 million credit to
    use against our purchases of Motorola-manufactured
    infrastructure equipment in exchange for Class A common
    stock, all of which had been used by December 31, 1999;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|
| |  | net proceeds from the sale of Class A common stock in our
    initial public offering of $510.8 million in February 2000;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|
| |  | the offering of 11% senior notes due 2010 for
    $200.0 million in March 2000 and an additional
    $200.0 million in 11% senior notes due 2010 in July
    2000, less $22.6 million (principal amount at maturity)
    repurchased for cash in August 2003, $10.5 million
    (principal amount at maturity) repurchased for cash in March
    2004, $355.8 million (principal amount at maturity)
    repurchased for cash through a tender offer that expired in May
    2004 and $1.2 million (principal amount at maturity)
    repurchased for cash in April 2005;                                                                                                                                                              
|
| |  | the offering of
    121/2% senior
    discount notes due 2009 for $210.4 million in December
    2001, less $11.1 million (principal amount at maturity)
    repurchased for cash in August 2003, redemption of
    $67.7 million (principal amount at maturity) in December
    2003 and redemption of $146.2 million (principal amount at
    maturity) in November 2005;                                                                                                                                                                                                                                                                                                                                                            
|
| |  | net proceeds totaling $28.0 million from the sale of
    switches in Kentucky and Florida in July and October 2002;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|
| |  | cancellation of existing indebtedness in November and December
    2002 and January and February 2003 in the aggregate amount of
    $45.0 million (principal amount at maturity) in exchange
    for the issuance of shares of our Class A common stock;                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|
| |  | the offering of
    11/2% convertible
    senior notes due 2008 for $150.0 million in May 2003 and an
    additional $25.0 million in June 2003 pursuant to the
    exercise of an over-allotment option held by the initial
    purchasers of the notes, less $88.3 million conversions
    during 2005;                                                                                                                                                                                                                                                                                                                                                                                                                              
|
| |  | the offering of
    81/8% senior
    notes due 2011 for $450.0 million in June 2003 and an
    additional $25.0 million in May 2004 for proceeds of
    $24.6 million;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

64



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| |   |                                                                                                                                                       
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the offering of
    11/2% convertible
    senior notes due 2008 for $125.0 million in August 2003,
    less $23.4 million conversions during 2005; and
|
| |  | net proceeds of $104.5 million from our sale of
    Class A common stock in November 2003.                                                            





| |                     
| | --------------------
| | Bank Credit Facility









| |                                   
| | ----------------------------------
| | 14% Senior Discount Notes Due 2009



65



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##### Table of Contents







| |                          
| | -------------------------
| | 11% Senior Notes Due 2010





| |                                          
| | -----------------------------------------
| | 121/2% Senior
    Discount Notes Due 2009

1 2 1 2 1 2 1 2 1 2




| |                                
| | -------------------------------
| | 81/8% Senior
    Notes Due 2011

1 8 1 8 1 8


1 8 1 8 1 8


66



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##### Table of Contents



1 8




| |                                            
| | -------------------------------------------
| | 11/2% Convertible
    Senior Notes Due 2008

1 2 1 2 1 2 1 2 1 2


1 2 1 2 1 2 1 2 1 2


1 2 1 2








| |                               
| | ------------------------------
| | Off-Balance Sheet Arrangements

off-balance


67



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##### Table of Contents









| |                             
| | ----------------------------
| | Critical Accounting Policies

10-K. 10-K.




| |                    
| | -------------------
| | Revenue Recognition





00-21, Accounting for Revenue Arrangements with Multiple
Deliverables.


00-21, Revenue
Recognition in Financial Statements,


68



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##### Table of Contents



00-21, 00-21, Revenue Recognition in Financial Statements 00-21.




| |                    
| | -------------------
| | Accounts Receivable





| |                               
| | ------------------------------
| | Subscriber Equipment Inventory





| |                                                
| | -----------------------------------------------
| | Capitalization and Depreciation of Fixed Assets





69



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##### Table of Contents







| |       
| | ------
| | Leases





| |                  
| | -----------------
| | Intangible Assets

Goodwill and Other Intangible
Assets,


24-month


10-year


Unit
of Accounting for Testing Impairment of Indefinite-Lived
Intangible Assets




| |                                
| | -------------------------------
| | Impairment of Long-Lived Assets

Accounting
for the Impairment or Disposal of Long-Lived Assets.


70



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##### Table of Contents







| |                                 
| | --------------------------------
| | Income Taxes Valuation Allowance









| |                             
| | ----------------------------
| | Asset Retirement Obligations

Accounting for Asset Retirement Obligations,




| |                         
| | ------------------------
| | Stock-Based Compensation

Accounting for Stock Based Compensation 
Transition and Disclosure. Accounting for Stock-Based
Compensation, Accounting for Stock
Issued to Employees.




| |                              
| | -----------------------------
| | Interest Rate Risk Management



71



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| |                                          
| | -----------------------------------------
| | Recently Issued Accounting Pronouncements

10-K




| |                           
| | --------------------------
| | Related Party Transactions








|         |                                                               
|-------- | --------------------------------------------------------------
|Item 7A. | Quantitative and Qualitative Disclosures about Market
    Risk



1 8 1 2




Accounting for Derivative
Instruments and Hedging Activities,




| |                                  
| | ---------------------------------
| | Non-Cash Flow Hedging Instruments





72



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| |                              
| | -----------------------------
| | Cash Flow Hedging Instruments









|                            |                       |                                      |   |   |      |   |   |       |     |   |      |         |     |      |   |       |            |   |   |       |     |   |            |         |     |   |   |         |     |   |   |           |  | 
|--------------------------- | --------------------- | ------------------------------------ | - | - | ---- | - | - | ----- | --- | - | ---- | ------- | --- | ---- | - | ----- | ---------- | - | - | ----- | --- | - | ---------- | ------- | --- | - | - | ------- | --- | - | - | --------- |  | 
|                            |                       | 2006                                 |   |   | 2007 |   |   | 2008  |     |   | 2009 |         |     | 2010 |   |       | Thereafter |   |   | Total |     |   | Fair Value |        
|                            |                       |                                      |   |   |      |   |   |       |     |   |      |         |     |      |   |       |            |   |   |       |     |   |            |        
|                            |                       | (Dollars in thousands)               |  
|Long-term debt obligations: |                       |                                      |   |   |      |   |   |       |     |   |      |         |     |      |   |       |            |   |   |       |     |   |            |         |     |   |   |         |     |   |   |          
|                            | Fixed-rate debt       |                                      | $ |  |      |   | $ |      |     |   | $    | 188,310 |     |      | $ |      |            |   | $ |      |     |   | $          | 475,000 |     |   | $ | 663,310 |     |   | $ | 1,050,064 | 
|                            |                       | Average interest rate                |   |   | 6.2  | % |   |       | 6.2 | % |      |         | 6.4 | %    |   |       | 8.1        | % |   |       | 8.1 | % |            |         | 8.1 | % |   |         | 7.0 | % |   |           |  | 
|                            | Variable-rate debt(1) |                                      | $ |  |      |   | $ | 4,125 |     |   | $    | 5,500   |     |      | $ | 5,500 |            |   | $ | 5,500 |     |   | $          | 529,375 |     |   | $ | 550,000 |     |   | $ | 550,000   | 
|                            |                       | Average interest rate (LIBOR + 1.5%) |   |   |      |   |   |       |     |   |      |         |     |      |   |       |            |   |   |       |     |   |            |         |     |   |   |         |     |   |   |           |  | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | As of December 31, 2005, variable-rate debt consisted of
    our bank credit facility. The bank credit facility includes a
    $550.0 million tranche D term loan, a
    $100.0 million revolving credit facility and an option to
    request an additional $200.0 million of incremental term
    loans and does not reflect the principal repayment of
    $50 million we made in March 2006. The tranche D term
    loan bears interest, at our option, at the administrative
    agents alternate base rate or reserve-adjusted LIBOR plus,
    in each case, applicable margin. The initial applicable margin
    for the tranche D term loan is 1.50% over LIBOR and 0.50%
    over the base rate. For the revolving credit facility, the
    initial applicable margin is 3.00% over LIBOR and 2.00% over the
    base rate and thereafter will be determined on the basis of the
    ratio of total debt to annualized EBITDA and will range between
    1.50% and 3.00% over LIBOR and between 0.50% and 2.00% over the
    base rate. As of December 31, 2005, the average interest
    rate on the tranche D term loan was 5.91%.



|                                          |  |                        |         |   |      |   |   |      |  |   |      |  |  |      |   |            |            |   |   |       |  |   |       |  |  |   |         |  |  |   |       | 
|----------------------------------------- |  | ---------------------- | ------- | - | ---- | - | - | ---- |  | - | ---- |  |  | ---- | - | ---------- | ---------- | - | - | ----- |  | - | ----- |  |  | - | ------- |  |  | - | ----- | 
|                                          |  |                        |         |   |      |   |   |      |  |   |      |  |  |      |   | Fair Value |           
|                                          |  | 2006                   |         |   | 2007 |   |   | 2008 |  |   | 2009 |  |  | 2010 |   |            | Thereafter |   |   | Total |  |   | Asset | 
|                                          |  |                        |         |   |      |   |   |      |  |   |      |  |  |      |   |            |            |   |   |       |  |   |       | 
|                                          |  | (Dollars in thousands) |        
|Interest rate swaps:                      |  |                        |         |   |      |   |   |      |  |   |      |  |  |      |   |            |            |   |   |       |  |   |       |  |  |   |         |  |  |   |       | 
|Notional amount(1)                        |  | $                      | 200,000 |   |      | $ |  |      |  | $ |     |  |  | $    |  |            |            | $ |  |       |  | $ |      |  |  | $ | 200,000 |  |  | $ | 1,671 | 
|Weighted-average fixed rate payable(2)    |  |                        | 3.5     | % |      |   |  |      |  |   |     |  |  |      |  |            |            |   |  |       |  |   |      |  |  |   |         |  |  |   |       | 
|Weighted-average fixed rate receivable(3) |  |                        |        |   |      |   |  |      |  |   |     |  |  |      |  |            |            |   |  |       |  |   |      |  |  |   |         |  |  |   |       | 






|    |                                                                                                                                                                      
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes notional amounts of $200.0 million that will
    expire in August 2006. In January 2006, we cancelled
    $100 million of the interest rate swap agreements.

73



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|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | Represents the weighted-average fixed rate based on the contract
    notional amount as a percentage of total notional amounts in a
    given year.                                                                                                                                                                                                                                                                                                                                                                                    
|   
|(3) | The initial applicable margin for the tranche D term loan
    is 1.50% over LIBOR and 0.50% over the base rate. For the
    revolving credit facility, the applicable margin is 3.00% over
    LIBOR and 2.00% over the base rate and thereafter will be
    determined on the basis of the ratio of total debt to annualized
    EBITDA and will range between 1.50% and 3.00% over LIBOR and
    between 0.50% and 2.00% over the base rate. As of
    December 31, 2005, the interest rate on the tranche D
    term loan was 5.91%.

74



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##### Table of Contents








|        |                                            
|------- | -------------------------------------------
|Item 8. | Financial Statements and Supplementary Data

NEXTEL PARTNERS, INC. AND SUBSIDIARIES


Index to Consolidated Financial Statements


|                                                                                                                                                 |  |      |     | 
|------------------------------------------------------------------------------------------------------------------------------------------------ |  | ---- | --- | 
|                                                                                                                                                 |  | Page |    
|                                                                                                                                                 |  |      |    
|Consolidated Balance Sheets as of
    December 31, 2005 and 2004                                                                                 |  |      | 76  | 
|Consolidated Statements of Operations for
    the Years Ended December 31, 2005, 2004 and 2003                                                   |  |      | 77  | 
|Consolidated Statements of Changes in
    Stockholders Equity and Comprehensive Income for the Years
    Ended December 31, 2005, 2004 and 2003 |  |      | 78  | 
|Consolidated Statements of Cash Flows for
    the Years Ended December 31, 2005, 2004 and 2003                                                   |  |      | 79  | 
|Notes to Consolidated Financial
    Statements                                                                                                   |  |      | 80  | 
|Report of Independent Registered Public
    Accounting Firm                                                                                      |  |      | 111 | 
|Report of Independent Registered Public
    Accounting Firm on Internal Control over Financial Reporting                                         |  |      | 112 | 

75



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##### Table of Contents



NEXTEL PARTNERS, INC. AND SUBSIDIARIES





Consolidated Balance Sheets


|                                           |                                                                                                                                                                                            |                                    |           |           |              |   |           |            |           | 
|------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ---------------------------------- | --------- | --------- | ------------ | - | --------- | ---------- | --------- | 
|                                           |                                                                                                                                                                                            | December 31,                       |           |           | December 31, |  
|                                           |                                                                                                                                                                                            | 2005                               |           |           | 2004         |  
|                                           |                                                                                                                                                                                            |                                    |           |           |              |  
|                                           |                                                                                                                                                                                            | (Dollars in thousands,             |          
|                                           |                                                                                                                                                                                            | except per share amounts)          |          
|ASSETS                                    
|CURRENT ASSETS:                            |                                                                                                                                                                                            |                                    |           |           |              |   |           |           
|                                           | Cash and cash equivalents                                                                                                                                                                  |                                    | $         | 150,403   |              |   | $         | 147,484    |          
|                                           | Short-term investments                                                                                                                                                                     |                                    |           | 14,624    |              |   |           | 117,095    |          
|                                           | Accounts and notes receivable, net of allowance $27,267 and
    $15,874, respectively                                                                                                      |                                    |           | 265,720   |              |   |           | 190,954    |          
|                                           | Subscriber equipment inventory                                                                                                                                                             |                                    |           | 98,003    |              |   |           | 49,595     |          
|                                           | Deferred current income taxes                                                                                                                                                              |                                    |           | 78,027    |              |   |           |           |          
|                                           | Prepaid expenses                                                                                                                                                                           |                                    |           | 18,560    |              |   |           | 21,175     |          
|                                           | Other current assets                                                                                                                                                                       |                                    |           | 19,529    |              |   |           | 10,213     |          
|                                           |                                                                                                                                                                                            |                                    |           |           |              |  
|Total current assets                       |                                                                                                                                                                                            |                                    | 644,866   |           |              |   | 536,516   |           
|                                           |                                                                                                                                                                                            |                                    |           |           |              |  
|PROPERTY, PLANT AND EQUIPMENT, at cost     |                                                                                                                                                                                            |                                    | 1,744,633 |           |              |   | 1,546,685 |           
|                                           | Less  accumulated depreciation and amortization                                                                                                                                           |                                    |           | (665,583  | )            |   |           | (503,967   | )        
|                                           |                                                                                                                                                                                            |                                    |           |           |              |  
|                                           |                                                                                                                                                                                            | Property, plant and equipment, net |           |           | 1,079,050    |   |           |            | 1,042,718 | 
|                                           |                                                                                                                                                                                            |                                    |           |           |              |  
|OTHER NON-CURRENT ASSETS:                  |                                                                                                                                                                                            |                                    |           |           |              |   |           |           
|                                           | FCC licenses, net of accumulated amortization of $8,744                                                                                                                                    |                                    |           | 376,254   |              |   |           | 375,470    |          
|                                           | Deferred non-current income taxes                                                                                                                                                          |                                    |           | 181,252   |              |   |           |           |          
|                                           | Debt issuance costs and other, net of accumulated amortization
    of $7,575 and $6,456, respectively                                                                                      |                                    |           | 10,909    |              |   |           | 20,995     |          
|                                           | Goodwill                                                                                                                                                                                   |                                    |           | 1,514     |              |   |           |           |          
|                                           | Other intangible assets, net of accumulated amortization of $22
    and $0, respectively                                                                                                   |                                    |           | 83        |              |   |           |           |          
|                                           |                                                                                                                                                                                            |                                    |           |           |              |  
|Total non-current assets                   |                                                                                                                                                                                            |                                    | 570,012   |           |              |   | 396,465   |           
|                                           |                                                                                                                                                                                            |                                    |           |           |              |  
|TOTAL ASSETS                               |                                                                                                                                                                                            | $                                  | 2,293,928 |           |              | $ | 1,975,699 |           
|                                           |                                                                                                                                                                                            |                                    |           |           |              |  
|                                          
|LIABILITIES AND STOCKHOLDERS EQUITY      
|CURRENT LIABILITIES:                       |                                                                                                                                                                                            |                                    |           |           |              |   |           |           
|                                           | Accounts payable                                                                                                                                                                           |                                    | $         | 84,024    |              |   | $         | 82,833     |          
|                                           | Accrued expenses and other current liabilities                                                                                                                                             |                                    |           | 117,446   |              |   |           | 115,447    |          
|                                           | Due to Nextel WIP                                                                                                                                                                          |                                    |           | 6,962     |              |   |           | 7,379      |          
|                                           |                                                                                                                                                                                            |                                    |           |           |              |  
|Total current liabilities                  |                                                                                                                                                                                            |                                    | 208,432   |           |              |   | 205,659   |           
|                                           |                                                                                                                                                                                            |                                    |           |           |              |  
|LONG-TERM OBLIGATIONS:                     |                                                                                                                                                                                            |                                    |           |           |              |   |           |           
|                                           | Long-term debt                                                                                                                                                                             |                                    |           | 1,226,608 |              |   |           | 1,632,518  |          
|                                           | Deferred income taxes                                                                                                                                                                      |                                    |           |          |              |   |           | 53,964     |          
|                                           | Other long-term liabilities                                                                                                                                                                |                                    |           | 39,691    |              |   |           | 32,243     |          
|                                           |                                                                                                                                                                                            |                                    |           |           |              |  
|Total long-term obligations                |                                                                                                                                                                                            |                                    | 1,266,299 |           |              |   | 1,718,725 |           
|                                           |                                                                                                                                                                                            |                                    |           |           |              |  
|TOTAL LIABILITIES                          |                                                                                                                                                                                            |                                    | 1,474,731 |           |              |   | 1,924,384 |           
|                                           |                                                                                                                                                                                            |                                    |           |           |              |  
|COMMITMENTS AND CONTINGENCIES (See Note 8) |                                                                                                                                                                                            |                                    |           |           |              |   |           |           
|STOCKHOLDERS EQUITY:                      |                                                                                                                                                                                            |                                    |           |           |              |   |           |           
|                                           | Preferred stock, no par value, 100,000,000 shares
    authorized, no shares issued and outstanding                                                                                         |                                    |           |          |              |   |           |           |          
|                                           | Series B Preferred stock, par value $.001 per share,
    13,110,000 shares authorized, no shares outstanding                                                                               |                                    |           |          |              |   |           |           |          
|                                           | Common stock, Class A, par value $.001 per share,
    500,000,000 shares authorized, 200,072,729 and
    181,557,105 shares, respectively, issued and outstanding,
    and paid-in capital |                                    |           | 1,190,586 |              |   |           | 1,029,193  |          
|                                           | Common stock, Class B, par value $.001 per share
    convertible, 600,000,000 shares authorized,
    84,632,604 shares, issued and outstanding, and paid-in
    capital                    |                                    |           | 172,697   |              |   |           | 172,697    |          
|                                           | Accumulated deficit                                                                                                                                                                        |                                    |           | (545,454  | )            |   |           | (1,150,806 | )        
|                                           | Deferred compensation                                                                                                                                                                      |                                    |           | (64       | )            |   |           | (440       | )        
|                                           | Accumulated other comprehensive income                                                                                                                                                     |                                    |           | 1,432     |              |   |           | 671        |          
|                                           |                                                                                                                                                                                            |                                    |           |           |              |  
|Total stockholders equity                 |                                                                                                                                                                                            |                                    | 819,197   |           |              |   | 51,315    |           
|                                           |                                                                                                                                                                                            |                                    |           |           |              |  
|TOTAL LIABILITIES AND STOCKHOLDERS EQUITY |                                                                                                                                                                                            | $                                  | 2,293,928 |           |              | $ | 1,975,699 |           
|                                           |                                                                                                                                                                                            |                                    |           |           |              |  



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NEXTEL PARTNERS, INC. AND SUBSIDIARIES





Consolidated Statements of Operations


|                                                                                        |                                                                                                                                                                                                                                                                     |                                                  |         |             |           |   |         |             |           |   |          |             |           | 
|--------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------ | ------- | ----------- | --------- | - | ------- | ----------- | --------- | - | -------- | ----------- | --------- | 
|                                                                                        |                                                                                                                                                                                                                                                                     | For the Years Ended December 31,                 |        
|                                                                                        |                                                                                                                                                                                                                                                                     |                                                  |        
|                                                                                        |                                                                                                                                                                                                                                                                     | 2005                                             |         |             | 2004      |   |         | 2003        |          
|                                                                                        |                                                                                                                                                                                                                                                                     |                                                  |         |             |           |   |         |             |          
|                                                                                        |                                                                                                                                                                                                                                                                     | (Dollars in thousands, except per share amounts) |        
|REVENUES:                                                                               |                                                                                                                                                                                                                                                                     |                                                  |         |             |           |   |         |             |           |   |          |            
|                                                                                        | Service revenues (earned from Nextel WIP $211,628, $158,710 and
    $115,894, respectively)                                                                                                                                                                         |                                                  | $       | 1,695,017   |           |   | $       | 1,291,352   |           |   | $        | 964,386     |          
|                                                                                        | Equipment revenues                                                                                                                                                                                                                                                  |                                                  |         | 106,634     |           |   |         | 85,784      |           |   |          | 60,826      |          
|                                                                                        |                                                                                                                                                                                                                                                                     |                                                  |         |             |           |   |         |             |          
|                                                                                        |                                                                                                                                                                                                                                                                     | Total revenues                                   |         |             | 1,801,651 |   |         |             | 1,377,136 |   |          |             | 1,025,212 | 
|                                                                                        |                                                                                                                                                                                                                                                                     |                                                  |         |             |           |   |         |             |          
|OPERATING EXPENSES:                                                                     |                                                                                                                                                                                                                                                                     |                                                  |         |             |           |   |         |             |           |   |          |            
|                                                                                        | Cost of service revenues (excludes depreciation of $137,488,
    $121,644 and $109,572, respectively) (incurred from Nextel WIP
    $139,928, $117,491 and $96,612; American Tower $11,784, $10,866
    and $10,381 and Sprint Nextel $1,452, $0, $0, respectively) |                                                  |         | 432,248     |           |   |         | 361,059     |           |   |          | 322,475     |          
|                                                                                        | Cost of equipment revenues                                                                                                                                                                                                                                          |                                                  |         | 178,261     |           |   |         | 152,557     |           |   |          | 121,036     |          
|                                                                                        | Selling, general and administrative (incurred from Nextel WIP
    $40,672, $22,140 and $13,292 and Sprint Nextel $327, $0, $0,
    respectively)                                                                                                                    |                                                  |         | 615,944     |           |   |         | 492,335     |           |   |          | 402,300     |          
|                                                                                        | Stock based compensation (primarily selling, general and
    administrative related)                                                                                                                                                                                |                                                  |         | 639         |           |   |         | 755         |           |   |          | 1,092       |          
|                                                                                        | Depreciation and amortization                                                                                                                                                                                                                                       |                                                  |         | 170,133     |           |   |         | 149,708     |           |   |          | 135,417     |          
|                                                                                        |                                                                                                                                                                                                                                                                     |                                                  |         |             |           |   |         |             |          
|                                                                                        |                                                                                                                                                                                                                                                                     | Total operating expenses                         |         |             | 1,397,225 |   |         |             | 1,156,414 |   |          |             | 982,320   | 
|                                                                                        |                                                                                                                                                                                                                                                                     |                                                  |         |             |           |   |         |             |          
|INCOME FROM OPERATIONS                                                                  |                                                                                                                                                                                                                                                                     |                                                  | 404,426 |             |           |   | 220,722 |             |           |   | 42,892   |            
|                                                                                        | Interest expense, net of capitalized interest                                                                                                                                                                                                                       |                                                  |         | (94,901     | )         |   |         | (106,500    | )         |   |          | (152,294    | )        
|                                                                                        | Interest income                                                                                                                                                                                                                                                     |                                                  |         | 7,759       |           |   |         | 2,891       |           |   |          | 2,811       |          
|                                                                                        | Loss on early retirement of debt                                                                                                                                                                                                                                    |                                                  |         | (17,707     | )         |   |         | (54,971     | )         |   |          | (95,093     | )        
|                                                                                        |                                                                                                                                                                                                                                                                     |                                                  |         |             |           |   |         |             |          
|INCOME (LOSS) BEFORE INCOME TAX PROVISION                                               |                                                                                                                                                                                                                                                                     |                                                  | 299,577 |             |           |   | 62,142  |             |           |   | (201,684 | )          
|                                                                                        | Income tax (provision) benefit                                                                                                                                                                                                                                      |                                                  |         | 305,775     |           |   |         | (8,396      | )         |   |          | (7,811      | )        
|                                                                                        |                                                                                                                                                                                                                                                                     |                                                  |         |             |           |   |         |             |          
|NET INCOME (LOSS)                                                                       |                                                                                                                                                                                                                                                                     |                                                  | 605,352 |             |           |   | 53,746  |             |           |   | (209,495 | )          
|                                                                                        | Mandatorily redeemable preferred stock dividends                                                                                                                                                                                                                    |                                                  |         |            |           |   |         |            |           |   |          | (2,141      | )        
|                                                                                        |                                                                                                                                                                                                                                                                     |                                                  |         |             |           |   |         |             |          
|NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS                                   |                                                                                                                                                                                                                                                                     | $                                                | 605,352 |             |           | $ | 53,746  |             |           | $ | (211,636 | )          
|                                                                                        |                                                                                                                                                                                                                                                                     |                                                  |         |             |           |   |         |             |          
|NET INCOME (LOSS) PER SHARE ATTRIBUTABLE TO COMMON
    STOCKHOLDERS, BASIC AND DILUTED: |                                                                                                                                                                                                                                                                     |                                                  |         |             |           |   |         |             |           |   |          |            
|                                                                                        | Basic                                                                                                                                                                                                                                                               |                                                  | $       | 2.24        |           |   | $       | 0.20        |           |   | $        | (0.84       | )        
|                                                                                        |                                                                                                                                                                                                                                                                     |                                                  |         |             |           |   |         |             |          
|                                                                                        | Diluted                                                                                                                                                                                                                                                             |                                                  | $       | 1.96        |           |   | $       | 0.19        |           |   | $        | (0.84       | )        
|                                                                                        |                                                                                                                                                                                                                                                                     |                                                  |         |             |           |   |         |             |          
|Weighted average number of shares outstanding                                           |                                                                                                                                                                                                                                                                     |                                                  |         |             |           |   |         |             |           |   |          |            
|                                                                                        | Basic                                                                                                                                                                                                                                                               |                                                  |         | 270,462,109 |           |   |         | 263,670,839 |           |   |          | 252,439,876 |          
|                                                                                        |                                                                                                                                                                                                                                                                     |                                                  |         |             |           |   |         |             |          
|                                                                                        | Diluted                                                                                                                                                                                                                                                             |                                                  |         | 309,439,683 |           |   |         | 304,985,247 |           |   |          | 252,439,876 |          
|                                                                                        |                                                                                                                                                                                                                                                                     |                                                  |         |             |           |   |         |             |          



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NEXTEL PARTNERS, INC. AND SUBSIDIARIES





Consolidated Statements of Changes in Stockholders
Equity and Comprehensive Income


For the Years Ended December 31, 2003, 2004 and 2005


|        |                                                           |                                         |                                                        |                |                   |   |         |             |   |   |            |             |   |               |         |         |              |   |          |            |         |   |        |        |   |   |   |       |   |     |        |          |         |     | 
|------- | --------------------------------------------------------- | --------------------------------------- | ------------------------------------------------------ | -------------- | ----------------- | - | ------- | ----------- | - | - | ---------- | ----------- | - | ------------- | ------- | ------- | ------------ | - | -------- | ---------- | ------- | - | ------ | ------ | - | - | - | ----- | - | --- | ------ | -------- | ------- | --- | 
|        |                                                           |                                         |                                                        | Class B Common |                   |   |         |             |   |   |            |             |  
|        |                                                           | Class A Common Stock                    |                                                        |                | Stock and Paid-In |   |         |             |   |   |            | Accumulated |   |               |        
|        |                                                           | and Paid-In Capital                     |                                                        |                | Capital           |   |         |             |   |   |            | Other       |   |               |        
|        |                                                           |                                         |                                                        |                |                   |   |         | Accumulated |   |   | Deferred   |             |   | Comprehensive |         |         |             
|        |                                                           | Shares                                  |                                                        |                | Amount            |   |         | Shares      |   |   | Amount     |             |   | Deficit       |         |         | Compensation |   |          | Income     |         |   | Totals |       
|        |                                                           |                                         |                                                        |                |                   |   |         |             |   |   |            |             |   |               |         |         |              |   |          |            |         |   |        |       
|        |                                                           | (Dollars in thousands)                  |                                                       
|BALANCE |                                                           |                                         | 170,797,589                                            |                |                   | $ | 897,756 |             |   |   | 79,056,228 |             |   | $             | 163,312 |         |              | $ | (992,916 | )          |         | $ | (1,245 | )      |   | $ |  |       |   | $   | 66,907 |         
|        | Series B redeemable preferred stock dividend              |                                         |                                                        |               |                   |   |         |            |   |   |            |            |   |               |         |        |              |   |          | (2,141     | )       |   |        |       |   |   |   |      |   |     |        | (2,141   | )      
|        | Net Loss                                                  |                                         |                                                        |               |                   |   |         |            |   |   |            |            |   |               |         |        |              |   |          | (209,495   | )       |   |        |       |   |   |   |      |   |     |        | (209,495 | )      
|        | Issuance of stock options and restricted stock            |                                         |                                                        | 50,000         |                   |   |         | 1,688       |   |   |            |            |   |               |         |        |              |   |          |           |         |   |        | (1,188 | ) |   |   |      |   |     |        | 500      |        
|        | Conversion of long-term debt to common stock, net         |                                         |                                                        | 1,076,000      |                   |   |         | 6,896       |   |   |            |            |   |               |         |        |              |   |          |           |         |   |        |       |   |   |   |      |   |     |        | 6,896    |        
|        | Vesting of deferred compensation                          |                                         |                                                        |               |                   |   |         |            |   |   |            |            |   |               |         |        |              |   |          |           |         |   |        | 1,092  |   |   |   |      |   |     |        | 1,092    |        
|        | Stock options exercised                                   |                                         |                                                        | 921,192        |                   |   |         | 3,512       |   |   |            |            |   |               |         |        |              |   |          |           |         |   |        |       |   |   |   |      |   |     |        | 3,512    |        
|        | Stock issued for employee stock purchase plan             |                                         |                                                        | 341,653        |                   |   |         | 1,799       |   |   |            |            |   |               |         |        |              |   |          |           |         |   |        |       |   |   |   |      |   |     |        | 1,799    |        
|        | Class A common stock issued, net of equity issuance costs |                                         |                                                        | 10,000,000     |                   |   |         | 103,725     |   |   |            |            |   |               |         |        |              |   |          |           |         |   |        |       |   |   |   |      |   |     |        | 103,725  |        
|        |                                                           |                                         |                                                        |                |                   |   |         |             |   |   |            |             |   |               |         |         |              |   |          |            |         |   |        |       
|BALANCE |                                                           |                                         |                                                        |                |                   |   |         |             |   |   |            |             |   |               |         |         |              |   |          |            |         |   |        |        |   |   |   |       |   |     |        |         
|        | December 31, 2003                                         |                                         |                                                        | 183,186,434    |                   |   | $       | 1,015,376   |   |   |            | 79,056,228  |   |               | $       | 163,312 |              |   | $        | (1,204,552 | )       |   | $      | (1,341 | ) |   | $ |      |   |     | $      | (27,205  | )      
|        |                                                           | Net Income                              |                                                        |                |                  |   |         |             |  |   |            |             |  |               |         |         |             |   |          |            | 53,746  |   |        |        |  |   |   |       |  |     |        |          | 53,746  |    
|        |                                                           | Other comprehensive income, net of tax: |                                                        |                |                   |   |         |             |   |   |            |             |   |               |         |         |              |   |          |            |         |   |        |        |   |   |   |       |   |     |        |          |         |    
|        |                                                           |                                         | Unrealized gain on cash flow hedge, net of tax of $0   |                |                   |  |         |             |   |  |            |             |   |              |         |         |              |  |          |            |         |  |        |        |   |  |   |       |   | 671 |        |          |         | 671 | 
|        |                                                           |                                         |                                                        |                |                   |   |         |             |   |   |            |             |   |               |         |         |              |   |          |            |         |   |        |       
|        | Comprehensive Income                                      |                                         |                                                        |                |                   |   |         |             |   |   |            |             |   |               |         |         |              |   |          |            |         |   |        |        |   |   |   |       |   |     |        | 54,417   |        
|        |                                                           |                                         |                                                        |                |                   |   |         |             |   |   |            |             |   |               |         |         |              |   |          |            |         |   |        |       
|        | Forfeitures of deferred compensation                      |                                         |                                                        |               |                   |   |         | (265        | ) |   |            |            |   |               |         |        |              |   |          |           |         |   |        | 265    |   |   |   |      |   |     |        |         |        
|        | Class A common stock acquired by Nextel WIP               |                                         |                                                        | (5,576,376     | )                 |   |         | (9,385      | ) |   |            | 5,576,376   |   |               |         | 9,385   |              |   |          |           |         |   |        |       |   |   |   |      |   |     |        |         |        
|        | Vesting of deferred compensation                          |                                         |                                                        |               |                   |   |         |            |   |   |            |            |   |               |         |        |              |   |          |           |         |   |        | 755    |   |   |   |      |   |     |        | 755      |        
|        | Modification of stock options                             |                                         |                                                        |               |                   |   |         | 119         |   |   |            |            |   |               |         |        |              |   |          |           |         |   |        | (119   | ) |   |   |      |   |     |        |         |        
|        | Stock options exercised                                   |                                         |                                                        | 3,743,441      |                   |   |         | 20,816      |   |   |            |            |   |               |         |        |              |   |          |           |         |   |        |       |   |   |   |      |   |     |        | 20,816   |        
|        | Stock issued for employee stock purchase plan             |                                         |                                                        | 203,606        |                   |   |         | 2,532       |   |   |            |            |   |               |         |        |              |   |          |           |         |   |        |       |   |   |   |      |   |     |        | 2,532    |        
|        |                                                           |                                         |                                                        |                |                   |   |         |             |   |   |            |             |   |               |         |         |              |   |          |            |         |   |        |       
|BALANCE |                                                           |                                         |                                                        |                |                   |   |         |             |   |   |            |             |   |               |         |         |              |   |          |            |         |   |        |        |   |   |   |       |   |     |        |         
|        | December 31, 2004                                         |                                         |                                                        | 181,557,105    |                   |   | $       | 1,029,193   |   |   |            | 84,632,604  |   |               | $       | 172,697 |              |   | $        | (1,150,806 | )       |   | $      | (440   | ) |   | $ | 671   |   |     | $      | 51,315   |        
|        |                                                           | Net Income                              |                                                        |                |                  |   |         |             |  |   |            |             |  |               |         |         |             |   |          |            | 605,352 |   |        |        |  |   |   |       |  |     |        |          | 605,352 |    
|        |                                                           | Other comprehensive income, net of tax: |                                                        |                |                   |   |         |             |   |   |            |             |   |               |         |         |              |   |          |            |         |   |        |        |   |   |   |       |   |     |        |          |         |    
|        |                                                           |                                         | Unrealized gain on investments, net of tax of $21      |                |                   |  |         |             |   |  |            |             |   |              |         |         |              |  |          |            |         |  |        |        |   |  |   |       |   | 33  |        |          |         | 33  | 
|        |                                                           |                                         | Unrealized gain on cash flow hedge, net of tax of $888 |                |                   |  |         |             |   |  |            |             |   |              |         |         |              |  |          |            |         |  |        |        |   |  |   |       |   | 728 |        |          |         | 728 | 
|        |                                                           |                                         |                                                        |                |                   |   |         |             |   |   |            |             |   |               |         |         |              |   |          |            |         |   |        |       
|        | Comprehensive Income                                      |                                         |                                                        |                |                   |   |         |             |   |   |            |             |   |               |         |         |              |   |          |            |         |   |        |        |   |   |   |       |   |     |        | 606,113  |        
|        |                                                           |                                         |                                                        |                |                   |   |         |             |   |   |            |             |   |               |         |         |              |   |          |            |         |   |        |       
|        | Vesting of deferred compensation                          |                                         |                                                        |               |                   |   |         |            |   |   |            |            |   |               |         |        |              |   |          |           |         |   |        | 588    |   |   |   |      |   |     |        | 588      |        
|        | Restricted stock grant                                    |                                         |                                                        | 10,000         |                   |   |         | 212         |   |   |            |            |   |               |         |        |              |   |          |           |         |   |        | (212   | ) |   |   |      |   |     |        |         |        
|        | Conversion of long-term debt to common stock, net         |                                         |                                                        | 13,477,275     |                   |   |         | 109,582     |   |   |            |            |   |               |         |        |              |   |          |           |         |   |        |       |   |   |   |      |   |     |        | 109,582  |        
|        | Stock options exercised                                   |                                         |                                                        | 4,887,668      |                   |   |         | 48,869      |   |   |            |            |   |               |         |        |              |   |          |           |         |   |        |       |   |   |   |      |   |     |        | 48,869   |        
|        | Stock issued for employee stock purchase plan             |                                         |                                                        | 140,681        |                   |   |         | 2,730       |   |   |            |            |   |               |         |        |              |   |          |           |         |   |        |       |   |   |   |      |   |     |        | 2,730    |        
|BALANCE |                                                           |                                         |                                                        |                |                   |   |         |             |   |   |            |             |   |               |         |         |              |   |          |            |         |   |        |        |   |   |   |       |   |     |        |         
|        | December 31, 2005                                         |                                         |                                                        | 200,072,729    |                   |   | $       | 1,190,586   |   |   |            | 84,632,604  |   |               | $       | 172,697 |              |   | $        | (545,454   | )       |   | $      | (64    | ) |   | $ | 1,432 |   |     | $      | 819,197  |        
|        |                                                           |                                         |                                                        |                |                   |   |         |             |   |   |            |             |   |               |         |         |              |   |          |            |         |   |        |       



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NEXTEL PARTNERS, INC. AND SUBSIDIARIES





Consolidated Statements of Cash Flows


|                                             |                                                                                      |                                                                  |                                    |          |          |         |         |          |          |         |         |            |          |        | 
|-------------------------------------------- | ------------------------------------------------------------------------------------ | ---------------------------------------------------------------- | ---------------------------------- | -------- | -------- | ------- | ------- | -------- | -------- | ------- | ------- | ---------- | -------- | ------ | 
|                                             |                                                                                      | For the Years Ended December 31,                                 |                                   
|                                             |                                                                                      |                                                                  |                                   
|                                             |                                                                                      | 2005                                                             |                                    |          | 2004     |         |         | 2003     |         
|                                             |                                                                                      |                                                                  |                                    |          |          |         |         |          |         
|                                             |                                                                                      | (Dollars in thousands)                                           |                                   
|CASH FLOWS FROM OPERATING ACTIVITIES:        |                                                                                      |                                                                  |                                    |          |          |         |         |          |          |         |         |           
|                                             | Net income (loss)                                                                    |                                                                  | $                                  | 605,352  |          |         | $       | 53,746   |          |         | $       | (209,495   | )       
|                                             | Adjustments to reconcile net income (loss) to net cash from
    operating activities |                                                                  |                                    |          |          |         |         |          |          |         |         |            |         
|                                             | Deferred income tax provision (benefit)                                              |                                                                  |                                    | (314,177 | )        |         |         | 8,396    |          |         |         | 7,811      |         
|                                             | Depreciation and amortization                                                        |                                                                  |                                    | 170,133  |          |         |         | 149,708  |          |         |         | 135,417    |         
|                                             | Amortization of debt issuance costs                                                  |                                                                  |                                    | 3,347    |          |         |         | 3,888    |          |         |         | 5,173      |         
|                                             | Interest accretion for senior discount notes                                         |                                                                  |                                    |         |          |         |         | 20       |          |         |         | 28,975     |         
|                                             | Bond discount amortization                                                           |                                                                  |                                    | 990      |          |         |         | 980      |          |         |         | 1,252      |         
|                                             | Loss on early retirement of debt                                                     |                                                                  |                                    | 17,707   |          |         |         | 54,971   |          |         |         | 95,093     |         
|                                             | Fair value adjustments of derivative instruments and investments                     |                                                                  |                                    | (2,263   | )        |         |         | (4,018   | )        |         |         | (4,100     | )       
|                                             | Stock based compensation                                                             |                                                                  |                                    | 639      |          |         |         | 755      |          |         |         | 1,092      |         
|                                             | Other, net                                                                           |                                                                  |                                    | 1,178    |          |         |         | 279      |          |         |         | 3,416      |         
|                                             | Changes in current assets and liabilities:                                           |                                                                  |                                    |          |          |         |         |          |          |         |         |            |         
|                                             |                                                                                      | Accounts and notes receivable, net                               |                                    |          | (74,766  | )       |         |          | (40,735  | )       |         |            | (19,760  | )     
|                                             |                                                                                      | Subscriber equipment inventory                                   |                                    |          | (48,394  | )       |         |          | (25,588  | )       |         |            | (7,594   | )     
|                                             |                                                                                      | Other current and long-term assets                               |                                    |          | (2,475   | )       |         |          | (12,482  | )       |         |            | (3,894   | )     
|                                             |                                                                                      | Accounts payable, accrued expenses and other current liabilities |                                    |          | 23,122   |         |         |          | 14,954   |         |         |            | 52,853   |       
|                                             |                                                                                      | Operating advances due to (from) Nextel WIP                      |                                    |          | (581     | )       |         |          | (2,408   | )       |         |            | 915      |       
|                                             |                                                                                      |                                                                  |                                    |          |          |         |         |          |         
|                                             |                                                                                      |                                                                  | Net cash from operating activities |          |          | 379,812 |         |          |          | 202,466 |         |            |          | 87,154 | 
|                                             |                                                                                      |                                                                  |                                    |          |          |         |         |          |         
|CASH FLOWS FROM INVESTING ACTIVITIES:        |                                                                                      |                                                                  |                                    |          |          |         |         |          |          |         |         |           
|                                             | Capital expenditures                                                                 |                                                                  |                                    | (233,853 | )        |         |         | (156,843 | )        |         |         | (179,794   | )       
|                                             | FCC licenses                                                                         |                                                                  |                                    | (669     | )        |         |         | (3,873   | )        |         |         | (16,026    | )       
|                                             | Proceeds from maturities of short-term investments                                   |                                                                  |                                    | 139,703  |          |         |         | 107,985  |          |         |         | 58,253     |         
|                                             | Proceeds from sales of short-term investments                                        |                                                                  |                                    | 19,660   |          |         |         | 316,499  |          |         |         | 1,205,104  |         
|                                             | Purchases of short-term investments                                                  |                                                                  |                                    | (55,994  | )        |         |         | (395,388 | )        |         |         | (1,282,041 | )       
|                                             | Other                                                                                |                                                                  |                                    | (1,662   | )        |         |         |         |          |         |         |           |         
|                                             |                                                                                      |                                                                  |                                    |          |          |         |         |          |         
|                                             |                                                                                      | Net cash from investing activities                               |                                    |          | (132,815 | )       |         |          | (131,620 | )       |         |            | (214,504 | )     
|                                             |                                                                                      |                                                                  |                                    |          |          |         |         |          |         
|CASH FLOWS FROM FINANCING ACTIVITIES:        |                                                                                      |                                                                  |                                    |          |          |         |         |          |          |         |         |           
|                                             | Proceeds from borrowings                                                             |                                                                  |                                    | 550,000  |          |         |         | 724,565  |          |         |         | 1,125,000  |         
|                                             | Stock options exercised                                                              |                                                                  |                                    | 48,869   |          |         |         | 20,453   |          |         |         | 3,512      |         
|                                             | Proceeds from stock issued for employee stock purchase plan                          |                                                                  |                                    | 2,730    |          |         |         | 2,532    |          |         |         | 1,799      |         
|                                             | Proceeds from sale lease-back transactions                                           |                                                                  |                                    | 15,439   |          |         |         | 1,939    |          |         |         | 6,860      |         
|                                             | Debt repayments                                                                      |                                                                  |                                    | (856,612 | )        |         |         | (788,909 | )        |         |         | (1,034,930 | )       
|                                             | Capital lease payments                                                               |                                                                  |                                    | (3,499   | )        |         |         | (3,209   | )        |         |         | (2,617     | )       
|                                             | Class A common stock issued                                                          |                                                                  |                                    |         |          |         |         |         |          |         |         | 104,500    |         
|                                             | Debt and equity issuance costs                                                       |                                                                  |                                    | (1,005   | )        |         |         | (3,353   | )        |         |         | (21,676    | )       
|                                             |                                                                                      |                                                                  |                                    |          |          |         |         |          |         
|                                             |                                                                                      | Net cash from financing activities                               |                                    |          | (244,078 | )       |         |          | (45,982  | )       |         |            | 182,448  |       
|                                             |                                                                                      |                                                                  |                                    |          |          |         |         |          |         
|NET INCREASE IN CASH AND CASH EQUIVALENTS    |                                                                                      |                                                                  | 2,919                              |          |          |         | 24,864  |          |          |         | 55,098  |           
|CASH AND CASH EQUIVALENTS, beginning of year |                                                                                      |                                                                  | 147,484                            |          |          |         | 122,620 |          |          |         | 67,522  |           
|                                             |                                                                                      |                                                                  |                                    |          |          |         |         |          |         
|CASH AND CASH EQUIVALENTS, end of year       |                                                                                      | $                                                                | 150,403                            |          |          | $       | 147,484 |          |          | $       | 122,620 |           
|                                             |                                                                                      |                                                                  |                                    |          |          |         |         |          |         
|SUPPLEMENTAL DISCLOSURES                     |                                                                                      |                                                                  |                                    |          |          |         |         |          |          |         |         |           
|                                             | Cash paid for income taxes                                                           |                                                                  | $                                  | 4,615    |          |         | $       |         |          |         | $       |           |         
|                                             |                                                                                      |                                                                  |                                    |          |          |         |         |          |         
|                                             | Capitalized interest on accretion of senior discount notes                           |                                                                  | $                                  |         |          |         | $       |         |          |         | $       | 379        |         
|                                             |                                                                                      |                                                                  |                                    |          |          |         |         |          |         
|                                             | Accretion of mandatorily redeemable preferred stock dividends                        |                                                                  | $                                  |         |          |         | $       |         |          |         | $       | 2,141      |         
|                                             |                                                                                      |                                                                  |                                    |          |          |         |         |          |         
|                                             | Retirement of long-term debt with common stock                                       |                                                                  | $                                  | 111,690  |          |         | $       |         |          |         | $       | 6,973      |         
|                                             |                                                                                      |                                                                  |                                    |          |          |         |         |          |         
|                                             | Cash paid for interest, net of capitalized amount                                    |                                                                  | $                                  | 95,167   |          |         | $       | 114,815  |          |         | $       | 103,485    |         
|                                             |                                                                                      |                                                                  |                                    |          |          |         |         |          |         



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Notes to Consolidated Financial Statements


for the Years Ended December 31, 2005, 2004 and 2003




|   |                                               
|-- | ----------------------------------------------
|1. | OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES



| |                        
| | -----------------------
| | Description of Business









| |                      
| | ---------------------
| | Concentration of Risk







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Notes to Consolidated Financial Statements 
(Continued)






| |                 
| | ----------------
| | Use of Estimates





| |                            
| | ---------------------------
| | Principles of Consolidation





| |                                                                                       
| | --------------------------------------------------------------------------------------
| | Net Income (Loss) per Share Attributable to Common
    Stockholders, Basic and Diluted

Computation
of Earnings Per Share,


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Notes to Consolidated Financial Statements 
(Continued)




|                                                                                       |                                                     |                                           |             |            |      |   |             |            |   |   |             |          |  
|-------------------------------------------------------------------------------------- | --------------------------------------------------- | ----------------------------------------- | ----------- | ---------- | ---- | - | ----------- | ---------- | - | - | ----------- | -------- | -
|                                                                                       |                                                     | For the Year Ended December 31,           |            
|                                                                                       |                                                     |                                           |            
|                                                                                       |                                                     | 2005                                      |             |            | 2004 |   |             | 2003       |  
|                                                                                       |                                                     |                                           |             |            |      |   |             |            |  
|                                                                                       |                                                     | (In thousands, except share and per share |            
|                                                                                       |                                                     | amounts)                                  |            
|Income (loss) attributable to common stockholders (numerator for
    basic)            |                                                     | $                                         | 605,352     |            |      | $ | 53,746      |            |   | $ | (211,636    | )       
|                                                                                       | Effect of dilutive securities:                      |                                           |             |            |      |   |             |            |   |   |             |          |  
|                                                                                       | Convertible Senior Notes                            |                                           |             | 2,494      |      |   |             | 4,500      |   |   |             |         |  
|                                                                                       |                                                     |                                           |             |            |      |   |             |            |  
|Adjusted Income (loss) attributable to common stockholders
    (numerator for diluted) |                                                     | $                                         | 607,846     |            |      | $ | 58,246      |            |   | $ | (211,636    | )       
|                                                                                       |                                                     |                                           |             |            |      |   |             |            |  
|Gross weighted average common shares outstanding                                       |                                                     |                                           | 270,535,369 |            |      |   | 263,807,868 |            |   |   | 252,609,931 |         
|                                                                                       | Less: Weighted average shares subject to repurchase |                                           |             | (73,260    | )    |   |             | (137,029   | ) |   |             | (170,055 | )
|                                                                                       |                                                     |                                           |             |            |      |   |             |            |  
|Weighted average common shares outstanding  
    basic (denominator for basic)        |                                                     |                                           | 270,462,109 |            |      |   | 263,670,839 |            |   |   | 252,439,876 |         
|                                                                                       | Effect of dilutive securities:                      |                                           |             |            |      |   |             |            |   |   |             |          |  
|                                                                                       | Stock options                                       |                                           |             | 7,387,544  |      |   |             | 8,338,967  |   |   |             |         |  
|                                                                                       | Convertible Senior Notes                            |                                           |             | 31,527,391 |      |   |             | 32,872,584 |   |   |             |         |  
|                                                                                       | Restricted stock (unvested)                         |                                           |             | 62,639     |      |   |             | 102,857    |   |   |             |         |  
|                                                                                       |                                                     |                                           |             |            |      |   |             |            |  
|Weighted average common shares outstanding  
    diluted (denominator for diluted)    |                                                     |                                           | 309,439,683 |            |      |   | 304,985,247 |            |   |   | 252,439,876 |         
|                                                                                       |                                                     |                                           |             |            |      |   |             |            |  
|Net income (loss) per share attributable to common stockholders,
    basic             |                                                     | $                                         | 2.24        |            |      | $ | 0.20        |            |   | $ | (0.84       | )       
|                                                                                       |                                                     |                                           |             |            |      |   |             |            |  
|Net income (loss) per share attributable to common stockholders,
    diluted           |                                                     | $                                         | 1.96        |            |      | $ | 0.19        |            |   | $ | (0.84       | )       
|                                                                                       |                                                     |                                           |             |            |      |   |             |            |  



1 2




| |                          
| | -------------------------
| | Cash and Cash Equivalents





| |                       
| | ----------------------
| | Short-Term Investments

held-to


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Notes to Consolidated Financial Statements 
(Continued)




|                                  |  |                    |        |  |      |   |         | 
|--------------------------------- |  | ------------------ | ------ |  | ---- | - | ------- | 
|                                  |  | As of December 31, |       
|                                  |  |                    |       
|                                  |  | 2005               |        |  | 2004 |  
|                                  |  |                    |        |  |      |  
|                                  |  | (In thousands)     |       
|U.S. government agency securities |  | $                  | 5,069  |  |      | $ | 87,241  | 
|Commercial paper                  |  |                    | 4,557  |  |      |   | 9,213   | 
|Corporate notes and bonds         |  |                    | 4,365  |  |      |   |        | 
|Other                             |  |                    | 633    |  |      |   |        | 
|Other asset backed securities     |  |                    |       |  |      |   | 15,939  | 
|U.S. Treasury securities          |  |                    |       |  |      |   | 3,001   | 
|Auction rate securities           |  |                    |       |  |      |   | 1,701   | 
|                                  |  |                    |        |  |      |  
|Total short-term investments      |  | $                  | 14,624 |  |      | $ | 117,095 | 
|                                  |  |                    |        |  |      |  







| |                    
| | -------------------
| | Accounts Receivable





| |                               
| | ------------------------------
| | Subscriber Equipment Inventory



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Notes to Consolidated Financial Statements 
(Continued)




| |                              
| | -----------------------------
| | Property, Plant and Equipment



Accounting for the
Costs of Computer Software Developed or Obtained for Internal
Use.




Accounting
for the Impairment or Disposal of Long-Lived Assets.




| |                            
| | ---------------------------
| | Sale-Leaseback Transactions





| |                     
| | --------------------
| | Capitalized Interest

Capitalization of Interest Cost.


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Notes to Consolidated Financial Statements 
(Continued)




| |       
| | ------
| | Leases





| |                  
| | -----------------
| | Intangible Assets

Goodwill and Other Intangible
Assets,


10-year


Unit of
Accounting for Testing Impairment of Indefinite-Lived Intangible
Assets.


24-month




|                                                |  |                |     |   |              |   |   | 
|----------------------------------------------- |  | -------------- | --- | - | ------------ | - | - | 
|                                                |  | As of          |    
|                                                |  |                |    
|                                                |  | December 31,   |     |   | December 31, |  
|                                                |  | 2005           |     |   | 2004         |  
|                                                |  |                |     |   |              |  
|                                                |  | (In thousands) |    
|Other intangible assets subject to amortization |  | $              | 105 |   |              | $ |  | 
|Less  accumulated amortization                 |  |                | (22 | ) |              |   |  | 
|                                                |  |                |     |   |              |  
|Total intangible assets subject to amortization |  | $              | 83  |   |              | $ |  | 
|                                                |  |                |     |   |              |  

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Notes to Consolidated Financial Statements 
(Continued)




| |                              
| | -----------------------------
| | Interest Rate Risk Management



Accounting for Derivative
Instruments and Hedging Activities,




| |                                  
| | ---------------------------------
| | Non-Cash Flow Hedging Instruments







| |                              
| | -----------------------------
| | Cash Flow Hedging Instruments





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Notes to Consolidated Financial Statements 
(Continued)








| |                    
| | -------------------
| | Revenue Recognition





00-21 Accounting for Revenue Arrangements with Multiple
Deliverables, Revenue Recognition in Financial Statements, 00-21.


00-21


|                                                                         |  |                                         |           |  |      |   |           |      |  |   |          |  
|------------------------------------------------------------------------ |  | --------------------------------------- | --------- |  | ---- | - | --------- | ---- |  | - | -------- | -
|                                                                         |  | For the Year Ended December 31,         |          
|                                                                         |  |                                         |          
|                                                                         |  | 2005                                    |           |  | 2004 |   |           | 2003 | 
|                                                                         |  |                                         |           |  |      |   |           |      | 
|                                                                         |  | (In thousands, except per share amount) |          
|Service revenues                                                         |  | $                                       | 1,692,981 |  |      | $ | 1,287,604 |      |  | $ | 963,380  |  
|                                                                         |  |                                         |           |  |      |   |           |      | 
|Equipment revenues                                                       |  | $                                       | 95,207    |  |      | $ | 65,526    |      |  | $ | 55,393   |  
|                                                                         |  |                                         |           |  |      |   |           |      | 
|Cost of equipment revenues                                               |  | $                                       | 164,798   |  |      | $ | 128,551   |      |  | $ | 114,597  |  
|                                                                         |  |                                         |           |  |      |   |           |      | 
|Income (Loss) attributable to common stockholders                        |  | $                                       | 605,352   |  |      | $ | 53,746    |      |  | $ | (211,636 | )
|                                                                         |  |                                         |           |  |      |   |           |      | 
|Income (Loss) per share attributable to common stockholders,
    basic   |  | $                                       | 2.24      |  |      | $ | 0.20      |      |  | $ | (0.84    | )
|                                                                         |  |                                         |           |  |      |   |           |      | 
|Income (Loss) per share attributable to common stockholders,
    diluted |  | $                                       | 1.96      |  |      | $ | 0.19      |      |  | $ | (0.84    | )
|                                                                         |  |                                         |           |  |      |   |           |      | 

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Notes to Consolidated Financial Statements 
(Continued)




| |                  
| | -----------------
| | Advertising Costs





| |                    
| | -------------------
| | Debt Issuance Costs



1 2 1 2 1 2






| |                         
| | ------------------------
| | Stock-Based Compensation

Accounting for Stock Based Compensation 
Transition and Disclosure. Accounting for Stock-Based
Compensation, Accounting for Stock
Issued to Employees.


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Notes to Consolidated Financial Statements 
(Continued)




|                                                                                                                                                                        |  |                                          |         |   |      |   |         |      |  |   |          |  
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---------------------------------------- | ------- | - | ---- | - | ------- | ---- |  | - | -------- | -
|                                                                                                                                                                        |  | For the Year Ended December 31,          |        
|                                                                                                                                                                        |  |                                          |        
|                                                                                                                                                                        |  | 2005                                     |         |   | 2004 |   |         | 2003 | 
|                                                                                                                                                                        |  |                                          |         |   |      |   |         |      | 
|                                                                                                                                                                        |  | (In thousands, except per share amounts) |        
|Net income (loss), as reported                                                                                                                                          |  | $                                        | 605,352 |   |      | $ | 53,746  |      |  | $ | (211,636 | )
|Add: stock-based employee compensation expense included in
    reported net income (loss), net of tax of $248, $0 and $0,
    respectively                              |  |                                          | 391     |   |      |   | 755     |      |  |   | 1,092    |  
|Deduct: total stock-based employee compensation expense
    determined under fair-value-based method for all awards, net of
    tax of $14,167, $0 and $0, respectively |  |                                          | (22,337 | ) |      |   | (24,523 | )    |  |   | (25,248  | )
|Add: prior periods tax effects                                                                                                                                         |  |                                          | 16,472  |   |      |   |        |      |  |   |         |  
|                                                                                                                                                                        |  |                                          |         |   |      |   |         |      | 
|As adjusted, net income (loss)                                                                                                                                          |  | $                                        | 599,878 |   |      | $ | 29,978  |      |  | $ | (235,792 | )
|                                                                                                                                                                        |  |                                          |         |   |      |   |         |      | 
|Basic income (loss) per share attributable to common
    stockholders:                                                                                                  |  |                                          |         |   |      |   |         |      |  |   |          |  
|As reported                                                                                                                                                             |  | $                                        | 2.24    |   |      | $ | 0.20    |      |  | $ | (0.84    | )
|                                                                                                                                                                        |  |                                          |         |   |      |   |         |      | 
|As adjusted                                                                                                                                                             |  | $                                        | 2.22    |   |      | $ | 0.11    |      |  | $ | (0.93    | )
|                                                                                                                                                                        |  |                                          |         |   |      |   |         |      | 
|Diluted income (loss) per share attributable to common
    stockholders:                                                                                                |  |                                          |         |   |      |   |         |      |  |   |          |  
|As reported                                                                                                                                                             |  | $                                        | 1.96    |   |      | $ | 0.19    |      |  | $ | (0.84    | )
|                                                                                                                                                                        |  |                                          |         |   |      |   |         |      | 
|As adjusted                                                                                                                                                             |  | $                                        | 1.96    |   |      | $ | 0.11    |      |  | $ | (0.93    | )
|                                                                                                                                                                        |  |                                          |         |   |      |   |         |      | 
|Weighted average fair value per share of options granted                                                                                                                |  | $                                        | 7.64    |   |      | $ | 8.37    |      |  | $ | 4.84     |  
|                                                                                                                                                                        |  |                                          |         |   |      |   |         |      | 



|                                       |  |      |             |  |      |  |             |      |  |  |             | 
|-------------------------------------- |  | ---- | ----------- |  | ---- |  | ----------- | ---- |  |  | ----------- | 
|                                       |  | 2005 |             |  | 2004 |  |             | 2003 | 
|                                       |  |      |             |  |      |  |             |      | 
|Expected stock price volatility        |  |      | 30% - 43%   |  |      |  | 50% - 70%   |      |  |  | 74% - 85%   | 
|Risk-free interest rate                |  |      | 3.7% - 4.3% |  |      |  | 3.1% - 3.4% |      |  |  | 3.6% - 3.8% | 
|Expected life in years  option grants |  |      | 4 years     |  |      |  | 4-5 years   |      |  |  | 6 years     | 
|Expected life in years  employee      |  |      |             |  |      |  |             |      |  |  |             | 
|stock purchase plan                    |  |      | .25 years   |  |      |  | .25 years   |      |  |  | .25 years   | 
|Expected dividend yield                |  |      | 0.00%       |  |      |  | 0.00%       |      |  |  | 0.00%       | 





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Notes to Consolidated Financial Statements 
(Continued)




| |             
| | ------------
| | Income Taxes

Accounting For Income Taxes,




| |                  
| | -----------------
| | Segment Reporting





| |                  
| | -----------------
| | Reclassifications





| |                             
| | ----------------------------
| | Asset Retirement Obligations

Accounting for Asset Retirement Obligations,




| |                                          
| | -----------------------------------------
| | Recently Issued Accounting Pronouncements

Inventory Costs, Inventory Pricing.


Share Based Payment, Accounting for Stock-Based
Compensation, Accounting for Stock Issued to Employees. Accounting for Stock Based
Compensation-Transition and Disclosure, Share Based
Payment,


Exchange of Nonmonetary Assets,


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NEXTEL PARTNERS, INC. AND SUBSIDIARIES


Notes to Consolidated Financial Statements 
(Continued)


Accounting for Nonmonetary Transactions,


Accounting for Conditional Asset Retirement
Obligations


Accounting Changes and Error Corrections, Accounting Changes, Reporting Accounting
Changes in Interim Financial Statements.


05-6, Determining the Amortization Period for Leasehold
Improvements, 05-6


13-1, Accounting for Rental Costs Incurred during a
Construction Period,


The Meaning of
Other-Than-Temporary Impairment and Its Application to Certain
Investments, 03-1




|   |               
|-- | --------------
|2. | CAPITAL LEASES



|                         |  |                    |         |   |      |   |        |  
|------------------------ |  | ------------------ | ------- | - | ---- | - | ------ | -
|                         |  | As of December 31, |        
|                         |  |                    |        
|                         |  | 2005               |         |   | 2004 |  
|                         |  |                    |         |   |      |  
|                         |  | (In thousands)     |        
|Equipment                |  | $                  | 27,453  |   |      | $ | 27,453 |  
|Accumulated amortization |  |                    | (12,748 | ) |      |   | (8,866 | )
|                         |  |                    |         |   |      |  
|Net equipment            |  | $                  | 14,705  |   |      | $ | 18,587 |  
|                         |  |                    |         |   |      |  



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Notes to Consolidated Financial Statements 
(Continued)




|   |                       
|-- | ----------------------
|3. | PROPERTY AND EQUIPMENT

|                                                 |  |                    |           |   |      |   |           |  
|------------------------------------------------ |  | ------------------ | --------- | - | ---- | - | --------- | -
|                                                 |  | As of December 31, |          
|                                                 |  |                    |          
|                                                 |  | 2005               |           |   | 2004 |  
|                                                 |  |                    |           |   |      |  
|                                                 |  | (In thousands)     |          
|Equipment                                        |  | $                  | 1,546,814 |   |      | $ | 1,363,923 |  
|Furniture, fixtures and software                 |  |                    | 145,492   |   |      |   | 125,299   |  
|Building and improvements                        |  |                    | 14,872    |   |      |   | 9,870     |  
|Less  accumulated depreciation and amortization |  |                    | (665,583  | ) |      |   | (503,967  | )
|                                                 |  |                    |           |   |      |  
|Subtotal                                         |  |                    | 1,041,595 |   |      |   | 995,125   |  
|Construction in progress                         |  |                    | 37,455    |   |      |   | 47,593    |  
|                                                 |  |                    |           |   |      |  
|Total property and equipment                     |  | $                  | 1,079,050 |   |      | $ | 1,042,718 |  
|                                                 |  |                    |           |   |      |  





|   |                                               
|-- | ----------------------------------------------
|4. | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

|                                                     |  |                    |         |  |      |   |         | 
|---------------------------------------------------- |  | ------------------ | ------- |  | ---- | - | ------- | 
|                                                     |  | As of December 31, |        
|                                                     |  |                    |        
|                                                     |  | 2005               |         |  | 2004 |  
|                                                     |  |                    |         |  |      |  
|                                                     |  | (In thousands)     |        
|Accrued payroll and related                          |  | $                  | 35,019  |  |      | $ | 37,303  | 
|Customer deposits                                    |  |                    | 26,470  |  |      |   | 14,160  | 
|Accrued interest                                     |  |                    | 22,564  |  |      |   | 26,051  | 
|Other accrued expenses                               |  |                    | 18,897  |  |      |   | 10,663  | 
|Accrued network and interconnect                     |  |                    | 6,184   |  |      |   | 3,125   | 
|Current portion of capital leases                    |  |                    | 3,817   |  |      |   | 3,500   | 
|Accrued advertising                                  |  |                    | 3,504   |  |      |   | 3,184   | 
|Inventory in transit                                 |  |                    | 991     |  |      |   | 17,461  | 
|                                                     |  |                    |         |  |      |  
|Total accrued expenses and other current liabilities |  | $                  | 117,446 |  |      | $ | 115,447 | 
|                                                     |  |                    |         |  |      |  

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Notes to Consolidated Financial Statements 
(Continued)




|   |                                      
|-- | -------------------------------------
|5. | NON-CURRENT PORTION OF LONG-TERM DEBT

|                                                                                                                                                                       |  |                    |           |  |      |   |           | 
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------ | --------- |  | ---- | - | --------- | 
|                                                                                                                                                                       |  | As of December 31, |          
|                                                                                                                                                                       |  |                    |          
|                                                                                                                                                                       |  | 2005               |           |  | 2004 |  
|                                                                                                                                                                       |  |                    |           |  |      |  
|                                                                                                                                                                       |  | (In thousands)     |          
|Bank Credit Facility  tranche C and D term
    loans, interest, at our option, calculated on Administrative
    Agents alternate base rate or reserve adjusted LIBOR |  | $                  | 550,000   |  |      | $ | 700,000   | 
|81/8% Senior
    Notes due 2011, net of $0.4 million discount, interest
    payable semi-annually in cash and in arrears                                               |  |                    | 474,643   |  |      |   | 474,593   | 
|11/2% Convertible
    Senior Notes due 2008, interest payable semi-annually in cash
    and in arrears                                                                 |  |                    | 188,310   |  |      |   | 300,000   | 
|121/2% Senior
    Discount Notes due 2009, net discount of $7.0 million                                                                                                |  |                    |          |  |      |   | 139,296   | 
|11% Senior Notes due 2010, interest payable semi-annually
    in cash and in arrears                                                                                   |  |                    |          |  |      |   | 1,157     | 
|Capital leases                                                                                                                                                         |  |                    | 13,655    |  |      |   | 17,472    | 
|                                                                                                                                                                       |  |                    |           |  |      |  
|Total non-current portion of long-term debt                                                                                                                            |  | $                  | 1,226,608 |  |      | $ | 1,632,518 | 
|                                                                                                                                                                       |  |                    |           |  |      |  



| |                     
| | --------------------
| | Bank Credit Facility







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Notes to Consolidated Financial Statements 
(Continued)






| |                                
| | -------------------------------
| | 81/8% Senior
    Notes Due 2011

1 8 1 8 1 8


1 8 1 8 1 8


1 8 1 8 1 8




| |                                            
| | -------------------------------------------
| | 11/2% Convertible
    Senior Notes Due 2008

1 2 1 2 1 2 1 2 1 2 1 2


1 2 1 2 1 2 1 2 1 2 1 2


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Notes to Consolidated Financial Statements 
(Continued)


1 2 1 2


1 2 1 2




| |                                          
| | -----------------------------------------
| | 121/2% Senior
    Discount Notes Due 2009

1 2 1 2 1 2 1 2


1 2




| |                          
| | -------------------------
| | 11% Senior Notes Due 2010



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Notes to Consolidated Financial Statements 
(Continued)




| |                                                           
| | ----------------------------------------------------------
| | Future Maturities of Long-Term Debt and Capital
    Leases



|                                             |  |                   |           |                |                |   |        |       |  |   |           |  
|-------------------------------------------- |  | ----------------- | --------- | -------------- | -------------- | - | ------ | ----- |  | - | --------- | -
|                                             |  | Annual Maturities |          
|                                             |  |                   |          
|                                             |  | Long-Term Debt    |           |                | Capital Leases |   |        | Total | 
|                                             |  |                   |           |                |                |   |        |       | 
|                                             |  |                   |           | (In thousands) |                |   |       
|2006                                         |  | $                 |          |                |                | $ | 5,227  |       |  | $ | 5,227     |  
|2007                                         |  |                   | 4,125     |                |                |   | 5,227  |       |  |   | 9,352     |  
|2008                                         |  |                   | 193,810   |                |                |   | 5,227  |       |  |   | 199,037   |  
|2009                                         |  |                   | 5,500     |                |                |   | 5,227  |       |  |   | 10,727    |  
|2010                                         |  |                   | 5,500     |                |                |   |       |       |  |   | 5,500     |  
|Thereafter                                   |  |                   | 1,004,375 |                |                |   |       |       |  |   | 1,004,375 |  
|                                             |  |                   |           |                |                |   |        |       | 
|                                             |  |                   | 1,213,310 |                |                |   | 20,908 |       |  |   | 1,234,218 |  
|Less  unamortized discount and interest(1)  |  |                   | (357      | )              |                |   | (3,436 | )     |  |   | (3,793    | )
|                                             |  |                   |           |                |                |   |        |       | 
|                                             |  |                   | 1,212,953 |                |                |   | 17,472 |       |  |   | 1,230,425 |  
|Current portion of capital lease obligation  |  |                   |          |                |                |   | (3,817 | )     |  |   | (3,817    | )
|                                             |  |                   |           |                |                |   |        |       | 
|Long-term debt and capital lease obligations |  | $                 | 1,212,953 |                |                | $ | 13,655 |       |  | $ | 1,226,608 |  
|                                             |  |                   |           |                |                |   |        |       | 






|    |                                                                                                     
|--- | ----------------------------------------------------------------------------------------------------
|(1) | Interest calculated for the capital leases is based on the
    implicit rate in the lease agreement.



|   |                                    
|-- | -----------------------------------
|6. | FAIR VALUE OF FINANCIAL INSTRUMENTS

Disclosures about Fair Value of Financial
Instruments. 1 2 1 2 1 8


|                                               |  |                    |       |               |            |   |       |          |  |   |            |  |  |   |       | 
|---------------------------------------------- |  | ------------------ | ----- | ------------- | ---------- | - | ----- | -------- |  | - | ---------- |  |  | - | ----- | 
|                                               |  | As of December 31, |      
|                                               |  |                    |      
|                                               |  | 2005               |       |               | 2004       |  
|                                               |  |                    |       |               |            |  
|                                               |  | Carrying           |       |               | Estimated  |   |       | Carrying |  |   | Estimated  | 
|                                               |  | Amount             |       |               | Fair Value |   |       | Amount   |  |   | Fair Value | 
|                                               |  |                    |       |               |            |   |       |          |  |   |            | 
|                                               |  |                    |       | (In millions) |            |   |      
|Long-term debt:                                |  |                    |       |               |            |   |       |          |  |   |            |  |  |   |       | 
|11% senior notes due 2010                      |  |                    | N/A   |               |            |   | N/A   |          |  | $ | 1.2        |  |  | $ | 1.2   | 
|121/2% senior
    notes due 2009               |  |                    | N/A   |               |            |   | N/A   |          |  | $ | 139.3      |  |  | $ | 158.1 | 
|11/2% convertible
    senior notes due 2008    |  | $                  | 188.3 |               |            | $ | 541.8 |          |  | $ | 300.0      |  |  | $ | 656.9 | 
|81/8% senior
    notes due 2011                |  | $                  | 474.6 |               |            | $ | 508.3 |          |  | $ | 474.6      |  |  | $ | 530.4 | 
|Tranche D loan                                 |  | $                  | 550.0 |               |            | $ | 550.0 |          |  |   | N/A        |  |  |   | N/A   | 
|Tranche C loan                                 |  |                    | N/A   |               |            |   | N/A   |          |  | $ | 700.0      |  |  | $ | 700.0 | 
|Interest rate swap liability  credit facility |  |                    | N/A   |               |            |   | N/A   |          |  | $ | 1.1        |  |  | $ | 1.1   | 
|Interest rate swap asset  credit facility     |  | $                  | 1.7   |               |            | $ | 1.7   |          |  | $ | 0.6        |  |  | $ | 0.6   | 

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Notes to Consolidated Financial Statements 
(Continued)




|   |             
|-- | ------------
|7. | INCOME TAXES



|                                      |         |                                 |         |         |      |   |        |        |   |   |        |        |  
|------------------------------------- | ------- | ------------------------------- | ------- | ------- | ---- | - | ------ | ------ | - | - | ------ | ------ | -
|                                      |         | For the Year Ended December 31, |        
|                                      |         |                                 |        
|                                      |         | 2005                            |         |         | 2004 |   |        | 2003   |  
|                                      |         |                                 |         |         |      |   |        |        |  
|                                      |         | (In thousands)                  |        
|Current Tax (Provision)/ Benefit:     |         |                                 |         |         |      |   |        |        |   |   |        |       
|                                      | Federal |                                 | $       | (3,436  | )    |   | $      |       |   |   | $      |       |  
|                                      | State   |                                 |         | (4,966  | )    |   |        |       |   |   |        |       |  
|                                      |         |                                 |         |         |      |   |        |        |  
|                                      | Total   |                                 |         | (8,402  | )    |   |        |       |   |   |        |       |  
|Deferred Tax (Provision)/ Benefit:    |         |                                 |         |         |      |   |        |        |   |   |        |       
|                                      | Federal |                                 |         | 290,567 |      |   |        | (7,075 | ) |   |        | (6,702 | )
|                                      | State   |                                 |         | 23,610  |      |   |        | (1,321 | ) |   |        | (1,109 | )
|                                      |         |                                 |         |         |      |   |        |        |  
|                                      | Total   |                                 |         | 314,177 |      |   |        | (8,396 | ) |   |        | (7,811 | )
|                                      |         |                                 |         |         |      |   |        |        |  
|Total Income Tax (Provision)/ Benefit |         | $                               | 305,775 |         |      | $ | (8,396 | )      |   | $ | (7,811 | )     
|                                      |         |                                 |         |         |      |   |        |        |  

Accounting for Income
Taxes.






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Notes to Consolidated Financial Statements 
(Continued)




|                                              |  |                     |         |    |      |  |        |      |  |  |        |   
|--------------------------------------------- |  | ------------------- | ------- | -- | ---- |  | ------ | ---- |  |  | ------ | --
|                                              |  | For the Years Ended |        
|                                              |  | December 31,        |        
|                                              |  |                     |        
|                                              |  | 2005                |         |    | 2004 |  |        | 2003 | 
|                                              |  |                     |         |    |      |  |        |      | 
|Federal income tax statutory rate             |  |                     | 35.00   | %  |      |  | 35.00  | %    |  |  | (35.00 | )%
|State income tax rate, net of federal benefit |  |                     | 5.78    | %  |      |  | 3.78   | %    |  |  | (3.56  | )%
|Change in valuation allowance                 |  |                     | (144.06 | )% |      |  | (39.37 | )%   |  |  | 40.06  | % 
|Permanent differences                         |  |                     | 1.68    | %  |      |  | 0.59   | %    |  |  | (1.50  | )%
|Other                                         |  |                     | (0.47   | )% |      |  | 0.00   | %    |  |  | 0.00   | % 
|SFAS 142 FCC License Amortization           |  |                     | 0.00    | %  |      |  | 13.51  | %    |  |  | (3.87  | )%
|                                              |  |                     |         |    |      |  |        |      | 
|                                              |  |                     | (102.07 | )% |      |  | 13.51  | %    |  |  | (3.87  | )%
|                                              |  |                     |         |    |      |  |        |      | 

Goodwill and
Other Intangible Assets,








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Notes to Consolidated Financial Statements 
(Continued)




|                                              |                                           |                                |         |          |          |   |         |          |          |  
|--------------------------------------------- | ----------------------------------------- | ------------------------------ | ------- | -------- | -------- | - | ------- | -------- | -------- | -
|                                              |                                           | As of December 31,             |        
|                                              |                                           |                                |        
|                                              |                                           | 2005                           |         |          | 2004     |  
|                                              |                                           |                                |         |          |          |  
|                                              |                                           | (In thousands)                 |        
|Deferred tax assets:                          |                                           |                                |         |          |          |   |         |         
|                                              | Current:                                  |                                |         |          |          |   |         |          |         
|                                              |                                           | Operating loss carryforwards   |         | $        | 50,752   |   |         | $        | 91,367   |  
|                                              |                                           | Reserves and allowances        |         |          | 12,226   |   |         |          | 8,053    |  
|                                              |                                           | Stock compensation and bonuses |         |          | 6,018    |   |         |          | 2,490    |  
|                                              |                                           | Inventory                      |         |          | 5,313    |   |         |          | 3,055    |  
|                                              |                                           | Interest                       |         |          | 3,789    |   |         |          |         |  
|                                              |                                           | Accrued expenses               |         |          | 1,468    |   |         |          | 1,316    |  
|                                              |                                           |                                |         |          |          |  
|                                              |                                           |                                | 79,566  |          |          |   | 106,281 |         
|                                              |                                           | Valuation allowance            |         |          | (1,539   | ) |         |          | (106,281 | )
|                                              |                                           |                                |         |          |          |  
|                                              | Net current deferred tax assets           |                                |         | 78,027   |          |   |         |         |         
|                                              |                                           |                                |         |          |          |  
|                                              | Noncurrent:                               |                                |         |          |          |   |         |          |         
|                                              |                                           | Operating loss carryforwards   |         |          | 447,151  |   |         |          | 480,639  |  
|                                              |                                           | Accrued expenses               |         |          | 11,683   |   |         |          | 9,954    |  
|                                              |                                           | AMT credit carryforwards       |         |          | 3,533    |   |         |          |         |  
|                                              |                                           | Interest                       |         |          | 248      |   |         |          | 4,470    |  
|                                              |                                           | Stock compensation and bonuses |         |          |         |   |         |          | 5,920    |  
|                                              |                                           | Other                          |         |          | 725      |   |         |          | 533      |  
|                                              |                                           |                                |         |          |          |  
|                                              |                                           |                                | 463,340 |          |          |   | 501,516 |         
|                                              |                                           | Valuation allowance            |         |          | (8,963   | ) |         |          | (313,483 | )
|                                              |                                           |                                |         |          |          |  
|                                              | Net noncurrent deferred tax assets        |                                |         | 454,377  |          |   |         | 188,033  |         
|Deferred tax liabilities:                     |                                           |                                |         |          |          |   |         |         
|                                              | Noncurrent:                               |                                |         |          |          |   |         |          |         
|                                              |                                           | Property, plant and equipment  |         |          | (209,826 | ) |         |          | (188,033 | )
|                                              |                                           | FCC licenses                   |         |          | (62,390  | ) |         |          | (53,964  | )
|                                              |                                           | Unrealized gain on investments |         |          | (909     | ) |         |          |         |  
|                                              |                                           |                                |         |          |          |  
|                                              | Total noncurrent deferred tax liabilities |                                |         | (273,125 | )        |   |         | (241,997 | )       
|                                              |                                           |                                |         |          |          |  
|Net noncurrent deferred tax asset (liability) |                                           |                                | 181,252 |          |          |   | (53,964 | )       
|                                              |                                           |                                |         |          |          |  
|Total deferred tax asset (liability)          |                                           | $                              | 259,279 |          |          | $ | (53,964 | )       
|                                              |                                           |                                |         |          |          |  



|   |                              
|-- | -----------------------------
|8. | COMMITMENTS AND CONTINGENCIES



| |                            
| | ---------------------------
| | Operating Lease Commitments



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Notes to Consolidated Financial Statements 
(Continued)




|           |      |                |         |         | 
|---------- | ---- | -------------- | ------- | ------- | 
|           |      | (In thousands) |        
|           | 2006 |                | $       | 103,650 | 
|           | 2007 |                |         | 89,702  | 
|           | 2008 |                |         | 78,737  | 
|           | 2009 |                |         | 67,953  | 
|           | 2010 |                |         | 38,442  | 
|Thereafter |      |                | 53,901  |        
|           |      |                |        
|           |      | $              | 432,385 |        
|           |      |                |        





| |                   
| | ------------------
| | Regulatory Matters









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Notes to Consolidated Financial Statements 
(Continued)




| |                  
| | -----------------
| | Legal Proceedings

et al,


et
al, et
al, et al, et al,


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Notes to Consolidated Financial Statements 
(Continued)


et
al, et al, et al,


et al. et al, et al,






| |   |                                                                                                                                                                                                                                                                                                                  
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The changes that Nextel and Sprint had announced they were
    planning to make with respect to branding after the close of the
    Sprint-Nextel merger would violate the joint venture agreement
    if we could not use the same brand identity that Nextel used
    after the merger, i.e., the Sprint brand.

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Notes to Consolidated Financial Statements 
(Continued)




| |   |                                                                                                                                                                                                                                                                 
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Other operational changes that we believed Nextel and Sprint
    planned to implement after the Sprint-Nextel merger (including,
    without limitation, changes with respect to marketing and
    national accounts) would violate the joint venture agreement.
|
| |  | The operations of the combined Sprint-Nextel could violate our
    exclusivity rights under the joint venture agreement.                                                                                                                                        
|
| |  | Nextel and Nextel WIP had not complied with their obligation to
    permit us to participate in and contribute to discussions
    regarding branding and a variety of other operational matters.                                                                











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Notes to Consolidated Financial Statements 
(Continued)








|   |                                                 
|-- | ------------------------------------------------
|9. | CAPITAL STOCK, STOCK RIGHTS AND REDEEMABLE STOCK







| |             
| | ------------
| | Common Stock



Class A Common Stock.


Class B Common Stock.


Ranking.


Series B Preferred Stock.


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Notes to Consolidated Financial Statements 
(Continued)




| |                                   
| | ----------------------------------
| | Common Stock Reserved for Issuance



|                                                                 |  |  |            | 
|---------------------------------------------------------------- |  |  | ---------- | 
|Employee options outstanding                                     |  |  | 17,543,175 | 
|Employee options available for grant                             |  |  | 6,621,516  | 
|Employee stock purchase plan available for issuance              |  |  | 1,476,605  | 
|Shares upon conversion of
    11/2% convertible
    senior notes |  |  | 19,395,310 | 
|                                                                 |  |  |           
|Total                                                            |  |  | 45,036,606 | 
|                                                                 |  |  |           



|    |                                 
|--- | --------------------------------
|10. | STOCK AND EMPLOYEE BENEFIT PLANS



| |                 
| | ----------------
| | Restricted Stock









Accounting for
Stock Appreciation Rights and Other Variable Stock Option or
Award Plans




| |                               
| | ------------------------------
| | Nonqualified Stock Option Plan

1 3


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Notes to Consolidated Financial Statements 
(Continued)


1 4




|                               |  |                   |            |   |                    |   |                  |                |  |   |       | 
|------------------------------ |  | ----------------- | ---------- | - | ------------------ | - | ---------------- | -------------- |  | - | ----- | 
|                               |  | Number of Options |            |   |                    |   | Weighted Average |               
|                               |  | Outstanding       |            |   | Option Price Range |   |                  | Exercise Price | 
|                               |  |                   |            |   |                    |   |                  |                | 
|Outstanding December 31, 2002  |  |                   | 16,489,171 |   |                    | $ | 1.67 - $29.06    |                |  | $ | 7.43  | 
|Granted                        |  |                   | 4,300,650  |   |                    | $ | 4.74 - $ 9.22    |                |  | $ | 6.83  | 
|Exercised                      |  |                   | (921,192   | ) |                    | $ | 1.67 - $11.31    |                |  | $ | 4.01  | 
|Forfeitures                    |  |                   | (1,708,067 | ) |                    | $ | 1.85 - $23.88    |                |  | $ | 7.88  | 
|                               |  |                   |            |   |                    |   |                  |                | 
|Outstanding December 31, 2003  |  |                   | 18,160,562 |   |                    | $ | 1.67 - $29.06    |                |  | $ | 7.33  | 
|Granted                        |  |                   | 7,125,460  |   |                    | $ | 12.43 - $17.57   |                |  | $ | 13.97 | 
|Exercised                      |  |                   | (3,743,441 | ) |                    | $ | 1.67 - $16.81    |                |  | $ | 5.78  | 
|Forfeitures                    |  |                   | (2,128,546 | ) |                    | $ | 1.85 - $29.06    |                |  | $ | 10.35 | 
|                               |  |                   |            |   |                    |   |                  |                | 
|Outstanding December 31, 2004  |  |                   | 19,414,035 |   |                    | $ | 1.67 - $29.06    |                |  | $ | 9.73  | 
|Granted                        |  |                   | 4,091,755  |   |                    | $ | 20.10            |                |  | $ | 20.10 | 
|Exercised                      |  |                   | (4,887,668 | ) |                    | $ | 1.67 - $22.44    |                |  | $ | 9.72  | 
|Forfeitures                    |  |                   | (1,074,947 | ) |                    | $ | 2.40 - $22.44    |                |  | $ | 13.15 | 
|                               |  |                   |            |   |                    |   |                  |                | 
|Outstanding December 31, 2005  |  |                   | 17,543,175 |   |                    | $ | 1.67 - $29.06    |                |  | $ | 11.93 | 
|                               |  |                   |            |   |                    |   |                  |                | 
|Exercisable, December 31, 2003 |  |                   | 8,797,768  |   |                    | $ | 1.67 - $29.06    |                |  | $ | 8.29  | 
|                               |  |                   |            |   |                    |   |                  |                | 
|Exercisable, December 31, 2004 |  |                   | 9,197,638  |   |                    | $ | 1.67 - $29.06    |                |  | $ | 9.43  | 
|                               |  |                   |            |   |                    |   |                  |                | 
|Exercisable, December 31, 2005 |  |                   | 9,674,710  |   |                    | $ | 1.67 - $29.06    |                |  | $ | 9.25  | 
|                               |  |                   |            |   |                    |   |                  |                | 

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NEXTEL PARTNERS, INC. AND SUBSIDIARIES


Notes to Consolidated Financial Statements 
(Continued)




|                         |  |                    |                     |  |                  |  |     |                |  |                  |                    |  |  |                |           |  |  |   |       | 
|------------------------ |  | ------------------ | ------------------- |  | ---------------- |  | --- | -------------- |  | ---------------- | ------------------ |  |  | -------------- | --------- |  |  | - | ----- | 
|Options Outstanding      |  |                    | Options Exercisable | 
|                         |  |                    |                     | 
|                         |  | Weighted Average   |                     |  | Weighted Average |  |     |                |  | Weighted Average |                   
|Range of Exercise Prices |  | Number Outstanding |                     |  | Remaining Life   |  |     | Exercise Price |  |                  | Number Exercisable |  |  | Exercise Price |          
|                         |  |                    |                     |  |                  |  |     |                |  |                  |                    |  |  |                |          
|$1.67 - $5.28            |  |                    | 2,141,117           |  |                  |  | 5.0 |                |  | $                | 2.66               |  |  |                | 1,731,205 |  |  | $ | 2.37  | 
|$5.35 - $6.67            |  |                    | 3,413,584           |  |                  |  | 6.6 |                |  | $                | 6.15               |  |  |                | 2,517,053 |  |  | $ | 5.96  | 
|$8.00 - $13.40           |  |                    | 2,074,659           |  |                  |  | 6.3 |                |  | $                | 8.18               |  |  |                | 1,605,224 |  |  | $ | 8.19  | 
|$13.86                   |  |                    | 4,537,820           |  |                  |  | 8.1 |                |  | $                | 13.86              |  |  |                | 2,421,808 |  |  | $ | 13.86 | 
|$14.13 - $16.94          |  |                    | 1,471,920           |  |                  |  | 5.9 |                |  | $                | 16.55              |  |  |                | 1,311,920 |  |  | $ | 16.65 | 
|$17.19 - $29.06          |  |                    | 3,904,075           |  |                  |  | 9.0 |                |  | $                | 20.10              |  |  |                | 87,500    |  |  | $ | 20.31 | 
|                         |  |                    |                     |  |                  |  |     |                |  |                  |                    |  |  |                |          
|$1.67 - $29.06           |  |                    | 17,543,175          |  |                  |  | 7.2 |                |  | $                | 11.93              |  |  |                | 9,674,710 |  |  | $ | 9.25  | 
|                         |  |                    |                     |  |                  |  |     |                |  |                  |                    |  |  |                |          



| |                             
| | ----------------------------
| | Employee Stock Purchase Plan





| |                      
| | ---------------------
| | Employee Benefit Plan





| |                                        
| | ---------------------------------------
| | Nonqualified Deferred Compensation Plan





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NEXTEL PARTNERS, INC. AND SUBSIDIARIES


Notes to Consolidated Financial Statements 
(Continued)






|    |                           
|--- | --------------------------
|11. | RELATED PARTY TRANSACTIONS



| |                            
| | ---------------------------
| | Nextel Operating Agreements











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NEXTEL PARTNERS, INC. AND SUBSIDIARIES


Notes to Consolidated Financial Statements 
(Continued)




| |                       
| | ----------------------
| | Business Relationships









|    |                                     
|--- | ------------------------------------
|12. | QUARTERLY FINANCIAL DATA (Unaudited)



|                                                             |  |         |         |  |         |   |         |         |  |   |         |  |  |   |         | 
|------------------------------------------------------------ |  | ------- | ------- |  | ------- | - | ------- | ------- |  | - | ------- |  |  | - | ------- | 
|                                                             |  | First   |         |  | Second  |   |         | Third   |  |   | Fourth  | 
|2005                                                         |  | Quarter |         |  | Quarter |   |         | Quarter |  |   | Quarter | 
|                                                             |  |         |         |  |         |   |         |         |  |   |         | 
|Total revenues                                               |  | $       | 404,084 |  |         | $ | 434,822 |         |  | $ | 473,139 |  |  | $ | 489,606 | 
|Operating expenses                                           |  | $       | 322,476 |  |         | $ | 336,756 |         |  | $ | 358,171 |  |  | $ | 379,822 | 
|Income (loss) attributable to common stockholders            |  | $       | 56,532  |  |         | $ | 71,885  |         |  | $ | 434,516 |  |  | $ | 42,419  | 
|Income (loss) per share attributable to common stockholders: |  |         |         |  |         |   |         |         |  |   |         |  |  |   |         | 
|Basic                                                        |  | $       | 0.21    |  |         | $ | 0.27    |         |  | $ | 1.61    |  |  | $ | 0.15    | 
|Diluted                                                      |  | $       | 0.19    |  |         | $ | 0.23    |         |  | $ | 1.41    |  |  | $ | 0.14    | 

|                                                             |  |         |         |  |         |   |         |         |  |   |         |  |  |   |         | 
|------------------------------------------------------------ |  | ------- | ------- |  | ------- | - | ------- | ------- |  | - | ------- |  |  | - | ------- | 
|                                                             |  | First   |         |  | Second  |   |         | Third   |  |   | Fourth  | 
|2004                                                         |  | Quarter |         |  | Quarter |   |         | Quarter |  |   | Quarter | 
|                                                             |  |         |         |  |         |   |         |         |  |   |         | 
|Total revenues                                               |  | $       | 308,132 |  |         | $ | 334,640 |         |  | $ | 359,828 |  |  | $ | 374,536 | 
|Operating expenses                                           |  | $       | 271,977 |  |         | $ | 283,365 |         |  | $ | 294,701 |  |  | $ | 306,371 | 
|Income (loss) attributable to common stockholders            |  | $       | 3,523   |  |         | $ | (20,498 | )       |  | $ | 34,409  |  |  | $ | 36,312  | 
|Income (loss) per share attributable to common stockholders: |  |         |         |  |         |   |         |         |  |   |         |  |  |   |         | 
|Basic                                                        |  | $       | 0.01    |  |         | $ | (0.08   | )       |  | $ | 0.13    |  |  | $ | 0.14    | 
|Diluted                                                      |  | $       | 0.01    |  |         | $ | (0.08   | )       |  | $ | 0.12    |  |  | $ | 0.12    | 



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NEXTEL PARTNERS, INC. AND SUBSIDIARIES


Notes to Consolidated Financial Statements 
(Continued)




|    |                                  
|--- | ---------------------------------
|13. | VALUATION AND QUALIFYING ACCOUNTS

|                                |  |                     |        |                |                    |   |        |            |                   |   |        |  |  |   |        | 
|------------------------------- |  | ------------------- | ------ | -------------- | ------------------ | - | ------ | ---------- | ----------------- | - | ------ |  |  | - | ------ | 
|                                |  | Balance at          |        |                |                    |   |        |            | Balance at End of |  
|                                |  | Beginning of Period |        |                | Costs and Expenses |   |        | Write-Offs |                   |   | Period | 
|                                |  |                     |        |                |                    |   |        |            |                   |   |        | 
|                                |  |                     |        | (In thousands) |                    |   |       
|Year Ended December 31, 2003    |  |                     |        |                |                    |   |        |            |                   |   |        |  |  |   |        | 
|Allowance for doubtful accounts |  | $                   | 10,197 |                |                    | $ | 37,370 |            |                   | $ | 32,694 |  |  | $ | 14,873 | 
|Year Ended December 31, 2004    |  |                     |        |                |                    |   |        |            |                   |   |        |  |  |   |        | 
|Allowance for doubtful accounts |  | $                   | 14,873 |                |                    | $ | 13,067 |            |                   | $ | 12,066 |  |  | $ | 15,874 | 
|Year Ended December 31, 2005    |  |                     |        |                |                    |   |        |            |                   |   |        |  |  |   |        | 
|Allowance for doubtful accounts |  | $                   | 15,874 |                |                    | $ | 31,496 |            |                   | $ | 20,103 |  |  | $ | 27,267 | 



|    |                    
|--- | -------------------
|14. | RECENT DEVELOPMENTS

1 2 1 2 1 2




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Report of Independent Registered Public Accounting Firm












KPMG LLP






111



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Report of Independent Registered Public Accounting Firm


















KPMG LLP






112



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|        |                                                                                         
|------- | ----------------------------------------------------------------------------------------
|Item 9. | Changes in and Disagreements with Accountants on
    Accounting and Financial Disclosure








|         |                        
|-------- | -----------------------
|Item 9A. | Controls and Procedures



| |                                                    
| | ---------------------------------------------------
| | Effectiveness of Disclosure Controls and Procedures

13a-15(e) 15d-15(e)




| |                                                                     
| | --------------------------------------------------------------------
| | Managements Report on Internal Control over
    Financial Reporting

13a-15(f) 15d-15(f).


10-K.







|         |                  
|-------- | -----------------
|Item 9B. | Other Information






PART III







|         |                                                   
|-------- | --------------------------------------------------
|Item 10. | Directors and Executive Officers of the Registrant



|                        |  |     |    |  |                               |                                                                         |          |                |      |  |      | 
|----------------------- |  | --- | -- |  | ----------------------------- | ----------------------------------------------------------------------- | -------- | -------------- | ---- |  | ---- | 
|Name                    |  | Age |    |  | Position with Nextel Partners |                                                                         |          | Director Since |     
|                        |  |     |    |  |                               |                                                                         |          |                |     
|John Chapple            |  |     | 52 |  |                               | President, Chief ExecutiveOfficer and Chairman of theBoard of Directors |          |                | 1998 | 
|Adam Aron               |  |     | 51 |  |                               |                                                                         | Director |                |      |  | 2002 | 
|Steven B. Dodge         |  |     | 60 |  |                               |                                                                         | Director |                |      |  | 2000 | 
|Arthur W. Harrigan, Jr. |  |     | 62 |  |                               |                                                                         | Director |                |      |  | 2005 | 
|James N. Perry, Jr.     |  |     | 45 |  |                               |                                                                         | Director |                |      |  | 2003 | 
|Caroline H. Rapking     |  |     | 47 |  |                               |                                                                         | Director |                |      |  | 2002 | 
|Christopher T. Rogers   |  |     | 47 |  |                               |                                                                         | Director |                |      |  | 2005 | 
|Dennis M. Weibling      |  |     | 55 |  |                               |                                                                         | Director |                |      |  | 1999 | 

John Chapple 10-K


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Adam Aron


Steven B. Dodge


Arthur W. Harrigan, Jr.


James N. Perry, Jr.


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Caroline H. Rapking


Christopher T. Rogers


Dennis M. Weibling


10-K


The Board, Board Committees and Corporate Governance






| |   |                                                                                      
| | - | -------------------------------------------------------------------------------------
| |  | one person selected by Madison Dearborn Partners: currently,
    James N. Perry, Jr.;
|
| |  | one person selected by Nextel WIP: currently, Christopher T.
    Rogers; and         
|
| |  | our chief executive officer: currently, John Chapple.                                



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|                        |  |           |    |  |              |  |    |           |  |  |            |  |  |  |    | 
|----------------------- |  | --------- | -- |  | ------------ |  | -- | --------- |  |  | ---------- |  |  |  | -- | 
|                        |  | Audit     |    |  | Compensation |  |    | Finance   |  |  | Nominating | 
|Director                |  | Committee |    |  | Committee    |  |    | Committee |  |  | Committee  | 
|                        |  |           |    |  |              |  |    |           |  |  |            | 
|Adam Aron               |  |           | M  |  |              |  | CH |           |  |  |            |  |  |  | M  | 
|Steven B. Dodge         |  |           |    |  |              |  | M  |           |  |  |            |  |  |  | M  | 
|Arthur W. Harrigan, Jr. |  |           |    |  |              |  | M  |           |  |  |            |  |  |  |    | 
|James N. Perry, Jr.     |  |           |    |  |              |  |    |           |  |  | M          |  |  |  |    | 
|Caroline H. Rapking     |  |           | M  |  |              |  |    |           |  |  |            |  |  |  | CH | 
|Dennis M. Weibling      |  |           | CH |  |              |  |    |           |  |  | CH         |  |  |  |    | 












| |                
| | ---------------
| | Audit Committee

de minimus


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| |                       
| | ----------------------
| | Compensation Committee





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Annually evaluating the compensation (and performance relative
    to compensation) of the chief executive officer; determining the
    amounts and individual elements of total compensation for the
    chief executive officer consistent with our corporate goals and
    objectives; and communicating to the stockholders through the
    compensation committee report the factors and criteria on which
    the chief executive officers compensation was based,
    including the relationship of our performance to the chief
    executive officers compensation.
|
| |  | Annually evaluating (in consultation with the chief executive
    officer) the compensation (and performance relative to
    compensation) of other executive officers; approving the
    individual elements of total compensation for each such person
    and communicating in the compensation committee report to
    stockholders the specific relationship of our performance to
    executive compensation.                                                                                                                                                           
|
| |  | Periodically evaluating the terms and administration of our
    annual and long-term incentive plans to assure that they are
    structured and administered in a manner consistent with our
    goals and objectives as to participation in such plans.                                                                                                                                                                                                                                                                                                                      
|
| |  | Periodically evaluating (and approving any proposed amendments
    to) existing equity-related compensation plans; evaluating and
    approving the adoption of any new equity-related compensation
    plans; and determining when it is necessary or desirable (after
    consultation with counsel as needed): (a) to modify,
    discontinue or supplement any such plans; or (b) to submit
    such amendment or adoption to a vote of the full board of
    directors and/or our stockholders.                                                                          
|
| |  | Periodically evaluating the cash and stock compensation of
    directors, including for service on committees of the board of
    directors, taking into account the compensation of directors at
    other comparable companies; and making recommendations to the
    board of directors regarding any adjustments in director
    compensation that the committee considers appropriate.                                                                                                                                                                                   
|
| |  | Periodically evaluating our employee benefits programs and
    approving any significant changes therein and determining when
    it is necessary or desirable (after consultation with counsel as                                                                                                                                                                                                                                                                                                                                                                            

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| |  |                                                                                                         
| |  | --------------------------------------------------------------------------------------------------------
| |  | needed) to submit any such changes to a vote of the full board
    of directors and/or our stockholders.

16b-3




| |                  
| | -----------------
| | Finance Committee





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Reviewing and providing guidance to the full board of directors
    and management about all proposals concerning our major
    financial policies, including: (a) our financial strategies
    and capital structure, cash needs, stockholder distributions,
    share repurchases and investments; (b) significant monetary
    issues, including hedging policies; (c) tax planning;
    (d) proposed mergers acquisitions, divestitures and
    strategic investments (other than mergers with or acquisitions
    by Sprint Nextel or any of our subsidiaries); and (e) other
    transactions or financial issues that management desires to have
    reviewed by the finance committee.
|
| |  | Designating our officers and employees who can execute documents
    and act on our behalf in the ordinary course of business
    pursuant to previously approved banking, borrowing, and other
    financing agreements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                     





| |                     
| | --------------------
| | Nominating Committee







| |                     
| | --------------------
| | Litigation Committee



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| |                  
| | -----------------
| | Special Committee



Section 16(a) Beneficial Ownership Reporting
Compliance






Code of Business Conduct and Ethics


www.nextelpartners.com www.nextelpartners.com







|         |                       
|-------- | ----------------------
|Item 11. | Executive Compensation



| |                      
| | ---------------------
| | Director Compensation

out-of




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| |                                   
| | ----------------------------------
| | Compensation of Executive Officers



| |                           
| | --------------------------
| | Summary Compensation Table



|                |                                         |      |      |                     |            |   |                        |              |            |   |              |            |     |             |              |         |        |  |         |         |     |   |        |        |     
|--------------- | --------------------------------------- | ---- | ---- | ------------------- | ---------- | - | ---------------------- | ------------ | ---------- | - | ------------ | ---------- | --- | ----------- | ------------ | ------- | ------ |  | ------- | ------- | --- | - | ------ | ------ | ----
|                |                                         |      |      | Annual Compensation |            |   | Long-Term Compensation |              |            |  
|                |                                         |      |      |                     |            |   |                        |              |            |  
|                |                                         |      |      |                     |            |   |                        | Securities   |            |   | All Other    |           
|Name, Principal |                                         |      |      | Base                |            |   |                        |              | Restricted |   |              | Underlying |     |             | Compensation |        
|Position        |                                         | Year |      |                     | Salary ($) |   |                        | Bonus ($)(1) |            |   | Stock Awards |            |     | Options (#) |              |         | ($)(5) | 
|                |                                         |      |      |                     |            |   |                        |              |            |   |              |            |     |             |              |         |        | 
|John Chapple    |                                         |      | 2005 |                     |            | $ | 592,308                |              |            | $ | 662,500      |            |     |             |             |         |        |  | 260,000 | (2)     |     | $ | 7,590  |       
|                | President, Chief                        |      |      | 2004                |            |   |                        | 537,500      |            |   |              | 557,875    |     |             |              |        |        |  |         | 350,000 | (3) |   |        | 7,400  |     
|                | Executive Officer and                   |      |      | 2003                |            |   |                        | 350,961      |            |   |              | 396,000    |     |             |              |        |        |  |         | 400,000 | (4) |   |        | 6,260  |     
|                | Chairman of the
     Board of Directors |      |      |                     |            |   |                        |              |            |   |              |            |     |             |              |         |        |  |         |         |     |   |        |        |     
|Barry Rowan     |                                         |      | 2005 |                     |            | $ | 331,539                |              |            | $ | 387,500      |            |     |             |             |         |        |  | 190,000 | (2)     |     | $ | 7,110  |       
|                | Executive Vice President,               |      |      | 2004                |            |   |                        | 292,115      |            |   |              | 340,225    | (6) |             |              |        |        |  |         | 225,000 | (3) |   |        | 5,961  |     
|                | Chief Financial Officer                 |      |      | 2003                |            |   |                        | 109,057      |            |   |              | 328,913    |     |             | $            | 432,500 |        |  |         | 300,000 | (7) |   |        | 2,755  |     
|David Aas       |                                         |      | 2005 |                     |            | $ | 285,385                |              |            | $ | 241,750      |            |     |             |             |         |        |  | 135,000 | (2)     |     | $ | 7,590  |       
|                | Vice President, Chief                   |      |      | 2004                |            |   |                        | 264,230      |            |   |              | 199,325    |     |             |              |        |        |  |         | 200,000 | (3) |   |        | 7,400  |     
|                | Technology Officer                      |      |      | 2003                |            |   |                        | 226,153      |            |   |              | 183,375    |     |             |              |        |        |  |         | 150,000 | (4) |   |        | 5,286  |     
|James Ryder     |                                         |      | 2005 |                     |            | $ | 275,577                |              |            | $ | 332,500      |            |     |             |             |         |        |  | 160,000 | (2)     |     | $ | 18,024 | (10)  
|                | Vice President, Chief                   |      |      | 2004                |            |   |                        | 197,264      |            |   |              | 178,138    |     |             |              |        |        |  |         | 165,000 | (8) |   |        | 28,446 | (10)
|                | Operating Officer                       |      |      | 2003                |            |   |                        | 147,154      |            |   |              | 32,175     |     |             |              |        |        |  |         | 30,000  | (9) |   |        | 32,914 | (10)
|Donald Manning  |                                         |      | 2005 |                     |            | $ | 251,923                |              |            | $ | 212,875      |            |     |             |             |         |        |  | 90,000  | (2)     |     | $ | 7,141  |       
|                | Vice President, Secretary               |      |      | 2004                |            |   |                        | 239,230      |            |   |              | 180,387    |     |             |              |        |        |  |         | 100,000 | (3) |   |        | 6,693  |     
|                | and General Counsel                     |      |      | 2003                |            |   |                        | 206,154      |            |   |              | 167,625    |     |             |              |        |        |  |         | 125,000 | (4) |   |        | 4,794  |     






|    |                                                                                                                                                                                                                                                                    
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The bonus amounts are identified by the year in which they were
    earned by the named executive officer and not the year in which
    they were paid. We typically pay bonuses in the first quarter of
    the year following the year in which they were earned.
|   
|(2) | Represents options to purchase Class A common stock granted
    on January 27, 2005, which options have an exercise price
    of $20.10 per share and were scheduled to vest in four
    equal annual                                                              

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|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | installments commencing on January 27, 2006. Because we met
    operating cash flow targets set in connection with the grant of
    these options, however, these options will vest, to the extent
    not already vested, upon the acquisition of us by Sprint Nextel,
    which will constitute a change of control of Nextel Partners.                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   
|(3) | Represents options to purchase Class A common stock granted
    on January 22, 2004, which options have an exercise price
    of $13.86 per share and were scheduled to vest in four
    equal annual installments commencing on December 31, 2004.
    Pursuant to their terms, however, these options fully vested, to
    the extent not already vested, upon the merger of Sprint and
    Nextel, which constituted a change of control of Nextel.                                                                                                                                                                                                                                                                                                                                                     
|   
|(4) | Represents options to purchase Class A common stock granted
    on January 16, 2003, which options have an exercise price
    of $6.67 per share and were scheduled to vest in four equal
    annual installments commencing on January 16, 2004.
    Pursuant to their terms, however, these options fully vested, to
    the extent not already vested, upon the merger of Sprint and
    Nextel, which constituted a change of control of Nextel.                                                                                                                                                                                                                                                                                                                                                       
|   
|(5) | Represents contributions made by us to the named executive
    officers 401(k) plan accounts and imputed income for life
    insurance policies purchased by us for the benefit of the named
    executive officers.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   
|(6) | Includes $50,000 payment made in 2004 as second installment of
    bonus awarded to Mr. Rowan in connection with his
    acceptance of our offer of employment.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   
|(7) | Represents an option to purchase 250,000 shares of our
    Class A common stock granted on July 17, 2003, which
    option has an exercise price of $8.66 per share and was
    scheduled to vest in four equal annual installments commencing
    on July 17, 2004, and an option to
    purchase 50,000 shares of our Class A common
    stock granted on August 18, 2003, which option has an
    exercise price of $8.65 per share and was scheduled to vest
    in four equal annual installments commencing on August 18,
    2004. Pursuant to their terms, however, these options will vest,
    to the extent not already vested, upon the acquisition of us by
    Sprint Nextel, which will constitute a change of control of
    Nextel Partners.                                              
|   
|(8) | Represents an option to purchase 65,000 shares of our
    Class A common stock granted on January 22, 2004,
    which option has an exercise price of $13.86 per share and
    was scheduled to vest in four equal annual installments
    commencing December 31, 2004, and an option to
    purchase 100,000 shares of our Class A common
    stock granted on July 9, 2004, which option has an exercise
    price of $15.80 per share and was scheduled to vest in four
    equal annual installments commencing July 9, 2005. Pursuant
    to the terms of the option to purchase 100,000 shares
    of Class A common stock, however, such options fully
    vested, to the extent not already vested, upon the merger of
    Sprint and Nextel, which constituted a change of control of
    Nextel.
|   
|(9) | Represents an option to purchase 30,000 shares of our
    Class A common stock granted on January 16, 2003,
    which option has an exercise price of $6.67 per share and
    is scheduled to vest in four equal annual installments
    commencing on January 16, 2004. Pursuant to the terms,
    however, these options will vest, to the extent not already
    vested, upon the acquisition of us by Sprint Nextel, which will
    constitute a change of control of Nextel Partners.                                                                                                                                                                                                                                                                                                                 



|     |                                                                                                      
|---- | -----------------------------------------------------------------------------------------------------
|(10) | Includes commissions earned during 2003, 2004 and 2005 and car
    allowance earned in 2003 and 2004.



| |                                  
| | ---------------------------------
| | Option Grants in Fiscal Year 2005



121



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|               |  |             |         |            |            |  |     |          |  |   |                               |                         |                              |        |           |  |         |   |           |  |  |   |           | 
|-------------- |  | ----------- | ------- | ---------- | ---------- |  | --- | -------- |  | - | ----------------------------- | ----------------------- | ---------------------------- | ------ | --------- |  | ------- | - | --------- |  |  | - | --------- | 
|               |  |             |         | Percent of |            |  |     |          |  |   |                              
|               |  |             |         | Total      |            |  |     |          |  |   | Potential Realizable Value at |                        
|               |  | Number of   |         |            | Options    |  |     |          |  |   |                               | Assumed Annual Rates of |                             
|               |  | Securities  |         |            | Granted to |  |     | Exercise |  |   |                               |                         | Stock Price Appreciation for |       
|               |  | Underlying  |         |            | Employees  |  |     | Price    |  |   |                               |                         | Option Term                  |       
|               |  | Options     |         |            | in Fiscal  |  |     | per      |  |   | Expiration                    |                         |                              |        |          
|Name           |  | Granted (#) |         |            | 2005       |  |     | Share    |  |   | Date                          |                         |                              | 5% ($) |           |  | 10% ($) |  
|               |  |             |         |            |            |  |     |          |  |   |                               |                         |                              |        |           |  |         |  
|John Chapple   |  |             | 260,000 |            |            |  | 6.4 | %        |  | $ | 20.10                         |                         |                              |        | 1/27/2015 |  |         | $ | 3,286,603 |  |  | $ | 8,328,898 | 
|Barry Rowan    |  |             | 190,000 |            |            |  | 4.7 | %        |  | $ | 20.10                         |                         |                              |        | 1/27/2015 |  |         | $ | 2,401,749 |  |  | $ | 6,086,502 | 
|James Ryder    |  |             | 160,000 |            |            |  | 3.9 | %        |  | $ | 20.10                         |                         |                              |        | 1/27/2015 |  |         | $ | 2,022,525 |  |  | $ | 5,125,476 | 
|David Aas      |  |             | 135,000 |            |            |  | 3.3 | %        |  | $ | 20.10                         |                         |                              |        | 1/27/2015 |  |         | $ | 1,706,506 |  |  | $ | 4,324,620 | 
|Donald Manning |  |             | 90,000  |            |            |  | 2.2 | %        |  | $ | 20.10                         |                         |                              |        | 1/27/2015 |  |         | $ | 1,137,670 |  |  | $ | 2,883,080 | 



| |                                                                                
| | -------------------------------------------------------------------------------
| | Aggregate Option Exercises in Fiscal 2005 and Fiscal Year-End
    Option Values

In-the in-the


|               |  |              |   |  |              |                         |         |             |                               |          |               |  |  |             |         |  |               |   |            |  |  |   |           | 
|-------------- |  | ------------ | - |  | ------------ | ----------------------- | ------- | ----------- | ----------------------------- | -------- | ------------- |  |  | ----------- | ------- |  | ------------- | - | ---------- |  |  | - | --------- | 
|               |  |              |   |  |              | Number of Securities    |         |             |                              
|               |  |              |   |  |              | Underlying Unexercised  |         |             | Value of Unexercised In-the-  |         
|               |  |              |   |  |              | Options at December 31, |         |             | Money Options at December 31, |         
|               |  | Shares       |   |  |              |                         | 2005    |             |                               | 2005 ($) |              
|               |  | Acquired on  |   |  | Value        |                         |         |             |                               |          |               | 
|Name           |  | Exercise (#) |   |  | Realized ($) |                         |         | Exercisable |                               |          | Unexercisable |  |  | Exercisable |         |  | Unexercisable |  
|               |  |              |   |  |              |                         |         |             |                               |          |               |  |  |             |         |  |               |  
|John Chapple   |  |              |  |  |              |                         |        |             |                               |          | 1,515,000     |  |  |             | 260,000 |  |               | $ | 29,602,250 |  |  | $ | 2,038,400 | 
|Barry Rowan    |  |              |  |  |              |                         |        |             |                               |          | 450,000       |  |  |             | 190,000 |  |               | $ | 7,506,375  |  |  | $ | 1,489,600 | 
|James Ryder    |  |              |  |  |              |                         |        |             |                               |          | 262,750       |  |  |             | 226,250 |  |               | $ | 3,942,673  |  |  | $ | 2,430,988 | 
|David Aas      |  |              |  |  |              |                         |        |             |                               |          | 770,000       |  |  |             | 135,000 |  |               | $ | 14,619,200 |  |  | $ | 1,058,400 | 
|Donald Manning |  |              |  |  |              | $                       | 454,775 |             |                               |          | 612,500       |  |  |             | 90,000  |  |               | $ | 11,894,200 |  |  | $ | 705,600   | 

Executive Employment Contracts and Termination of Employment
Arrangements




122



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Restricted Stock Purchase Agreements and Change of Control
Arrangements






Restricted Stock Plan




123



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Retention and Severance Program








124



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Third Amended and Restated Nonqualified Stock Option Plan








125



---



##### Table of Contents











16b-3






126



---



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Employee Stock Purchase Plan








Nonqualified Deferred Compensation Plan










127



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6-month




| |   |                                                                                                                                                                                                                                                                                   
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Retirement (age 55 or greater with 10 years of service
    or age 65): lump sum or up to 10 annual installments                                                                                                                                                                   
|
| |  | Termination or death: lump sum or up to five annual installments                                                                                                                                                                                                                  
|
| |  | In-service: lump sum upon specified date no earlier than three
    years following January 1 of the year the deferral election was
    made; re-deferral election allowed                                                                                                         
|
| |  | Hardship withdrawal: IRS 401(k) safe harbor criteria is applied                                                                                                                                                                                                                   
|
| |  | Account balances less than $25,000 distributed in lump sum                                                                                                                                                                                                                        
|
| |  | If no payout election specified, then default is lump sum                                                                                                                                                                                                                         
|
| |  | Distribution payout election may be changed if made at least
    12 months in advance of payout event (except for death);
    re-deferral election must be effective for at least five years,
    unless preceded by termination or death; no acceleration of
    benefits allowed



Compensation Committee Report on Executive Compensation


The information contained in this report shall not be deemed
to be soliciting material or to be filed
with the SEC, and such information shall not be incorporated by
reference into any future filing under the Securities Act or the
Exchange Act, except to the extent that we specifically
incorporate it by reference into such filing.






| |                        
| | -----------------------
| | Compensation Objectives





| |                           
| | --------------------------
| | Components of Compensation





| |   |                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------
| |  | base salaries that are commensurate with those of executives of
    comparable telecommunications companies;

128



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##### Table of Contents





| |   |                                                                                                                                                                                                                                                                              
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | cash bonus opportunities based on achievement of objectives set
    by (i) the committee, with respect to our chief executive
    officer, and (ii) our chief executive officer in
    consultation with the committee, with respect to our other
    executive officers; and
|
| |  | equity-related incentive compensation, which is intended to
    align management and stockholder interests.                                                                                                                                                                  





| |   |                                                                                                                                                                                                                                                       
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | our financial performance as measured by attainment of specific
    financial objectives and operating results, including customer
    satisfaction scores and growth in revenues, operating cash flow,
    adjusted EBITDA and number of subscribers;
|
| |  | our performance against long-range business plans and strategic
    initiatives;                                                                                                                                                                      
|
| |  | the individual performance of each executive officer, including
    the achievement of identified goals by the executive or his or
    her functional group;                                                                                          
|
| |  | other relevant factors, such as the overall labor market for
    qualified executives in the wireless industry and the overall
    economic conditions both in the wireless industry and the
    country as a whole; and                              
|
| |  | historical cash and equity compensation levels.                                                                                                                                                                                                       



| |                                                   
| | --------------------------------------------------
| | Review of Each Component of Executive Compensation





| |                  
| | -----------------
| | Cash Compensation





129



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| |   |                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------
| |  | meet targets relating to the addition and retention of
    subscribers on the Nextel digital mobile network;
|
| |  | meet revenue targets; and                                                                                   
|
| |  | meet operating cash flow targets.                                                                           







| |                    
| | -------------------
| | Equity Compensation











| |                                            
| | -------------------------------------------
| | Compensation of the Chief Executive Officer



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| |                                                              
| | -------------------------------------------------------------
| | 2005 Compensation and the Retention and Severance
    Program







| |   |                                                                                                                                
| | - | -------------------------------------------------------------------------------------------------------------------------------
| |  | to retain officers and critical employees during the period
    leading up to a potential change in control of Nextel Partners;
|
| |  | to provide an incentive for officers and employees to maximize
    our value prior to a potential change in control; and       
|
| |  | to successfully complete a change in control if the put right is
    exercised.                                                





| |                                              
| | ---------------------------------------------
| | Deductibility Limit on Executive Compensation



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| |        
| | -------
| | Summary



Compensation Committee Interlocks and Insider
Participation









|         |                                                                                                   
|-------- | --------------------------------------------------------------------------------------------------
|Item 12. | Security Ownership of Certain Beneficial Owners and
    Management and Related Stockholder Matters





| |   |                                                                                                                         
| | - | ------------------------------------------------------------------------------------------------------------------------
| |  | each stockholder known to us to be a beneficial owner of more
    than 5% of the outstanding shares of our common stock;
|
| |  | each of our directors;                                                                                                  
|
| |  | each of our named executive officers (as defined
    above); and                                                      
|
| |  | all of our executive officers and directors as a group.                                                                 





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|                                                   |                                        |              |             |           |            |  |               |              |  |            |             |   |  |  |      |   | 
|-------------------------------------------------- | -------------------------------------- | ------------ | ----------- | --------- | ---------- |  | ------------- | ------------ |  | ---------- | ----------- | - |  |  | ---- | - | 
|                                                   |                                        |              |             | Number of |            |  | Percentage of |              |  | Percentage |            
|                                                   |                                        | Number of    |             |           | Shares     |  |               | Class A      |  |            | of Common   |  
|                                                   |                                        | Shares of    |             |           | Underlying |  |               | Common Stock |  |            | Stock       |  
|Name and Address                                   |                                        | Common Stock |             |           | Options    |  |               | Outstanding  |  |            | Outstanding |  
|                                                   |                                        |              |             |           |            |  |               |              |  |            |             |  
|Parties to Amended and Restated Shareholders      |                                        |              | 103,053,532 |           |            |  |              |              |  |            | 9.2         | % |  |  | 36.2 | %
|Agreement(1)                                       |                                        |              |             |           |            |  |               |              |  |            |             |   |  |  |      |  
|Nextel WIP Corp.                                   |                                        |              | 84,632,604  |           |            |  |              |              |  |            |            |   |  |  | 29.7 | %
|                                                   | 2001 Edmund Halley Drive               |              |             |           |            |  |               |              |  |            |             |   |  |  |      |   | 
|                                                   | Reston, VA 20191                       |              |             |           |            |  |               |              |  |            |             |   |  |  |      |   | 
|FMR Corp.(2)                                       |                                        |              | 22,307,853  |           |            |  |              |              |  |            | 11.1        | % |  |  | 7.8  | %
|                                                   | 82 Devonshire Street                   |              |             |           |            |  |               |              |  |            |             |   |  |  |      |   | 
|                                                   | Boston, MA 02109                       |              |             |           |            |  |               |              |  |            |             |   |  |  |      |   | 
|T. Rowe Price Associates, Inc.(3)                  |                                        |              | 17,250,927  |           |            |  |              |              |  |            | 8.6         | % |  |  | 6.1  | %
|                                                   | 100 E. Pratt Street                    |              |             |           |            |  |               |              |  |            |             |   |  |  |      |   | 
|                                                   | Baltimore, MD 21202                    |              |             |           |            |  |               |              |  |            |             |   |  |  |      |   | 
|Deutsche Bank AG(4)                                |                                        |              | 13,816,456  |           |            |  |              |              |  |            | 6.9         | % |  |  | 4.9  | %
|                                                   | Taunusanlage 12                        |              |             |           |            |  |               |              |  |            |             |   |  |  |      |   | 
|                                                   | D-60325 Frankfurt am Main              |              |             |           |            |  |               |              |  |            |             |   |  |  |      |   | 
|                                                   | Federal Republic of Germany            |              |             |           |            |  |               |              |  |            |             |   |  |  |      |   | 
|William H. Gates III(5)                            |                                        |              | 12,766,106  |           |            |  |              |              |  |            | 6.4         | % |  |  | 4.5  | %
|                                                   | One Microsoft Way                      |              |             |           |            |  |               |              |  |            |             |   |  |  |      |   | 
|                                                   | Redmond, WA 98052                      |              |             |           |            |  |               |              |  |            |             |   |  |  |      |   | 
|Madison Dearborn Capital Partners II, LP(6)        |                                        |              | 12,349,179  |           |            |  |              |              |  |            | 6.2         | % |  |  | 4.3  | %
|                                                   | Three First National Plaza, Suite 3800 |              |             |           |            |  |               |              |  |            |             |   |  |  |      |   | 
|                                                   | Chicago, IL 60602                      |              |             |           |            |  |               |              |  |            |             |   |  |  |      |   | 
|Caxton International Limited(7)                    |                                        |              | 10,445,445  |           |            |  |              |              |  |            | 5.2         | % |  |  | 3.7  | %
|                                                   | c/o Prime Management Limited           |              |             |           |            |  |               |              |  |            |             |   |  |  |      |   | 
|                                                   | Mechanics Building, 12 Church Street   |              |             |           |            |  |               |              |  |            |             |   |  |  |      |   | 
|                                                   | Hamilton HM11, Bermuda                 |              |             |           |            |  |               |              |  |            |             |   |  |  |      |   | 
|Janus Capital Management LLC(8)                    |                                        |              | 9,993,798   |           |            |  |              |              |  |            | 5.0         | % |  |  | 3.5  | %
|                                                   | 151 Detroit Street                     |              |             |           |            |  |               |              |  |            |             |   |  |  |      |   | 
|                                                   | Denver, CO 80206                       |              |             |           |            |  |               |              |  |            |             |   |  |  |      |   | 
|John Chapple(9)                                    |                                        |              | 2,004,972   |           |            |  | 1,580,000     |              |  |            | 1.8         | % |  |  | 1.3  | %
|David Aas                                          |                                        |              | 764,727     |           |            |  | 803,750       |              |  |            | *           |   |  |  | *    |  
|Barry Rowan                                        |                                        |              | 50,000      |           |            |  | 497,500       |              |  |            | *           |   |  |  | *    |  
|James Ryder                                        |                                        |              | 4,615       |           |            |  | 322,750       |              |  |            | *           |   |  |  | *    |  
|Donald Manning                                     |                                        |              | 62,000      |           |            |  | 635,000       |              |  |            | *           |   |  |  | *    |  
|Adam Aron                                          |                                        |              | 45,000      |           |            |  | 38,250        |              |  |            | *           |   |  |  | *    |  
|Caroline H. Rapking                                |                                        |              | 45,000      |           |            |  | 38,250        |              |  |            | *           |   |  |  | *    |  
|Dennis M. Weibling(10)                             |                                        |              | 175,656     |           |            |  | 35,775        |              |  |            | *           |   |  |  | *    |  
|Christopher T. Rogers(11)                          |                                        |              | 84,632,604  |           |            |  |              |              |  |            |            |   |  |  | 29.7 | %
|James N. Perry, Jr.(12)                            |                                        |              | 12,349,179  |           |            |  | 4,950         |              |  |            | 6.2         | % |  |  | 4.3  | %
|Steven B. Dodge                                    |                                        |              | 70,000      |           |            |  | 93,250        |              |  |            | *           |   |  |  | *    |  
|Arthur W. Harrigan, Jr.                            |                                        |              | 59,300      |           |            |  | 4,950         |              |  |            | *           |   |  |  | *    |  
|Directors and officers as a group (13 persons)(13) |                                        |              | 100,279,553 |           |            |  | 4,334,675     |              |  |            | 9.8         | % |  |  | 36.2 | %






| |   |             
| | - | ------------
| | * | Less than 1%



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                    
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The following stockholders are parties to an amended and
    restated shareholders agreement that contains an agreement
    by all of the parties, except Eagle River Investments, LLC
    (Eagle River Investments), to vote for director
    candidates nominated by certain of our stockholders and imposes
    restrictions on all of the parties with respect to the sale,
    transfer or other disposition of our capital

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|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | stock by these parties: Nextel WIP, Madison Dearborn Capital
    Partners II, L.P. (Madison Dearborn Partners),
    Eagle River Investments, Motorola, Inc. (Motorola)
    and John Chapple, David Aas and Mark Fanning, each of whom (with
    respect to the individuals listed) is a member of our senior
    management. The amended and restated shareholders
    agreement terminates on January 29, 2014. See
    Item 13,Certain Relationships and Related
    Transactions for a description of this agreement. All
    parties to this agreement disclaim beneficial ownership of
    shares not owned directly by them or by an entity otherwise
    affiliated with them.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   
|(2) | Based on information provided in a second amendment to
    Schedule 13G filed on February 14, 2006 by FMR Corp.
    (FMR), Edward C. Johnson 3d, FMR wholly-owned
    subsidiaries and Fidelity International Limited, a partnership.
    The Schedule 13G/ A states that FMR has sole voting power
    with respect to 2,972,875 of these shares and sole dispositive
    power with respect to all of these shares. Certain of these
    shares are beneficially owned by individuals and entities
    related to FMR, including certain FMR subsidiaries and a
    partnership.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   
|(3) | Based on information provided by T. Rowe Price Associates, Inc.
    (T. Rowe) in a third amendment to Schedule 13G
    filed on February 14, 2006. T. Rowe, in its capacity as
    investment adviser, has sole voting power with respect to
    4,186,105 of these shares and sole dispositive power with
    respect to all of these shares. The shares reported are owned of
    record by clients of T. Rowe. Those clients have the right to
    receive, or the power to direct the receipt of, dividends from,
    or the proceeds from the sale of, such securities. According to
    the Schedule 13G/ A, none of T. Rowes clients is known to
    have such right or power with respect to more than five percent
    of our securities.                                                                                                                                                                                                                                                                                                                                                                                                                             
|   
|(4) | Based on information provided by Deutsche Bank AG and its
    Corporate and Investment Banking and the Corporate Investments
    business groups and its subsidiaries and affiliates in
    Schedule 13G filed February 1, 2006. The
    Schedule 13G states that Deutsche Bank AG has sole voting
    power and sole dispositive power with respect to all of these
    shares.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   
|(5) | Based on information provided by William H. Gates III in a
    first amendment to Schedule 13G filed jointly by
    Mr. Gates and Cascade Investment, L.L.C.
    (Cascade) on February 13, 2003. The reported
    shares include 8,725,236 shares of Class A common
    stock owned by Cascade and 4,040,870 shares of Class A
    common stock owned by Mente, L.L.C. (Mente). All
    common stock held by Cascade or Mente may be deemed to be
    beneficially owned by Mr. Gates as the sole member of each
    of Cascade and Mente. The manager and executive officer of each
    of Cascade and Mente, Michael Larson, has voting and investment
    power with respect to all of the reported shares.
    Mr. Larson disclaims beneficial ownership of all of the
    reported shares.                                                                                                                                                                                                                                                                                                                                                                               
|   
|(6) | Based on information provided by Madison Dearborn Partners in a
    fourth amendment to Schedule 13G filed on February 15,
    2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   
|(7) | Based on information provided by Caxton International Limited in
    Schedule 13G filed January 27, 2006. The
    Schedule 13G states that Caxton International Limited,
    Caxton Associates, L.L.C. and Mr. Bruce S. Kovner, Chairman
    of Caxton Associates, have shared voting and dispositive power
    with respect to all of these shares.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   
|(8) | Based on information provided by Janus Capital Management LLC in
    Schedule 13G filed February 14, 2006. The
    Schedule 13G states that Janus Capital Management LLC, in
    its capacity as investment adviser, has sole voting power with
    respect to 8,398,880 of these shares and sole dispositive power
    with respect to 8,398,880 of these shares. The shares reported
    are owned of record by clients of Janus Capital Management LLC.
    Those clients have the right to receive, or the power to direct
    the receipt of, dividends from, or the proceeds from the sale
    of, such securities, and Janus Capital Management LLC disclaims
    any ownership associated with such rights. According to the
    Schedule 13G, none of Janus Capital Management LLCs
    clients is known to have such right or power with respect to
    more than five percent of our securities. The Schedule 13G
    also states that Janus Capital Management LLC has indirect
    ownership stakes in Enhanced Investment Technologies LLC and
    Perkins, Wolf, McDonnell and Company, LLC and has shared voting
    and dispositive power over 1,594,918 shares.

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|    |                                                                                                                                                                                                   
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(9) | Includes 736,666 shares held by JRC Coho LLC, an entity
    controlled by Mr. Chapple, and 145,000 shares held by
    Panther Lake LLC, an entity controlled by Mr. Chapple and
    John Thompson.



|     |                                                                                                                                                                                                                                                                                            
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(10) | Includes 3,600 shares held by On Eagle Wings, LLC,
    119,556 shares held by Weibling Family Trust,
    7,500 shares held by Dennis Weibling Rollover IRA and
    45,000 shares held by Mr. Weibling directly.                                                                            
|    
|(11) | Includes shares held by Nextel WIP, of which Mr. Rogers is
    senior vice president of Sprint Nextels global initiatives
    and spectrum group. Mr. Rogers disclaims beneficial
    ownership of such shares.                                                                           
|    
|(12) | Consists of 12,349,179 shares held by Madison Dearborn
    Partners, of which Mr. Perry serves as a director.
    Mr. Perry disclaims beneficial ownership of such shares.                                                                                                                 
|    
|(13) | See footnotes 9 through 12 above. Includes John Chapple,
    Adam Aron, Christopher T. Rogers, Steven B. Dodge, Caroline H.
    Rapking, James N. Perry, Jr., Dennis M. Weibling, Arthur W.
    Harrigan, Jr., Barry Rowan, David Aas, Donald J. Manning,
    James Ryder and Philip Gaske.



|                                                              |                                         |                      |            |   |                      |                      |              |                      |  |  |           |           | 
|------------------------------------------------------------- | --------------------------------------- | -------------------- | ---------- | - | -------------------- | -------------------- | ------------ | -------------------- |  |  | --------- | --------- | 
|                                                              |                                         |                      |            |   |                      | Number of Securities |             
|                                                              |                                         |                      |            |   |                      | Remaining Available  |             
|                                                              |                                         |                      |            |   |                      | for Future Issuance  |             
|                                                              |                                         | Number of Securities |            |   |                      |                      | Under Equity |                     
|                                                              |                                         | to be Issued Upon    |            |   | Weighted-Average     |                      |              | Compensation Plans   | 
|                                                              |                                         | Exercise of          |            |   | Exercise Price of    |                      |              | (Excluding           | 
|                                                              |                                         | Outstanding Options, |            |   | Outstanding Options, |                      |              | Securities Reflected | 
|Plan Category                                                 |                                         | Warrants and Rights  |            |   | Warrants and Rights  |                      |              | in Column (a))       | 
|                                                              |                                         |                      |            |   |                      |                      |              |                      | 
|                                                              |                                         | (a)                  |            |   | (b)                  |                      |              | (c)                  | 
|Equity compensation plans approved by security holders        |                                         |                      |            |   |                      |                      |              |                      |  |  |           |          
|                                                              | Third Amended and Restated Nonqualified |                      |            |   |                      |                      |              |                      |  |  |           |           | 
|Stock Option Plan                                             |                                         |                      | 17,333,175 |   |                      | $                    | 12.06        |                      |  |  | 6,621,516 |          
|                                                              | Employee Stock Purchase Plan            |                      |            |  |                      |                      |              | N/A                  |  |  |           | 1,476,605 | 
|Equity compensation plans not approved by security holders(1) |                                         |                      | 210,000    |   |                      | $                    | 1.67         |                      |  |  |          |          
|                                                              |                                         |                      |            |   |                      |                      |              |                      | 
|Total                                                         |                                         |                      | 17,543,175 |   |                      | $                    | 11.93        |                      |  |  | 8,098,121 |          
|                                                              |                                         |                      |            |   |                      |                      |              |                      | 






|    |                                                                                                                                                                                                                                                                                                                                                                 
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes an outstanding non-plan option granted to John Thompson
    on January 29, 1999 pursuant to an employment agreement to
    purchase 210,000 shares of Class A common stock
    at an exercise price of $1.67 per share. As of
    December 31, 2005, all the shares underlying this option
    were fully vested. This option expires January 29, 2009.






|         |                                               
|-------- | ----------------------------------------------
|Item 13. | Certain Relationships and Related Transactions



| |                                             
| | --------------------------------------------
| | Amended and Restated Shareholders Agreement



135



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| |                                   
| | ----------------------------------
| | Sprint Nextel Operating Agreements





| |                        
| | -----------------------
| | Joint Venture Agreement











| |                           
| | --------------------------
| | Other Operating Agreements





| |                                                                                        
| | ---------------------------------------------------------------------------------------
| | Agreement Specifying Obligations and Limiting Liability of,
    and Recourse to, Nextel



136



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##### Table of Contents







| |                                      
| | -------------------------------------
| | Certain Obligations Under Our Charter





| |   |                                                                                                                                                                                                                                                                                     
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | January 29, 2008, subject to certain postponements by our
    board of directors;                                                                                                                                                                                                   
|
| |  | If Nextel changes its digital transmission technology, the
    change is materially adverse to us and Nextel WIP determines not
    to provide us free of charge the equipment necessary to provide
    our subscribers with service comparable to what they had been
    receiving;
|
| |  | If Nextel WIP requires a change in our business, operations or
    systems, the change is materially adverse to us, Nextel WIP does
    not subsidize us for the costs of such change and we decline to
    implement the required change; or                                       
|
| |  | Termination of our operating agreements with Nextel WIP as a
    result of our breach.                                                                                                                                                                                              





| |   |                                                                                                                                                                                                                                                                                                                                                                              
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Change of control of Nextel;                                                                                                                                                                                                                                                                                                                                                 
|
| |  | If we do not implement a change in our business, operations or
    systems required by Nextel WIP, the change is materially adverse
    to us, and our board of directors provides non-Nextel affiliated
    stockholders with the opportunity to require Nextel WIP to buy
    their shares of Class A common stock and a majority of the
    stockholders vote to do so; or
|
| |  | Termination of our operating agreements with Nextel WIP as a
    result of a breach by Nextel WIP.                                                                                                                                                                                                                                                                           



www.nextelpartners.com


137



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| |                       
| | ----------------------
| | Business Relationships









| |                                                            
| | -----------------------------------------------------------
| | Other Transactions with Directors and Senior
    Management



|                        |  |            |           |                  |                    |  |          |       |  |   |       | 
|----------------------- |  | ---------- | --------- | ---------------- | ------------------ |  | -------- | ----- |  | - | ----- | 
|                        |  |            |           | Number of Shares |                    |  | Exercise |      
|Name                    |  | Grant Date |           |                  | Underlying Options |  |          | Price | 
|                        |  |            |           |                  |                    |  |          |       | 
|John Chapple            |  |            | 1/27/2005 |                  |                    |  | 260,000  |       |  | $ | 20.10 | 
|Barry Rowan             |  |            | 1/27/2005 |                  |                    |  | 190,000  |       |  | $ | 20.10 | 
|James Ryder             |  |            | 1/27/2005 |                  |                    |  | 160,000  |       |  | $ | 20.10 | 
|David Aas               |  |            | 1/27/2005 |                  |                    |  | 135,000  |       |  | $ | 20.10 | 
|Phillip Gaske           |  |            | 1/27/2005 |                  |                    |  | 100,000  |       |  | $ | 20.10 | 
|Donald Manning          |  |            | 1/27/2005 |                  |                    |  | 90,000   |       |  | $ | 20.10 | 
|Adam Aron               |  |            | 1/27/2005 |                  |                    |  | 15,000   |       |  | $ | 20.10 | 
|Caroline H. Rapking     |  |            | 1/27/2005 |                  |                    |  | 15,000   |       |  | $ | 20.10 | 
|Steven B. Dodge         |  |            | 1/27/2005 |                  |                    |  | 15,000   |       |  | $ | 20.10 | 
|James N. Perry, Jr.     |  |            | 1/27/2005 |                  |                    |  | 15,000   |       |  | $ | 20.10 | 
|Arthur W. Harrigan, Jr. |  |            | 1/27/2005 |                  |                    |  | 15,000   |       |  | $ | 20.10 | 
|Dennis M. Weibling      |  |            | 1/27/2005 |                  |                    |  | 7,500    |       |  | $ | 20.10 | 








|         |                                       
|-------- | --------------------------------------
|Item 14. | Principal Accounting Fees and Services



| |           
| | ----------
| | Audit Fees

10-Q


138



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| |                   
| | ------------------
| | Audit-Related Fees





| |         
| | --------
| | Tax Fees





| |               
| | --------------
| | All Other Fees





| |                    
| | -------------------
| | Pre-Approval Policy



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##### Table of Contents



Audit Committee Report


The information contained in this report shall not be deemed
to be soliciting material or to be filed
with the SEC, and such information shall not be incorporated by
reference into any future filing under the Securities Act or the
Exchange Act, except to the extent that we specifically
incorporate it by reference into such filing.






10-K




| |                        
| | -----------------------
| | Respectfully submitted,
| | Adam Aron              
| | Caroline H. Rapking    
| | Dennis M. Weibling     

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##### Table of Contents






PART IV







|         |                                        
|-------- | ---------------------------------------
|Item 15. | Exhibits, Financial Statement Schedules





|   |                      
|-- | ---------------------
|1. | Financial Statements.



|                                                                                                                                                 |  |      |     | 
|------------------------------------------------------------------------------------------------------------------------------------------------ |  | ---- | --- | 
|                                                                                                                                                 |  | Page |    
|                                                                                                                                                 |  |      |    
|Consolidated Balance Sheets as of December 31, 2005 and 2004                                                                                     |  |      | 76  | 
|Consolidated Statements of Operations for the Years Ended
    December 31, 2005, 2004 and 2003                                                   |  |      | 77  | 
|Consolidated Statements of Changes in Stockholders Equity
    and Comprehensive Income for the Years Ended December 31,
    2005, 2004 and 2003 |  |      | 78  | 
|Consolidated Statements of Cash Flows for the Years Ended
    December 31, 2005, 2004 and 2003                                                   |  |      | 79  | 
|Notes to Consolidated Financial Statements                                                                                                       |  |      | 80  | 
|Report of Independent Registered Public Accounting Firm                                                                                          |  |      | 111 | 
|Report of Independent Registered Public Accounting Firm on
    Internal Control over Financial Reporting                                         |  |      | 112 | 



|   |                               
|-- | ------------------------------
|2. | Financial Statement Schedules.





|   |          
|-- | ---------
|3. | Exhibits.

10-K.


141



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##### Table of Contents






SIGNATURES






| |                      
| | ---------------------
| | NEXTEL PARTNERS, INC.
| | (Registrant)         



| |     |                 
| | --- | ----------------
| | By: | /s/ JOHN CHAPPLE

| |                                       
| | --------------------------------------
| |                                       
| | John Chapple                          
| | President, Chief Executive Officer and
| | Chairman of the Board                 



POWER OF ATTORNEY


10-K, attorneys-in




|                                                   |  |                                                                                         |  |                |  | 
|-------------------------------------------------- |  | --------------------------------------------------------------------------------------- |  | -------------- |  | 
|Signature                                          |  | Title                                                                                   |  | Date          
|                                                   |  |                                                                                         |  |               
|                                                  
|/s/ JOHN CHAPPLEJohn Chapple                       |  | President, Chief Executive Office and Chairman of the Board                             |  | March 15, 2006
|                                                  
|/s/ BARRY ROWANBarry Rowan                         |  | Executive Vice President,
    Chief Financial Officer
    (Principal Financial Officer) |  | March 15, 2006
|                                                  
|/s/ LINDA ALLENLinda Allen                         |  | Chief Accounting Officer
    (Principal Accounting Officer)                             |  | March 15, 2006
|                                                  
|/s/ CHRISTOPHER T.
    ROGERSChristopher T. Rogers |  | Director                                                                                |  | March 15, 2006
|                                                  
|/s/ JAMES N. PERRY, JR.James N. Perry, Jr.         |  | Director                                                                                |  | March 15, 2006

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|                                                       |  |          |  |                |  | 
|------------------------------------------------------ |  | -------- |  | -------------- |  | 
|Signature                                              |  | Title    |  | Date          
|                                                       |  |          |  |               
|                                                      
|/s/ DENNIS M. WEIBLINGDennis M. Weibling               |  | Director |  | March 15, 2006
|                                                      
|Steven B. Dodge                                        |  | Director |  |               
|                                                      
|/s/ CAROLINE H. RAPKINGCaroline H. Rapking             |  | Director |  | March 15, 2006
|                                                      
|/s/ ADAM ARONAdam Aron                                 |  | Director |  | March 15, 2006
|                                                      
|/s/ ARTHUR W. HARRIGAN,
    JR.Arthur W. Harrigan, Jr. |  | Director |  | March 15, 2006

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INDEX TO EXHIBITS


| |    |           |  |                                                                                                                                                                                                                                                       
| | -- | --------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 3  | .1**      |  | Restated Certificate of Incorporation, as amended.                                                                                                                                                                                                    
| | 3  | .1(a)(43) |  | Certificate of Amendment to the Restated Certificate of
    Incorporation of Nextel Partners, Inc., filed as of
    June 3, 2004.                                                                                                                     
| | 3  | .2(48)    |  | Amended and Restated Bylaws, effective as of June 3, 2004.                                                                                                                                                                                            
| | 4  | .1        |  | See Exhibits 3.1 and 3.2.                                                                                                                                                                                                                             
| | 10 | .1*       |  | Purchase Agreement, dated January 22, 1999, by and among
    the Company, Donaldson, Lufkin & Jenrette Securities
    Corporation, Barclays Capital Inc., First Union Capital Markets,
    BNY Capital Markets, Inc. and Nesbitt Burns Securities Inc.
| | 10 | .2**      |  | Amended and Restated Shareholders Agreement by and among
    the Company and the stockholders named therein.                                                                                                                                         
| | 10 | .2(a)(16) |  | Amendment No. 1 to Amended and Restated Shareholders
    Agreement dated effective as of February 22, 2000 by and
    among the Company and the stockholders named therein.                                                                          
| | 10 | .2(b)(20) |  | Amendment No. 2 to Amended and Restated Shareholders
    agreement dated March 20, 2001 by and among Nextel
    Partners, Inc. and the stockholders named therein.                                                                                   
| | 10 | .2(c)(21) |  | Amendment No. 3 to Amended and Restated Shareholders
    Agreement dated April 18, 2001 by and among Nextel
    Partners, Inc. and the stockholders named therein.                                                                                   
| | 10 | .2(d)(22) |  | Amendment No. 4 to Amended and Restated Shareholders
    Agreement dated July 25, 2001 by and among Nextel Partners,
    Inc. and the stockholders named therein.                                                                                    
| | 10 | .2(e)(35) |  | Amendment No. 5 to Amended and Restated Shareholders
    Agreement dated June 13, 2002 by and among Nextel Partners,
    Inc. and the stockholders named therein.                                                                                    
| | 10 | .2(f)(35) |  | Amendment No. 6 to Amended and Restated Shareholders
    Agreement dated July 24, 2002 by and among Nextel Partners,
    Inc. and the stockholders named therein.                                                                                    
| | 10 | .2(g)(35) |  | Amendment No. 7 to Amended and Restated Shareholders
    Agreement dated October 18, 2002 by and among Nextel
    Partners, Inc. and the stockholders named therein.                                                                                 
| | 10 | .2(h)(35) |  | Amendment No. 8 to Amended and Restated Shareholders
    Agreement dated May 12, 2003 by and among Nextel Partners,
    Inc. and the stockholders named therein.                                                                                     
| | 10 | .2(i)(42) |  | Amendment No. 9 to Amended and Restated Shareholders
    Agreement by and among Nextel Partners                                                                                                                                                      
| | 10 | .2(j)(48) |  | Amendment No. 10 to Amended and Restated Shareholders
    Agreement dated December 31, 2004 by and among Nextel
    Partners, Inc. and the stockholders named therein.                                                                               
| | 10 | .3*       |  | Joint Venture Agreement, dated as of January 29, 1999, by
    and among the Company, Nextel Partners Operating Corp., and
    Nextel WIP Corp.                                                                                                        
| | 10 | .4*       |  | Interim Management Agreement, dated as of January 29, 1999,
    by and between Nextel Partners Operating Corp. and Nextel WIP
    Corp.                                                                                                               
| | 10 | .5*       |  | Analog Management Agreement, dated as of January 29, 1999,
    by and between Nextel Partners Operating Corp. and Nextel WIP
    Corp.                                                                                                                
| | 10 | .6*       |  | Trademark License Agreement, dated as of January 29, 1999,
    by and between Nextel Partners Operating Corp. and Nextel WIP
    Corp.                                                                                                                
| | 10 | .7*       |  | Roaming Agreement, dated as of January 29, 1999, by and
    between Nextel Partners Operating Corp. and Nextel WIP Corp.                                                                                                                              
| | 10 | .8*       |  | Switch Sharing Agreement, dated as of January 29, 1999, by
    and between Nextel Partners Operating Corp. and Nextel WIP Corp.                                                                                                                       
| | 10 | .9*+      |  | Transition Services Agreement, dated as of January 29,
    1999, by and between Nextel Partners Operating Corp. and Nextel
    WIP Corp.                                                                                                              
| | 10 | .10*+     |  | iDEN (Registered Trademark) Infrastructure Equipment Purchase
    Agreement, dated as of January 29, 1999, by and between
    Motorola, Inc. and Nextel Partners Operating Corp.                                                                      
| | 10 | .11*+     |  | Subscriber Purchase and Distribution Agreement, dated as of
    January 29, 1999, by and between Motorola, Inc. and Nextel
    Partners Operating Corp.                                                                                               

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| |    |            |  |                                                                                                                                                                                                                                                                              
| | -- | ---------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 10 | .12*       |  | Agreement Specifying Obligations of, and Limiting Liability and
    Recourse to, Nextel, dated as of January 29, 1999, among
    the Company, Nextel Partners Operating Corp. and Nextel
    Communications, Inc.                                                            
| | 10 | .13*       |  | Asset and Stock Transfer and Reimbursement Agreement, dated as
    of January 29, 1999, by and between Nextel Partners
    Operating Corp. and Nextel WIP Corp.                                                                                                              
| | 10 | .14(46)    |  | Employment Agreement, amended and restated as of
    February 24, 2005, between Nextel Partners Inc., Nextel
    Partners Operating Corp. and John Chapple.                                                                                                                  
| | 10 | .14(a)     |  | Amendment No. 1 to Employment Agreement, amended and
    restated as of February 24, 2005, between Nextel Partners
    Inc., Nextel Partners Operating Corp. and John Chapple.                                                                                               
| | 10 | .15*       |  | Employment Agreement, dated as of January 29, 1999, between
    the Company and John Thompson.                                                                                                                                                                               
| | 10 | .16*       |  | Stock Option Agreement, dated as of January 29, 1999,
    between the Company and John Thompson.                                                                                                                                                                             
| | 10 | .17*       |  | Non-negotiable Promissory Note, dated January 29, 1999, by
    John Thompson to the Company.                                                                                                                                                                                 
| | 10 | .18*       |  | 1999 Nonqualified Stock Option Plan of the Company                                                                                                                                                                                                                           
| | 10 | .18(b)(29) |  | Third Amended and Restated 1999 Nonqualified Stock Option Plan.                                                                                                                                                                                                              
| | 10 | .18(c)(30) |  | Form of Restricted Stock Purchase Agreement to be executed
    between the Company and each of its outside directors who are
    issued restricted stock.                                                                                                                    
| | 10 | .18(d)(44) |  | 1999 Nonqualified Stock Option Plan, as amended.                                                                                                                                                                                                                             
| | 10 | .18(e)(46) |  | Form of Stock Option Agreement  Senior Manager (for
    options granted prior to January 27, 2005).                                                                                                                                                                         
| | 10 | .18(f)(46) |  | Form of Stock Option Agreement  Senior Manager (for
    options granted on or after January 27, 2005).                                                                                                                                                                      
| | 10 | .18(g)(46) |  | Form of Stock Option Agreement  Board Member (for
    options granted prior to January 27, 2005).                                                                                                                                                                           
| | 10 | .18(h)(46) |  | Form of Stock Option Agreement  Board Member (for
    options granted on or after January 27, 2005).                                                                                                                                                                        
| | 10 | .20(46)    |  | Form of Amended and Restated Restricted Stock Purchase Agreement
    (Senior Managers) dated May 9, 2005, to be executed by
    Nextel Partners, Inc. and certain of its executive officers
    (other than Barry Rowan).                                                    
| | 10 | .20(a)(47) |  | Amended and Restated Restricted Stock Purchase Agreement dated
    May 9, 2005 by and between Nextel Partners, Inc. and Barry
    Rowan.                                                                                                                                     
| | 10 | .21(46)    |  | Employment Agreement, amended and restated as of
    February 24, 2005, between Nextel Partners Inc., Nextel
    Partners Operating Corp. and David Aas.                                                                                                                     
| | 10 | .21(a)     |  | Amendment No. 1 to Employment Agreement, amended and
    restated as of February 24, 2005, between Nextel Partners
    Inc., Nextel Partners Operating Corp. and David Aas.                                                                                                  
| | 10 | .22(42)    |  | Employment Agreement, dated as of February 24, 2004,
    between Nextel Partners Operating Corp. and Perry Satterlee.                                                                                                                                                        
| | 10 | .24*       |  | Subscription and Contribution Agreement, dated as of
    January 29, 1999, among the Company and the Buyers named
    therein.                                                                                                                                               
| | 10 | .25(1)     |  | Indenture dated January 29, 1999 by and between Nextel
    Partners and The Bank of New York, as trustee, relating to the
    14% Senior Discount Notes due 2009.                                                                                                            
| | 10 | .25(a)(40) |  | First Supplemental indenture dated as of June 23, 2003 by
    and between Nextel Partners and the Bank of New York, as
    trustee, relating to the 14% senior discount notes due 2009.                                                                                      
| | 10 | .26(2)     |  | Registration Rights Agreement dated as of January 29, 1999
    by and among Nextel Partners, Donaldson, Lufkin &
    Jenrette Securities Corporation, Barclays Capital Inc., First
    Union Capital Markets, BNY Capital Markets, Inc. and Nesbitt
    Burns Securities Inc.

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| |    |             |  |                                                                                                                                                                                                                                                                                                                                                                                                           
| | -- | ----------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 10 | .33**       |  | Agreement in Support of Charter Obligations dated as of
    January 29, 1999 by and between Nextel Partners and Nextel
    WIP Corp.                                                                                                                                                                                                                                                                      
| | 10 | .34**       |  | Assignment and Assumption of Lease dated as of August 1,
    1999 by and between Nextel WIP Lease Corp. and Eagle River
    Investments, LLC.                                                                                                                                                                                                                                                             
| | 10 | .35**       |  | Lease Agreement dated May 11, 1999 by and between Nextel
    WIP Lease Corp. and McCarran Center, LC.                                                                                                                                                                                                                                                                                                     
| | 10 | .36**       |  | First Amendment to Lease dated as of September 10, 1999 by
    and between Nextel WIP Lease Corp. and McCarran Center, LC.                                                                                                                                                                                                                                                                                
| | 10 | .37**       |  | Lease Agreement dated as of March 25, 1999 by and between
    Nextel WIP Lease Corp. and Nesbitt Operating Associates, L.P.                                                                                                                                                                                                                                                                               
| | 10 | .38(42)     |  | Employment Agreement, dated as of February 24, 2004,
    between Nextel Partners Operating Corp. and Mark Fanning.                                                                                                                                                                                                                                                                                        
| | 10 | .39**       |  | Letter Agreement dated October 13, 1999 by and among Nextel
    WIP Corp., Nextel Partners Operating Corp. and Nextel Partners,
    Inc.                                                                                                                                                                                                                                                                  
| | 10 | .40**       |  | Expansion Territory Management Agreement dated as of
    September 9, 1999 by and between Nextel Partners Operating
    Corp. and Nextel WIP Corp.                                                                                                                                                                                                                                                        
| | 10 | .41**       |  | Expansion Territory Asset Transfer and Reimbursement Agreement
    dated as of September 9, 1999 by and between Nextel
    Partners Operating Corp. and Nextel WIP Corp.                                                                                                                                                                                                                                  
| | 10 | .42**       |  | Assignment and Security Agreement dated as of September 9,
    1999 by Nextel Partners Operating Corp. in favor of Bank of
    Montreal.                                                                                                                                                                                                                                                                  
| | 10 | .43**       |  | First Amendment to Analog Management Agreement dated as of
    September 9, 1999 by and between Nextel WIP Corp. and
    Nextel Partners Operating Corp.                                                                                                                                                                                                                                                  
| | 10 | .44**       |  | Form of Warrant for the Purchase of Shares of Class A
    Common Stock of Nextel Partners dated January 29, 1999.                                                                                                                                                                                                                                                                                         
| | 10 | .45**       |  | Employee Stock Purchase Plan.                                                                                                                                                                                                                                                                                                                                                                             
| | 10 | .46**       |  | Form of Indemnity Agreement.                                                                                                                                                                                                                                                                                                                                                                              
| | 10 | .47**       |  | Letter Agreement dated October 13, 1999 by and among Nextel
    Communications, Inc., Nextel of New York, Inc., Nextel
    Communications of the Mid-Atlantic, Inc., Nextel South Corp.,
    Nextel of Texas, Inc., Nextel West Corp., Nextel of California,
    Inc., Tower Parent Corp., SpectraSite Holdings, Inc., Tower
    Asset Sub, Inc., Nextel Partners Operating Corp. and Nextel
    Partners.
| | 10 | .48**       |  | Supplement No. 1 to iDEN Infrastructure Equipment Purchase
    Agreement dated September 1999 by and between Nextel Partners
    Operating Corp. and Motorola, Inc.                                                                                                                                                                                                                                       
| | 10 | .49**       |  | Expansion Subscription and Contribution Agreement dated as of
    September 9, 1999 by and among Nextel Partners and the
    Buyers named therein.                                                                                                                                                                                                                                                        
| | 10 | .50(9)      |  | Indenture, dated as of March 10, 2000, by and between
    Nextel Partners, Inc. and The Bank of New York, as Trustee,
    relating to the 11% Senior Notes due 2010.                                                                                                                                                                                                                                      
| | 10 | .50(a)(43)  |  | First Supplemental Indenture dated as of May 19, 2004 by
    and between Nextel Partners, Inc. and The Bank of New York, as
    Trustee, relating to the 11% senior notes due 2010.                                                                                                                                                                                                                       
| | 10 | .52(11)     |  | Registration Rights Agreement, dated as of March 10, 2000,
    by and among Nextel Partners, Inc. and Donaldson,
    Lufkin & Jenrette Securities Corporation.                                                                                                                                                                                                                                            
| | 10 | .54(17)     |  | Registration Rights Agreement dated effective as of
    February 22, 2000 by and among the Company and the
    stockholders named therein.                                                                                                                                                                                                                                                                
| | 10 | .54(a)(36)  |  | Amendment No. 1 to Registration Rights Agreements dated
    effective as of June 14, 2002 by and among the Company and
    the stockholders named therein.                                                                                                                                                                                                                                                
| | 10 | .55(23)+    |  | iDEN (Registered Trademark) Infrastructure Supply Agreement
    dated effective as of November 1, 2000 by and between
    Motorola, Inc. and Nextel Partners Operating Corp.                                                                                                                                                                                                                              
| | 10 | .55(a)(43)+ |  | Amended and Restated Extension Amendment to the iDEN (Registered
    Trademark) Infrastructure Supply Agreement dated effective
    May 24, 2004 by and between Motorola, Inc. and Nextel
    Partners Operating Corp.                                                                                                                                                                                    

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| |    |             |  |                                                                                                                                                                                                                                                                                                                                                                       
| | -- | ----------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 10 | .57(13)     |  | Indenture, dated as of July 27, 2000, by and between Nextel
    Partners, Inc. and The Bank of New York, as Trustee, relating to
    the 11% Senior Notes due 2010.                                                                                                                                                                                                   
| | 10 | .57(a)(43)  |  | First Supplemental Indenture dated as of May 19, 2004 by
    and between Nextel Partners, Inc. and The Bank of New York, as
    Trustee, relating to the 11% senior notes due 2010.                                                                                                                                                                                   
| | 10 | .58(14)     |  | Purchase Agreement for $200,000,000 11% Senior Notes due
    2010, dated July 18, 2000 by and among Nextel Partners,
    Inc., Donaldson, Lufkin & Jenrette Securities
    Corporation, Deutsche Bank Securities Inc. and CIBC World
    Markets Corp.                                                                                                                
| | 10 | .59(15)     |  | Registration Rights Agreement, dated as of July 27, 2000,
    by and among Nextel Partners, Inc., Donaldson, Lufkin &
    Jenrette Securities Corporation, Deutsche Bank Securities Inc.
    and CIBC World Markets Corp.                                                                                                                                             
| | 10 | .60(24)     |  | Lease Agreement dated May 2001 between The St. Joe Company and
    Nextel WIP Corporation.                                                                                                                                                                                                                                                                            
| | 10 | .61(25)     |  | First Amendment to IPO Approval and Lockup Agreement, dated
    April 18, 2001 among Nextel WIP Corp., Nextel Partners,
    Inc., DLJ Merchant Banking Partners, IL, LP, Madison Dearborn
    Capital Partners II L.P., Eagle River Investments, LLC,
    John Chapple, John Thompson, David Thaler, Dave Aas, Perry
    Satterlee, Mark Fanning, and Don Manning.    
| | 10 | .61(a)(26)  |  | Second Amendment to IPO Approval and Lockup Agreement dated
    July 25, 2001 among Nextel WIP Corp., Nextel Partners,
    Inc., DLJ Merchant Banking Partners, II L.P., Madison
    Dearborn Capital Partners II L.P., Eagle River Investments,
    LLC, John Chapple, John Thompson, David Thaler, David Aas, Perry
    Satterlee, Mark Fanning, and Donald Manning.
| | 10 | .62(18)     |  | Indenture, dated as of December 4, 2001, by and between
    Nextel Partners, Inc. and The Bank of New York, as Trustee,
    relating to the
    121/2% Senior
    Notes due 2009.                                                                                                                                                                                     
| | 10 | .63(a)(19)  |  | Registration Rights Agreement, dated as of December 4,
    2001, between and among Nextel Partners, Inc., Credit Suisse
    First Boston Corporation and Deutsche Banc Alex. Brown, Inc.
    relating to the
    121/2% senior
    notes due 2009.                                                                                                                    
| | 10 | .65(31)+    |  | The Asset Purchase Agreement by and between Commercial Digital
    Services Corporation, Inc. and Nextel Partners, Inc.                                                                                                                                                                                                                                               
| | 10 | .65(a)(32)+ |  | The Stock Purchase and Redemption Agreement by and between
    Nextel Partners, Inc., Mobile Relays, Inc. and the Stockholders
    of Mobile Relays, Inc.                                                                                                                                                                                                             
| | 10 | .66(46)     |  | Employment Agreement, amended and restated as of
    February 24, 2005, between Nextel Partners Inc., Nextel
    Partners Operating Corp. and Donald Manning.                                                                                                                                                                                                         
| | 10 | .66(a)      |  | Amendment No. 1 to Employment Agreement, amended and
    restated as of February 24, 2005, between Nextel Partners
    Inc., Nextel Partners Operating Corp. and Donald Manning.                                                                                                                                                                                      
| | 10 | .68(37)     |  | Indenture dated as of June 23, 2003 by and between Nextel
    Partners, Inc. and The Bank of New York Trustee relating to the
    81/8% senior notes due 2011.                                                                                                                                                                                                        
| | 10 | .69(37)     |  | Registration Rights Agreement dated as of June 23, 2003 by
    and among Nextel Partners, Inc., Credit Suisse First Boston LLC,
    Morgan Stanley & Co. Inc., UBS Securities, LLC, Legg
    Mason Wood Walker, Inc., and Thomas Weisel Partners LLC relating
    to the
    81/2% senior
    notes dues 2011                                                         
| | 10 | .70(37)     |  | Indenture dated as of August 6, 2003 by and between Nextel
    Partners, Inc. and The Bank of New York Trustee relating to the
    11/2% convertible
    senior notes due 2008                                                                                                                                                                                        
| | 10 | .71(37)     |  | Registration Rights Agreement by and among Nextel Partners,
    Inc., and Wachovia Capital Markets, LLC and Credit Suisse First
    Boston LLC relating to the
    11/2% convertible
    senior notes due 2008.                                                                                                                                                       
| | 10 | .72(38)     |  | Indenture between Nextel Partners, Inc. and The Bank of New
    York, dated as of May 13, 2003.                                                                                                                                                                                                                                                                       
| | 10 | .73(39)     |  | Registration Rights Agreement dated as of May 13, 2003 by
    and among Nextel Partners, Inc., Morgan Stanley & Co.
    Incorporated, Credit Suisse First Boston LLC and Wachovia
    Securities.                                                                                                                                                                     

147



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##### Table of Contents



| |    |            |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | -- | ---------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 10 | .74(40)    |  | Restricted stock plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | 10 | .74(a)(46) |  | Form of Restricted Stock Purchase Agreement (Directors) to be
    executed between Nextel Partners, Inc. and each of its outside
    directors who are issued restricted stock.                                                                                                                                                                                                                                                                                                                                                                                                        
| | 10 | .75(46)    |  | Employment Agreement, amended and restated as of
    February 24, 2005 between Nextel Partners Inc., Nextel
    Partners Operating Corp. and Barry L. Rowan.                                                                                                                                                                                                                                                                                                                                                                                                                           
| | 10 | .75(a)     |  | Amendment No. 1 to Employment Agreement, amended and
    restated as of February 24, 2005, between Nextel Partners
    Inc., Nextel Partners Operating Corp. and Barry L. Rowan.                                                                                                                                                                                                                                                                                                                                                                                                       
| | 10 | .76(40)    |  | Asset Purchase Agreement dated July 15, 2003 by and between
    Nextel Operations, Inc. and Nextel Partners Equipment Corp.                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | 10 | .77(41)    |  | Credit Agreement dated as of December 19, 2003 by and
    between Nextel Partners Operating Corp., J.P. Morgan
    Securities, Inc., Morgan Stanley Senior Funding, Inc., UBS
    Securities LLC, Wachovia Securities, General Electric
    Capital Corporation, and JPMorgan Chase Bank, including all
    exhibits thereto.                                                                                                                                                                                                                                                          
| | 10 | .77(a)(43) |  | First Amended and Restated Credit Agreement dated as of
    May 19, 2004 by and between Nextel Partners Operating
    Corp., J.P. Morgan Securities, Inc., Morgan Stanley Senior
    Funding, Inc., JPMorgan Chase Bank, the Subsidiary Guarantors
    named therein and the Lenders named therein, including all
    exhibits thereto.                                                                                                                                                                                                                                                
| | 10 | .77(b)(49) |  | Second Amended and Restated Credit Agreement dated as of
    May 23, 2005 by and between Nextel Partners Operating
    Corp., JPMorgan Chase Bank, N.A., the Subsidiary Guarantors
    named therein and the Lenders named therein, including all
    exhibits thereto; Amendment No. 1 to Guaranty and Pledge
    Agreement dated as of May 23, 2005 to that certain Guaranty
    and Pledge Agreement dated as of December 19, 2003; and
    Amendment No. 1 to Security Agreement dated as of
    May 23, 2005 to that certain Security Agreement dated as of
    December 19, 2003.
| | 10 | .78(43)    |  | Indenture dated as of May 19, 2004, by and between Nextel
    Partners, Inc. and the BNY Western Trust Company, as Trustee,
    relating to the
    81/8% senior
    notes due 2011.                                                                                                                                                                                                                                                                                                                                                                                                   
| | 10 | .79(43)    |  | Registration Rights Agreement dated May 19, 2004 by and
    among Nextel Partners, Inc., Morgan Stanley & Co. Inc.,
    J.P. Morgan Securities Inc., UBS Securities LLC and
    Wachovia Capital Markets, LLC relating to the
    81/8% senior
    notes due 2011.                                                                                                                                                                                                                                                                                                                     
| | 10 | .80(45)+   |  | Subscriber Units and Services Supply Agreement between Motorola,
    Inc. and Nextel Partners Operating Corp. dated
    September 20, 2004.                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | 10 | .80(a)+    |  | Amendments Two and Three to the Subscriber Units and Services
    Supply Agreement between Motorola, Inc. and Nextel Partners
    Operating Corp. dated effective November 1, 2004 and
    January 1, 2005, respectively.                                                                                                                                                                                                                                                                                                                                                              
| | 10 | .80(b)+    |  | Amendment Four to the Subscriber Units and Services Supply
    Agreement between Motorola, Inc. and Nextel Partners Operating
    Corp. dated effective December 29, 2005.                                                                                                                                                                                                                                                                                                                                                                                                             
| | 10 | .81(48)    |  | Nonqualified Deferred Compensation Cash Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | 10 | .82^       |  | Retention and Severance Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | 10 | .83(50)    |  | Cooperation Agreement 800 MHz Spectrum Rebanding dated
    March 7, 2005 between Nextel Communications, Inc. and
    Nextel Partners, Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | 10 | .84(46)    |  | Employment Agreement, dated as of February 24, 2005,
    between Nextel Partners, Inc., Nextel Partners Operating Corp.
    and James Ryder.                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | 10 | .84(a)     |  | Amendment No. 1 to Employment Agreement, amended and
    restated as of February 24, 2005, between Nextel Partners
    Inc., Nextel Partners Operating Corp. and James Ryder.                                                                                                                                                                                                                                                                                                                                                                                                          
| | 10 | .85(46)    |  | Employment Agreement, dated as of February 24, 2005,
    between Nextel Partners, Inc., Nextel Partners Operating Corp.
    and Philip Gaske.                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | 10 | .85(a)     |  | Amendment No. 1 to Employment Agreement, amended and
    restated as of February 24, 2005, between Nextel Partners
    Inc., Nextel Partners Operating Corp. and Phillip Gaske.                                                                                                                                                                                                                                                                                                                                                                                                        

148



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##### Table of Contents



| |    |         |  |                                                                                                                                                                                                                                                                                       
| | -- | ------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 10 | .86     |  | Exhibit A to Amendment No. 1 to Employment Agreements,
    amended and restated as of February 24, 2005, between
    Nextel Partners Inc., Nextel Partners Operating Corp. and each
    of John Chapple, David Aas, Donald Manning, Barry L. Rowan,
    James Ryder and Phillip Gaske.
| | 10 | .87(51) |  | Letter Agreement, dated December 20, 2005 among the
    Partners, NWIP, Nextel and Sprint Nextel and the other parties
    thereto.                                                                                                                                                   
| | 21 |         |  | Subsidiaries of the Company.                                                                                                                                                                                                                                                          
| | 23 | .1      |  | Consent of KPMG LLP, Independent Registered Public Accounting
    Firm                                                                                                                                                                                                                
| | 23 | .2***   |  | Consent of Arthur Andersen LLP                                                                                                                                                                                                                                                        
| | 24 | .1      |  | Powers of Attorney (included on signature page hereof).                                                                                                                                                                                                                               
| | 31 | .1      |  | Certification of John Chapple, Chairman and Chief Executive
    Officer of Nextel Partners, Inc., pursuant to Exchange Act
    Rule 13a-14(a) under the Securities Exchange Act of 1934.                                                                                              
| | 31 | .2      |  | Certification of Barry Rowan, Chief Financial Officer of Nextel
    Partners, Inc., pursuant to Exchange Act Rule 13a-14(a)
    under the Securities Exchange Act of 1934.                                                                                                            
| | 32 | .1      |  | Certification of John Chapple, Chairman and Chief Executive
    Officer of Nextel Partners, Inc., pursuant to 18. U.S.C.
    Section 1350.                                                                                                                                            
| | 32 | .2      |  | Certification of Barry Rowan, Chief Financial Officer of Nextel
    Partners, Inc., pursuant to 18 U.S.C. Section 1350.                                                                                                                                                               






| |   |                                   
| | - | ----------------------------------
| | ^ | Replaces previously filed exhibit.



| |   |                                                                                                                                                                                                            
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | + | Confidential portions omitted and filed separately with the
    Commission pursuant to an application for confidential treatment
    pursuant to Rule 406 under the Securities Act of 1933, as
    amended.



| |   |                                                                                                                                                                            
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | * | Incorporated by reference to the Exhibit of the same number to
    Registration Statement on
    Form S-4 declared
    effective July 30, 1999 (File
    Number 333-78459).



| |    |                                                                                                                                                                             
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | ** | Incorporated by reference to the Exhibit of the same number to
    Registration Statement on
    Form S-1 declared
    effective February 22, 2000 (File No.
    333-95473).



|    |                                                                                              
|--- | ---------------------------------------------------------------------------------------------
|*** | Pursuant to Rule 437a promulgated under the Securities Act,
    no consent is filed herewith.



| |     |                                                                                                                                                         
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------
| | (1) | Incorporated by reference to Exhibit 4.1 to Registration
    Statement on
    Form S-4 declared
    effective July 30, 1999 (File
    Number 333-78459).
|
| | (2) | Incorporated by reference to Exhibit 4.2 to Registration
    Statement on
    Form S-4 declared
    effective July 30, 1999 (File
    Number 333-78459).
|
| | (3) | Intentionally omitted.                                                                                                                                  
|
| | (4) | Intentionally omitted.                                                                                                                                  
|
| | (5) | Intentionally omitted.                                                                                                                                  
|
| | (6) | Intentionally omitted.                                                                                                                                  
|
| | (7) | Intentionally omitted.                                                                                                                                  
|
| | (8) | Intentionally omitted.                                                                                                                                  
|
| | (9) | Incorporated by reference to Exhibit 10.52 to
    Form 10-Q filed on
    May 10, 2000.                                                                  



|     |                                                                                                                                                             
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------
|(10) | Intentionally omitted.                                                                                                                                      
|    
|(11) | Incorporated by reference to Exhibit 10.50 to
    Form 10-Q filed on
    May 10, 2000.                                                                      
|    
|(12) | Intentionally omitted.                                                                                                                                      
|    
|(13) | ncorporated by reference to Exhibit 10.50 to Registration
    Statement on
    Form S-4, declared
    effective on August 9, 2000 (File
    No. 333-39386). 
|    
|(14) | Incorporated by reference to Exhibit 10.51 to Registration
    Statement on
    Form S-4, declared
    effective on August 9, 2000 (File
    No. 333-39386).

149



---



##### Table of Contents





|     |                                                                                                                                                                 
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------
|(15) | Incorporated by reference to Exhibit 10.52 to Registration
    Statement on
    Form S-4, declared
    effective on August 9, 2000 (File
    No. 333-39386).    
|    
|(16) | Incorporated by reference to Exhibit 10.2(a) to
    Registration Statement on
    Form S-4 declared
    effective on November 15, 2000 (File
    No. 333-48470).
|    
|(17) | Incorporated by reference to Exhibit 10.54 to Registration
    Statement on
    Form S-4 declared
    effective on November 15, 2000 (File
    No. 333-48470).  
|    
|(18) | Incorporated by reference to Exhibit 4.1 to
    Form 8-K filed on
    December 6, 2001.                                                                         
|    
|(19) | Incorporated by reference to Exhibit 4.2 to
    Form 8-K filed on
    December 6, 2001.                                                                         
|    
|(20) | Incorporated by reference to Exhibit 10.2(b) to
    Form 10-Q filed
    May 11, 2001.                                                                           
|    
|(21) | Incorporated by reference to Exhibit 10.2(c) to
    Form 10-Q filed
    May 11, 2001.                                                                           
|    
|(22) | Incorporated by reference to Exhibit 10.2(d) to
    Form 10-Q filed
    November 13, 2001.                                                                      
|    
|(23) | Incorporated by reference to Exhibit of the same number to
    Form 10-K filed
    March 28, 2001.                                                              
|    
|(24) | Incorporated by reference to Exhibit 10.60 to
    Form 10-Q filed
    August 13, 2001.                                                                          
|    
|(25) | Incorporated by reference to Exhibit 10.6 to
    Form 10-Q filed
    May 11, 2001.                                                                              
|    
|(26) | Incorporated by reference to Exhibit 10.6(a) to
    Form 10-Q filed
    August 13, 2001.                                                                        
|    
|(27) | Intentionally omitted.                                                                                                                                          
|    
|(28) | Intentionally omitted.                                                                                                                                          
|    
|(29) | Incorporated by reference to Exhibit 10.18(b) to
    Form 10-Q filed
    August 14, 2002.                                                                       
|    
|(30) | Incorporated by reference to Exhibit 10.18(c) to
    Form 10-Q filed
    August 14, 2002.                                                                       
|    
|(31) | Incorporated by reference to Exhibit 10.65 to
    Form 10-Q filed
    May 14, 2002.                                                                             
|    
|(32) | Incorporated by reference to Exhibit 10.65(a) to
    Form 10-Q filed
    May 14, 2002.                                                                          
|    
|(33) | Intentionally omitted.                                                                                                                                          
|    
|(34) | Intentionally omitted.                                                                                                                                          
|    
|(35) | Incorporated by reference to the Exhibit of the same number to
    Form 10-Q filed
    May 13, 2003.                                                            
|    
|(36) | Incorporated by reference to the Exhibit of the same number to
    Form 10-K filed
    March 27, 2003.                                                          
|    
|(37) | Incorporated by reference to the Exhibit of the same number to
    Form 10-Q filed
    August 14, 2003.                                                         
|    
|(38) | Incorporated by reference to Exhibit 4.3 to
    Form S-3 filed
    June 20, 2003.                                                                               
|    
|(39) | Incorporated by reference to Exhibit 4.4 to
    Form S-3 filed
    June 20, 2003.                                                                               
|    
|(40) | Incorporated by reference to the Exhibit of the same number to
    Form 10-Q filed
    November 7, 2003                                                         
|    
|(41) | Incorporated by reference to the Exhibit of the same number to
    Form 10-K filed
    March 15, 2004.                                                          
|    
|(42) | Incorporated by reference to the Exhibit of the same number to
    Form 10-Q filed
    May 9, 2004.                                                             
|    
|(43) | Incorporated by reference to the Exhibit of the same number to
    Form 10-Q filed
    August 9, 2004.                                                          
|    
|(44) | Incorporated by reference to Exhibit 99.1 to Registration
    Statement on
    Form S-8 filed
    June 30, 2004 (File
    No. 333-117015)).                     
|    
|(45) | Incorporated by reference to the Exhibit of the same number to
    Form 10-Q filed
    November 9, 2004.                                                        
|    
|(46) | Incorporated by reference to the Exhibit of the same number to
    Form 10-Q filed
    May 10, 2005.                                                            
|    
|(47) | Incorporated by reference to the Exhibit of the same number to
    Form 10-Q filed
    November 9, 2005.                                                        
|    
|(48) | Incorporated by reference to the Exhibit of the same number to
    Form 10-K filed
    March 16, 2005.                                                          
|    
|(49) | Incorporated by reference to the Exhibit of the same number to
    Form 10-Q/ A filed
    August 29, 2005.                                                      
|    
|(50) | Incorporated by reference to the Exhibit of the same number to
    Current Report on
    Form 8-K filed
    March 11, 2005.                                     
|    
|(51) | Incorporated by reference to Exhibit 99.1 to Current Report
    on Form 8-K filed
    December 20, 2005.                                                        

150