<PAGE>   1
                                                                    EXHIBIT 1.05


                                     FORM OF
                              TAX SHARING AGREEMENT

               Agreement dated this 14th day of October, 1997, by and among
Western Wireless Corporation, a Washington corporation ("WWC"), Western PCS
Corporation, a Delaware corporation ("Western PCS") and Hutchison
Telecommunications PCS (USA) Limited, a British Virgin Islands corporation (the
"Investor") (the "Agreement").

               WHEREAS, WWC is the common parent of an affiliated group of
corporations that files a consolidated federal income tax return (the "WWC
Affiliated Group");

               WHEREAS, prior to the date hereof, WWC owned all of the
outstanding stock of Western PCS;

               WHEREAS, as of the date hereof, Investor will acquire from
Western PCS 19.9 percent of the outstanding common stock of Western PCS (the
"Purchase"); and

               WHEREAS, WWC, Western PCS and Investor desire to establish an
arrangement whereby the income tax liabilities of Western PCS and its direct and
indirect subsidiaries (the "Western PCS Group") will be determined and paid by
WWC and rebilled to Western PCS for settlement, and the Western PCS Group will
be compensated by WWC for the use of certain Western PCS Group net operating
losses and other tax attributes;

               NOW, THEREFORE, WWC, Western PCS and Investor agree as follows:




                                       1
<PAGE>   2
                                    ARTICLE I

               1.01 Preparation and Filing of Tax Returns by WWC. WWC shall
prepare and timely file, or shall cause the preparation and timely filing of,
all federal, state, and other income tax returns ("Tax Returns") of the Western
PCS Group. With respect to the tax treatment of items affecting the Western PCS
Group, such Tax Returns shall be prepared (in the absence of a material change
in law or circumstance) in a manner that is consistent with past practices,
elections, accounting methods, conventions, and principles of taxation used for
the most recent taxable periods for which Tax Returns involving similar items
have been filed prior to the Purchase.

               1.02 Payment of Taxes by WWC. Subject to Sections 1.05 and 1.08
and any rights of offset that WWC may have under this Agreement, WWC shall pay,
or cause to be paid, all income taxes, interest, and penalties due with respect
to income earned or recognized by the Western PCS Group.

               1.03 Determination of Income Taxes of the Western PCS Group. WWC
shall determine and allocate to each member of the Western PCS Group its income
taxes and related penalties and interest as if it were a separate and
independent taxpayer. For purposes of this determination, WWC shall not give
effect to any federal net operating loss carryover or carryback that would be
available to any member of the Western PCS Group. The computations shall be
prepared from year to year (in the absence of a material change in law or
circumstance) in a manner consistent with past practices, elections, accounting
methods, conventions, and principles of taxation used for the most recent
taxable periods for which Tax Returns involving similar items have been filed
prior to the Purchase. In the event that the WWC Affiliated Group files its
consolidated 




                                       2
<PAGE>   3
federal income Tax Return on the basis of the alternative minimum tax, each
member of the Western PCS Group will be allocated tax by WWC based on its tax
calculated on a stand-alone basis. Items relating to intercompany transactions
shall be treated as provided under Treasury Reg. Section 1.1502-13.

               WWC shall consult with Western PCS and Investor in the
determination of the Western PCS Group members' allocated income tax liabilities
and shall afford Western PCS and Investor reasonable opportunity to review such
determinations by making such determinations available to Western PCS and
Investor. Not later than the later of (i) 15 days after receipt of such
determinations by Western PCS and Investor and (ii) 15 days before the filing
due date of the relevant Tax Return, Investor or Western PCS shall notify WWC of
any determinations or allocations with which Investor or Western PCS disagrees,
including a reasonably detailed explanation of such disagreement. The parties
shall act in good faith to resolve such disagreement and if they cannot reach a
resolution, the matter shall be referred to an independent accounting firm
acceptable to all parties, whose resolution of the matter shall be binding on
the parties.

               In addition to the other principles and policies set forth in
this Agreement, the parties have agreed that the determination and allocation of
taxes under this Section shall be computed on the basis that (i) the merger of
Western PCS III Corporation into Western PCS II Corporation during 1997 was a
qualifying tax-free reorganization under Section 368 of the Internal Revenue
Code of 1986, as amended (the "Code") and (ii) any tax liability arising as a
result of any future spin-off by Western PCS of any direct or indirect
subsidiary of Western PCS shall not be allocated to any member of the Western
PCS Group.




                                       3
<PAGE>   4
               WWC and Western PCS shall cooperate to effectively monitor any
"excess loss accounts" (as defined in Treasury Reg. Section 1.1502-19) anywhere
within the Western PCS Group. Prior to any event (including, but not limited to,
debt cancellations and deconsolidation events) which may trigger recapture of
income due to any excess loss account, WWC and Western PCS shall cooperate and
use all commercially reasonably efforts to eliminate such excess loss account
recapture or otherwise avoid or minimize the impact thereof.

               1.04 Determinations by WWC in Accordance with Allocation Policy
Objectives. In the event that it may be unclear as to the result of the
application of Section 1.03 to specific situations which may arise and which are
not expressly addressed in Section 1.03, the allocation of taxes by WWC to the
members of the Western PCS Group shall be made using the following tax
allocation policy objective as a guide: the tax allocation policy is meant to
fairly allocate federal, state, and local tax liabilities (without regard to
federal net operating loss carryovers or carrybacks, except as provided in
Sections 1.06 and 1.07) to the members of the Western PCS Group as if each such
corporation filed its Tax Return and paid its tax on a separate company basis.

               1.05 Payment of Allocated Taxes. Subject to Sections 1.06 and
1.08, Western PCS shall pay to WWC on behalf of each of the members of the
Western PCS Group, within 30 days after the later of (i) the receipt of the
determinations referred to in Section 1.03 and (ii) the filing of the relevant
Tax Return, the tax liability allocated to such member pursuant to Section 1.03,
except for payments relating to disputed items under Section 1.03, which
payments shall be made within 30 days after the resolution thereof. The tax
liability of the WWC Affiliated Group, less the amount of tax liability




                                       4
<PAGE>   5
allocated to the members of the Western PCS Group, shall be the sole
responsibility of WWC and the other members of the WWC Affiliated Group,
excluding the members of the Western PCS Group. The foregoing sentence shall not
affect any right to indemnification that WWC or other members of its Affiliated
Group may have from any person who is not a member of the WWC Affiliated Group
for any taxes (including penalties and interest thereon and expenses related
thereto) that are the responsibility of WWC. Western PCS may offset its
obligation to make payments to WWC under this Section against WWC's obligations
to make payments to Western PCS under the provisions of this Agreement.

               1.06 Treatment of Post-1997 Net Operating Losses and Other Tax
Attributes. (a) If for any taxable year beginning on or after January 1, 1998,
any member of the Western PCS Group has a net operating loss (computed without
regard to any net operating loss carryover or carryback from any period) or
generates any other tax attribute (e.g., a credit) that reduces the federal
consolidated tax liability of the WWC Affiliated Group (excluding the Western
PCS Group) for the year in which such loss is incurred or such attribute is
generated, the amount of the net operating loss or tax attribute producing such
reduction in tax liability shall be treated as follows: (i) first, to the extent
of losses or attributes referred to in Section 1.12 (generally, Western PCS
Group Pre-1997 Losses), as reducing the amount of such losses or attributes;
(ii) then, to the extent of losses referred to in Section 1.07 (Western PCS
Group 1997 Losses), as reducing the amount of such losses; and (iii) thereafter,
as a utilization of a current year loss or attribute; all as further described
below in this Section.




                                       5
<PAGE>   6
               (b) With respect to the losses referred to in Section
1.06(a)(ii), WWC shall make such payment as provided in Section 1.07 by treating
such amount as a "1997 Reimbursable Loss."

               (c) With respect to the losses and attributes referred to in
Section 1.06(a)(iii) above, the aggregate total of such losses and attributes
shall be maintained in a deferred account (the "Western PCS Deferred Account")
until the date upon which the Western PCS Group members (i) cease to file a
consolidated federal income Tax Return with WWC, or (ii) cease to have any net
operating loss carryovers computed on a stand-alone basis (taking into account
the provisions of this Section 1.06 and computed as of the end of a taxable
year). If the Western PCS Group members cease to file a consolidated federal
income Tax Return with WWC, WWC shall pay to Western PCS within 30 days
following the date of such deconsolidation an amount equal to the present value
of the aggregate balance of such Western PCS Deferred Account determined by
mutual agreement among WWC, Western PCS and Investor based on (i) the maximum
federal income tax rate for corporations applicable for the year during which
the deconsolidation becomes effective, (ii) reasonable projections for the
Western PCS Group with regard to the anticipated timing of the utilization by it
of such losses and attributes and (iii) commercially reasonable discount rate.
If there is a dispute between WWC, Western PCS and Investor with regard to the
preceding calculation, the matter shall be referred to an independent accounting
firm acceptable to all parties, whose resolution of the matter shall be binding
on the parties. In no event shall payment of any disputed amount be required to
be made prior to 30 days following resolution of such dispute. If, prior to any
time that the Western PCS Group members cease to file




                                       6
<PAGE>   7
a consolidated federal income tax return with WWC, the Western PCS Group members
cease to have any net operating loss carryovers computed on a stand-alone basis
(taking into account the provisions of this Section 1.06 and computed as of the
end of a taxable year), WWC shall pay to Western PCS an amount equal to the
difference between (A) the sum of the Western PCS Group members' federal income
tax liabilities determined as if each such member were a separate and
independent taxpayer, and (B) the sum of the Western PCS Group members' federal
income tax liabilities determined as if each such member were a separate and
independent taxpayer and had available to it a part of the net operating losses
and other attributes in the Western PCS Deferred Account proportionate to its
taxable income. Thereafter, such calculation shall be performed annually (or
until the Western PCS Group members cease to file a consolidated federal income
tax return with WWC), and the amount in the Western PCS Deferred Account shall
be reduced by the amount of the net operating losses and other attributes
utilized in determining the federal income tax liabilities of the Western PCS
Group members in (B).

               (d) The principles of Section 1.06(c) shall apply equally to
years in which the WWC Affiliated Group (excluding the members of the Western
PCS Group) has a net operating loss (computed without regard to any net
operating loss carryover or carryback from any period) or other tax attribute
which reduces the tax liability of the Western PCS Group. The deferred account
of the WWC Affiliated Group (excluding members of the Western PCS Group) (the
"WWC Deferred Account") shall be increased for all such current year losses and
other attributes referred to in this Section 1.06(d). No member of the Western
PCS Group shall be required to make any payment pursuant to Section 1.05 for any
taxable year to the extent that such payment which otherwise would 




                                       7
<PAGE>   8
be required under Section 1.05 is attributable to any amount added for that
taxable year to such WWC Deferred Account.

               (e) WWC and Western PCS may each offset their obligations to make
payments pursuant to Section 1.06(c) and (d) against the other party's
obligations to make such payments.

               (f) If for any taxable year beginning on or after January 1,
1998, any member of the Western PCS Group has a net operating loss (computed
without regard to any net operating loss carryover or carryback from any period)
or generates any other tax attribute (e.g., a credit) that reduces the federal
consolidated tax liability of the WWC Affiliated Group, for any year other than
the year in which such loss is incurred or such attribute is generated, below
the amount that would have been payable if such Western PCS Group member had not
incurred such loss or generated such attribute, WWC shall pay the amount of the
tax reduction so computed to Western PCS within 30 days after the filing of the
consolidated federal income Tax Return that reflects such tax reduction or, if
such tax reduction is due to the carryback of an item and refund of earlier
payment, within 30 days after the receipt by WWC of such refund payment. WWC may
offset its obligation to make payments to Western PCS under this Section 1.06(f)
against Western PCS's obligations to make payments to WWC under the provisions
of this Agreement.

               (g) The principles of Section 1.06 shall be applied on the basis
that, if any member of the WWC Affiliated Group has a net operating loss
(computed without regard to any net operating loss carryover or carryback) or
generates any other tax attribute for any taxable year beginning on or after
January 1, 1998, such net operating loss or tax attribute shall be used first to
reduce the federal tax liability for such year of




                                       8
<PAGE>   9
the other members of the Western PCS Group or WWC Affiliated Group (excluding
the Western PCS Group members) of which such member having such net operating
loss or tax attribute is a member.

               1.07 Reimbursement for the Use of Western PCS Group 1997 Net
Operating Losses. If for the 1997 taxable year any member of the Western PCS
Group has a net operating loss (computed without regard to any net operating
loss carryover or carryback from any period) that reduces the federal
consolidated tax liability of the WWC Affiliated Group for any year below the
amount that would have been payable if such Western PCS Group member had not
incurred such loss (such net operating loss a "1997 Reimbursable Loss"), WWC
shall pay to Western PCS the amount of such tax reduction, computed as specified
in the next sentence. The amount of the tax reduction shall be an amount equal
to $20 million times a fraction, the numerator of which shall be the amount of
the Western PCS Group members' 1997 Reimbursable Losses utilized for the year of
tax reduction, and the denominator of which shall be the total amount of the
Western PCS Group members' 1997 net operating losses (computed without regard to
any net operating loss carryover or carryback from any period). In no event
shall (i) the total payments made by WWC to Western PCS under this Section
exceed $20 million or (ii) the payment for any particular year exceed the amount
of the tax reduction referred to in the first sentence of this Section 1.07. Any
payment by WWC required under this Section 1.07 shall be paid to Western PCS
within 30 days of WWC's filing of the consolidated federal income Tax Return
that reflects such tax reduction as determined under this Section. WWC may
offset its obligation to make payments to Western PCS under this Section 





                                       9
<PAGE>   10
against Western PCS's obligations to make payments to WWC under the provisions
of this Agreement.

               The amount of losses and payments referred to in this Section
1.07 shall be reduced by the losses and payments determined in Section 1.06(b).

               In any case where WWC would be required to make a payment under
Section 1.06(f) but for the existence of a Western PCS Group member 1997 net
operating loss (computed without regard to any net operating loss carryover or
carryback from any period), the WWC Affiliated Group's federal consolidated tax
liability shall be deemed to be reduced first by the 1997 loss and WWC shall
make a payment to Western PCS under this Section 1.07 accordingly.

               1.08 Interim Estimated Payments. Within 30 days after each
request by WWC, Western PCS shall advance to WWC amounts computed consistently
with Sections 1.03, 1.04 and 1.06 necessary to reimburse WWC for the portion of
any estimated federal income tax payments attributable to the inclusion of the
members of the Western PCS Group in the WWC consolidated federal income Tax
Return. Any amounts so paid in any year shall operate to reduce the amount
payable to WWC following the end of such year pursuant to Section 1.05 above,
and any excess of payments made by Western PCS pursuant to this Section 1.08
shall promptly be refunded by WWC to Western PCS. Conversely, within 30 days
after the due date of any estimated federal income tax payments, WWC shall
advance to Western PCS amounts computed consistently with Sections 1.06 and 1.07
(and only if a current payment would be required pursuant to Sections 1.06 and
1.07) necessary to reimburse Western PCS for the reduction in estimated federal
income tax payments attributable to the inclusion of the 




                                       10
<PAGE>   11
Western PCS Group in the WWC consolidated federal income Tax Return. Any amounts
so paid in any year shall operate to reduce the amount payable to Western PCS
following the end of such year pursuant to Sections 1.06 and 1.07, and any
excess of payments made by WWC pursuant to this Section 1.08 shall promptly be
refunded to WWC by Western PCS.

               1.09 State and Local Combined Reporting. In the event that any
Western PCS Group member, on the one hand, and WWC or any other member of the
WWC Affiliated Group (other than a member of the Western PCS Group), on the
other hand, compute their state or local income, franchise, net worth or similar
tax liabilities in any jurisdiction on a combined, consolidated or unitary
basis, this Agreement shall apply to such corporations with respect to such
taxes to the fullest extent possible, taking into account any differences
between the federal consolidated return system and the state or local combined,
consolidated or unitary return system.

               1.10 Conduct of Tax Audits and Disputes; Tax Adjustments. Except
as otherwise provided in this Section 1.10, WWC and its duly appointed
representatives shall have the right on behalf of all members of the Western PCS
Group to supervise or otherwise coordinate any tax examination process and to
negotiate, resolve, settle, and contest any asserted tax deficiencies or assert
and prosecute any claim for tax refund. WWC shall consult with Western PCS and
Investor in connection with such matters as relate to the Western PCS Group,
shall give Investor a reasonable opportunity to participate therein (provided
that WWC shall retain ultimate control of such matters), and shall promptly
provide to Western PCS and Investor all information relating to such matters
received by WWC or its representatives, including providing copies of all
notices,




                                       11
<PAGE>   12
assessments, or similar documents within 15 days of receipt. WWC shall not agree
to any audit adjustment or deficiency, settle any issue or amount, resolve any
issue, contest any claim, or take any other action in any legal proceeding that
pertains to the Western PCS Group except in good faith and based on the merits
thereof and without regard to any other audit adjustment, deficiency, issue,
amount, claim or proceeding relating to the WWC Affiliated Group (excluding the
Western PCS Group).

               In the event of any adjustment to the Tax Returns of any member
of the Western PCS Group as filed (by reason of an amended return, claim for
refund, or an audit by the Internal Revenue Service or other tax authority), the
liability of each member of the Western PCS Group hereunder shall be
redetermined to give effect to any such adjustment as if it had been made as
part of the original determination and allocation of tax liability. Appropriate
payments between WWC and Western PCS shall be made in respect of any such
adjustment in accordance with the foregoing provisions of this Agreement within
30 days after any payments are made or refunds are received as a result of the
adjustment or, in the case of contested proceedings, within 30 days after a
final determination of the contest. Similar principles shall apply to the other
members of the WWC Affiliated Group.

               1.11 Payment for Western PCS Group Post-1996 Losses and Other Tax
Attributes Retained by WWC. In the event the Western PCS Group members cease to
file a consolidated federal income Tax Return with WWC, WWC shall make a lump
sum payment to Western PCS, according to the provisions of the following
paragraph, within 30 days of the date that the Western PCS Group members leave
the WWC Affiliated Group, in compensation for any unused net operating losses
and other tax attributes




                                       12
<PAGE>   13
arising after 1996 that are attributable to the Western PCS Group and that are
retained by WWC.

               To the extent that Western PCS Group 1997 net operating losses
are retained by WWC at such time, WWC shall pay to Western PCS the remaining
unpaid balance of the $20 million due to Western PCS from WWC as provided in
Section 1.07, determined as if the amount of such retained losses were treated
as o1997 Reimbursable Losses." In no event shall any payment to Western PCS
under this Section in respect of net operating losses attributable to the
Western PCS Group arising in 1997 exceed $20 million. To the extent that Western
PCS Group post-1997 net operating losses or other attributes are retained by WWC
at such time, WWC shall pay to Western PCS an amount equal to the present value
of such retained net operating losses and other attributes determined by mutual
agreement among WWC, Western PCS and Investor based on (i) the maximum federal
income tax rate for corporations applicable for the year during which the
deconsolidation becomes effective, (ii) reasonable projections for the Western
PCS Group with regard to the anticipated timing of the utilization by it of such
losses and other attributes and (iii) a commercially reasonable discount rate.
If there is a dispute among WWC, Western PCS and Investor with regard to the
preceding calculation, the matter shall be referred to an independent accounting
firm acceptable to all parties, whose resolution of the matter shall be binding
on the parties. In no event shall payment of any disputed amount be required to
be made prior to 30 days following resolution of such dispute.

               1.12 Payment for Western PCS Group Pre-1997 Losses and WWC Group
(Excluding Western PCS Group) Post-1997 Losses and Other Attributes Retained 




                                       13
<PAGE>   14
by Western PCS. In the event the Western PCS Group members cease to file a
consolidated federal income Tax Return with WWC, Western PCS shall make a lump
sum payment to WWC, at the time the Western PCS Group members leave the WWC
Affiliated Group, in consideration for (i) any unused net operating losses
arising before 1997 that are attributable to the Western PCS Group and that are
retained by the Western PCS Group members and (ii) any unused net operating
losses or other tax attributes arising after 1996 that are attributable to
members of the WWC Affiliated Group, other than members of the Western PCS
Group, and that are retained by Western PCS Group members. The amount of the
payment in respect of losses referred to in clause (i) of the preceding sentence
shall be equal to $20 million times a fraction, the numerator of which shall be
the retained losses in clause (i), and the denominator of which shall be the
total amount of the net operating losses arising before 1997 that are
attributable to the Western PCS Group as of the date of this Agreement. To the
extent that such losses and attributes referred to in clause (ii) above are
retained by Western PCS at such time, Western PCS shall pay to WWC an amount
equal to the present value of such retained net operating losses and attributes
determined by mutual agreement among WWC, Western PCS and Investor based on (i)
the maximum federal income tax rate for corporations applicable for the year
during which the deconsolidation becomes effective, (ii) reasonable projections
for the WWC Affiliated Group (excluding the Western PCS Group) with regard to
the anticipated timing of the utilization by it of such losses and attributes
and (iii) a commercially reasonable discount rate. If there is a dispute among
WWC, Western PCS and Investor with regard to the preceding calculation, the
matter shall be referred to an independent accounting firm acceptable to all
parties, whose resolution of the matter shall




                                       14
<PAGE>   15
be binding on the parties. In no event shall payment of any disputed amount be
required to be made prior to 30 days following resolution of such dispute.

               For purposes of determining the amount of any payment to be made
pursuant to this Section 1.12, the amount of pre-1997 losses and WWC Affiliated
Group (excluding Western PCS Group) post-1997 losses and other attributes
retained by the Western PCS Group members shall be reduced by losses and
attributes as provided in clause (i) of Section 1.06(a).

               1.13 Ownership Change Loss Limitations. If a change of ownership
(as determined under Section 382 of the Code) occurs with respect to WWC which
causes the limitations of Section 382 to be applicable to any net operating loss
(including carryforward losses) of any member of the Western PCS Group, WWC
shall, at any time that the Western PCS Group (or any member thereof) ceases to
file a consolidated federal income Tax Return with WWC, allocate to the Western
PCS Group (or relevant member thereof) an equitable portion of any allowance for
limited use of NOLs that remains available. Such allocation shall be determined
based upon the proportion that the net operating losses (including carryforward
net operating losses) of each member of the WWC Affiliated Group represents of
the total of such losses (inclusive of such carryforward losses) of the entire
WWC Affiliated Group as of the date of the deconsolidation.

               1.14 Indemnification of the Western PCS Group. WWC shall
indemnify and hold the Western PCS Group members harmless from and against all
federal, state, local, foreign and other taxes and penalties and interest
related thereto due or payable by WWC or any member of the WWC Affiliated Group
(other than taxes,




                                       15
<PAGE>   16
penalties and interest allocable to members of the Western PCS Group pursuant to
Sections 1.01 through 1.10 of this Agreement and taxes, penalties and interest
of the members of the Western PCS Group where such items are not otherwise
subject to the provisions of the Agreement). If, upon receipt by WWC of a notice
of indemnification claim by Western PCS from Western PCS or Investor hereunder,
WWC disputes such claim, WWC shall notify Western PCS and Investor of its
disagreement and the basis therefor within 30 days of receipt of the notice of
claim. The parties shall act in good faith to resolve such disagreement and if
they cannot reach a resolution, the matter shall be referred to an independent
accounting firm acceptable to all parties, whose resolution of the matter shall
be binding on the parties. Any indemnification payment required hereunder shall
be paid within 30 days after the indemnifying party receives notice of such
required payment from the indemnified party or, if disputed, within 30 days
after the resolution of such dispute as provided in the preceding sentence. The
indemnifying party shall also pay the reasonable attorney's fees and other costs
incurred by the indemnified party with respect to the payment of such taxes and
other amounts and the pursuit of the indemnification claim.

               1.15 Indemnification of WWC. Western PCS shall indemnify and hold
WWC and all members of its Affiliated Group (other than the members of the
Western PCS Group) harmless from and against all federal, state, local, foreign
and other taxes and penalties and interest related thereto allocable to any
member of the Western PCS Group pursuant to Sections 1.01 through 1.10 of this
Agreement and taxes, penalties and interest of the members of the Western PCS
Group where such items are not otherwise subject to the provisions of the
Agreement. Any indemnification claim by WWC shall be 




                                       16
<PAGE>   17
delivered to both Western PCS and Investor. If, upon receipt by Western PCS and
Investor of a notice of indemnification claim by WWC hereunder, Western PCS or
Investor disputes such claim, Western PCS or Investor shall notify WWC of its
disagreement and the basis therefor within 30 days of receipt of the notice of
claim. The parties shall act in good faith to resolve such disagreement and if
they cannot reach a resolution, the matter shall be referred to an independent
accounting firm acceptable to all parties, whose resolution of the matter shall
be binding on the parties. Any indemnification payment required hereunder shall
be paid within 30 days after the indemnifying party receives notice of such
required payment from the indemnified party or, if disputed, within 30 days of
the resolution of such dispute as provided in the preceding sentence. The
indemnifying party shall also pay the reasonable attorney's fees and other costs
incurred by the indemnified party with respect to the payment of such taxes and
other amounts and the pursuit of the indemnification claim.

               1.16 Portion of Taxable Year. Whenever it is necessary under this
Agreement to determine liability for taxes for a portion of a taxable year or
period that begins before and ends after the Western PCS Group members cease to
file a consolidated federal income Tax Return with WWC, the determination shall
be made by assuming that each of the relevant corporations had a taxable year
which ended at the close of the date on which such corporations cease to file a
consolidated federal income Tax Return with WWC, except that exemptions,
allowances or deductions that are calculated on an annual basis, such as the
deduction for depreciation, shall be apportioned on a time basis.




                                       17
<PAGE>   18
               1.17 Payment Gross-up. Any payment required to be made under this
Agreement after the Western PCS Group members cease to file a consolidated
federal income Tax Return with WWC shall be increased so that the net amount
retained by the corporation to which payment is due, after deduction of any tax
due thereon, shall be equal to the amount otherwise due. All parties agree to
report payments to each other hereunder as non-includable and non-deductible to
the extent permitted under applicable law.

                                   ARTICLE II

               2.01 Limitation to Consolidated Return Years. The obligations of
the parties hereunder shall relate solely to taxes, net operating losses and tax
attributes arising during taxable years for which the Western PCS Group members
file a consolidated federal income Tax Return with WWC, except that if, in a
taxable year in which the Western PCS Group no longer files a consolidated
federal income Tax Return with WWC, the Western PCS Group generates a net
operating loss or other tax attribute which it carries back to a year in which
the Western PCS Group did file a consolidated federal income Tax Return with
WWC, WWC shall promptly apply for a refund upon notice of such carryback to WWC
and, upon receipt of such refund, shall promptly pay to Western PCS the amount
of the refund. Western PCS shall pay and indemnify WWC for all out-of-pocket
expenses including outside accountant's fees, attorney's fees and reasonable
overhead allocation incurred by WWC in making such refund claim and WWC shall be
entitled to offset any such expenses against the amount of any refund received.

               2.02 Expenses. Except as otherwise stated herein, all costs and
expenses incurred in connection with this Agreement and transactions
contemplated hereby shall be paid by the party incurring such costs and
expenses.




                                       18
<PAGE>   19
               2.03 Entire Agreement. This Agreement contains the entire
agreement among the parties and supersedes all prior agreements, arrangements,
and understandings relating to the subject matter hereof. There are no written
or oral agreements, understandings, representations or warranties between or
among the parties other than those set forth or referred to in this Agreement.

               2.04 Section Headings. The Section and paragraph headings
contained in this Agreement are for reference purposes only and shall not in any
way affect the meaning or interpretation of this Agreement.

               2.05 Notices. All notices, consents, requests, instructions,
approvals and other communications provided for herein and all legal process in
regard hereto shall be validly given when made, or served if in writing when
delivered personally (by courier service or otherwise), when delivered by
telecopy and confirmed by returned telecopy, addressed as follows, or, in each
case, to such other address as may be specified by a party in writing to another
party:
               (a)  if to WWC, to it at:

                    Western Wireless Corporation
                    2001 NW Sammamish Road
                    Issaquah, Washington 98027
                    Attention:  Donald Guthrie
                    Facsimile No.:  425-313-7731

                    with copies (which shall not constitute notice) to:

                    Rubin Baum Levin Constant & Friedman
                    30 Rockefeller Plaza
                    New York, New York 10112
                    Attention:  Barry A. Adelman, Esq.
                    Facsimile No.:  212-698-7825

                    and




                                       19
<PAGE>   20
                    Jones, Day, Reavis & Pogue
                    1450 G Street, N.W.
                    Washington, D.C. 20005
                    Attention:  Lester W. Droller, Esq.
                    Facsimile No.:  202-737-2832

               (b)  if to Western PCS, to it at: 

                    Western PCS Corporation 
                    2001 NW Sammamish Road 
                    Issaquah, Washington 98027 
                    Attention: Donald Guthrie 
                    Facsimile No.: 425-313-7731

                    with copies (which shall not constitute notice) to:

                    Rubin Baum Levin Constant & Friedman
                    30 Rockefeller Plaza
                    New York, New York 10112
                    Attention:  Barry A. Adelman, Esq.
                    Facsimile No.:  212-698-7825

                    and

                    Jones, Day, Reavis & Pogue
                    1450 G Street, N.W.
                    Washington, D.C. 20005
                    Attention:  Lester W. Droller, Esq.
                    Facsimile No.:  202-737-2832

               (c)  if to Investor, to it at:
                    
                    Hutchison Telecommunications PCS (USA) Limited
                    22nd Floor, Hutchison House
                    10 Harcourt Road
                    Hong Kong
                    Attention:  Ms. Edith Shih
                    Facsimile No.:  852-2128-1778

                    with a copy (which shall not constitute notice) to:

                    Dewey Ballantine LLP
                    Suite 3907
                    Asia Pacific Finance Tower




                                       20
<PAGE>   21


                    Citibank Plaza, 3 Garden Road
                    Central Hong Kong
                    Attention:  John A. Otoshi
                    Facsimile No.:  852-2509-7088

               2.06 Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York without reference
to the choice of law principles thereof.

               2.07 Illegality. In case any provision in this Agreement shall be
invalid, illegal or unenforceable the validity, legality and enforceability of
the remaining provisions shall not in any way be affected or impaired thereby,
unless such remaining provisions are inconsistent with the policy objectives set
forth in Section 1.04.

               2.08 Successors and Assigns. This Agreement shall be binding upon
and inure to the benefit of the parties hereto and their respective successors
and assigns (and, in the case of the second sentence of Section 2.09 below, to
the benefit of the Investor as an express third party beneficiary thereof);
provided, however, that no member of the Western PCS Group may assign any of its
rights or obligations under this Agreement without the prior written consent of
WWC.

               2.09 Arbitration. In the event of any dispute between WWC and
Western PCS arising out of this Agreement, such dispute shall be submitted to
arbitration in accordance (mutatis mutandis) with the terms and procedures set
forth in Section 13(k) of the Shareholders Agreement of Western PCS, of even
date herewith (the "Shareholders Agreement"), between WWC, Investor and Western
PCS. The Investor shall have the right to participate in any pending
arbitration and to consolidate any such arbitration with any arbitration which
may be pending under the Shareholders Agreement and which relates to a dispute
which involves in a material way substantially similar issues.





                                       21
<PAGE>   22
               IN WITNESS WHEREOF, this Agreement has been signed on behalf of
each of the parties on the day set forth above.

                                            WESTERN WIRELESS CORPORATION



                                            By: ________________________________
                                                Title:


                                            WESTERN PCS CORPORATION



                                            By: ________________________________
                                                Title:

                                            HUTCHISON TELECOMMUNICATIONS PCS
                                            (USA) LIMITED


                                            By: ________________________________
                                                Title: