##### Table of Contents









UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, DC 20549


Form 10-K


|   |  |                                                                                             
|-- |  | --------------------------------------------------------------------------------------------
|þ  |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934    
|  
|   |  | For the Fiscal Year Ended December 31, 2004                                                 
|  
|or
|  
|o  |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934
|  
|   |  | For the Transition Period
    from           to                                             



Triton PCS Holdings, Inc.


(Exact name of Registrant as specified in its charter)


|                                                                   |  |                                            
|------------------------------------------------------------------ |  | -------------------------------------------
|Delaware                                                           |  | 23-2974475                                 
|(State or other jurisdiction of
    incorporation or organization) |  | (I.R.S. employer
    identification number)

1100 Cassatt Road


Berwyn, Pennsylvania 19312


(Address and zip code of principal executive offices)


(610) 651-5900


(Registrants telephone number, including area code)


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


|                                               |  |                                     
|---------------------------------------------- |  | ------------------------------------
|Title of Class                                 |  | Name of Exchange on Which Registered
|                                               |  |                                     
|Class A common stock, $.01 par value per share |  | New York Stock Exchange             

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


None


þ o


o


þ o






DOCUMENTS INCORPORATED BY REFERENCE












---










TRITON PCS HOLDINGS, INC.


FORM 10-K


TABLE OF CONTENTS


|                                                |  |                                                                                                                      |  |                                                                                               |     |  |     | 
|----------------------------------------------- |  | -------------------------------------------------------------------------------------------------------------------- |  | --------------------------------------------------------------------------------------------- | --- |  | --- | 
|                                                |  |                                                                                                                      |  | Page                                                                                          |    
|                                                |  |                                                                                                                      |  |                                                                                               |    
|                                                |  |                                                                                                                      |  | PART I                                                                                        |     |  |     | 
|Item  1                                         |  | Business                                                                                                             |  |                                                                                               | 1   | 
|Item  2                                         |  | Properties                                                                                                           |  |                                                                                               | 19  | 
|Item  3                                         |  | Legal Proceedings                                                                                                    |  |                                                                                               | 19  | 
|Item  4                                         |  | Submission of Matters to a Vote of Security
    Holders                                                              |  |                                                                                               | 19  | 
|                                                |  |                                                                                                                      |  | PART II                                                                                       |     |  |     | 
|Item  5                                         |  | Market for Registrants Common Equity,
    Related Stockholder Matters and Issuer Purchases of Equity
    Securities |  |                                                                                               | 20  | 
|Item  6                                         |  | Selected Financial Data                                                                                              |  |                                                                                               | 21  | 
|Item  7                                         |  | Managements Discussion and Analysis
    of Financial Condition and Results of Operations                            |  |                                                                                               | 23  | 
|Item 7A                                         |  | Quantitative and Qualitative Disclosures
    About Market Risk                                                       |  |                                                                                               | 42  | 
|Item  8                                         |  | Financial Statements &
    Supplementary Data                                                                        |  |                                                                                               | F-1 | 
|                                                |  |                                                                                                                      |  | Managements Report on Internal Control Over Financial
    Reporting                          |     |  | F-2 | 
|                                                |  |                                                                                                                      |  | Report of Independent Registered Public Accounting Firm                                       |     |  | F-3 | 
|                                                |  |                                                                                                                      |  | Consolidated Balance Sheets                                                                   |     |  | F-5 | 
|                                                |  |                                                                                                                      |  | Consolidated Statements of Operations and Comprehensive Income
    (Loss)                     |     |  | F-6 | 
|                                                |  |                                                                                                                      |  | Consolidated Statements of Redeemable Preferred Equity and
    Stockholders Equity (Deficit) |     |  | F-7 | 
|                                                |  |                                                                                                                      |  | Consolidated Statements of Cash Flows                                                         |     |  | F-8 | 
|                                                |  |                                                                                                                      |  | Notes to Consolidated Financial Statements                                                    |     |  | F-9 | 
|Item  9                                         |  | Changes in and Disagreements with
    Accountants on Accounting and Financial Disclosure                             |  |                                                                                               | 43  | 
|Item  9A                                        |  | Controls and Procedures                                                                                              |  |                                                                                               | 43  | 
|Item 9B                                         |  | Other Information                                                                                                    |  |                                                                                               | 43  | 
|                                                |  |                                                                                                                      |  | PART III                                                                                      |     |  |     | 
|Item  10                                        |  | Directors and Executive Officers of the
    Registrant                                                               |  |                                                                                               | 44  | 
|Item 11                                         |  | Executive Compensation                                                                                               |  |                                                                                               | 45  | 
|Item  12                                        |  | Security Ownership of Certain Beneficial
    Owners and Management                                                   |  |                                                                                               | 45  | 
|Item 13                                         |  | Certain Relationships and Related
    Transactions                                                                   |  |                                                                                               | 45  | 
|Item  14                                        |  | Principal Accountant Fees and Services                                                                               |  |                                                                                               | 45  | 
|                                                |  |                                                                                                                      |  | PART IV                                                                                       |     |  |     | 
|Item 15                                         |  | Exhibits and Financial Statement
    Schedules                                                                       |  |                                                                                               | 45  | 
|SUPPLEMENTAL INDENTURE, DATED NOVEMBER 18, 2004
|SUPPLEMENTAL INDENTURE, DATED JANUARY 27, 2005 
|SUPPLEMENTAL INDENTURE, DATED NOVEMBER 18, 2004
|SUPPLEMENTAL INDENTURE, DATED NOVEMBER 18, 2004
|SUPPLEMENTAL INDENTURE, DATED NOVEMBER 18, 2004
|SUPPLEMENTAL INDENTURE, DATED JANUARY 27, 2005 
|FORM OF DIRECTORS STOCK AWARD AGREEMENT        
|FORM OF NOTIFICATION OF RESTRICTED STOCK AWARD 
|SUBSIDIARIES OF TRITON PCS HOLDINGS, INC.      
|CONSENT OF PRICEWATERHOUSECOOPERS LLP          
|CERTIFICATION OF CHIEF EXECUTIVE OFFICER       
|CERTIFICATION OF CHIEF FINANCIAL OFFICER       
|CERTIFICATION OF CONTROLLER                    
|CERTIFICATION OF CHIEF EXECUTIVE OFFICER       
|CERTIFICATION OF CHIEF FINANCIAL OFFICER       



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PRELIMINARY NOTE


SEC,


SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS


anticipate,
believe, could, estimate, expect, intend, may, should, will would forward-looking


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##### Table of Contents






PART I







|        |         
|------- | --------
|ITEM 1. | Business

Introduction


http://www.tritonpcs.com.


Triton, we, us our Holdings Triton PCS


Overview




PCS,








| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Triton Holdings Agreement. On October 26, 2004 (the
    date Cingular Wireless consummated its acquisition of AT&T
    Wireless), pursuant to an agreement dated July 7, 2004 by
    and among Holdings, AT&T Wireless Services, Inc., AT&T
    Wireless PCS LLC and Cingular Wireless LLC, which we refer to as
    the Triton Holdings Agreement, AT&T Wireless PCS
    surrendered to Holdings all of the Holdings stock owned by
    AT&T Wireless. Upon the surrender by AT&T Wireless PCS
    of its Holdings stock, the First Amended and Restated
    Stockholders Agreement was terminated. In addition,
    Holdings Investors Stockholders Agreement, dated as
    of February 4, 1998, as amended, by and among
    Holdings initial cash equity investors and certain of its
    management stockholders, also was terminated pursuant to its
    terms upon termination of the First Amended and Restated
    Stockholders Agreement. The termination of the First
    Amended and Restated Stockholders Agreement allows the
    combined Cingular Wireless/ AT&T Wireless to operate in
    regions where Triton once had the right to operate exclusively
    and allows Triton to operate in areas where it was once
    prohibited. Also pursuant to the Triton Holdings Agreement,
    AT&T Wireless transferred to

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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | Triton its interest in the entity that controls the
    SunCom brand name and related trademarks and waived
    the payment of a $3.5 million dividend previously declared
    by Holdings on its Series A preferred stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|
| |  | Triton PCS Agreement. Pursuant to an agreement dated
    July 7, 2004 by and among Triton PCS, AT&T Wireless,
    AT&T Wireless PCS LLC and Cingular Wireless, on
    October 26, 2004, Triton PCS roaming agreement with
    AT&T Wireless was terminated and Triton PCS roaming
    agreement with Cingular Wireless was amended to extend the term
    and reduce the roaming rates payable to Triton and its
    affiliates thereunder. Without the exclusivity agreement that
    previously applied to AT&T Wireless, Cingular Wireless will
    not rely on our network for service to the same degree that
    AT&T Wireless did in the past. Therefore, lower roaming
    rates in combination with less Cingular usage will have a
    negative impact on our revenue. However, since the rates are
    reciprocal, we will be able to offer our customers wide-area
    rate plans at acceptable rates of return due to lower expense
    associated with reduced roaming rates. Accordingly, our roaming
    revenue will decline, but the margin on our subscriber revenues
    should improve. This change will make us less dependent on
    roaming revenue, which is not directly within our control, and
    will allow our subscriber revenues to produce a greater
    proportion of our income from operations. In addition, AT&T
    Wireless transferred certain Federal Communications Commission,
    or FCC, licenses covering Savannah, Georgia, and
    Asheville, Wilmington and Jacksonville, North Carolina, to
    Triton in exchange for certain FCC licenses held by Triton
    covering Savannah and Augusta, Georgia. As additional
    consideration for this license exchange, Cingular Wireless also
    paid Triton approximately $4.7 million.





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Exchange Agreement. On September 21, 2004, we
    entered into an Exchange Agreement with AT&T Wireless and
    Cingular Wireless which we refer to as the Exchange
    Agreement. On December 1, 2004, pursuant to the closing
    of the first stage of the Exchange Agreement, Triton transferred
    PCS network assets held for use in its Virginia markets to
    AT&T Wireless in exchange for PCS network assets held by
    AT&T Wireless for use in certain of its North Carolina
    markets, in Puerto Rico and in the U.S. Virgin Islands and
    the payment by Cingular Wireless to Triton of $175 million.



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Prior to the first closing of the Exchange Agreement, Triton and
    AT&T Wireless separately contributed their respective
    network assets and FCC license assets to two new, wholly-owned
    subsidiaries  one to hold the transferred network
    assets (other than certain associated FCC licenses) and the
    other to hold the relevant FCC licenses. At the first closing,
    the parties exchanged equity interests in the subsidiaries which
    hold the network assets. At the second closing, which is
    expected to occur after obtaining required FCC approvals, the
    parties will exchange equity interests in the subsidiaries
    holding the FCC licenses. Pending the second closing, the
    parties have entered into spectrum lease agreements, which allow
    each party to use the licensed PCS spectrum associated with the
    previously exchanged network assets. See
    footnote 4  Exchange Transaction of
    the notes to our consolidated financial statements for
    additional disclosure regarding our accounting treatment of the
    Exchange Agreement. This exchange transaction transformed the
    geographic strategic focus of our wireless network by giving us
    a substantial new presence in the Charlotte, Raleigh/ Durham and
    Greensboro, North Carolina markets and entry into the Puerto
    Rico market. Our entry into these markets will allow us to
    operate a contiguous footprint in the Carolinas and will provide
    us with a greater ability to grow our subscriber base.

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| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | In conjunction with the closing of the Exchange Agreement, we
    entered into a transition services agreement with Cingular
    Wireless. The transition services agreement requires us to
    provide certain services in support of the Virginia business
    which was transferred to Cingular Wireless for a limited
    transition period following the closing of the Exchange
    Agreement. Some of the more significant services provided are
    subscriber billing, customer care, receivables management and
    certain accounting functions. The transition period currently is
    not expected to extend beyond the third quarter of 2005, and we
    are reimbursed by Cingular Wireless on a monthly basis for each
    service provided. The reimbursement rates are stipulated in the
    transition services agreement and will be calculated on a per
    subscriber basis. In return, Cingular Wireless will provide us
    with similar services, where necessary, to support the acquired
    North Carolina, Puerto Rico and U.S. Virgin Islands
    business transferred to Triton, with the exception of customer
    care and receivables management in Puerto Rico, which is managed
    by us. We reimburse Cingular Wireless on a monthly basis at the
    same per subscriber rate for each service provided by them.



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Spectrum Leases. The first spectrum lease provides Triton
    with access to the spectrum necessary to operate the businesses
    acquired pursuant to the first closing of the Exchange Agreement
    described above. Under this spectrum lease, Triton has access to
    Cingular Wireless spectrum in certain of Tritons
    North Carolina markets and in Puerto Rico and the
    U.S. Virgin Islands. This spectrum lease provides Triton
    with exclusive access to the spectrum, but control of the
    spectrum remains with Cingular Wireless. This spectrum lease has
    an initial term of 180 days and is automatically extended
    for an additional 180 day period if the second closing of
    the Exchange Agreement has not been consummated. If the spectrum
    lease is still in effect after 270 days, the spectrum lease
    will be extended and will become automatically renewable for up
    to 99 years. This spectrum lease terminates automatically
    upon the consummation of the second closing, upon the effective
    date of any governmental action revoking, canceling or
    terminating the spectrum lease, or upon the effective date of
    any governmental action revoking, canceling or terminating the
    underlying spectrum license.



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The second spectrum lease provides Triton with access to 10
    megahertz of additional spectrum in Puerto Rico. Similar to the
    first spectrum lease, Triton has exclusive access to the
    spectrum at issue, but control of the spectrum remains with
    Cingular Wireless. This spectrum lease expires on
    December 1, 2005 and is not renewable. This spectrum lease
    terminates automatically prior to the one-year term upon the
    effective date of any governmental action revoking, canceling or
    terminating the spectrum lease or upon the effective date of any
    governmental action revoking, canceling or terminating the
    underlying spectrum license. This second spectrum lease exists
    because AT&T Wireless had been operating both Time Division
    Multiple Access, or TDMA, technology and global system
    for mobile communications and general packet radio service, or
    GSM/ GPRS, technology in the Puerto Rico market with 35
    megahertz of spectrum. With the continued migration of the
    Puerto Rico subscriber base from TDMA technology to GSM/
    GPRS technology, Triton will be able to provide the same
    service level with 25 megahertz of spectrum by December 1,
    2005, which is the lease termination date.





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Competitive Strengths






| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Attractive Licensed Area. Our markets have favorable
    demographic characteristics for wireless communications
    services, such as population densities that are higher than the
    national average.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|
| |  | Network Quality. We believe that the quality and
    extensive coverage of our network provide a strategic advantage
    over wireless communications providers against which we compete.
    We have successfully launched and offer personal communications
    service to approximately 18.3 million people in 30 markets.
    We have constructed a comprehensive network, which includes
    2,636 cell sites and ten switches, using TDMA and GSM/ GPRS
    digital technology. This allows us to provide more advanced
    wireless data services to our subscribers as well as to earn
    roaming revenue from other wireless carriers who offer similar
    products. Our network is compatible with the networks of
    Cingular Wireless, T-Mobile and other wireless communications
    service providers that use either TDMA or GSM/ GPRS technology.
|
| |  | Experienced Management. We have a management team with a
    high level of experience in the wireless communications
    industry. Our senior management team has extensive experience
    with wireless leaders such as AT&T Wireless, Verizon
    Communications and Horizon Cellular. Our senior management team
    also owns approximately 8.3% of Holdings outstanding
    Class A common stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                             

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Business Strategy






| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Operate a Superior, High-Quality Network. Our market
    research indicates that scope and quality of coverage are
    extremely important to customers in their choice of a wireless
    service provider. We are committed to making the capital
    investment required to maintain and operate a superior,
    high-quality network. We provide extensive coverage within our
    region and consistent quality performance, resulting in a high
    level of customer satisfaction. Historically, greater than 99%
    of all calls attempted on our network are connected.                                                                                                                                                                                                          
|
| |  | Provide Enhanced Value. We offer our customers rate plans
    tailored to their personal needs at competitive prices. Our
    affordable, simple pricing plans, including the UnPlan, which
    provides essentially unlimited calling from a subscribers
    local calling area for a fixed price, are designed to promote
    the use of wireless services.                                                                                                                                                                                                                                                                                                                                                                                                                            
|
| |  | Deliver Quality Customer Service. We believe that
    superior customer service is a critical element in attracting
    and retaining customers. Our point-of-sale activation process is
    designed to ensure quick and easy service initiation, including
    customer qualification. Through our interactive voice response
    system, or IVR,and our state-of-the-art customer care
    facilities in Richmond, Virginia and Charleston, South Carolina
    we emphasize proactive and responsive customer care, including
    rapid call-answer times, welcome packages and anniversary calls.
    We supplement these facilities with customer care services
    provided by Convergys Corporation in Clarksville, Tennessee and
    Atento de Puerto Rico in Caguas, Puerto Rico.

License Acquisition Transactions




| |                            
| | ---------------------------
| | Transactions with Lafayette

Lafayette,




| |                                                         
| | --------------------------------------------------------
| | Transaction with AT&T Wireless and Cingular
    Wireless





| |                                               
| | ----------------------------------------------
| | Acquisition of Urban Comm-North Carolina, Inc.

Urban,


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Sales and Distribution






| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Company-Owned Retail Stores. We make extensive use of
    company-owned retail stores for the distribution and sale of our
    handsets and services. We believe that company-owned retail
    stores offer a considerable competitive advantage by providing a
    strong local presence, which is required to achieve high retail
    penetration in suburban and rural areas and the lowest customer
    acquisition cost. We had 114 company-owned SunCom retail
    stores open as of December 31, 2004.                                                                                                                           
|
| |  | Direct Sales. We focus our direct sales force on
    corporate users. As of December 31, 2004, our direct
    corporate sales force consisted of 47 dedicated professionals
    targeting wireless decision-makers within large and mid-sized
    corporations.                                                                                                                                                                                                                                                                                                                                                                         
|
| |  | Agent Distribution. We have distribution agreements with
    strategically-aligned regional agent retailers.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|
| |  | Direct Marketing. We use direct marketing efforts such as
    direct mail and telemarketing to generate customer leads.
    Telesales allow us to maintain low selling costs and to sell
    additional features or customized services.                                                                                                                                                                                                                                                                                                                                                                                                
|
| |  | Website. We have established an online store on our
    website, http://www.suncom.com. The online store conveys
    our marketing message and generates customers through online
    purchasing. We deliver all of the information a customer
    requires to make a purchasing decision on our website. Customers
    are able to choose rate plans, features, handsets and
    accessories. The online store provides a secure environment for
    transactions, and customers purchasing through the online store
    encounter a transaction experience similar to that of customers
    purchasing service through other channels.

Marketing Strategy








| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Pricing. Our pricing plans are competitive and
    straightforward. We offer our customers large packages of
    minutes within our regional calling area plus roaming access to
    the nations largest GSM/ GPRS network. Most of our rate
    plans allow customers to make and receive calls without paying
    additional roaming or long distance charges within our regional
    calling area. It is by virtue of our extensive network and
    roaming arrangements with roaming partners, that we can offer
    such

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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | competitive rate plans. We also offer the UnPlan, which provides
    unlimited calling from a subscribers local calling area at
    a fixed price.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|
| |  | Customer Care. We are committed to building strong
    customer relationships by providing our customers with service
    that exceeds expectations. We currently operate state-of-the-art
    customer care facilities in Richmond, Virginia and Charleston,
    South Carolina, which house our customer service and collections
    personnel. We supplement these facilities with customer care
    services provided by Convergys Corporation in Clarksville,
    Tennessee and Atento de Puerto Rico in Caguas, Puerto Rico.
    Through the support of approximately 421 customer care
    representatives and a sophisticated customer care information
    system, inclusive of an IVR system implemented in 2003, we have
    been able to implement a goal of one ring customer care service
    using live operators and state-of-the-art call routing.
|
| |  | Advertising. We believe our most successful marketing
    strategy is to establish a strong local presence in each of our
    markets. We are directing our media and promotional efforts at
    the local communities we serve with advertisements in local
    publications and sponsorship of local and regional events. We
    combine our local efforts with mass marketing strategies and
    tactics to build the SunCom brand locally. Our media effort
    includes television, radio, newspaper, magazine, outdoor and
    Internet advertisements to promote our brand. In addition, we
    use newspaper and radio advertising and our web page to promote
    specific product offerings and direct marketing programs for
    targeted audiences.                                                                                                    

Network Build-Out




Network Operations




Switched Interconnection/ Backhaul.


Long Distance.


Roaming.


Network Monitoring Systems.


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Network Digital Technology




Federal Regulation


Communications Act






Licensing of Cellular and Personal Communications Services
Systems.


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| |   |                                                                                              
| | - | ---------------------------------------------------------------------------------------------
| |  | provided substantial service during its past license
    term; and                           
|
| |  | substantially complied with applicable FCC rules and policies
    and the Communications Act.



Build-Out and Microwave Relocation Obligations.






| |   |                                                                                                                                                                                               
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | a transition plan to relocate such microwave operators to other
    spectrum blocks; and                                                                                                      
|
| |  | a cost sharing plan so that if the relocation of an incumbent
    benefits more than one personal communications services
    licensee, those licensees will share the cost of the relocation.

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Spectrum Caps and Spectrum Leasing.




New Spectrum Opportunities and Advanced Wireless Data
Services.




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##### Table of Contents



Transfers and Assignments of Cellular and Personal
Communications Services Licenses.




Foreign Ownership.


Enhanced 911 Services.




Radiofrequency Emissions. OET,


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##### Table of Contents







Interconnection. TELRIC.






| |   |                                                                                                                           
| | - | --------------------------------------------------------------------------------------------------------------------------
| |  | In August 2003, the FCC released a clarification of its TELRIC
    rules that could increase our costs of interconnection.

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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | In September 2003, the FCC initiated a rulemaking to consider
    broader modifications to the TELRIC rules, which could increase
    or decrease our costs of interconnection. This proceeding
    remains pending.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|
| |  | In 2001, the FCC initiated a proceeding that could greatly
    modify the current regime of payments for interconnection. In
    February 2005, the FCC decided to seek comment on seven specific
    interconnection proposals filed by different industry groups and
    others in the proceeding, which have varying impacts on wireless
    carriers. In February 2005, the FCC also determined that local
    exchange carriers may no longer file wireless termination
    tariffs regarding termination rates to be charged to
    wireless carriers as part of the interconnection negotiation
    process. In addition, key members of Congress have expressed
    strong interest in reviewing and modifying the current
    interconnection system of payments during the next two years. If
    the FCC or Congress modifies the current regime of payments for
    interconnection, our costs for interconnection could change.

Universal Service Funds.




Outage Reporting.


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##### Table of Contents





Electronic Surveillance. CALEA,




Telephone Numbers.




| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Carriers must meet specified number usage thresholds before they
    can obtain additional telephone numbers. The current threshold
    requires carriers to show that they are using 75% of all numbers
    assigned to them in a particular rate center. The FCC has
    adopted a safety valve mechanism that could permit
    carriers to obtain telephone numbers under certain circumstances
    even if they do not meet the usage thresholds.                                                                                                    
|
| |  | Carriers must share blocks of telephone numbers, a requirement
    known as number pooling. Under number pooling,
    numbers previously assigned in blocks of 10,000 are assigned in
    blocks of 1,000, which significantly increases the efficiency of
    number assignment. In connection with the number pooling
    requirement, the FCC also adopted rules intended to increase the
    availability of blocks of 1,000 numbers, including a requirement
    that numbers be assigned sequentially within existing blocks of
    10,000 numbers.
|
| |  | Carriers must provide detailed reports on their number usage,
    and the reports are subject to third-party audits. Carriers that
    do not comply with reporting requirements are ineligible to
    receive numbering resources.                                                                                                                                                                                                                                                                                                                        
|
| |  | States may implement technology-specific and service-specific
    area code overlays to relieve the exhaustion of
    existing area codes, but only with specific FCC permission.                                                                                                                                                                                                                                                                                                                                                                        





14



---



##### Table of Contents







Environmental Processing. NHPA.


Rate Integration.


Privacy.


15



---



##### Table of Contents





Billing. NASUCA.


Access for Individuals with Disabilities.


Wireless Spam. CAN-SPAM
Act.


Public Safety Interference.


16



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##### Table of Contents





State Regulation and Local Approvals










Competition




17



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##### Table of Contents



MVNOs,






| |   |                                                                                                                                                                                                                                          
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | network quality, which is the coverage provided by our towers
    and infrastructure as well as roaming agreements with carriers
    that enable our customers to utilize their networks when
    traveling outside of our coverage area;
|
| |  | quality customer care, which includes the speed and accuracy of
    customer issue resolution;                                                                                                                                           
|
| |  | price, which includes the monthly charges we bill our wireless
    subscribers; and                                                                                                                                                      
|
| |  | products offered, which include a variety of handsets and
    accessories with multiple capabilities, including data services.                                                                                                           





Intellectual Property




18



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Employees




Available Information


http://www.tritonpcs.com.


www.tritonpcs.com.







|        |           
|------- | ----------
|ITEM 2. | Properties








|        |                  
|------- | -----------------
|ITEM 3. | Legal Proceedings








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



19



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PART II







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



|                             |                |     |   |      |      |  |   |      | 
|---------------------------- | -------------- | --- | - | ---- | ---- |  | - | ---- | 
|                             |                | Low |   |      | High | 
|                             |                |     |   |      |      | 
|Year Ended December 31, 2003 |                |     |   |      |      |  |   |     
|                             | First Quarter  |     | $ | 1.57 |      |  | $ | 3.89 | 
|                             | Second Quarter |     |   | 2.21 |      |  |   | 5.90 | 
|                             | Third Quarter  |     |   | 4.21 |      |  |   | 6.41 | 
|                             | Fourth Quarter |     |   | 4.16 |      |  |   | 5.82 | 
|Year Ended December 31, 2004 |                |     |   |      |      |  |   |     
|                             | First Quarter  |     | $ | 4.98 |      |  | $ | 6.99 | 
|                             | Second Quarter |     |   | 3.83 |      |  |   | 5.95 | 
|                             | Third Quarter  |     |   | 2.42 |      |  |   | 4.34 | 
|                             | Fourth Quarter |     |   | 2.33 |      |  |   | 3.42 | 







20



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|        |                        
|------- | -----------------------
|ITEM 6. | Selected Financial Data



|                                                                                  |                                                                                                                                                                                                                                                                              |                                                  |            |         |         |   |            |         |         |   |            |         |         |      |            |         |         |   |             |         |         | 
|--------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------ | ---------- | ------- | ------- | - | ---------- | ------- | ------- | - | ---------- | ------- | ------- | ---- | ---------- | ------- | ------- | - | ----------- | ------- | ------- | 
|                                                                                  |                                                                                                                                                                                                                                                                              | Year Ended December 31,                          |           
|                                                                                  |                                                                                                                                                                                                                                                                              |                                                  |           
|                                                                                  |                                                                                                                                                                                                                                                                              | 2000                                             |            |         | 2001    |   |            | 2002    |         |   | 2003       |         |         | 2004 |           
|                                                                                  |                                                                                                                                                                                                                                                                              |                                                  |            |         |         |   |            |         |         |   |            |         |         |      |           
|                                                                                  |                                                                                                                                                                                                                                                                              | (Dollars in thousands, except per share amounts) |           
|Statement of Operations Data:                                                     |                                                                                                                                                                                                                                                                              |                                                  |            |         |         |   |            |         |         |   |            |         |         |      |            |         |         |   |             |        
|Revenues:                                                                         |                                                                                                                                                                                                                                                                              |                                                  |            |         |         |   |            |         |         |   |            |         |         |      |            |         |         |   |             |        
|                                                                                  | Service                                                                                                                                                                                                                                                                      |                                                  | $          | 220,940 |         |   | $          | 387,381 |         |   | $          | 502,402 |         |      | $          | 576,359 |         |   | $           | 603,242 |        
|                                                                                  | Roaming                                                                                                                                                                                                                                                                      |                                                  |            | 98,492  |         |   |            | 126,909 |         |   |            | 175,405 |         |      |            | 180,314 |         |   |             | 145,999 |        
|                                                                                  | Equipment                                                                                                                                                                                                                                                                    |                                                  |            | 34,477  |         |   |            | 25,810  |         |   |            | 38,178  |         |      |            | 53,426  |         |   |             | 68,959  |        
|                                                                                  |                                                                                                                                                                                                                                                                              |                                                  |            |         |         |   |            |         |         |   |            |         |         |      |           
|                                                                                  |                                                                                                                                                                                                                                                                              | Total revenues                                   |            |         | 353,909 |   |            |         | 540,100 |   |            |         | 715,985 |      |            |         | 810,099 |   |             |         | 818,200 | 
|Expenses:                                                                         |                                                                                                                                                                                                                                                                              |                                                  |            |         |         |   |            |         |         |   |            |         |         |      |            |         |         |   |             |        
|                                                                                  | Costs of service and equipment (excluding the below
    amortization, excluding depreciation of $63,183, $90,851,
    $114,007, $131,968 and $147,895, respectively, and excluding
    non-cash compensation of $1,026, $2,544, $3,646, $3,300 and
    $2,181, respectively) |                                                  |            | 194,686 |         |   |            | 248,013 |         |   |            | 296,598 |         |      |            | 348,856 |         |   |             | 367,240 |        
|                                                                                  | Selling, general and administrative (excluding depreciation of
    $13,072, $16,657, $16,072, $16,826 and $13,313, respectively,
    and excluding non-cash compensation of $7,241, $14,647, $17,784,
    $25,510 and $17,784, respectively)                                 |                                                  |            | 181,713 |         |   |            | 228,452 |         |   |            | 253,310 |         |      |            | 235,797 |         |   |             | 242,630 |        
|                                                                                  | Termination benefits and other related charges                                                                                                                                                                                                                               |                                                  |            |        |         |   |            |        |         |   |            |        |         |      |            | 2,731   |         |   |             |        |        
|                                                                                  | Non-cash compensation                                                                                                                                                                                                                                                        |                                                  |            | 8,267   |         |   |            | 17,191  |         |   |            | 21,430  |         |      |            | 28,810  |         |   |             | 19,965  |        
|                                                                                  | Depreciation and asset disposal(1)                                                                                                                                                                                                                                           |                                                  |            | 76,255  |         |   |            | 107,508 |         |   |            | 130,079 |         |      |            | 148,794 |         |   |             | 161,208 |        
|                                                                                  | Amortization                                                                                                                                                                                                                                                                 |                                                  |            | 17,876  |         |   |            | 19,225  |         |   |            | 4,926   |         |      |            | 4,300   |         |   |             | 13,162  |        
|                                                                                  |                                                                                                                                                                                                                                                                              |                                                  |            |         |         |   |            |         |         |   |            |         |         |      |           
|                                                                                  |                                                                                                                                                                                                                                                                              | Total operating expenses                         |            |         | 478,797 |   |            |         | 620,389 |   |            |         | 706,343 |      |            |         | 769,288 |   |             |         | 804,205 | 
|                                                                                  |                                                                                                                                                                                                                                                                              |                                                  |            |         |         |   |            |         |         |   |            |         |         |      |           
|Income (loss) from operations                                                     |                                                                                                                                                                                                                                                                              |                                                  | (124,888   | )       |         |   | (80,289    | )       |         |   | 9,642      |         |         |      | 40,811     |         |         |   | 13,995      |        
|Interest expense                                                                  |                                                                                                                                                                                                                                                                              |                                                  | (55,903    | )       |         |   | (117,499   | )       |         |   | (144,086   | )       |         |      | (141,210   | )       |         |   | (128,627    | )      
|Other expense(2)                                                                  |                                                                                                                                                                                                                                                                              |                                                  | (326       | )       |         |   | (18,034    | )       |         |   | (7,693     | )       |         |      | (2,898     | )       |         |   | (3,092      | )      
|Debt extinguishment costs                                                         |                                                                                                                                                                                                                                                                              |                                                  |           |         |         |   |           |         |         |   |           |         |         |      | (41,171    | )       |         |   |            |        
|Interest and other income(3)                                                      |                                                                                                                                                                                                                                                                              |                                                  | 4,957      |         |         |   | 18,322     |         |         |   | 6,292      |         |         |      | 2,285      |         |         |   | 2,937       |        
|Other gain(4)                                                                     |                                                                                                                                                                                                                                                                              |                                                  |           |         |         |   |           |         |         |   |           |         |         |      |           |         |         |   | 814,386     |        
|                                                                                  |                                                                                                                                                                                                                                                                              |                                                  |            |         |         |   |            |         |         |   |            |         |         |      |           
|Income (loss) before taxes                                                        |                                                                                                                                                                                                                                                                              | $                                                | (176,160   | )       |         | $ | (197,500   | )       |         | $ | (135,845   | )       |         | $    | (142,183   | )       |         | $ | 699,599     |        
|Income tax provision                                                              |                                                                                                                                                                                                                                                                              |                                                  | (746       | )       |         |   | (1,083     | )       |         |   | (24,650    | )       |         |      | (11,907    | )       |         |   | (17,072     | )      
|                                                                                  |                                                                                                                                                                                                                                                                              |                                                  |            |         |         |   |            |         |         |   |            |         |         |      |           
|Net income (loss)                                                                 |                                                                                                                                                                                                                                                                              | $                                                | (176,906   | )       |         | $ | (198,583   | )       |         | $ | (160,495   | )       |         | $    | (154,090   | )       |         | $ | 682,527     |        
|                                                                                  |                                                                                                                                                                                                                                                                              |                                                  |            |         |         |   |            |         |         |   |            |         |         |      |           
|Accretion of preferred stock                                                      |                                                                                                                                                                                                                                                                              |                                                  | (9,865     | )       |         |   | (10,897    | )       |         |   | (12,038    | )       |         |      | (13,298    | )       |         |   | (11,938     | )      
|Redemption of preferred stock                                                     |                                                                                                                                                                                                                                                                              |                                                  |           |         |         |   |           |         |         |   |           |         |         |      |           |         |         |   | 34,161      |        
|                                                                                  |                                                                                                                                                                                                                                                                              |                                                  |            |         |         |   |            |         |         |   |            |         |         |      |           
|Net income (loss) available to common stockholders                                |                                                                                                                                                                                                                                                                              | $                                                | (186,771   | )       |         | $ | (209,480   | )       |         | $ | (172,533   | )       |         | $    | (167,388   | )       |         | $ | 704,750     |        
|                                                                                  |                                                                                                                                                                                                                                                                              |                                                  |            |         |         |   |            |         |         |   |            |         |         |      |           
|Net income (loss) available to common stockholders per common
    share (basic)   |                                                                                                                                                                                                                                                                              | $                                                | (3.01      | )       |         | $ | (3.22      | )       |         | $ | (2.62      | )       |         | $    | (2.52      | )       |         | $ | 10.47       |        
|                                                                                  |                                                                                                                                                                                                                                                                              |                                                  |            |         |         |   |            |         |         |   |            |         |         |      |           
|Net income (loss) available to common stockholders per common
    share (diluted) |                                                                                                                                                                                                                                                                              | $                                                | (3.01      | )       |         | $ | (3.22      | )       |         | $ | (2.62      | )       |         | $    | (2.52      | )       |         | $ | 7.07        |        
|                                                                                  |                                                                                                                                                                                                                                                                              |                                                  |            |         |         |   |            |         |         |   |            |         |         |      |           
|Weighted average common shares outstanding (basic)                                |                                                                                                                                                                                                                                                                              |                                                  | 62,058,844 |         |         |   | 64,968,315 |         |         |   | 65,885,515 |         |         |      | 66,529,610 |         |         |   | 67,323,095  |        
|                                                                                  |                                                                                                                                                                                                                                                                              |                                                  |            |         |         |   |            |         |         |   |            |         |         |      |           
|Weighted average common shares outstanding (diluted)                              |                                                                                                                                                                                                                                                                              |                                                  | 62,058,844 |         |         |   | 64,968,315 |         |         |   | 65,885,515 |         |         |      | 66,529,610 |         |         |   | 101,407,414 |        
|                                                                                  |                                                                                                                                                                                                                                                                              |                                                  |            |         |         |   |            |         |         |   |            |         |         |      |           

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|                                             |  |                    |           |   |      |   |           |      |  |   |           |   |  |      |           |   |  |   |           | 
|-------------------------------------------- |  | ------------------ | --------- | - | ---- | - | --------- | ---- |  | - | --------- | - |  | ---- | --------- | - |  | - | --------- | 
|                                             |  | As of December 31, |          
|                                             |  |                    |          
|                                             |  | 2000               |           |   | 2001 |   |           | 2002 |  |   | 2003      |   |  | 2004 |          
|                                             |  |                    |           |   |      |   |           |      |  |   |           |   |  |      |          
|                                             |  | (in thousands)     |          
|Balance Sheet Data:                          |  |                    |           |   |      |   |           |      |  |   |           |   |  |      |           |   |  |   |           | 
|Cash and cash equivalents                    |  | $                  | 1,617     |   |      | $ | 5,847     |      |  | $ | 14,133    |   |  | $    | 3,366     |   |  | $ | 10,509    | 
|Working capital (deficiency)                 |  |                    | (54,305   | ) |      |   | 283,314   |      |  |   | 172,090   |   |  |      | 51,903    |   |  |   | 448,242   | 
|Property, plant and equipment, net           |  |                    | 662,990   |   |      |   | 793,175   |      |  |   | 796,503   |   |  |      | 788,870   |   |  |   | 814,127   | 
|Intangible assets, net                       |  |                    | 300,161   |   |      |   | 283,847   |      |  |   | 395,249   |   |  |      | 488,883   |   |  |   | 984,052   | 
|Total assets                                 |  |                    | 1,065,570 |   |      |   | 1,682,342 |      |  |   | 1,617,571 |   |  |      | 1,519,291 |   |  |   | 2,446,962 | 
|Long-term debt and capital lease obligations |  |                    | 728,485   |   |      |   | 1,344,291 |      |  |   | 1,413,263 |   |  |      | 1,443,788 |   |  |   | 1,688,318 | 
|Redeemable preferred stock                   |  |                    | 104,068   |   |      |   | 114,965   |      |  |   | 127,003   |   |  |      | 140,301   |   |  |   |          | 
|Stockholders (deficit) equity               |  |                    | 55,437    |   |      |   | (39,221   | )    |  |   | (187,189  | ) |  |      | (320,251  | ) |  |   | 404,459   | 

|                            |                      |                                        |         |          |      |  |         |          |   |  |         |         |   |      |         |         |   |  |         |          |  
|--------------------------- | -------------------- | -------------------------------------- | ------- | -------- | ---- |  | ------- | -------- | - |  | ------- | ------- | - | ---- | ------- | ------- | - |  | ------- | -------- | -
|                            |                      | For the Years Ended December 31,       |        
|                            |                      |                                        |        
|                            |                      | 2000                                   |         |          | 2001 |  |         | 2002     |   |  | 2003    |         |   | 2004 |        
|                            |                      |                                        |         |          |      |  |         |          |   |  |         |         |   |      |        
|                            |                      | (in thousands, except subscriber data) |        
|Other Data:                 |                      |                                        |         |          |      |  |         |          |   |  |         |         |   |      |         |         |   |  |         |         
|Subscribers (end of period) |                      |                                        | 446,401 |          |      |  | 685,653 |          |   |  | 830,159 |         |   |      | 894,659 |         |   |  | 951,745 |         
|Cash flows from:            |                      |                                        |         |          |      |  |         |          |   |  |         |         |   |      |         |         |   |  |         |         
|                            | Operating activities |                                        | $       | (22,253  | )    |  | $       | (3,514   | ) |  | $       | 54,090  |   |      | $       | 136,799 |   |  | $       | 85,173   |  
|                            | Investing activities |                                        |         | (346,444 | )    |  |         | (683,422 | ) |  |         | (69,713 | ) |      |         | (78,649 | ) |  |         | (304,770 | )
|                            | Financing activities |                                        |         | 184,063  |      |  |         | 691,166  |   |  |         | 23,909  |   |      |         | (68,917 | ) |  |         | 226,740  |  






|    |                                                                                                                                                                                                                                                                                    
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes losses of $0.0, $0.2, $3.9, $4.4 and $0.7 million
    on the sale or disposal of property and equipment for the years
    ended December 31, 2000, 2001, 2002, 2003 and 2004,
    respectively.                                                                           
|   
|(2) | Includes losses of $0.0, $12.9, $5.4, $2.0 and $3.1 million
    on our interest rate swap arrangements for the years ended
    December 31, 2000, 2001, 2002, 2003 and 2004, respectively.                                                                                         
|   
|(3) | Includes a gain on debt extinguishment of $0.5 million for
    the year ended December 31, 2004. Amounts for the years
    ended December 31, 2000, 2001, 2002 and 2003 consist of
    interest income on our cash and short term investments.                                     
|   
|(4) | Includes an aggregate pre-tax gain of $814.4 million
    resulting from the consummation of the Triton Holdings
    Agreement, Triton PCS Agreement and the Exchange Agreement.
    Refer to Overview in Item 1 Business for more
    information about each of these agreements.

22



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|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|ITEM 7. | Managements Discussion and Analysis of Financial
    Condition and Results of Operations

Introduction


The following discussion and analysis is based upon our
consolidated financial statements as of the dates and for the
periods presented in this section. You should read this
discussion and analysis in conjunction with our consolidated
financial statements and the related notes contained elsewhere
in this report.












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Critical Accounting Policies and Estimates








| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | We recognize revenues as services are rendered. Unbilled
    revenues result from service provided from the billing cycle end
    date to the end of the month and from other carriers
    customers using our network. In accordance with Emerging Issues
    Task Force, or EITF,00-21 Accounting for Revenue
    Arrangements with Multiple Deliverables, in a subscriber
    activation, the total proceeds are allocated to the associated
    deliverables. When equipment cost exceeds equipment revenue,
    referred to as equipment margin, the activation fee
    collected, up to the amount of the equipment margin, is
    recognized immediately as equipment revenue. Any subscriber
    activation fee collected in excess of the equipment margin is
    deferred and recognized over the estimated subscribers
    life. Equipment sales are a separate earnings process from other
    services we offer and are recognized

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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | upon delivery to the customer and reflect charges to customers
    for wireless handset equipment purchases.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|
| |  | We maintain allowances for doubtful accounts for estimated
    losses resulting from the inability of our subscribers to make
    required payments. If the financial condition of a material
    portion of our subscribers were to deteriorate, resulting in an
    impairment of their ability to make payments, additional
    allowances may be required. We estimate our allowance for
    doubtful accounts by applying estimated loss percentages against
    the aging of our accounts receivable balances. The estimated
    loss percentages are updated periodically and are based on our
    historical write-off experience, net of recoveries.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|
| |  | We write down our inventory for estimated obsolescence or
    unmarketable inventory equal to the difference between the cost
    of inventory and the estimated market value based upon
    assumptions about future demand and market conditions. If actual
    market conditions are less favorable than those we projected,
    additional inventory write-downs may be required.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|
| |  | We record a valuation allowance to reduce our deferred tax
    assets to the amount that is more likely than not to be
    realized. While we have considered future taxable income and
    ongoing prudent and feasible tax planning strategies in
    assessing the need for the valuation allowance, in the event we
    were to determine that we would be able to realize our deferred
    tax assets in the future in excess of its net recorded amount,
    an adjustment to the net deferred tax asset would increase
    income in the period we made that determination. Likewise,
    should we determine that we would not be able to realize all or
    part of our net deferred tax asset in the future, an adjustment
    to the net deferred tax asset would be charged to income in the
    period we made that determination. We establish additional
    provisions for income taxes when, despite the belief that our
    tax positions are fully supportable, there remain certain
    positions that are likely to be challenged and may or may not be
    sustained on review by tax authorities. We adjust these
    additional accruals in light of changing facts and circumstances.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|
| |  | We assess the impairment of long-lived assets, other than
    indefinite-lived intangible assets, whenever events or changes
    in circumstances indicate the carrying value may not be
    recoverable. Factors we consider important that could trigger an
    impairment review include significant underperformance relative
    to historical or projected future operating results or
    significant changes in the manner of use of the assets or in the
    strategy for our overall business. The carrying amount of a
    long-lived asset is not recoverable if it exceeds the sum of the
    undiscounted cash flows expected to result from the use and
    eventual disposition of the asset. When we determine that the
    carrying value of a long-lived asset is not recoverable, we
    measure any impairment based upon a projected discounted cash
    flow method using a discount rate we determine to be
    commensurate with the risk involved. Our primary
    indefinite-lived intangible assets are FCC licenses and
    goodwill. We test investments in FCC licenses and goodwill for
    impairment annually or more frequently if events or changes in
    circumstances indicate that these indefinite-lived intangible
    assets may be impaired. The impairment test consists of a
    comparison of the fair value with the carrying value. We
    aggregate all of our FCC licenses for the purpose of performing
    the impairment test as the licenses are operated as a single
    asset and, as such, are essentially inseparable from one
    another. In addition, we aggregate all goodwill into the same
    unit of accounting for the purpose of performing its impairment
    test.
|
| |  | We estimate the useful lives of our property, plant and
    equipment and our finite-lived intangible assets in order to
    calculate depreciation and amortization expense on these assets.
    We periodically evaluate our useful lives, considering such
    factors as industry trends, new technologies and significant
    changes in the manner of use of the assets or in the strategy
    for our overall business. The actual useful lives may be
    different than our estimated useful lives, which would thereby
    result in different carrying values of our property, plant,
    equipment and intangible assets. These evaluations could result
    in a change in our depreciable lives and, therefore, our
    depreciation and amortization expense in future periods.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           

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Revenue






| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Service. We sell wireless personal communications
    services. The various types of service revenue associated with
    wireless communications services for our subscribers include
    monthly recurring charges for access, features and fees and
    monthly non-recurring airtime charges for local, long distance
    and roaming airtime used in excess of pre-subscribed usage. Our
    customers roaming charges are rate plan dependent and are
    based on the number of pooled minutes included in their plans.
    Service revenue also includes non-recurring activation service
    charges and Universal Service Fund program revenue.
|
| |  | Equipment. We sell wireless personal communications
    handsets, data devices and accessories that are used by our
    customers in connection with our wireless services. Equipment
    sales are a separate earnings process from other services
    offered by Triton, and we recognize equipment sales upon
    delivery to the customer and reflect charges to customers for
    wireless handset equipment purchases.                                                                                                                                                                                                                             
|
| |  | Roaming. We charge per minute fees and per kilobyte fees
    to other wireless telecommunications companies for their
    customers use of our network facilities to utilize
    wireless services. In addition, our roaming revenue is
    contingent upon our roaming partners subscriber growth,
    their use of our network as well as industry consolidation.                                                                                                                                                                                                                                                                                    



Costs and Expenses






| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Equipment. We purchase personal communications services
    handsets and accessories from third party vendors to resell to
    our customers for use in connection with our services. Because,
    when selling directly to our customers, we subsidize the sale of
    handsets to encourage the use of our services, the cost of
    handsets is higher than the resale price to the customer. We do
    not manufacture any of this equipment.
|
| |  | Roaming Fees. We incur fees to other wireless
    communications companies based on airtime usage by our customers
    on other wireless communications networks.                                                                                                                                                                                                                                                                                
|
| |  | Transport and Variable Interconnect. We incur charges
    associated with interconnection with wireline and other wireless
    carriers networks. These fees include fixed monthly
    connection costs and other variable fees based on minutes of use
    by our customers.                                                                                                                                                                   
|
| |  | Variable Long Distance. We pay usage charges to long
    distance companies for long distance service provided to our
    customers. These variable charges are based on our
    subscribers usage, applied at pre-negotiated rates with
    the other carriers.                                                                                                                                                                                
|
| |  | Cell Site Costs. We incur expenses for the rent of
    towers, network facilities, engineering operations, field
    technicians and related utility and maintenance charges.                                                                                                                                                                                                                                                                    





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                               
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Selling, General and Administrative. Our selling expense
    includes advertising and promotional costs, commission expense
    for our sales associates and agents and fixed charges such as
    store rent and retail associates salaries. General and
    administrative expense includes customer care, billing,
    financial services and bad debt, information technology,
    finance, accounting and legal services.

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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | Certain portions of functions such as customer care, billing,
    finance, accounting, human resources and legal services are
    centralized in order to achieve economies of scale.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|
| |  | Depreciation and Amortization. Depreciation of property
    and equipment is computed using the straight-line method,
    generally over three to twelve years, based upon estimated
    useful lives. Leasehold improvements are amortized over the
    lesser of the useful lives of the assets or the term of the
    lease. Network development costs incurred to ready our network
    for use are capitalized. Depreciation of network development
    costs begins when the network equipment is ready for its
    intended use and is depreciated over the estimated useful life
    of the asset. Amortization of finite-lived intangible assets,
    including branding, subscriber lists and income leases, is
    computed using the straight-line method based upon estimated
    useful lives. Prior to January 1, 2002, our personal
    communications services licenses and our cellular licenses were
    being amortized over a period of 40 years. In 2002, we
    adopted Statement of Financial Accounting Standards, or SFAS,No. 142 Goodwill and Other Intangible
    Assets, and as a result, we ceased to amortize our FCC
    licenses, which we believe qualify as having an indefinite life.
|
| |  | Termination Benefits and Other Related Charges. For the
    year ended December 31, 2003, we recorded expenses related
    to a workforce reduction that occurred in January 2003. These
    expenses consisted primarily of one-time termination benefits
    and relocation expenses.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|
| |  | Non-cash Compensation. As of December 31, 2004, we
    recorded $14.7 million of deferred compensation associated
    with the issuances of our common stock to employees. We
    generally will recognize this compensation over four to five
    years as the stock vests.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|
| |  | Interest Expense (Income). Interest expense through
    December 31, 2004 consisted primarily of interest on our
    new senior secured term loan that expires in 2009, our
    93/8% senior
    subordinated notes due 2011, our
    83/4% senior
    subordinated notes due 2011 and our
    81/2% senior
    notes due 2013, net of capitalized interest. Interest expense
    also includes any commitment fees paid during the year on the
    undrawn portion(s) of our old credit facility and the
    amortization of deferred costs incurred in connection with our
    issuance of debt instruments. Interest income is earned
    primarily on our cash and cash equivalents and short-term
    investments.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|
| |  | Other Expense. Other expense primarily includes losses
    incurred on our previously held interest rate swap agreements.
    As of December 31, 2004, we did not have any interest rate
    swap arrangements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|
| |  | Debt Extinguishment Costs. For the year ended
    December 31, 2003, we recorded expenses related to the
    retirement of our old credit facility and our
    11% subordinated notes. These expenses consisted primarily
    of a premium paid to holders of the 11% subordinated notes
    who tendered their notes, tender offer fees and the write-off of
    deferred financing costs.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|
| |  | Other Income. For the year ended December 31, 2004,
    other income consisted primarily of the gains resulting from the
    consummation of our definitive agreements with AT&T Wireless
    and Cingular Wireless and the repurchase of a portion of our
    93/8% notes
    and our
    83/4% notes.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|
| |  | Income Tax Expense. We recognize deferred tax assets and
    liabilities based on differences between the financial reporting
    and tax bases of assets and liabilities, applying enacted
    statutory rates in effect for the year in which the differences
    are expected to reverse. Pursuant to the provisions of
    SFAS No. 109, Accounting For Income Taxes,
    we provide valuation allowances for deferred tax assets for
    which we do not consider realization of such assets to be more
    likely than not. We establish additional provisions for income
    taxes when, despite the belief that our tax positions are fully
    supportable, there remain certain positions that are likely to
    be challenged and may or may not be sustained on review by tax
    authorities. We adjust these additional accruals in light of
    changing facts and circumstances.                                                                                                                                                                                                                                                                                                                         



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Results of Operations




| |                                                                              
| | -----------------------------------------------------------------------------
| | Year ended December 31, 2004 compared to the year
    ended December 31, 2003



LNP,


ARPU,






28



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CPGA,


29



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1 2






30



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3 8 3 4








| |                                                                              
| | -----------------------------------------------------------------------------
| | Year ended December 31, 2003 compared to the year
    ended December 31, 2002









31



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32



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1 2






33



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Liquidity and Capital Resources






| |              
| | -------------
| | Capital Needs





| |   |                                                                                                         
| | - | --------------------------------------------------------------------------------------------------------
| |  | capital expenditures to expand and enhance our network;                                                 
|
| |  | capital expenditures related to increased retail distribution
    and information systems functionality;
|
| |  | operating expenses related to our network;                                                              
|
| |  | operating expenses related to the acquisition and retention of
    subscribers;                         
|
| |  | debt service requirements related to our long-term debt and
    capital lease obligations;              
|
| |  | potential material increases in the cost of compliance with
    regulatory mandates; and                
|
| |  | other general corporate expenditures.                                                                   



34



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| |                  
| | -----------------
| | Capital Resources





| |   |                                                                                                                                                        
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the amount of revenue we are able to generate from our customers;                                                                                      
|
| |  | the amount of operating expenses required to provide our
    services;                                                                                 
|
| |  | the cost of acquiring and retaining customers, including the
    subsidies we incur to provide handsets to both our new and
    existing customers; and
|
| |  | our ability to continue to grow our customer base.                                                                                                     

Short-term Investments.


Preferred Stock.


Senior Secured Term Loan.


Senior and Senior Subordinated Notes. 3 8 93/8% notes; 3 4 83/4% notes; 1 2 81/2% notes.


35



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3 8 3 4




3 8 3 4 1 2 3 8 3 4 1 2


Interest Rate Swap Agreements.


Credit Ratings.




|                  |  |                |    |  |             |  |      |              |  |  |         |  |  |  |          | 
|----------------- |  | -------------- | -- |  | ----------- |  | ---- | ------------ |  |  | ------- |  |  |  | -------- | 
|                  |  | Senior Secured |    |  | Senior      |  |      | Subordinated |  |  |        
|Rating Agency     |  | Term Loans     |    |  | Debt Rating |  |      | Debt Rating  |  |  | Outlook | 
|                  |  |                |    |  |             |  |      |              |  |  |         | 
|Moodys           |  |                | B2 |  |             |  | Caa1 |              |  |  | Ca      |  |  |  | Negative | 
|Standard & Poors |  |                | B  |  |             |  | CCC  |              |  |  | CCC     |  |  |  | Negative | 

http://www.moodys.com http://www.standardandpoors.com.


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| |                      
| | ---------------------
| | Historical Cash Flows



1 2




| |                                                   
| | --------------------------------------------------
| | Contractual Obligations and Commercial Commitments



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GAAP,


|                                   |  |                           |           |           |           |   |         |           |         |   |           |          |  |       |         |  |           |   |           |  |  |  |    | 
|---------------------------------- |  | ------------------------- | --------- | --------- | --------- | - | ------- | --------- | ------- | - | --------- | -------- |  | ----- | ------- |  | --------- | - | --------- |  |  |  | -- | 
|                                   |  | Payments due by Period(1) |           |           |          
|                                   |  | (dollars in thousands)    |           |           | Financial |  
|                                   |  |                           |           |           | Statement |  
|                                   |  |                           |           | Less than |           |   |         |           | After 5 |   |           | Footnote | 
|Contractual Obligation             |  | Total                     |           |           | 1 year    |   |         | 1-2 years |         |   | 3-5 years |          |  | Years |         |  | Reference |  
|                                   |  |                           |           |           |           |   |         |           |         |   |           |          |  |       |         |  |           |  
|Long-term debt(2)                  |  | $                         | 1,690,549 |           |           | $ | 2,500   |           |         | $ | 5,000     |          |  | $     | 242,500 |  |           | $ | 1,440,549 |  |  |  | 10 | 
|Capital lease obligations(3)       |  |                           | 1,253     |           |           |   | 984     |           |         |   | 157       |          |  |       | 112     |  |           |   |          |  |  |  | 10 | 
|Interest obligations(4)            |  |                           | 1,023,095 |           |           |   | 142,991 |           |         |   | 285,557   |          |  |       | 412,349 |  |           |   | 182,198   |  |  |  | 10 | 
|Operating leases(5)                |  |                           | 298,743   |           |           |   | 56,446  |           |         |   | 91,734    |          |  |       | 70,682  |  |           |   | 79,881    |  |  |  | 15 | 
|Purchase obligations(6)            |  |                           | 20,190    |           |           |   | 19,085  |           |         |   | 1,105     |          |  |       |        |  |           |   |          |  |  |  | 15 | 
|                                   |  |                           |           |           |           |   |         |           |         |   |           |          |  |       |         |  |           |  
|Total cash contractual obligations |  | $                         | 3,033,830 |           |           | $ | 222,006 |           |         | $ | 383,553   |          |  | $     | 725,643 |  |           | $ | 1,702,628 |  |  |  |    | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                             
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Payments are included in the period by which they are
    contractually required to be made. Actual payments may be made
    prior to the contractually required date.                                                                                                                                                                                                                                                                      
|   
|(2) | Amounts are equal to the annual maturities of our long-term debt.                                                                                                                                                                                                                                                                                                                                                                           
|   
|(3) | Amounts are equal to the annual maturities of our capital lease
    obligations.                                                                                                                                                                                                                                                                                                                                                            
|   
|(4) | Amounts are equal to total interest payments on our outstanding
    term loans and our
    81/2% notes,
    83/4% notes
    and
    93/8% notes,
    and assume the notes are repaid and not refinanced at maturity.
    Term loan interest has been calculated utilizing the effective
    interest rate as of December 31, 2004. Fluctuations in
    future interest rates could materially effect our term loan
    interest obligations.
|   
|(5) | Represents our commitments associated with operating leases as
    of December 31, 2004. These amounts include commitments for
    the North Carolina and Puerto Rico properties acquired from
    AT&T Wireless and Cingular Wireless and assume that all of
    these leases will be assigned to Triton. Payments due reflect
    fixed rent expense.                                                                                     
|   
|(6) | Amounts represent unconditional purchase obligations for
    equipment and software, as well as certain committed amounts for
    the support of our administrative and network systems.                                                                                                                                                                                                                                                    





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





| |                                              
| | ---------------------------------------------
| | Reconciliation of Non-GAAP Financial Measures



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|                                |                                               |                                     |         |         |      |   |         |         |  |   |         |         |  
|------------------------------- | --------------------------------------------- | ----------------------------------- | ------- | ------- | ---- | - | ------- | ------- |  | - | ------- | ------- | -
|                                |                                               | Year Ended December 31,             |        
|                                |                                               |                                     |        
|Average revenue per user (ARPU) |                                               | 2002                                |         |         | 2003 |   |         | 2004    | 
|                                |                                               |                                     |         |         |      |   |         |         | 
|                                |                                               | (Dollars in thousands, except ARPU) |        
|Service revenue                 |                                               | $                                   | 502,402 |         |      | $ | 576,359 |         |  | $ | 603,242 |        
|                                | Subscriber retention credits                  |                                     |         | 8,510   |      |   |         | 7,512   |  |   |         | 3,431   |  
|                                | Revenue not generated by wireless subscribers |                                     |         |        |      |   |         |        |  |   |         | (1,000  | )
|                                |                                               |                                     |         |         |      |   |         |         | 
|                                | Adjusted service revenue                      |                                     |         | 510,912 |      |   |         | 583,871 |  |   |         | 605,673 |  
|                                | Average subscribers                           |                                     |         | 759,279 |      |   |         | 872,250 |  |   |         | 911,826 |  
|ARPU                            |                                               | $                                   | 56.07   |         |      | $ | 55.78   |         |  | $ | 55.35   |        



|                                                                     |  |                                     |         |   |      |   |         |      |  |   |         |  
|-------------------------------------------------------------------- |  | ----------------------------------- | ------- | - | ---- | - | ------- | ---- |  | - | ------- | -
|                                                                     |  | Year Ended December 31,             |        
|                                                                     |  |                                     |        
|Cost per gross addition (CPGA)                                       |  | 2002                                |         |   | 2003 |   |         | 2004 | 
|                                                                     |  |                                     |         |   |      |   |         |      | 
|                                                                     |  | (Dollars in thousands, except CPGA) |        
|Selling expenses                                                     |  | $                                   | 108,321 |   |      | $ | 100,957 |      |  | $ | 96,365  |  
|Total cost of equipment  transactions with new
    subscribers      |  |                                     | 66,302  |   |      |   | 74,309  |      |  |   | 79,081  |  
|                                                                     |  |                                     |         |   |      |   |         |      | 
|CPGA operating expenses                                              |  |                                     | 174,623 |   |      |   | 175,266 |      |  |   | 175,446 |  
|Cost of service                                                      |  |                                     | 212,221 |   |      |   | 244,226 |      |  |   | 244,360 |  
|Total cost of equipment  transactions with existing
    subscribers |  |                                     | 18,075  |   |      |   | 30,321  |      |  |   | 43,799  |  
|General and administrative expense                                   |  |                                     | 144,989 |   |      |   | 134,840 |      |  |   | 146,265 |  
|Termination benefits and other related charges                       |  |                                     |        |   |      |   | 2,731   |      |  |   |        |  
|Non-cash compensation                                                |  |                                     | 21,430  |   |      |   | 28,810  |      |  |   | 19,965  |  
|Depreciation and asset disposal                                      |  |                                     | 130,079 |   |      |   | 148,794 |      |  |   | 161,208 |  
|Amortization                                                         |  |                                     | 4,926   |   |      |   | 4,300   |      |  |   | 13,162  |  
|                                                                     |  |                                     |         |   |      |   |         |      | 
|Total operating expenses                                             |  | $                                   | 706,343 |   |      | $ | 769,288 |      |  | $ | 804,205 |  
|CPGA operating expenses (from above)                                 |  | $                                   | 174,623 |   |      | $ | 175,266 |      |  | $ | 175,446 |  
|Equipment revenue  transactions with new subscribers                |  |                                     | (30,807 | ) |      |   | (41,212 | )    |  |   | (48,889 | )
|                                                                     |  |                                     |         |   |      |   |         |      | 
|CPGA costs, net                                                      |  | $                                   | 143,816 |   |      | $ | 134,054 |      |  | $ | 126,557 |  
|Gross subscriber additions                                           |  |                                     | 341,271 |   |      |   | 306,600 |      |  |   | 291,916 |  
|CPGA                                                                 |  | $                                   | 421     |   |      | $ | 437     |      |  | $ | 434     |  

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Relationship with Lafayette Communications Company LLC
















New Accounting Pronouncements




40



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Inflation




41



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



|                                       |                           |  |   |         | 
|-------------------------------------- | ------------------------- |  | - | ------- | 
|Fixed interest rates:                  |                           |  |   |        
|                                       | Senior notes              |  | $ | 712,055 | 
|                                       | Senior subordinated notes |  | $ | 728,494 | 
|Subject to interest rate fluctuations: |                           |  |   |        
|                                       | Senior secured term loan  |  | $ | 250,000 | 







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|        |                                          
|------- | -----------------------------------------
|Item 8. | FINANCIAL STATEMENTS & SUPPLEMENTARY DATA

TRITON PCS HOLDINGS, INC.


INDEX TO FINANCIAL STATEMENTS


|                                                                                                                                                       |  |  |     | 
|------------------------------------------------------------------------------------------------------------------------------------------------------ |  |  | --- | 
|Consolidated Financial Statements:                                                                                                                     |  |  |     | 
|Managements Report on Internal
    Control Over Financial Reporting                                                                                   |  |  | F-2 | 
|Report of Independent Registered Public
    Accounting Firm                                                                                            |  |  | F-3 | 
|Consolidated Balance Sheets as of
    December 31, 2003 and 2004                                                                                       |  |  | F-5 | 
|Consolidated Statements of Operations and
    Comprehensive Income (Loss) for the years ended
    December 31, 2002, 2003 and 2004                     |  |  | F-6 | 
|Consolidated Statements of Redeemable
    Preferred Equity and Stockholders Equity (Deficit) for the
    years ended December 31, 2002, 2003 and 2004 |  |  | F-7 | 
|Consolidated Statements of Cash Flows for
    the years ended December 31, 2002, 2003 and 2004                                                         |  |  | F-8 | 
|Notes to Consolidated Financial
    Statements                                                                                                         |  |  | F-9 | 
|Schedule I  Condensed Financial
    Information of Triton PCS Holdings, Inc.                                                                          |  |  | 46  | 
|Schedule II  Valuation and
    Qualifying Accounts                                                                                                    |  |  | 49  | 

F-1



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MANAGEMENTS REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING






| |   |                                                                                                                                                                                                                                                                                                                                                      
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Pertain to the maintenance of records that in reasonable detail
    accurately and fairly reflect the transactions and dispositions
    of the assets of Triton;                                                                                                                                                                                     
|
| |  | Provide reasonable assurance that transactions are recorded as
    necessary to permit preparation of financial statements in
    accordance with generally accepted accounting principles, and
    that receipts and expenditures of Triton are being made only in
    accordance with authorizations of management and directors of
    Triton; and
|
| |  | Provide reasonable assurance regarding prevention or timely
    detection of unauthorized acquisition, use or disposition of
    Tritons assets that could have a material effect on the
    financial statements.                                                                                                                                  



Internal Control  Integrated Framework,




|                                                                           |  |                                                                   
|-------------------------------------------------------------------------- |  | ------------------------------------------------------------------
|                                                                          
|/s/ Michael E. KalogrisMichael
    E. Kalogris
    Chief Executive Officer |  | /s/ David D. Clark

    David D. Clark
    Chief Financial Officer



F-2



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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM










| |                                                                        
| | -----------------------------------------------------------------------
| | Consolidated financial statements and financial statement
    schedules





| |                                          
| | -----------------------------------------
| | Internal control over financial reporting

Internal Control 
Integrated Framework Internal Control  Integrated
Framework




F-3



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F-4



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Triton PCS Holdings, Inc.





Consolidated Balance Sheets


|                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                    |                        |           |         |              |   |           |         | 
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------- | ---------------------- | --------- | ------- | ------------ | - | --------- | ------- | 
|                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                    | December 31,           |           |         | December 31, |  
|                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                    | 2003                   |           |         | 2004         |  
|                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                    |                        |           |         |              |  
|                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                    | (Dollars in thousands) |          
|ASSETS:                                                                                                                                                                                                                                                                                                                                                           |                                                                                                    |                        |           |         |              |   |           |        
|Current assets:                                                                                                                                                                                                                                                                                                                                                   |                                                                                                    |                        |           |         |              |   |           |        
|                                                                                                                                                                                                                                                                                                                                                                  | Cash and cash equivalents                                                                          |                        | $         | 3,366   |              |   | $         | 10,509  | 
|                                                                                                                                                                                                                                                                                                                                                                  | Short-term investments                                                                             |                        |           | 102,600 |              |   |           | 492,600 | 
|                                                                                                                                                                                                                                                                                                                                                                  | Accounts receivable, net of allowance for doubtful accounts of
    $3,839 and $7,585, respectively |                        |           | 62,939  |              |   |           | 79,290  | 
|                                                                                                                                                                                                                                                                                                                                                                  | Accounts receivable  roaming partners                                                             |                        |           | 19,378  |              |   |           | 18,348  | 
|                                                                                                                                                                                                                                                                                                                                                                  | Inventory, net                                                                                     |                        |           | 24,344  |              |   |           | 18,216  | 
|                                                                                                                                                                                                                                                                                                                                                                  | Prepaid expenses                                                                                   |                        |           | 10,980  |              |   |           | 11,611  | 
|                                                                                                                                                                                                                                                                                                                                                                  | Other current assets                                                                               |                        |           | 6,552   |              |   |           | 13,029  | 
|                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                    |                        |           |         |              |  
|Total current assets                                                                                                                                                                                                                                                                                                                                              |                                                                                                    |                        | 230,159   |         |              |   | 643,603   |        
|Long term assets:                                                                                                                                                                                                                                                                                                                                                 |                                                                                                    |                        |           |         |              |   |           |        
|Property and equipment, net                                                                                                                                                                                                                                                                                                                                       |                                                                                                    |                        | 788,870   |         |              |   | 814,127   |        
|Intangible assets, net                                                                                                                                                                                                                                                                                                                                            |                                                                                                    |                        | 488,883   |         |              |   | 984,052   |        
|Other long-term assets                                                                                                                                                                                                                                                                                                                                            |                                                                                                    |                        | 11,379    |         |              |   | 5,180     |        
|                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                    |                        |           |         |              |  
|Total assets                                                                                                                                                                                                                                                                                                                                                      |                                                                                                    | $                      | 1,519,291 |         |              | $ | 2,446,962 |        
|                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                    |                        |           |         |              |  
|                                                                                                                                                                                                                                                                                                                                                                 
|LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIT):                                                                                                                                                                                                                                                                                                                  
|Current liabilities:                                                                                                                                                                                                                                                                                                                                              |                                                                                                    |                        |           |         |              |   |           |        
|                                                                                                                                                                                                                                                                                                                                                                  | Accounts payable                                                                                   |                        | $         | 67,462  |              |   | $         | 85,896  | 
|                                                                                                                                                                                                                                                                                                                                                                  | Accrued liabilities                                                                                |                        |           | 73,641  |              |   |           | 81,997  | 
|                                                                                                                                                                                                                                                                                                                                                                  | Current portion of long term debt                                                                  |                        |           | 1,444   |              |   |           | 3,484   | 
|                                                                                                                                                                                                                                                                                                                                                                  | Other current liabilities                                                                          |                        |           | 35,709  |              |   |           | 23,984  | 
|                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                    |                        |           |         |              |  
|Total current liabilities                                                                                                                                                                                                                                                                                                                                         |                                                                                                    |                        | 178,256   |         |              |   | 195,361   |        
|Long-term debt:                                                                                                                                                                                                                                                                                                                                                   |                                                                                                    |                        |           |         |              |   |           |        
|                                                                                                                                                                                                                                                                                                                                                                  | Capital lease obligations                                                                          |                        |           | 909     |              |   |           | 269     | 
|                                                                                                                                                                                                                                                                                                                                                                  | Senior secured term loan                                                                           |                        |           |        |              |   |           | 247,500 | 
|                                                                                                                                                                                                                                                                                                                                                                  | Senior notes                                                                                       |                        |           | 710,205 |              |   |           | 712,055 | 
|                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                    |                        |           |         |              |  
|Senior long-term debt                                                                                                                                                                                                                                                                                                                                             |                                                                                                    |                        | 711,114   |         |              |   | 959,824   |        
|                                                                                                                                                                                                                                                                                                                                                                  | Subordinated notes                                                                                 |                        |           | 732,674 |              |   |           | 728,494 | 
|                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                    |                        |           |         |              |  
|Total long-term debt                                                                                                                                                                                                                                                                                                                                              |                                                                                                    |                        | 1,443,788 |         |              |   | 1,688,318 |        
|Deferred income taxes, net                                                                                                                                                                                                                                                                                                                                        |                                                                                                    |                        | 45,956    |         |              |   | 136,937   |        
|Deferred revenue                                                                                                                                                                                                                                                                                                                                                  |                                                                                                    |                        | 2,663     |         |              |   | 659       |        
|Fair value of derivative instruments                                                                                                                                                                                                                                                                                                                              |                                                                                                    |                        | 846       |         |              |   |          |        
|Deferred gain on sale of property and equipment                                                                                                                                                                                                                                                                                                                   |                                                                                                    |                        | 25,882    |         |              |   | 19,099    |        
|Other                                                                                                                                                                                                                                                                                                                                                             |                                                                                                    |                        | 1,850     |         |              |   | 2,013     |        
|                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                    |                        |           |         |              |  
|Total liabilities                                                                                                                                                                                                                                                                                                                                                 |                                                                                                    |                        | 1,699,241 |         |              |   | 2,042,387 |        
|Commitments and contingencies (Note 15)                                                                                                                                                                                                                                                                                                                           |                                                                                                    |                        |          |         |              |   |          |        
|Non-controlling interest  Variable interest entity                                                                                                                                                                                                                                                                                                               |                                                                                                    |                        |          |         |              |   | 116       |        
|Series A Redeemable Convertible Preferred Stock,
    $0.01 par value, 1,000,000 shares authorized as of
    December 31, 2003 and no shares authorized as of
    December 31, 2004; 786,253 shares issued and
    outstanding as of December 31, 2003, including accreted
    dividends and no shares issued or outstanding as of
    December 31, 2004 (Note 16) |                                                                                                    |                        | 140,301   |         |              |   |          |        
|Stockholders equity (deficit)                                                                                                                                                                                                                                                                                                                                    |                                                                                                    |                        |           |         |              |   |           |        
|Series B Preferred Stock, $0.01 par value,
    50,000,000 shares authorized; no shares issued or
    outstanding as of December 31, 2003 and December 31,
    2004                                                                                                                                                                                                |                                                                                                    |                        |          |         |              |   |          |        
|Series C Convertible Preferred Stock, $0.01 par value,
    3,000,000 shares authorized; no shares issued or
    outstanding as of December 31, 2003 and December 31,
    2004                                                                                                                                                                                     |                                                                                                    |                        |          |         |              |   |          |        
|Series D Convertible Preferred Stock, $0.01 par value,
    16,000,000 shares authorized as of December 31, 2003
    and no shares authorized as of December 31, 2004;
    543,683 shares issued and outstanding as of
    December 31, 2003 and no shares issued or outstanding as of
    December 31, 2004 (Note 16)                                             |                                                                                                    |                        | 5         |         |              |   |          |        
|Class A Common Stock, $0.01 par value,
    520,000,000 shares authorized; 61,315,511 shares
    issued and 60,865,217 shares outstanding as of
    December 31, 2003 and 62,907,433 shares issued and
    61,933,556 shares outstanding as of December 31, 2004                                                                                                   |                                                                                                    |                        | 609       |         |              |   | 619       |        
|Class B Non-voting Common Stock, $0.01 par value,
    60,000,000 shares authorized; 7,926,099 shares issued
    and outstanding as of December 31, 2003 and
    December 31, 2004                                                                                                                                                                                 |                                                                                                    |                        | 79        |         |              |   | 79        |        
|Additional paid-in capital                                                                                                                                                                                                                                                                                                                                        |                                                                                                    |                        | 591,376   |         |              |   | 613,600   |        
|Accumulated deficit                                                                                                                                                                                                                                                                                                                                               |                                                                                                    |                        | (876,165  | )       |              |   | (193,638  | )      
|Common stock held in trust                                                                                                                                                                                                                                                                                                                                        |                                                                                                    |                        |          |         |              |   | (94       | )      
|Deferred compensation                                                                                                                                                                                                                                                                                                                                             |                                                                                                    |                        | (34,780   | )       |              |   | (14,732   | )      
|Class A common stock held in treasury, at cost (450,294 and
    973,877 shares, respectively)                                                                                                                                                                                                                                                                     |                                                                                                    |                        | (1,375    | )       |              |   | (1,375    | )      
|                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                    |                        |           |         |              |  
|Total stockholders equity (deficit)                                                                                                                                                                                                                                                                                                                              |                                                                                                    |                        | (320,251  | )       |              |   | 404,459   |        
|                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                    |                        |           |         |              |  
|Total liabilities and stockholders equity
    (deficit)                                                                                                                                                                                                                                                                                                          |                                                                                                    | $                      | 1,519,291 |         |              | $ | 2,446,962 |        
|                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                    |                        |           |         |              |  



F-5



---



##### Table of Contents



Triton PCS Holdings, Inc.





Consolidated Statements of Operations and Comprehensive
Income (Loss)


|                                                             |                                                                                                                                                                                                       |                                              |          |            |          |   |          |            |          |   |          |             |         | 
|------------------------------------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------- | -------- | ---------- | -------- | - | -------- | ---------- | -------- | - | -------- | ----------- | ------- | 
|                                                             |                                                                                                                                                                                                       | For the Years Ended December 31,             |         
|                                                             |                                                                                                                                                                                                       |                                              |         
|                                                             |                                                                                                                                                                                                       | 2002                                         |          |            | 2003     |   |          | 2004       |         
|                                                             |                                                                                                                                                                                                       |                                              |          |            |          |   |          |            |         
|                                                             |                                                                                                                                                                                                       | (Dollars in thousands, except share amounts) |         
|Revenues:                                                    |                                                                                                                                                                                                       |                                              |          |            |          |   |          |            |          |   |          |            
|                                                             | Service                                                                                                                                                                                               |                                              | $        | 502,402    |          |   | $        | 576,359    |          |   | $        | 603,242     |        
|                                                             | Roaming                                                                                                                                                                                               |                                              |          | 175,405    |          |   |          | 180,314    |          |   |          | 145,999     |        
|                                                             | Equipment                                                                                                                                                                                             |                                              |          | 38,178     |          |   |          | 53,426     |          |   |          | 68,959      |        
|                                                             |                                                                                                                                                                                                       |                                              |          |            |          |   |          |            |         
|                                                             |                                                                                                                                                                                                       | Total revenues                               |          |            | 715,985  |   |          |            | 810,099  |   |          |             | 818,200 | 
|Expenses:                                                    |                                                                                                                                                                                                       |                                              |          |            |          |   |          |            |          |   |          |            
|                                                             | Cost of service (excluding the below amortization, excluding
    depreciation of $114,007, $131,968 and $147,895, and excluding
    non-cash compensation of $3,646, $3,300 and $2,181, respectively) |                                              |          | 212,221    |          |   |          | 244,226    |          |   |          | 244,360     |        
|                                                             | Cost of equipment                                                                                                                                                                                     |                                              |          | 84,377     |          |   |          | 104,630    |          |   |          | 122,880     |        
|                                                             | Selling, general and administrative (excluding depreciation of
    $16,072, $16,826 and $13,313 and excluding non-cash compensation
    of $17,784, $25,510 and $17,784, respectively)                |                                              |          | 253,310    |          |   |          | 235,797    |          |   |          | 242,630     |        
|                                                             | Termination benefits and other related charges                                                                                                                                                        |                                              |          |           |          |   |          | 2,731      |          |   |          |            |        
|                                                             | Non-cash compensation                                                                                                                                                                                 |                                              |          | 21,430     |          |   |          | 28,810     |          |   |          | 19,965      |        
|                                                             | Depreciation and asset disposal                                                                                                                                                                       |                                              |          | 130,079    |          |   |          | 148,794    |          |   |          | 161,208     |        
|                                                             | Amortization                                                                                                                                                                                          |                                              |          | 4,926      |          |   |          | 4,300      |          |   |          | 13,162      |        
|                                                             |                                                                                                                                                                                                       |                                              |          |            |          |   |          |            |         
|Income from operations                                       |                                                                                                                                                                                                       |                                              | 9,642    |            |          |   | 40,811   |            |          |   | 13,995   |            
|Interest expense                                             |                                                                                                                                                                                                       |                                              | (144,086 | )          |          |   | (141,210 | )          |          |   | (128,627 | )          
|Other expense                                                |                                                                                                                                                                                                       |                                              | (7,693   | )          |          |   | (2,898   | )          |          |   | (3,092   | )          
|Debt extinguishment costs                                    |                                                                                                                                                                                                       |                                              |         |            |          |   | (41,171  | )          |          |   |         |            
|Interest and other income                                    |                                                                                                                                                                                                       |                                              | 6,292    |            |          |   | 2,285    |            |          |   | 2,937    |            
|Other gain                                                   |                                                                                                                                                                                                       |                                              |         |            |          |   |         |            |          |   | 814,386  |            
|                                                             |                                                                                                                                                                                                       |                                              |          |            |          |   |          |            |         
|                                                             |                                                                                                                                                                                                       | Income (loss) before taxes                   |          |            | (135,845 | ) |          |            | (142,183 | ) |          |             | 699,599 | 
|Income tax provision                                         |                                                                                                                                                                                                       |                                              | (24,650  | )          |          |   | (11,907  | )          |          |   | (17,072  | )          
|                                                             |                                                                                                                                                                                                       |                                              |          |            |          |   |          |            |         
|Net income (loss)                                            |                                                                                                                                                                                                       |                                              | (160,495 | )          |          |   | (154,090 | )          |          |   | 682,527  |            
|Accretion of preferred stock                                 |                                                                                                                                                                                                       |                                              | (12,038  | )          |          |   | (13,298  | )          |          |   | (11,938  | )          
|Redemption of preferred stock                                |                                                                                                                                                                                                       |                                              |         |            |          |   |         |            |          |   | 34,161   |            
|                                                             |                                                                                                                                                                                                       |                                              |          |            |          |   |          |            |         
|Net income (loss) available to common stockholders           |                                                                                                                                                                                                       | $                                            | (172,533 | )          |          | $ | (167,388 | )          |          | $ | 704,750  |            
|                                                             |                                                                                                                                                                                                       |                                              |          |            |          |   |          |            |         
|Other comprehensive income (loss), net of tax:               |                                                                                                                                                                                                       |                                              |          |            |          |   |          |            |          |   |          |            
|                                                             | Unrealized gain on derivative instruments                                                                                                                                                             |                                              | $        | 2,201      |          |   | $        | 1,429      |          |   |          |            |        
|                                                             | Plus: reclassification adjustment for previous unrealized losses                                                                                                                                      |                                              |          |           |          |   |          | 4,030      |          |   |          |            |        
|                                                             |                                                                                                                                                                                                       |                                              |          |            |          |   |          |            |         
|Comprehensive income (loss) available to common stockholders |                                                                                                                                                                                                       | $                                            | (170,332 | )          |          | $ | (161,929 | )          |          | $ | 704,750  |            
|                                                             |                                                                                                                                                                                                       |                                              |          |            |          |   |          |            |         
|                                                             | Net income (loss) available to common stockholders per common
    share (basic)                                                                                                                       |                                              | $        | (2.62      | )        |   | $        | (2.52      | )        |   | $        | 10.47       |        
|                                                             |                                                                                                                                                                                                       |                                              |          |            |          |   |          |            |         
|                                                             | Net income (loss) available to common stockholders per common
    share (diluted)                                                                                                                     |                                              | $        | (2.62      | )        |   | $        | (2.52      | )        |   | $        | 7.07        |        
|                                                             |                                                                                                                                                                                                       |                                              |          |            |          |   |          |            |         
|                                                             | Weighted average common shares outstanding (basic)                                                                                                                                                    |                                              |          | 65,885,515 |          |   |          | 66,529,610 |          |   |          | 67,323,095  |        
|                                                             |                                                                                                                                                                                                       |                                              |          |            |          |   |          |            |         
|                                                             | Weighted average common shares outstanding (diluted)                                                                                                                                                  |                                              |          | 65,885,515 |          |   |          | 66,529,610 |          |   |          | 101,407,414 |        
|                                                             |                                                                                                                                                                                                       |                                              |          |            |          |   |          |            |         



F-6



---



##### Table of Contents



Triton PCS Holdings, Inc.





Consolidated Statement of Redeemable Preferred Equity and
Stockholders Equity (Deficit)


(Dollars in thousands)


|                                                               |  |            |          |   |  |           |   |    |         |         |   |            |  |  |            |    |        |              |   |             |         |  |       |               |   |  |          |     |   |               |   |        |           |  |   |        |   |  |   |          |   |  |   |          |  
|-------------------------------------------------------------- |  | ---------- | -------- | - |  | --------- | - | -- | ------- | ------- | - | ---------- |  |  | ---------- | -- | ------ | ------------ | - | ----------- | ------- |  | ----- | ------------- | - |  | -------- | --- | - | ------------- | - | ------ | --------- |  | - | ------ | - |  | - | -------- | - |  | - | -------- | -
|                                                               |  | Series A   |          |   |  |           |   |    |         | Class B |   |            |  |  |            |    | Common |              |   | Accumulated |         |  |       |               |   |  | Total    |    
|                                                               |  | Redeemable |          |   |  | Series D  |   |    | Class A |         |   | Non-Voting |  |  | Additional |    |        |              |   | Stock       |         |  | Other |               |   |  |          |     |   | Stockholders |  
|                                                               |  | Preferred  |          |   |  | Preferred |   |    | Common  |         |   | Common     |  |  | Paid In    |    |        | Deferred     |   |             | Held in |  |       | Comprehensive |   |  | Treasury |     |   | Accumulated   |   |        | Equity    | 
|                                                               |  | Stock      |          |   |  | Stock     |   |    | Stock   |         |   | Stock      |  |  | Capital    |    |        | Compensation |   |             | Trust   |  |       | Income (Loss) |   |  | Stock    |     |   | Deficit       |   |        | (Deficit) | 
|                                                               |  |            |          |   |  |           |   |    |         |         |   |            |  |  |            |    |        |              |   |             |         |  |       |               |   |  |          |     |   |               |   |        |           | 
|Balance at December 31, 2001                                   |  | $          | 114,965  |   |  |           | $ | 5  |         |         | $ | 594        |  |  | $          | 79 |        |              | $ | 623,335     |         |  | $     | (92,619       | ) |  | $        |    |   |               | $ | (7,660 | )         |  | $ | (1,375 | ) |  | $ | (561,580 | ) |  | $ | (39,221  | )
|                                                               |  |            |          |   |  |           |   |    |         |         |   |            |  |  |            |    |        |              |   |             |         |  |       |               |   |  |          |     |   |               |   |        |           | 
|Capital contribution                                           |  |            |         |   |  |           |   |   |         |         |   |           |  |  |            |   |        |              |   | 23          |         |  |       |              |   |  |          |    |   |               |   |       |           |  |   |       |   |  |   |         |   |  |   | 23       |  
|Deferred compensation, net of forfeitures                      |  |            |         |   |  |           |   |   |         |         |   | 8          |  |  |            |   |        |              |   | 3,357       |         |  |       | (3,365        | ) |  |          |    |   |               |   |       |           |  |   |       |   |  |   |         |   |  |   |         |  
|Non-cash compensation                                          |  |            |         |   |  |           |   |   |         |         |   |           |  |  |            |   |        |              |   |            |         |  |       | 21,430        |   |  |          |    |   |               |   |       |           |  |   |       |   |  |   |         |   |  |   | 21,430   |  
|Issuance of stock pursuant to the Employee Stock Purchase Plan |  |            |         |   |  |           |   |   |         |         |   | 1          |  |  |            |   |        |              |   | 910         |         |  |       |              |   |  |          |    |   |               |   |       |           |  |   |       |   |  |   |         |   |  |   | 911      |  
|Accreted dividends                                             |  |            | 12,038   |   |  |           |   |   |         |         |   |           |  |  |            |   |        |              |   | (12,038     | )       |  |       |              |   |  |          |    |   |               |   |       |           |  |   |       |   |  |   |         |   |  |   | (12,038  | )
|Fair value of cash flow hedges                                 |  |            |         |   |  |           |   |   |         |         |   |           |  |  |            |   |        |              |   |            |         |  |       |              |   |  |          |    |   |               |   | 2,201  |           |  |   |       |   |  |   |         |   |  |   | 2,201    |  
|Net loss                                                       |  |            |         |   |  |           |   |   |         |         |   |           |  |  |            |   |        |              |   |            |         |  |       |              |   |  |          |    |   |               |   |       |           |  |   |       |   |  |   | (160,495 | ) |  |   | (160,495 | )
|                                                               |  |            |          |   |  |           |   |    |         |         |   |            |  |  |            |    |        |              |   |             |         |  |       |               |   |  |          |     |   |               |   |        |           | 
|Balance at December 31, 2002                                   |  | $          | 127,003  |   |  |           | $ | 5  |         |         | $ | 603        |  |  | $          | 79 |        |              | $ | 615,587     |         |  | $     | (74,554       | ) |  | $        |    |   |               | $ | (5,459 | )         |  | $ | (1,375 | ) |  | $ | (722,075 | ) |  | $ | (187,189 | )
|                                                               |  |            |          |   |  |           |   |    |         |         |   |            |  |  |            |    |        |              |   |             |         |  |       |               |   |  |          |     |   |               |   |        |           | 
|Deferred compensation, net of forfeitures                      |  |            |         |   |  |           |   |   |         |         |   | 6          |  |  |            |   |        |              |   | (10,970     | )       |  |       | 10,964        |   |  |          |    |   |               |   |       |           |  |   |       |   |  |   |         |   |  |   |         |  
|Non-cash compensation                                          |  |            |         |   |  |           |   |   |         |         |   |           |  |  |            |   |        |              |   |            |         |  |       | 28,810        |   |  |          |    |   |               |   |       |           |  |   |       |   |  |   |         |   |  |   | 28,810   |  
|Issuance of stock pursuant to the Employee Stock Purchase Plan |  |            |         |   |  |           |   |   |         |         |   |           |  |  |            |   |        |              |   | 57          |         |  |       |              |   |  |          |    |   |               |   |       |           |  |   |       |   |  |   |         |   |  |   | 57       |  
|Accreted dividends                                             |  |            | 13,298   |   |  |           |   |   |         |         |   |           |  |  |            |   |        |              |   | (13,298     | )       |  |       |              |   |  |          |    |   |               |   |       |           |  |   |       |   |  |   |         |   |  |   | (13,298  | )
|Fair value of cash flow hedges                                 |  |            |         |   |  |           |   |   |         |         |   |           |  |  |            |   |        |              |   |            |         |  |       |              |   |  |          |    |   |               |   | 5,459  |           |  |   |       |   |  |   |         |   |  |   | 5,459    |  
|Net loss                                                       |  |            |         |   |  |           |   |   |         |         |   |           |  |  |            |   |        |              |   |            |         |  |       |              |   |  |          |    |   |               |   |       |           |  |   |       |   |  |   | (154,090 | ) |  |   | (154,090 | )
|                                                               |  |            |          |   |  |           |   |    |         |         |   |            |  |  |            |    |        |              |   |             |         |  |       |               |   |  |          |     |   |               |   |        |           | 
|Balance at December 31, 2003                                   |  | $          | 140,301  |   |  |           | $ | 5  |         |         | $ | 609        |  |  | $          | 79 |        |              | $ | 591,376     |         |  | $     | (34,780       | ) |  | $        |    |   |               | $ |       |           |  | $ | (1,375 | ) |  | $ | (876,165 | ) |  | $ | (320,251 | )
|                                                               |  |            |          |   |  |           |   |    |         |         |   |            |  |  |            |    |        |              |   |             |         |  |       |               |   |  |          |     |   |               |   |        |           | 
|Deferred compensation, net of forfeitures                      |  |            |         |   |  |           |   |   |         |         |   | 10         |  |  |            |   |        |              |   | (941        | )       |  |       | 1,025         |   |  |          | (94 | ) |               |   |       |           |  |   |       |   |  |   |         |   |  |   |         |  
|Non-cash compensation                                          |  |            |         |   |  |           |   |   |         |         |   |           |  |  |            |   |        |              |   | 942         |         |  |       | 19,023        |   |  |          |    |   |               |   |       |           |  |   |       |   |  |   |         |   |  |   | 19,965   |  
|Accreted dividends                                             |  |            | 11,938   |   |  |           |   |   |         |         |   |           |  |  |            |   |        |              |   | (11,938     | )       |  |       |              |   |  |          |    |   |               |   |       |           |  |   |       |   |  |   |         |   |  |   | (11,938  | )
|Redemption of Series A & Series D Preferred
    stock          |  |            | (152,239 | ) |  |           |   | (5 | )       |         |   |           |  |  |            |   |        |              |   | 34,161      |         |  |       |              |   |  |          |    |   |               |   |       |           |  |   |       |   |  |   |         |   |  |   | 34,156   |  
|Net income                                                     |  |            |         |   |  |           |   |   |         |         |   |           |  |  |            |   |        |              |   |            |         |  |       |              |   |  |          |    |   |               |   |       |           |  |   |       |   |  |   | 682,527  |   |  |   | 682,527  |  
|                                                               |  |            |          |   |  |           |   |    |         |         |   |            |  |  |            |    |        |              |   |             |         |  |       |               |   |  |          |     |   |               |   |        |           | 
|Balance at December 31, 2004                                   |  | $          |         |   |  |           | $ |   |         |         | $ | 619        |  |  | $          | 79 |        |              | $ | 613,600     |         |  | $     | (14,732       | ) |  | $        | (94 | ) |               | $ |       |           |  | $ | (1,375 | ) |  | $ | (193,638 | ) |  | $ | 404,459  |  
|                                                               |  |            |          |   |  |           |   |    |         |         |   |            |  |  |            |    |        |              |   |             |         |  |       |               |   |  |          |     |   |               |   |        |           | 



F-7



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##### Table of Contents



Triton PCS Holdings, Inc.





Consolidated Statements of Cash Flows


|                                                                                                                                                    |                                           |                                  |          |         |      |   |          |        |   |   |          |        |  
|--------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------- | -------------------------------- | -------- | ------- | ---- | - | -------- | ------ | - | - | -------- | ------ | -
|                                                                                                                                                    |                                           | For the Years Ended December 31, |         
|                                                                                                                                                    |                                           |                                  |         
|                                                                                                                                                    |                                           | 2002                             |          |         | 2003 |   |          | 2004   |  
|                                                                                                                                                    |                                           |                                  |          |         |      |   |          |        |  
|                                                                                                                                                    |                                           | (Dollars in thousands)           |         
|Cash flows from operating activities:                                                                                                               |                                           |                                  |          |         |      |   |          |        |   |   |          |       
|Net income (loss)                                                                                                                                   |                                           | $                                | (160,495 | )       |      | $ | (154,090 | )      |   | $ | 682,527  |       
|Adjustments to reconcile net income (loss) to net cash provided
    by operating activities, net of effects from acquisitions and
    divestitures: |                                           |                                  |          |         |      |   |          |        |   |   |          |       
|Depreciation and amortization                                                                                                                       |                                           |                                  | 135,005  |         |      |   | 153,094  |        |   |   | 174,370  |       
|Accretion of interest                                                                                                                               |                                           |                                  | 53,969   |         |      |   | 21,662   |        |   |   | 3,459    |       
|Loss on equity investment                                                                                                                           |                                           |                                  | 1,761    |         |      |   | 875      |        |   |   |         |       
|Bad debt expense                                                                                                                                    |                                           |                                  | 18,889   |         |      |   | 8,530    |        |   |   | 7,761    |       
|Non-cash compensation                                                                                                                               |                                           |                                  | 21,430   |         |      |   | 28,810   |        |   |   | 19,965   |       
|Deferred income taxes                                                                                                                               |                                           |                                  | 23,674   |         |      |   | 10,347   |        |   |   | (5,235   | )     
|(Gain) loss on debt extinguishment                                                                                                                  |                                           |                                  |         |         |      |   | 41,171   |        |   |   | (468     | )     
|Other non-operating gains                                                                                                                           |                                           |                                  |         |         |      |   |         |        |   |   | (814,386 | )     
|Loss on derivative instruments                                                                                                                      |                                           |                                  | 5,436    |         |      |   | 2,023    |        |   |   | 3,092    |       
|Change in operating assets and liabilities:                                                                                                         |                                           |                                  |          |         |      |   |          |        |   |   |          |       
|                                                                                                                                                    | Accounts receivable                       |                                  |          | (41,454 | )    |   |          | 403    |   |   |          | (5,208 | )
|                                                                                                                                                    | Inventory                                 |                                  |          | (33     | )    |   |          | 4,166  |   |   |          | 5,332  |  
|                                                                                                                                                    | Prepaid expenses and other current assets |                                  |          | (2,562  | )    |   |          | (2,709 | ) |   |          | (2,713 | )
|                                                                                                                                                    | Intangible and other assets               |                                  |          | 680     |      |   |          | (3,489 | ) |   |          | 3,867  |  
|                                                                                                                                                    | Accounts payable                          |                                  |          | (8,104  | )    |   |          | 15,079 |   |   |          | 1,875  |  
|                                                                                                                                                    | Accrued payroll and liabilities           |                                  |          | (1,734  | )    |   |          | 5,369  |   |   |          | 14,612 |  
|                                                                                                                                                    | Deferred revenue                          |                                  |          | 7,371   |      |   |          | 1,669  |   |   |          | (508   | )
|                                                                                                                                                    | Accrued interest                          |                                  |          | 286     |      |   |          | 2,633  |   |   |          | 304    |  
|                                                                                                                                                    | Other liabilities                         |                                  |          | (29     | )    |   |          | 1,256  |   |   |          | (3,473 | )
|                                                                                                                                                    |                                           |                                  |          |         |      |   |          |        |  
|Net cash provided by operating activities                                                                                                           |                                           |                                  | 54,090   |         |      |   | 136,799  |        |   |   | 85,173   |       
|Cash flows from investing activities:                                                                                                               |                                           |                                  |          |         |      |   |          |        |   |   |          |       
|Purchase of available for sale securities                                                                                                           |                                           |                                  | (788,050 | )       |      |   | (675,200 | )      |   |   | (845,600 | )     
|Proceeds from sale of available for sale securities                                                                                                 |                                           |                                  | 954,974  |         |      |   | 770,917  |        |   |   | 455,600  |       
|Capital expenditures                                                                                                                                |                                           |                                  | (165,935 | )       |      |   | (145,874 | )      |   |   | (77,795  | )     
|Net investments in and advances to non-consolidated entity                                                                                          |                                           |                                  | (14,922  | )       |      |   | (875     | )      |   |   |         |       
|Repayments from non-consolidated entity                                                                                                             |                                           |                                  | 57,873   |         |      |   | 58       |        |   |   |         |       
|Proceeds from exchange of FCC licenses                                                                                                              |                                           |                                  |         |         |      |   |         |        |   |   | 4,698    |       
|Deposits on FCC licenses                                                                                                                            |                                           |                                  |         |         |      |   |         |        |   |   | (6,937   | )     
|Acquisition of FCC licenses                                                                                                                         |                                           |                                  | (113,705 | )       |      |   | (28,413  | )      |   |   | (2,161   | )     
|Proceeds from asset exchange                                                                                                                        |                                           |                                  |         |         |      |   |         |        |   |   | 176,000  |       
|Payment of direct costs on business transactions                                                                                                    |                                           |                                  |         |         |      |   |         |        |   |   | (8,827   | )     
|Other                                                                                                                                               |                                           |                                  | 52       |         |      |   | 738      |        |   |   | 252      |       
|                                                                                                                                                    |                                           |                                  |          |         |      |   |          |        |  
|Net cash used in investing activities                                                                                                               |                                           |                                  | (69,713  | )       |      |   | (78,649  | )      |   |   | (304,770 | )     
|Cash flows from financing activities:                                                                                                               |                                           |                                  |          |         |      |   |          |        |   |   |          |       
|Proceeds from issuance of debt, net of discount                                                                                                     |                                           |                                  |         |         |      |   | 710,500  |        |   |   |         |       
|Borrowings under senior secured credit facility                                                                                                     |                                           |                                  | 65,000   |         |      |   |         |        |   |   |         |       
|Borrowings under senior secured term loan                                                                                                           |                                           |                                  |         |         |      |   |         |        |   |   | 250,000  |       
|Payments under senior secured credit facility                                                                                                       |                                           |                                  | (42,039  | )       |      |   | (207,961 | )      |   |   |         |       
|Payments of subordinated debt                                                                                                                       |                                           |                                  |         |         |      |   | (511,989 | )      |   |   | (4,463   | )     
|Payment of debt extinguishment costs                                                                                                                |                                           |                                  |         |         |      |   | (31,342  | )      |   |   | (10      | )     
|Change in bank overdraft                                                                                                                            |                                           |                                  | 3,627    |         |      |   | (3,171   | )      |   |   | (9,212   | )     
|Payment of deferred financing costs                                                                                                                 |                                           |                                  | (1,480   | )       |      |   | (2,680   | )      |   |   | (4,947   | )     
|Extinguishment of interest rate swaps                                                                                                               |                                           |                                  |         |         |      |   | (20,383  | )      |   |   | (3,092   | )     
|Principal payments under capital lease obligations                                                                                                  |                                           |                                  | (2,133   | )       |      |   | (1,948   | )      |   |   | (1,536   | )     
|Other                                                                                                                                               |                                           |                                  | 934      |         |      |   | 57       |        |   |   |         |       
|                                                                                                                                                    |                                           |                                  |          |         |      |   |          |        |  
|Net cash provided by (used in) financing activities                                                                                                 |                                           |                                  | 23,909   |         |      |   | (68,917  | )      |   |   | 226,740  |       
|Net increase (decrease) in cash and cash equivalents                                                                                                |                                           |                                  | 8,286    |         |      |   | (10,767  | )      |   |   | 7,143    |       
|Cash and cash equivalents, beginning of period                                                                                                      |                                           |                                  | 5,847    |         |      |   | 14,133   |        |   |   | 3,366    |       
|                                                                                                                                                    |                                           |                                  |          |         |      |   |          |        |  
|Cash and cash equivalents, end of period                                                                                                            |                                           | $                                | 14,133   |         |      | $ | 3,366    |        |   | $ | 10,509   |       
|                                                                                                                                                    |                                           |                                  |          |         |      |   |          |        |  



F-8



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##### Table of Contents






TRITON PCS HOLDINGS, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


Years Ended December 31, 2002, 2003 and 2004




|    |                                                          
|--- | ---------------------------------------------------------
|(1) | Summary of Operations and Significant Accounting Policies





|    |                     
|--- | --------------------
|(a) | Nature of Operations



TDMA GSM/GPRS




|    |                                
|--- | -------------------------------
|(b) | Liquidity and Capital Resources







|    |                 
|--- | ----------------
|(c) | Use of Estimates



F-9



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##### Table of Contents



TRITON PCS HOLDINGS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |     |                                                    
| | --- | ---------------------------------------------------
| | (d) | Cash and Cash Equivalents and Marketable Securities







| |     |          
| | --- | ---------
| | (e) | Inventory





| |     |                         
| | --- | ------------------------
| | (f) | Construction in Progress





| |     |                           
| | --- | --------------------------
| | (g) | Investment in PCS Licenses





| |     |         
| | --- | --------
| | (h) | Goodwill





| |     |               
| | --- | --------------
| | (i) | Deferred Costs



F-10



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##### Table of Contents



TRITON PCS HOLDINGS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|    |                  
|--- | -----------------
|(j) | Long-Lived Assets







|    |                                                
|--- | -----------------------------------------------
|(k) | Deferred Gain on Sale of Property and Equipment



F-11



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##### Table of Contents



TRITON PCS HOLDINGS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                    
|--- | -------------------
|(l) | Revenue Recognition





|    |             
|--- | ------------
|(m) | Income Taxes





|    |                      
|--- | ---------------------
|(n) | Financial Instruments





|    |                  
|--- | -----------------
|(o) | Advertising Costs





|    |                              
|--- | -----------------------------
|(p) | Concentrations of Credit Risk





F-12



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##### Table of Contents



TRITON PCS HOLDINGS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|    |                   
|--- | ------------------
|(q) | Stock Compensation





|                                                                                                                                                    |  |                                  |          |   |      |   |          |      |  |   |         |  
|--------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------------------- | -------- | - | ---- | - | -------- | ---- |  | - | ------- | -
|                                                                                                                                                    |  | For the Years Ended December 31, |         
|                                                                                                                                                    |  |                                  |         
|                                                                                                                                                    |  | 2002                             |          |   | 2003 |   |          | 2004 | 
|                                                                                                                                                    |  |                                  |          |   |      |   |          |      | 
|                                                                                                                                                    |  | (Dollars in thousands,           |         
|                                                                                                                                                    |  | except per share data)           |         
|Net income (loss) applicable to common stockholders                                                                                                 |  | $                                | (172,533 | ) |      | $ | (167,388 | )    |  | $ | 704,750 |  
|Add: stock-based employee compensation expense included in
    reported net income (loss), net of related tax effects                               |  |                                  | 21,430   |   |      |   | 28,810   |      |  |   | 19,965  |  
|Deduct: total stock-based employee compensation expense
    determined under fair value based method for all awards, net of
    related tax effects |  |                                  | (21,712  | ) |      |   | (28,834  | )    |  |   | (19,965 | )
|                                                                                                                                                    |  |                                  |          |   |      |   |          |      | 
|Pro forma net income (loss) applicable to common stockholders                                                                                       |  | $                                | (172,815 | ) |      | $ | (167,412 | )    |  | $ | 704,750 |  
|                                                                                                                                                    |  |                                  |          |   |      |   |          |      | 
|Earnings per Share:                                                                                                                                 |  |                                  |          |   |      |   |          |      |  |   |         |  
|As reported net income (loss) applicable to common stockholders
    (basic)                                                                         |  | $                                | (2.62    | ) |      | $ | (2.52    | )    |  | $ | 10.47   |  
|As reported net income (loss) applicable to common stockholders
    (diluted)                                                                       |  | $                                | (2.62    | ) |      | $ | (2.52    | )    |  | $ | 7.07    |  
|Pro forma net income (loss) applicable to common stockholders
    (basic)                                                                           |  | $                                | (2.62    | ) |      | $ | (2.52    | )    |  | $ | 10.47   |  
|Pro forma net income (loss) applicable to common stockholders
    (diluted)                                                                         |  | $                                | (2.62    | ) |      | $ | (2.52    | )    |  | $ | 7.07    |  



|    |                           
|--- | --------------------------
|(r) | Variable Interest Entities



F-13



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##### Table of Contents



TRITON PCS HOLDINGS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|    |                  
|--- | -----------------
|(s) | Reclassifications





|    |                              
|--- | -----------------------------
|(t) | New Accounting Pronouncements







F-14



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##### Table of Contents



TRITON PCS HOLDINGS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|    |                 
|--- | ----------------
|(2) | AT&T Transaction







(a) Stockholders Agreement




| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The Stockholders Agreement was to expire on
    February 4, 2009. The agreement was amended and restated on
    October 27, 1999 in connection with the Companys
    initial public offering and included following material terms
    and conditions:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|
| | Exclusivity  None of the stockholders who were
    parties to the Stockholders Agreement, or their
    affiliates, were permitted to provide or resell, or act as the
    agent for any person offering, within the defined territory,
    wireless mobility telecommunications services initiated or
    terminated using TDMA and frequencies licensed by the FCC or, in
    certain circumstances (such as if AT&T Wireless PCS and its
    affiliates moved to a successor technology in a majority of the
    defined southeastern region), a successor technology
    (Company Communications Services), except AT&T
    Wireless PCS and its affiliates were permitted (but never
    exercised their right) to resell or act as agent for the Company
    in connection with the provision of Company Communications
    Services, (i) provide or resell wireless telecommunications
    services to or from certain specific locations, and
    (ii) resell Company Communications Services for another
    person in any area where the Company has not placed a system
    into commercial service, provided that AT&T Wireless PCS had
    provided the Company with prior written notice of AT&T
    Wireless PCSs intention to do so and only dual band/dual
    mode phones were used in connection with such resale activities.
|
| | Preferred Provider Status  With respect to the
    markets listed in the AT&T Wireless roaming agreement, the
    Company and AT&T Wireless PCS agreed to cause their
    respective affiliates in their home carrier capacities to
    program and direct the programming of customer equipment so that
    the other party in its capacity as the serving carrier would be
    the preferred provider in such markets, and refrain from
    inducing any of its customers to change such programming.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

F-15



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##### Table of Contents



TRITON PCS HOLDINGS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                                                                                                                                                                                                                            
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Build-out  The Company was required to conform
    to certain requirements regarding the construction of the
    Companys PCS network.                                                                                   
|
| | Share Transfers  Stockholders who were parties
    to the Stockholders Agreement were required to comply with
    certain restrictions on transfer, including a right of first
    negotiation in favor of AT&T Wireless.

(b) License Agreement




| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Pursuant to a Network Membership License Agreement, dated
    February 4, 1998 (as amended, the License
    Agreement), among AT&T Corp., the Company and AT&T
    Wireless, AT&T Corp. granted to the Company a royalty-free,
    nontransferable, nonsublicensable, limited right and license to
    use certain licensed marks solely in connection with certain
    licensed activities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|
| | The License Agreements initial fair value was determined
    to be $8.4 million with an estimated useful life of
    10 years. As of December 31, 2003, the net book value
    of this intangible asset was $3.4 million. On
    February 17, 2004, AT&T Wireless and Cingular Wireless
    entered into an Agreement and Plan of Merger. Subsequently,
    AT&T Wireless and Cingular Wireless indicated that the
    merged entity would not continue the use of the AT&T brand,
    which affected the benefits provided to the Company under its
    co-branding arrangement with AT&T Wireless. As a result,
    beginning in the first quarter of 2004, the Company accelerated
    the amortization of the License Agreement to fully amortize this
    intangible over its revised useful life, which ended on
    October 26, 2004 (the date Cingular Wireless consummated
    its acquisition of AT&T Wireless). The impact of this change
    for the year ended December 31, 2004, was an increase in
    amortization expense and a decrease in net income available to
    common stockholders of approximately $2.6 million. Net
    income available to common stockholders per basic and diluted
    share decreased approximately $0.04 and $0.03, respectively, as
    a result of the accelerated amortization on the license
    agreement intangible asset.

(c) Roaming Agreement




| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Pursuant to an Intercarrier Roamer Service Agreement, dated as
    of February 4, 1998 (as amended, the Roaming
    Agreement), between AT&T Wireless and the Company,
    each of AT&T Wireless and the Company agreed to provide PCS
    service for registered customers of the other carrier while such
    customers were out of the home carriers geographic area
    and in the geographic area where the serving carrier (itself or
    through affiliates) held a license or permit to construct and
    operate PCS service. The fair value of the Roaming Agreement, as
    determined by an independent appraisal, was $5.5 million,
    with an estimated useful life of 20 years. The Roaming
    Agreements value was attributable to the exclusivity
    component of the Stockholders Agreement, which resulted in
    AT&T Wireless customers roaming onto the
    Companys network more frequently than the Companys
    subscribers roaming onto AT&T Wireless network.
|
| | As described in Note 3 below, on October 26, 2004,
    pursuant to the Triton PCS Agreement, the Roaming Agreement was
    terminated upon consummation of the AT&T Wireless and
    Cingular Wireless merger. Accordingly, during the third quarter
    of 2004, the Company accelerated the amortization of the Roaming
    Agreement to fully amortize this intangible over its revised
    useful life, which ended on October 26, 2004. The impact of
    this change for the year ended December 31, 2004, was an
    increase in amortization expense and a decrease in net income
    available to common stockholders of approximately
    $3.6 million. Net income available to common stockholders
    per basic and diluted share decreased by approximately $0.05 and
    $0.04, respectively, as a result of the accelerated amortization
    on the roaming agreement intangible asset.                                                                                              

F-16



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##### Table of Contents



TRITON PCS HOLDINGS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                                                                  
|--- | -----------------------------------------------------------------
|(3) | Current Relationship with AT&T Wireless and Cingular
    Wireless







| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Triton Holdings Agreement. On October 26, 2004 (the
    date Cingular Wireless consummated its acquisition of AT&T
    Wireless), pursuant to an agreement dated July 7, 2004 by
    and among the Company, AT&T Wireless, AT&T Wireless PCS
    and Cingular Wireless (the Triton Holdings
    Agreement), AT&T Wireless PCS surrendered to Holdings
    all of the Holdings stock owned by AT&T Wireless. Upon
    the surrender by AT&T Wireless PCS of its Holdings stock,
    the Stockholders Agreement was terminated. In addition,
    Holdings Investors Stockholders Agreement, dated as
    of February 4, 1998, as amended, by and among
    Holdings initial cash equity investors and certain of its
    management stockholders, also was terminated pursuant to its
    terms upon termination of the Stockholders Agreement. The
    termination of the Stockholders Agreement allows the
    combined Cingular Wireless/ AT&T Wireless to operate in
    regions where the Company once had the right to operate
    exclusively and allows the Company to operate in areas where it
    was once prohibited. Also pursuant to the Triton PCS Holdings
    Agreement, AT&T Wireless transferred to the Company its
    interest in the entity that controls the SunCom
    brand name and related trademarks and waived the payment of a
    $3.5 million dividend previously declared by Holdings on
    its Series A preferred stock.



| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Triton PCS Agreement. Pursuant to an agreement dated
    July 7, 2004 by and among Triton PCS, Inc., a wholly-owned
    subsidiary of Holdings (Triton PCS), AT&T
    Wireless, AT&T Wireless PCS and Cingular Wireless, on
    October 26, 2004, the Roaming Agreement was terminated and
    Triton PCS roaming agreement with Cingular Wireless was
    amended to extend the term and reduce the roaming rates payable
    to the Company and its affiliates thereunder. Without the
    exclusivity agreement that previously applied to AT&T
    Wireless, Cingular Wireless will not rely on the Companys
    network for service to the same degree that AT&T Wireless
    did in the past. However, since the rates are reciprocal, the
    Company is able to offer its customers wide-area rate plans at
    acceptable rates of return due to lower expense associated with
    reduced roaming rates. This change will make the Company less
    dependent on roaming revenue, which is not directly within the
    Companys control, and will allow the Companys
    subscriber revenues to produce a greater proportion of its
    income from operations. In addition, AT&T Wireless
    transferred certain FCC licenses covering Savannah, Georgia, and
    Asheville, Wilmington and Jacksonville, North Carolina, to the
    Company in exchange for certain FCC licenses held by the Company
    covering Savannah and Augusta, Georgia. As additional

F-17



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##### Table of Contents



TRITON PCS HOLDINGS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | consideration for this license exchange, Cingular Wireless has
    also paid the Company approximately $4.7 million.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|
| |  | In connection with the consummation of the Triton Holdings
    Agreement and the Triton PCS Agreement on October 26, 2004,
    the Company recognized a non-operating gain available to common
    stockholders of $185.5 million, net of expenses of
    $2.2 million. This gain is the result of Holdings redeeming
    its Series A Preferred Stock and Series D Preferred
    Stock with an aggregate book value of approximately
    $152.2 million. The Company also received AT&T
    Wireless two thirds ownership in the entity that controls
    the SunCom brand name with a fair market value of approximately
    $22.9 million, cash of approximately $4.7 million and
    FCC licenses with a value of approximately $10.9 million.
    In addition, the Company entered into a new roaming agreement
    with Cingular Wireless with a non-reciprocal TDMA component with
    a fair value of approximately $2.9 million. In exchange,
    the Company terminated its Stockholders Agreement with
    AT&T Wireless with a book value of approximately
    $3.9 million and transferred FCC licenses with a book value
    of approximately $2.0 million.





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Exchange Agreement. On September 21, 2004, the
    Company entered into an Exchange Agreement with AT&T
    Wireless and Cingular Wireless LLC (the Exchange
    Agreement). On December 1, 2004, pursuant to the
    closing of the first stage of the Exchange Agreement, the
    Company transferred PCS network assets held for use in its
    Virginia markets to AT&T Wireless in exchange for PCS
    network assets held by AT&T Wireless for use in certain of
    its North Carolina markets, in Puerto Rico and in the
    U.S. Virgin Islands and the payment by Cingular Wireless to
    the Company of $175 million.



| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Prior to the first closing of the Exchange Agreement, the
    Company and AT&T Wireless separately contributed their
    respective network assets and FCC license assets to two new,
    wholly-owned subsidiaries  one to hold the
    transferred network assets (other than certain associated FCC
    licenses) and the other to hold the relevant FCC licenses. At
    the first closing, the parties exchanged equity interests in the
    subsidiaries which hold the network assets. At the second
    closing, which is expected to occur after obtaining required FCC
    approvals, the parties will exchange equity interests in the
    subsidiaries holding the FCC licenses. Pending the second
    closing, the parties have entered into spectrum lease
    agreements, which allow each party to use the licensed PCS
    spectrum associated with the previously exchanged network
    assets. See Note 4 for additional disclosure regarding the
    Companys accounting treatment of the Exchange Agreement.
|
| |  | In connection with the consummation of the Exchange Agreement,
    the Company recognized a non-operating pre-tax gain of
    $663.1 million, net of expenses of $3.5 million. This
    gain is the result of the Company exchanging tangible and
    intangible assets in its Virginia markets (the Virginia
    Markets) with a book value of approximately
    $422.0 million and a fair value of approximately
    $1,079.5 million. In addition, the Company recognized a
    gain of approximately $9.1 million as the result of
    eliminating liabilities associated with the divested Virginia
    assets.                                                                                                                                                                                                                                                                                                                                                                                                              



F-18



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##### Table of Contents



TRITON PCS HOLDINGS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                     
|--- | --------------------
|(4) | Exchange Transaction



|                                                          |                                                           |                                   |   |         |           | 
|--------------------------------------------------------- | --------------------------------------------------------- | --------------------------------- | - | ------- | --------- | 
|                                                          |                                                           | December 1, 2004                  |  
|                                                          |                                                           | Purchase Price Allocation         |  
|                                                          |                                                           |                                   |  
|                                                          |                                                           | (Dollars in thousands)            |  
|Fair value of consideration and direct transaction costs: |                                                           |                                   |   |        
|                                                          | Due to seller of NC/ PR                                   |                                   | $ | 2,554   |          
|                                                          | Fair value of Virginia Markets working capital divested   |                                   |   | 16,759  |          
|                                                          | Fair value of Virginia Markets tangible assets divested   |                                   |   | 341,238 |          
|                                                          | Fair value of Virginia Markets intangible assets divested |                                   |   | 721,476 |          
|                                                          | Deferred tax liability                                    |                                   |   | 96,216  |          
|                                                          | Direct transaction costs                                  |                                   |   | 3,526   |          
|                                                          |                                                           |                                   |  
|                                                          |                                                           | Total fair value of consideration |   | $       | 1,181,769 | 
|                                                          |                                                           |                                   |  
|Allocation of purchase price:                             |                                                           |                                   |   |        
|                                                          | Cash received                                             |                                   | $ | 175,000 |          
|                                                          | Fair value of NC/ PR working capital acquired             |                                   |   | 40,801  |          
|                                                          | Fair value of NC/ PR tangible assets acquired             |                                   |   | 361,704 |          
|                                                          | Fair value of NC/ PR intangible assets acquired           |                                   |   | 503,685 |          
|                                                          | Goodwill                                                  |                                   |   | 100,579 |          
|                                                          |                                                           |                                   |  
|                                                          |                                                           | Total purchase price allocation   |   | $       | 1,181,769 | 
|                                                          |                                                           |                                   |  



F-19



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##### Table of Contents



TRITON PCS HOLDINGS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                               |  |                        |          |   |      |   |          |  
|---------------------------------------------- |  | ---------------------- | -------- | - | ---- | - | -------- | -
|                                               |  | For the Years Ended    |         
|                                               |  | December 31,           |         
|                                               |  |                        |         
|                                               |  | 2003                   |          |   | 2004 |  
|                                               |  |                        |          |   |      |  
|                                               |  | (Dollars in thousands, |         
|                                               |  | except share amounts)  |         
|Total revenues                                 |  | $                      | 815,995  |   |      | $ | 881,165  |  
|                                               |  |                        |          |   |      |  
|Net loss                                       |  | $                      | (263,987 | ) |      | $ | (179,301 | )
|                                               |  |                        |          |   |      |  
|Net loss available to common stockholders      |  | $                      | (277,285 | ) |      | $ | (193,809 | )
|                                               |  |                        |          |   |      |  
|Net loss per common share (Basic and Diluted): |  | $                      | (4.17    | ) |      | $ | (2.88    | )
|                                               |  |                        |          |   |      |  



|    |                                         
|--- | ----------------------------------------
|(5) | Stock Compensation and Employee Benefits



| |                  
| | -----------------
| | Restricted Awards





|                                            |  |                                              |         |            |             |  |            |             |  |           |             |   |  |   |      | 
|------------------------------------------- |  | -------------------------------------------- | ------- | ---------- | ----------- |  | ---------- | ----------- |  | --------- | ----------- | - |  | - | ---- | 
|                                            |  |                                              |         | Restricted |             |  | Restricted |             |  |          
|                                            |  |                                              |         | Incentive  |             |  | Incentive  |             |  | Per Share |            
|                                            |  | Deferred                                     |         |            | Plan Shares |  |            | Plan Shares |  |           | Average     |  
|                                            |  | Compensation                                 |         |            | Available   |  |            | Issued      |  |           | Grant Price |  
|                                            |  |                                              |         |            |             |  |            |             |  |           |             |  
|                                            |  | (Dollars in thousands, except share amounts) |        
|January 1, 2002                             |  | $                                            | 92,619  |            |             |  | 1,676,845  |             |  |           | 3,277,650   |   |  |   |      | 
|                                            |  |                                              |         |            |             |  |            |             |  |           |             |  
|Restricted stock grants                     |  | $                                            | 7,379   |            |             |  | (845,070   | )           |  |           | 845,070     |   |  | $ | 8.33 | 
|Restricted stock forfeitures                |  | $                                            | (4,014  | )          |             |  | 135,617    |             |  |           | (135,617    | ) |  |   |      | 
|Amortization of deferred compensation       |  | $                                            | (21,430 | )          |             |  |            |             |  |           |             |   |  |   |      | 
|                                            |  |                                              |         |            |             |  |            |             |  |           |             |  
|December 31, 2002                           |  | $                                            | 74,554  |            |             |  | 967,392    |             |  |           | 3,987,103   |   |  |   |      | 
|                                            |  |                                              |         |            |             |  |            |             |  |           |             |  
|Restricted stock grants                     |  | $                                            | 3,123   |            |             |  | (1,002,628 | )           |  |           | 1,002,628   |   |  | $ | 3.12 | 
|Restricted stock forfeitures                |  | $                                            | (14,087 | )          |             |  | 508,472    |             |  |           | (508,472    | ) |  |   |      | 
|Amortization of deferred compensation       |  | $                                            | (28,810 | )          |             |  |            |             |  |           |             |   |  |   |      | 
|                                            |  |                                              |         |            |             |  |            |             |  |           |             |  
|December 31, 2003                           |  | $                                            | 34,780  |            |             |  | 473,236    |             |  |           | 4,481,259   |   |  |   |      | 
|                                            |  |                                              |         |            |             |  |            |             |  |           |             |  
|Additional Incentive Plan shares authorized |  |                                              |         |            |             |  | 3,600,000  |             |  |           |             |   |  |   |      | 
|Restricted stock grants                     |  | $                                            | 5,209   |            |             |  | (1,328,750 | )           |  |           | 1,328,750   |   |  | $ | 3.92 | 
|Restricted stock forfeitures                |  | $                                            | (6,140  | )          |             |  | 560,283    |             |  |           | (560,283    | ) |  |   |      | 
|Amortization of deferred compensation       |  | $                                            | (19,023 | )          |             |  |            |             |  |           |             |   |  |   |      | 
|                                            |  |                                              |         |            |             |  |            |             |  |           |             |  
|December 31, 2004                           |  | $                                            | 14,826  |            |             |  | 3,304,769  |             |  |           | 5,249,726   |   |  |   |      | 
|                                            |  |                                              |         |            |             |  |            |             |  |           |             |  



F-20



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##### Table of Contents



TRITON PCS HOLDINGS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                
| | ---------------
| | Retirement Plan









F-21



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##### Table of Contents



TRITON PCS HOLDINGS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






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





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





|    |            
|--- | -----------
|(6) | Investments



F-22



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##### Table of Contents



TRITON PCS HOLDINGS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                             |  |                |           |  |      |            |         |       |  |           |        |  |  |            |   |  |  |   |         | 
|---------------------------- |  | -------------- | --------- |  | ---- | ---------- | ------- | ----- |  | --------- | ------ |  |  | ---------- | - |  |  | - | ------- | 
|                             |  |                |           |  |      | Unrealized |         |       | 
|                             |  | Maturity       |           |  |      |            |         |       |  | Estimated |       
|2004                         |  | in Years       |           |  | Cost |            |         | Gains |  |           | Losses |  |  | Fair Value |  
|                             |  |                |           |  |      |            |         |       |  |           |        |  |  |            |  
|                             |  | (In thousands) |          
|Auction rate securities      |  |                | 1 or less |  |      | $          | 492,600 |       |  |           |       |  |  |            |  |  |  | $ | 492,600 | 
|                             |  |                |           |  |      |            |         |       |  |           |        |  |  |            |  
|Total short-term investments |  |                |           |  |      | $          | 492,600 |       |  |           |       |  |  |            |  |  |  | $ | 492,600 | 
|                             |  |                |           |  |      |            |         |       |  |           |        |  |  |            |  

|                             |  |                |           |  |      |            |         |       |  |           |        |  |  |            |   |  |  |   |         | 
|---------------------------- |  | -------------- | --------- |  | ---- | ---------- | ------- | ----- |  | --------- | ------ |  |  | ---------- | - |  |  | - | ------- | 
|                             |  |                |           |  |      | Unrealized |         |       | 
|                             |  | Maturity       |           |  |      |            |         |       |  | Estimated |       
|2003                         |  | in Years       |           |  | Cost |            |         | Gains |  |           | Losses |  |  | Fair Value |  
|                             |  |                |           |  |      |            |         |       |  |           |        |  |  |            |  
|                             |  | (In thousands) |          
|Auction rate securities      |  |                | 1 or less |  |      | $          | 102,600 |       |  |           |       |  |  |            |  |  |  | $ | 102,600 | 
|                             |  |                |           |  |      |            |         |       |  |           |        |  |  |            |  
|Total short-term investments |  |                |           |  |      | $          | 102,600 |       |  |           |       |  |  |            |  |  |  | $ | 102,600 | 
|                             |  |                |           |  |      |            |         |       |  |           |        |  |  |            |  



|    |                       
|--- | ----------------------
|(7) | Property and Equipment

|                        |                                            |                        |           |           |      |   |           |           |  
|----------------------- | ------------------------------------------ | ---------------------- | --------- | --------- | ---- | - | --------- | --------- | -
|                        |                                            | December 31,           |          
|                        |                                            |                        |          
|                        |                                            | 2003                   |           |           | 2004 |  
|                        |                                            |                        |           |           |      |  
|                        |                                            | (Dollars in thousands) |          
|Property and equipment: |                                            |                        |           |           |      |   |           |          
|                        | Land                                       |                        | $         | 377       |      |   | $         | 313       |  
|                        | Network infrastructure and equipment       |                        |           | 1,141,200 |      |   |           | 1,121,938 |  
|                        | Furniture, fixtures and computer equipment |                        |           | 98,134    |      |   |           | 88,832    |  
|                        | Capital lease assets                       |                        |           | 8,946     |      |   |           | 5,664     |  
|                        | Construction in progress                   |                        |           | 22,843    |      |   |           | 9,091     |  
|                        |                                            |                        |           |           |      |  
|                        |                                            |                        | 1,271,500 |           |      | $ | 1,225,838 |          
|                        | Less accumulated depreciation              |                        |           | (482,630  | )    |   |           | (411,711  | )
|                        |                                            |                        |           |           |      |  
|                        | Property and equipment, net                |                        | $         | 788,870   |      |   | $         | 814,127   |  
|                        |                                            |                        |           |           |      |  





F-23



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##### Table of Contents



TRITON PCS HOLDINGS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)












|    |                  
|--- | -----------------
|(8) | Intangible Assets







F-24



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##### Table of Contents



TRITON PCS HOLDINGS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|                               |  |                        |         |   |             |   |           |       |  |  |             | 
|------------------------------ |  | ---------------------- | ------- | - | ----------- | - | --------- | ----- |  |  | ----------- | 
|                               |  | December 31,           |         |   |            
|                               |  |                        |         |   | Amortizable |  
|                               |  | 2003                   |         |   | 2004        |   |           | Lives | 
|                               |  |                        |         |   |             |   |           |       | 
|                               |  | (Dollars in thousands) |         |   |            
|PCS Licenses                   |  | $                      | 493,296 |   |             | $ | 699,016   |       |  |  | Indefinite  | 
|AT&T and Cingular agreements   |  |                        | 26,026  |   |             |   | 2,884     |       |  |  | 3-20 years  | 
|Subscriber lists               |  |                        |        |   |             |   | 157,081   |       |  |  | 7 years     | 
|Bank financing                 |  |                        | 4,522   |   |             |   | 8,243     |       |  |  | 5-10 years  | 
|Agent exclusivity agreements   |  |                        | 164     |   |             |   |          |       |  |  | 1-3 years   | 
|SunCom brand                   |  |                        |        |   |             |   | 22,900    |       |  |  | 5 years     | 
|Income leases                  |  |                        |        |   |             |   | 12,696    |       |  |  | 23-25 years | 
|Goodwill                       |  |                        |        |   |             |   | 100,579   |       |  |  | Indefinite  | 
|Other                          |  |                        | 3,227   |   |             |   | 2,732     |       |  |  | 1-40 years  | 
|                               |  |                        |         |   |             |   |           |       | 
|                               |  |                        | 527,235 |   |             |   | 1,006,131 |       |  |  |             | 
|Less: accumulated amortization |  |                        | (38,352 | ) |             |   | (22,079   | )     |  |  |             | 
|                               |  |                        |         |   |             |   |           |       | 
|Intangible assets, net         |  | $                      | 488,883 |   |             | $ | 984,052   |       |  |  |             | 



F-25



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##### Table of Contents



TRITON PCS HOLDINGS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|     |  |                |        | 
|---- |  | -------------- | ------ | 
|Year |  | (In thousands) |       
|     |  |                |       
|2005 |  | $              | 29,823 | 
|2006 |  | $              | 29,717 | 
|2007 |  | $              | 29,686 | 
|2008 |  | $              | 28,775 | 
|2009 |  | $              | 27,929 | 



|    |                              
|--- | -----------------------------
|(9) | Detail of Certain Liabilities



|                           |                                                 |                                 |   |        |        |  |   |        |        | 
|-------------------------- | ----------------------------------------------- | ------------------------------- | - | ------ | ------ |  | - | ------ | ------ | 
|                           |                                                 | December 31,                    |  
|                           |                                                 |                                 |  
|                           |                                                 | 2003                            |   |        | 2004   | 
|                           |                                                 |                                 |   |        |        | 
|                           |                                                 | (Dollars in thousands)          |  
|Accrued liabilities:       |                                                 |                                 |   |        |        |  |   |       
|                           | Bank overdraft liability                        |                                 | $ | 22,721 |        |  | $ | 13,509 |       
|                           | Accrued payroll and related expenses            |                                 |   | 13,831 |        |  |   | 15,232 |       
|                           | Accrued expenses                                |                                 |   | 13,819 |        |  |   | 29,682 |       
|                           | Accrued interest                                |                                 |   | 23,270 |        |  |   | 23,574 |       
|                           |                                                 |                                 |   |        |        | 
|                           |                                                 | Total accrued liabilities       |   | $      | 73,641 |  |   | $      | 81,997 | 
|Other current liabilities: |                                                 |                                 |   |        |        |  |   |       
|                           | Deferred revenue                                |                                 | $ | 21,605 |        |  | $ | 13,012 |       
|                           | Deferred gain on sale of property and equipment |                                 |   | 1,190  |        |  |   | 920    |       
|                           | Security deposits                               |                                 |   | 12,914 |        |  |   | 7,498  |       
|                           | Other                                           |                                 |   |       |        |  |   | 2,554  |       
|                           |                                                 |                                 |   |        |        | 
|                           |                                                 | Total other current liabilities |   | $      | 35,709 |  |   | $      | 23,984 | 



|     |               
|---- | --------------
|(10) | Long Term Debt



|                                   |                                              |                                         |   |         |           |  |   |         |           | 
|---------------------------------- | -------------------------------------------- | --------------------------------------- | - | ------- | --------- |  | - | ------- | --------- | 
|                                   |                                              | December 31,                            |  
|                                   |                                              |                                         |  
|                                   |                                              | 2003                                    |   |         | 2004      | 
|                                   |                                              |                                         |   |         |           | 
|                                   |                                              | (Dollars in thousands)                  |  
|Current portion of long-term debt: |                                              |                                         |   |         |           |  |   |        
|                                   | Current portion of capital lease obligations |                                         | $ | 1,444   |           |  | $ | 984     |          
|                                   | Current portion of senior secured term loan  |                                         |   |        |           |  |   | 2,500   |          
|                                   |                                              |                                         |   |         |           | 
|                                   |                                              | Total current portion of long-term debt |   |         | 1,444     |  |   |         | 3,484     | 
|Long-term debt:                    |                                              |                                         |   |         |           |  |   |        
|                                   | Capital lease obligations                    |                                         | $ | 909     |           |  | $ | 269     |          
|                                   | Senior secured term loan                     |                                         |   |        |           |  |   | 247,500 |          
|                                   | 81/2% senior
    notes                       |                                         |   | 710,205 |           |  |   | 712,055 |          
|                                   | 93/8% senior
    subordinated notes          |                                         |   | 340,395 |           |  |   | 338,460 |          
|                                   | 83/4% senior
    subordinated notes          |                                         |   | 392,279 |           |  |   | 390,034 |          
|                                   |                                              |                                         |   |         |           | 
|                                  
|                                   |                                              | Total long-term debt                    |   |         | 1,443,788 |  |   |         | 1,688,318 | 
|                                   |                                              | Total debt                              |   | $       | 1,445,232 |  |   | $       | 1,691,802 | 
|                                   |                                              |                                         |   |         |           | 

F-26



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##### Table of Contents



TRITON PCS HOLDINGS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|           |       |                |           |           | 
|---------- | ----- | -------------- | --------- | --------- | 
|Year       |       | (In thousands) |          
|           |       |                |          
|2005       |       | $              | 3,484     |          
|2006       |       |                | 2,591     |          
|2007       |       |                | 2,566     |          
|2008       |       |                | 2,564     |          
|2009       |       |                | 240,048   |          
|Thereafter |       |                | 1,440,549 |          
|           |       |                |          
|           | Total |                | $         | 1,691,802 | 
|           |       |                |          



| |                      
| | ---------------------
| | Old Credit Facilities

1 2








| |                         
| | ------------------------
| | Senior Secured Term Loan





F-27



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##### Table of Contents



TRITON PCS HOLDINGS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)














| |             
| | ------------
| | Senior Notes



| |                       
| | ----------------------
| | 81/2% Senior
    Notes

1 2 1 2




1 2 1 2


1 2 1 2 1 2


1 2 1 2


F-28



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##### Table of Contents



TRITON PCS HOLDINGS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


1 2


1 2




| |                         
| | ------------------------
| | Senior Subordinated Debt



| |                                    
| | -----------------------------------
| | 93/8% Senior
    Subordinated Notes

3 8 3 8


3 8




3 8 3 8


3 8 3 8


3 8 3 8


3 8




| |                                    
| | -----------------------------------
| | 83/4% Senior
    Subordinated Notes

3 4 3 4


3 4




F-29



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##### Table of Contents



TRITON PCS HOLDINGS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


3 4 3 4


3 4 3 4


3 4 3 4


3 4




| |                                       
| | --------------------------------------
| | Repayment of Senior Subordinated Notes



| |                              
| | -----------------------------
| | 11% Senior Subordinated Notes

1 2




|     |             
|---- | ------------
|(11) | Income Taxes



|                         |         |                          |        |        |      |   |        |       |  |   |        |        |  
|------------------------ | ------- | ------------------------ | ------ | ------ | ---- | - | ------ | ----- |  | - | ------ | ------ | -
|                         |         | Years Ended December 31, |       
|                         |         |                          |       
|                         |         | 2002                     |        |        | 2003 |   |        | 2004  | 
|                         |         |                          |        |        |      |   |        |       | 
|Current                  |         |                          |        |        |      |   |        |       |  |   |        |       
|                         | Federal |                          | $      |       |      |   | $      |      |  |   | $      | 6,419  |  
|                        
|                         | State   |                          |        | 976    |      |   |        | 1,560 |  |   |        | 15,888 |  
|                         |         |                          |        |        |      |   |        |       | 
|                         |         |                          | 976    |        |      |   | 1,560  |       |  |   | 22,307 |       
|                         |         |                          |        |        |      |   |        |       | 
|Deferred                 |         |                          |        |        |      |   |        |       |  |   |        |       
|                         | Federal |                          |        | 21,409 |      |   |        | 8,818 |  |   |        | (5,946 | )
|                         | State   |                          |        | 2,265  |      |   |        | 1,529 |  |   |        | 497    |  
|                         | Foreign |                          |        |       |      |   |        |      |  |   |        | 214    |  
|                         |         |                          |        |        |      |   |        |       | 
|                         |         |                          | 23,674 |        |      |   | 10,347 |       |  |   | (5,235 | )     
|                         |         |                          |        |        |      |   |        |       | 
|Total income tax expense |         | $                        | 24,650 |        |      | $ | 11,907 |       |  | $ | 17,072 |       
|                         |         |                          |        |        |      |   |        |       | 

F-30



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##### Table of Contents



TRITON PCS HOLDINGS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                           |  |      |        |    |      |  |        |      |  |  |        |   
|------------------------------------------ |  | ---- | ------ | -- | ---- |  | ------ | ---- |  |  | ------ | --
|                                           |  | 2002 |        |    | 2003 |  |        | 2004 | 
|                                           |  |      |        |    |      |  |        |      | 
|U.S. federal statutory rate                |  |      | 35.00  | %  |      |  | 35.00  | %    |  |  | 35.00  | % 
|State income taxes, net of federal benefit |  |      | (1.55  | )% |      |  | (1.41  | )%   |  |  | 1.52   | % 
|Foreign                                    |  |      |       |    |      |  |       |      |  |  | .02    | % 
|Change in federal valuation allowance      |  |      | (50.75 | )% |      |  | (40.01 | )%   |  |  | (36.70 | )%
|Other, net                                 |  |      | (0.85  | )% |      |  | (1.95  | )%   |  |  | 2.60   | % 
|                                           |  |      |        |    |      |  |        |      | 
|Effective tax rate                         |  |      | (18.15 | )% |      |  | (8.37  | )%   |  |  | 2.44   | % 
|                                           |  |      |        |    |      |  |        |      | 



|                             |                                  |                          |         |          |         |   |         |          |         | 
|---------------------------- | -------------------------------- | ------------------------ | ------- | -------- | ------- | - | ------- | -------- | ------- | 
|                             |                                  | 2003                     |         |          | 2004    |  
|                             |                                  |                          |         |          |         |  
|Deferred tax assets:         |                                  |                          |         |          |         |   |         |         
|                             | Non-deductible accruals          |                          | $       | 17,205   |         |   | $       | 41,147   |        
|                             | Deferred gain                    |                          |         | 10,713   |         |   |         | 7,767    |        
|                             | Unrealized losses                |                          |         | 7,231    |         |   |         | 1        |        
|                             | Net operating loss carry forward |                          |         | 381,745  |         |   |         | 268,743  |        
|                             | Tax credits                      |                          |         |         |         |   |         | 8,584    |        
|                             |                                  |                          |         |          |         |  
|                             |                                  |                          | 416,894 |          |         |   | 326,242 |         
|                             | Valuation allowance              |                          |         | (351,631 | )       |   |         | (179,852 | )      
|                             |                                  |                          |         |          |         |  
|                             |                                  | Net deferred tax assets  |         |          | 65,263  |   |         |          | 146,390 | 
|Deferred liabilities         |                                  |                          |         |          |         |   |         |         
|                             | Intangibles                      |                          |         |         |         |   |         | 59,238   |        
|                             | FCC licenses                     |                          |         | 45,956   |         |   |         | 122,989  |        
|                             | Depreciation and amortization    |                          |         | 65,263   |         |   |         | 101,100  |        
|                             |                                  |                          |         |          |         |  
|                             |                                  | Deferred tax liabilities |         |          | 111,219 |   |         |          | 283,327 | 
|Net deferred tax liabilities |                                  | $                        | 45,956  |          |         | $ | 136,937 |         
|                             |                                  |                          |         |          |         |  





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##### Table of Contents



TRITON PCS HOLDINGS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|     |                                    
|---- | -----------------------------------
|(12) | Fair Value of Financial Instruments



|                                        |                          |              |      |                |            |   |      |          |  |   |            |         |  |   |   |         | 
|--------------------------------------- | ------------------------ | ------------ | ---- | -------------- | ---------- | - | ---- | -------- |  | - | ---------- | ------- |  | - | - | ------- | 
|                                        |                          | December 31, |     
|                                        |                          |              |     
|                                        |                          | 2003         |      |                | 2004       |  
|                                        |                          |              |      |                |            |  
|                                        |                          | Carrying     |      |                | Estimated  |   |      | Carrying |  |   | Estimated  |        
|                                        |                          | Amount       |      |                | Fair value |   |      | Amount   |  |   | Fair value |        
|                                        |                          |              |      |                |            |   |      |          |  |   |            |        
|                                        |                          |              |      | (In thousands) |            |   |     
|Interest rate swaps  acting as a hedge |                          | $            | (846 | )              |            | $ | (846 | )        |  | $ |           |         |  | $ |  |        
|Long-term debt:                         |                          |              |      |                |            |   |      |          |  |   |            |         |  |   |   |        
|                                        | Senior debt              |              |      | 710,205        |            |   |      | 779,375  |  |   |            | 712,055 |  |   |   | 703,250 | 
|                                        | Subordinated debt        |              |      | 732,674        |            |   |      | 751,000  |  |   |            | 728,494 |  |   |   | 587,260 | 
|                                        | Senior secured term loan |              |      |               |            |   |      |         |  |   |            | 250,000 |  |   |   | 250,000 | 
|                                        | Capital leases           |              |      | 2,353          |            |   |      | 2,353    |  |   |            | 1,253   |  |   |   | 1,253   | 











F-32



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##### Table of Contents



TRITON PCS HOLDINGS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|     |                                                       
|---- | ------------------------------------------------------
|(13) | Relationship with Lafayette Communications Company LLC















|     |                                                 
|---- | ------------------------------------------------
|(14) | Acquisition of Urban Comm  North Carolina, Inc.



F-33



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##### Table of Contents



TRITON PCS HOLDINGS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|     |                              
|---- | -----------------------------
|(15) | Commitments and Contingencies

(a) Leases








|    |                              
|--- | -----------------------------
|(1) | Future Minimum Lease Payments

|                                              |       |                |        |         |         |   |       |       | 
|--------------------------------------------- | ----- | -------------- | ------ | ------- | ------- | - | ----- | ----- | 
|                                              |       | Operating      |        |         | Capital |  
|                                              |       |                |        |         |         |  
|                                              |       | (In thousands) |       
|2005                                          |       | $              | 56,446 |         |         | $ | 1,022 |      
|2006                                          |       |                | 49,928 |         |         |   | 95    |      
|2007                                          |       |                | 41,806 |         |         |   | 67    |      
|2008                                          |       |                | 30,750 |         |         |   | 64    |      
|2009                                          |       |                | 22,224 |         |         |   | 48    |      
|Thereafter                                    |       |                | 97,589 |         |         |   |      |      
|                                              |       |                |        |         |         |  
|                                              | Total |                | $      | 298,743 |         |   | $     | 1,296 | 
|                                              |       |                |        |         |         |  
|Interest expense                              |       |                |        |         |         |   | 43    |      
|                                              |       |                |        |         |         |  
|Net present value of future payments          |       |                |        |         |         |   | 1,253 |      
|Current portion of capital lease obligation   |       |                |        |         |         |   | 984   |      
|                                              |       |                |        |         |         |  
|Long-term portion of capital lease obligation |       |                |        |         |         | $ | 269   |      
|                                              |       |                |        |         |         |  



F-34



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##### Table of Contents



TRITON PCS HOLDINGS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






(b) Litigation






|     |                                         
|---- | ----------------------------------------
|(16) | Preferred Stock and Stockholders Equity



|                                                               |  |                     |      |   |                 |  |      |                |  |  |               |  |  |  |       | 
|-------------------------------------------------------------- |  | ------------------- | ---- | - | --------------- |  | ---- | -------------- |  |  | ------------- |  |  |  | ----- | 
|                                                               |  |                     |      |   |                 |  |      | Class B Non-   | 
|                                                               |  | Series A Redeemable |      |   | Series D        |  |      | Class A Common |  |  | Voting Common | 
|                                                               |  | Preferred Stock     |      |   | Preferred Stock |  |      | Stock          |  |  | Stock         | 
|                                                               |  |                     |      |   |                 |  |      |                |  |  |               | 
|Balance at December 31, 2001                                   |  |                     | 786  |   |                 |  | 544  |                |  |  | 59,328        |  |  |  | 7,926 | 
|                                                               |  |                     |      |   |                 |  |      |                |  |  |               | 
|Non-cash compensation, net of forfeitures                      |  |                     |     |   |                 |  |     |                |  |  | 758           |  |  |  |      | 
|Issuance of stock pursuant to the Employee Stock Purchase Plan |  |                     |     |   |                 |  |     |                |  |  | 203           |  |  |  |      | 
|                                                               |  |                     |      |   |                 |  |      |                |  |  |               | 
|Balance at December 31, 2002                                   |  |                     | 786  |   |                 |  | 544  |                |  |  | 60,289        |  |  |  | 7,926 | 
|                                                               |  |                     |      |   |                 |  |      |                |  |  |               | 
|Non-cash compensation, net of forfeitures                      |  |                     |     |   |                 |  |     |                |  |  | 539           |  |  |  |      | 
|Issuance of stock pursuant to the Employee Stock Purchase Plan |  |                     |     |   |                 |  |     |                |  |  | 37            |  |  |  |      | 
|                                                               |  |                     |      |   |                 |  |      |                |  |  |               | 
|Balance at December 31, 2003                                   |  |                     | 786  |   |                 |  | 544  |                |  |  | 60,865        |  |  |  | 7,926 | 
|                                                               |  |                     |      |   |                 |  |      |                |  |  |               | 
|Non-cash compensation, net of forfeitures                      |  |                     |     |   |                 |  |     |                |  |  | 1,069         |  |  |  |      | 
|Redemption of Series A & Series D Preferred
    stock          |  |                     | (786 | ) |                 |  | (544 | )              |  |  |              |  |  |  |      | 
|                                                               |  |                     |      |   |                 |  |      |                |  |  |               | 
|Balance at December 31, 2004                                   |  |                     |     |   |                 |  |     |                |  |  | 61,934        |  |  |  | 7,926 | 
|                                                               |  |                     |      |   |                 |  |      |                |  |  |               | 

(a) Redemption of
Preferred Stock




F-35



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##### Table of Contents



TRITON PCS HOLDINGS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








(b) Preferred
Stock












F-36



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##### Table of Contents



TRITON PCS HOLDINGS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|     |                          
|---- | -------------------------
|(17) | Earnings (Loss) Per Share



|                                                                                                     |  |                                                   |            |   |      |   |            |      |  |   |             | 
|---------------------------------------------------------------------------------------------------- |  | ------------------------------------------------- | ---------- | - | ---- | - | ---------- | ---- |  | - | ----------- | 
|                                                                                                     |  | Year Ended December 31,                           |           
|                                                                                                     |  |                                                   |           
|                                                                                                     |  | 2002                                              |            |   | 2003 |   |            | 2004 | 
|                                                                                                     |  |                                                   |            |   |      |   |            |      | 
|                                                                                                     |  | (Dollars in thousands, except earnings per share) |           
|Net income (loss) available to common stockholders(A)                                                |  | $                                                 | (172,533   | ) |      | $ | (167,388   | )    |  | $ | 704,750     | 
|Accreted dividends on preferred stock                                                                |  |                                                   |           |   |      |   |           |      |  | $ | 11,938      | 
|                                                                                                     |  |                                                   |            |   |      |   |            |      | 
|Net income (loss) available to common stockholders plus assumed
    Conversion of preferred stock(B) |  | $                                                 | (172,533   | ) |      | $ | (167,388   | )    |  | $ | 716,688     | 
|Weighted average outstanding shares of common stock(C)                                               |  |                                                   | 65,885,515 |   |      |   | 66,529,610 |      |  |   | 67,323,095  | 
|Dilutive effect of unvested stock awards                                                             |  |                                                   |           |   |      |   |           |      |  |   | 2,311,835   | 
|Dilutive effect of conversion of Series A preferred stock                                            |  |                                                   |           |   |      |   |           |      |  |   | 21,522,723  | 
|Dilutive effect of conversion of Series D preferred stock                                            |  |                                                   |           |   |      |   |           |      |  |   | 10,249,761  | 
|                                                                                                     |  |                                                   |            |   |      |   |            |      | 
|Weighted average common stock and common stock equivalents(D)                                        |  |                                                   | 65,885,515 |   |      |   | 66,529,610 |      |  |   | 101,407,414 | 
|Earnings (loss) per share:                                                                           |  |                                                   |            |   |      |   |            |      |  |   |             | 
|Basic(A/ C)                                                                                          |  | $                                                 | (2.62      | ) |      | $ | (2.52      | )    |  | $ | 10.47       | 
|                                                                                                     |  |                                                   |            |   |      |   |            |      | 
|Diluted(B/ D)                                                                                        |  | $                                                 | (2.62      | ) |      | $ | (2.52      | )    |  | $ | 7.07        | 
|                                                                                                     |  |                                                   |            |   |      |   |            |      | 





|     |                                               
|---- | ----------------------------------------------
|(18) | Termination Benefits and Other Related Charges



F-37



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##### Table of Contents



TRITON PCS HOLDINGS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|     |                                            
|---- | -------------------------------------------
|(19) | Quarterly Results of Operations (Unaudited)



|                                       |  |                                       |         |   |         |   |         |         |  |   |         |   |  |   |         |  
|-------------------------------------- |  | ------------------------------------- | ------- | - | ------- | - | ------- | ------- |  | - | ------- | - |  | - | ------- | -
|                                       |  | First                                 |         |   | Second  |   |         | Third   |  |   | Fourth  |  
|2003                                   |  | Quarter                               |         |   | Quarter |   |         | Quarter |  |   | Quarter |  
|                                       |  |                                       |         |   |         |   |         |         |  |   |         |  
|                                       |  | (in thousands, except per share data) |        
|Total revenue                          |  | $                                     | 188,461 |   |         | $ | 206,470 |         |  | $ | 213,668 |   |  | $ | 201,500 |  
|Income from operations                 |  |                                       | 4,432   |   |         |   | 15,998  |         |  |   | 17,698  |   |  |   | 2,683   |  
|Net loss available to stockholders     |  |                                       | (38,013 | ) |         |   | (64,669 | )       |  |   | (30,029 | ) |  |   | (34,677 | )
|Net loss per share  basic and diluted |  | $                                     | (0.57   | ) |         | $ | (0.97   | )       |  | $ | (0.46   | ) |  | $ | (0.52   | )

|                                            |  |                                       |         |   |         |   |         |         |  |   |         |   |  |   |         |    
|------------------------------------------- |  | ------------------------------------- | ------- | - | ------- | - | ------- | ------- |  | - | ------- | - |  | - | ------- | ---
|                                            |  | First                                 |         |   | Second  |   |         | Third   |  |   | Fourth  |  
|2004                                        |  | Quarter                               |         |   | Quarter |   |         | Quarter |  |   | Quarter |  
|                                            |  |                                       |         |   |         |   |         |         |  |   |         |  
|                                            |  | (in thousands, except per share data) |        
|Total revenue                               |  | $                                     | 197,960 |   |         | $ | 212,489 |         |  | $ | 212,243 |   |  | $ | 195,508 |    
|Income (loss) from operations               |  |                                       | (2,338  | ) |         |   | 6,218   |         |  |   | 12,589  |   |  |   | (2,474  | )  
|Net income (loss) available to stockholders |  |                                       | (40,240 | ) |         |   | (31,588 | )       |  |   | (25,929 | ) |  |   | 802,507 |    
|Net income (loss) per share  basic         |  | $                                     | (0.60   | ) |         | $ | (0.47   | )       |  | $ | (0.38   | ) |  | $ | 11.85   | (A)
|Net income (loss) per share  diluted       |  | $                                     | (0.60   | ) |         | $ | (0.47   | )       |  | $ | (0.38   | ) |  | $ | 9.86    |    






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(A) | As a result of the significant gains incurred on the
    Companys transactions with Cingular Wireless and AT&T
    Wireless in the fourth quarter of 2004, the sum of basic
    earnings per share for the four quarters of 2004 is less than
    basic earnings per share calculated for the year then ended. If
    this gain of $848.5 million had not been recorded in the
    fourth quarter of 2004, the Companys basic loss per share
    would have been ($0.68) and ($2.14) for the quarter and year
    ending December 31, 2004, respectively.

F-38



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##### Table of Contents



TRITON PCS HOLDINGS, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|     |                                   
|---- | ----------------------------------
|(20) | Supplemental Cash Flow Information

|                                                                       |                                                                                                        |                |        |         |      |   |         |         |   |   |         |         |  
|---------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------ | -------------- | ------ | ------- | ---- | - | ------- | ------- | - | - | ------- | ------- | -
|                                                                       |                                                                                                        | 2002           |        |         | 2003 |   |         | 2004    |  
|                                                                       |                                                                                                        |                |        |         |      |   |         |         |  
|                                                                       |                                                                                                        | (in thousands) |       
|Cash paid during the year for interest, net of amounts
    capitalized |                                                                                                        | $              | 89,831 |         |      | $ | 116,915 |         |   | $ | 124,864 |        
|Cash paid during the year for taxes                                    |                                                                                                        |                | 976    |         |      |   | 1,560   |         |   |   | 6,906   |        
|Non-cash investing and financing activities:                           |                                                                                                        |                |        |         |      |   |         |         |   |   |         |        
|                                                                       | Deferred stock compensation                                                                            |                |        | 3,365   |      |   |         | (10,964 | ) |   |         | (1,025  | )
|                                                                       | Equipment acquired under capital lease obligation                                                      |                |        | 291     |      |   |         | 1,551   |   |   |         | 438     |  
|                                                                       | Change in fair value of derivative instruments                                                         |                |        | 3,235   |      |   |         | (583    | ) |   |         | (846    | )
|                                                                       | Change in capital expenditures included in accounts payable                                            |                |        | (30,667 | )    |   |         | (5,375  | ) |   |         | 19,573  |  
|                                                                       | FCC license acquisition through retirement of note receivable                                          |                |        |        |      |   |         | 71,961  |   |   |         |        |  
|                                                                       | Accrued direct transaction costs                                                                       |                |        |        |      |   |         |        |   |   |         | 503     |  
|                                                                       | Intangible assets acquired through the Triton Holdings Agreement
    and the Triton PCS Agreement, net |                |        |        |      |   |         |        |   |   |         | 21,842  |  
|                                                                       | Asset retirement obligation accruals for property, plant and
    equipment                             |                |        |        |      |   |         | 1,187   |   |   |         | 613     |  
|                                                                       | Tangible assets acquired through the Exchange Agreement, net                                           |                |        |        |      |   |         |        |   |   |         | 90,109  |  
|                                                                       | Intangible assets acquired through the Exchange Agreement, net                                         |                |        |        |      |   |         |        |   |   |         | 463,071 |  

F-39



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##### Table of Contents








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








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

Evaluation of Controls and Procedures.


Changes in Internal Controls.


Scope of Managements Report on Internal Control Over
Financial Reporting.


Managements Report in Internal Control Over Financial
Reporting.







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



| |                                                               
| | --------------------------------------------------------------
| | Amended and Restated Stock and Incentive Plan Award
    Notice

Award
Notice,


43



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##### Table of Contents







| |                               
| | ------------------------------
| | Director Stock Award Agreement






PART III







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



NYSE.


http://www.tritonpcs.com




44



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##### Table of Contents








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








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








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








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






PART IV







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

(a)(1) Financial Statements and Financial Statement
Schedules




|                                                                                              |  |  |     | 
|--------------------------------------------------------------------------------------------- |  |  | --- | 
|Managements Report on Internal Control Over Financial
    Reporting                          |  |  | F-2 | 
|Report of Independent Registered Public Accounting Firm                                       |  |  | F-3 | 
|Consolidated Balance Sheets                                                                   |  |  | F-5 | 
|Consolidated Statements of Operations and Comprehensive Income
    (Loss)                     |  |  | F-6 | 
|Consolidated Statements of Redeemable Preferred Equity and
    Stockholders Equity (Deficit) |  |  | F-7 | 
|Consolidated Statements of Cash Flows                                                         |  |  | F-8 | 
|Notes to Consolidated Financial Statements                                                    |  |  | F-9 | 
|Schedule I  Condensed Financial Information of
    Triton PCS Holdings, Inc.                 |  |  | 46  | 
|Schedule II  Valuation and Qualifying Accounts                                               |  |  | 49  | 

45



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##### Table of Contents



(a)(1) Financial Statement Schedules


TRITON PCS HOLDINGS, INC.


SCHEDULE I  CONDENSED FINANCIAL INFORMATION


TRITON PCS HOLDINGS, INC.


BALANCE SHEETS


|                                                     |                                      |                        |          |         |              |   |          |         | 
|---------------------------------------------------- | ------------------------------------ | ---------------------- | -------- | ------- | ------------ | - | -------- | ------- | 
|                                                     |                                      | December 31,           |          |         | December 31, |  
|                                                     |                                      | 2003                   |          |         | 2004         |  
|                                                     |                                      |                        |          |         |              |  
|                                                     |                                      | (Dollars in thousands) |         
|ASSETS:                                              |                                      |                        |          |         |              |   |          |        
|                                                     | Investment in subsidiaries           |                        | $        |        |              |   | $        |        | 
|                                                     | Deferred tax asset                   |                        |          |        |              |   |          | 2,384   | 
|                                                     | Equity in net income of subsidiaries |                        |          |        |              |   |          | 416,707 | 
|                                                     |                                      |                        |          |         |              |  
|Total Assets                                         |                                      | $                      |         |         |              | $ | 419,091  |        
|                                                     |                                      |                        |          |         |              |  
|                                                    
|LIABILITIES AND STOCKHOLDERS EQUITY (DEFICIT):     
|                                                     | Accrued liabilities                  |                        | $        |        |              |   | $        | 14,632  | 
|                                                     | Equity in net loss of subsidiaries   |                        |          | 179,950 |              |   |          |        | 
|                                                     |                                      |                        |          |         |              |  
|Total Liabilities                                    |                                      |                        | 179,950  |         |              |   | 14,632   |        
|                                                    
|Series A Redeemable Preferred Stock, $0.01 par value |                                      |                        | 140,301  |         |              |   |         |        
|                                                    
|STOCKHOLDERS EQUITY (DEFICIT)                       |                                      |                        |          |         |              |   |          |        
|Series B Preferred Stock, $0.01 par value            |                                      |                        |         |         |              |   |         |        
|Series C Preferred Stock, $0.01 par value            |                                      |                        |         |         |              |   |         |        
|Series D Preferred Stock, $0.01 par value            |                                      |                        | 5        |         |              |   |         |        
|Class A Common Stock, $0.01 par value                |                                      |                        | 609      |         |              |   | 619      |        
|Class B Non-voting Common Stock, $0.01 par value     |                                      |                        | 79       |         |              |   | 79       |        
|Additional paid-in capital                           |                                      |                        | 591,376  |         |              |   | 613,600  |        
|Accumulated deficit                                  |                                      |                        | (876,165 | )       |              |   | (193,638 | )      
|Common stock held in trust                           |                                      |                        |         |         |              |   | (94      | )      
|Treasury stock                                       |                                      |                        | (1,375   | )       |              |   | (1,375   | )      
|Deferred compensation                                |                                      |                        | (34,780  | )       |              |   | (14,732  | )      
|                                                     |                                      |                        |          |         |              |  
|Total Stockholders Equity (Deficit)                 |                                      |                        | (320,251 | )       |              |   | 404,459  |        
|                                                     |                                      |                        |          |         |              |  
|Total Liabilities and Stockholders Equity (Deficit) |                                      | $                      |         |         |              | $ | 419,091  |        
|                                                     |                                      |                        |          |         |              |  



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TRITON PCS HOLDINGS, INC.


SCHEDULE I  CONDENSED FINANCIAL
INFORMATION  (Continued)


TRITON PCS HOLDINGS, INC.


STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)


|                                                            |  |                        |          |   |                    |   |          |                    |  |   |         |  
|----------------------------------------------------------- |  | ---------------------- | -------- | - | ------------------ | - | -------- | ------------------ |  | - | ------- | -
|                                                            |  | For the Year Ended     |          |   | For the Year Ended |   |          | For the Year Ended | 
|                                                            |  | December 31, 2002      |          |   | December 31, 2003  |   |          | December 31, 2004  | 
|                                                            |  |                        |          |   |                    |   |          |                    | 
|                                                            |  | (Dollars in thousands) |         
|Equity in net income (loss) from operations of subsidiaries |  | $                      | (160,314 | ) |                    | $ | (153,970 | )                  |  | $ | 559,581 |  
|General & administrative expenses                           |  |                        | (181     | ) |                    |   | (120     | )                  |  |   | (177    | )
|                                                            |  |                        |          |   |                    |   |          |                    | 
|Income (loss) from operations                               |  |                        | (160,495 | ) |                    |   | (154,090 | )                  |  |   | 559,404 |  
|Other gain                                                  |  |                        |         |   |                    |   |         |                    |  |   | 137,755 |  
|                                                            |  |                        |          |   |                    |   |          |                    | 
|Net income (loss) before taxes                              |  |                        | (160,495 | ) |                    |   | (154,090 | )                  |  |   | 697,159 |  
|Income tax provision                                        |  |                        |         |   |                    |   |         |                    |  |   | (14,632 | )
|                                                            |  |                        |          |   |                    |   |          |                    | 
|Net income (loss)                                           |  |                        | (160,495 | ) |                    |   | (154,090 | )                  |  |   | 682,527 |  
|Accretion of preferred stock                                |  |                        | (12,038  | ) |                    |   | (13,298  | )                  |  |   | (11,938 | )
|Redemption of preferred stock                               |  |                        |         |   |                    |   |         |                    |  |   | 34,161  |  
|                                                            |  |                        |          |   |                    |   |          |                    | 
|Net income (loss) available to common stockholders          |  | $                      | (172,533 | ) |                    | $ | (167,388 | )                  |  | $ | 704,750 |  
|                                                            |  |                        |          |   |                    |   |          |                    | 
|Other comprehensive income (loss), net of tax:              |  |                        |          |   |                    |   |          |                    |  |   |         |  
|Unrealized gain (loss) on derivatives instruments           |  |                        | 2,201    |   |                    |   | 1,429    |                    |  |   |        |  
|Reclassification adjustment for previous unrealized losses  |  |                        |         |   |                    |   | 4,030    |                    |  |   |        |  
|                                                            |  |                        |          |   |                    |   |          |                    | 
|Comprehensive income (loss)                                 |  | $                      | (170,332 | ) |                    | $ | (161,929 | )                  |  | $ | 704,750 |  
|                                                            |  |                        |          |   |                    |   |          |                    | 



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TRITON PCS HOLDINGS, INC.


SCHEDULE I  CONDENSED FINANCIAL
INFORMATION  (Continued)


TRITON PCS HOLDINGS, INC.


STATEMENTS OF CASH FLOWS


|                                                                                         |                                                             |                        |      |          |                    |   |      |                    |   |   |        |          |  
|---------------------------------------------------------------------------------------- | ----------------------------------------------------------- | ---------------------- | ---- | -------- | ------------------ | - | ---- | ------------------ | - | - | ------ | -------- | -
|                                                                                         |                                                             | For the Year Ended     |      |          | For the Year Ended |   |      | For the Year Ended |  
|                                                                                         |                                                             | December 31, 2002      |      |          | December 31, 2003  |   |      | December 31, 2004  |  
|                                                                                         |                                                             |                        |      |          |                    |   |      |                    |  
|                                                                                         |                                                             | (Dollars in thousands) |     
|Cash flows from operating activities:                                                    |                                                             |                        |      |          |                    |   |      |                    |   |   |        |         
|                                                                                         | Net income (loss)                                           |                        | $    | (160,495 | )                  |   | $    | (154,090           | ) |   | $      | 682,527  |  
|                                                                                         | Equity in net (income) loss from operations of subsidiaries |                        |      | 160,314  |                    |   |      | 153,970            |   |   |        | (559,581 | )
|                                                                                         | Other non-operating gain                                    |                        |      |         |                    |   |      |                   |   |   |        | (137,755 | )
|                                                                                         | Deferred tax asset                                          |                        |      |         |                    |   |      |                   |   |   |        | (2,384   | )
|Change in operating assets and liabilities                                               |                                                             |                        |      |          |                    |   |      |                    |   |   |        |         
|                                                                                         | Accrued expenses                                            |                        |      |         |                    |   |      |                   |   |   |        | 14,632   |  
|                                                                                         |                                                             |                        |      |          |                    |   |      |                    |  
|Net cash used in operating activities                                                    |                                                             |                        | (181 | )        |                    |   | (120 | )                  |   |   | (2,561 | )       
|Cash flows from investing activities Payment of direct costs on
    business transaction |                                                             |                        |     |          |                    |   |     |                    |   |   | (2,170 | )       
|                                                                                         | Investment in subsidiaries                                  |                        |      | (753     | )                  |   |      | 63                 |   |   |        | 4,731    |  
|                                                                                         |                                                             |                        |      |          |                    |   |      |                    |  
|Net cash provided by (used in) investing activities                                      |                                                             |                        | (753 | )        |                    |   | 63   |                    |   |   | 2,561  |         
|Cash flows from financing activities Proceeds from capital
    contribution              |                                                             |                        | 23   |          |                    |   |     |                    |   |   |       |         
|Contributions under the employee stock purchase plan                                     |                                                             |                        | 911  |          |                    |   | 57   |                    |   |   |       |         
|                                                                                         |                                                             |                        |      |          |                    |   |      |                    |  
|Net cash provided by financing activities                                                |                                                             |                        | 934  |          |                    |   | 57   |                    |   |   |       |         
|Net decrease in cash                                                                     |                                                             |                        |     |          |                    |   |     |                    |   |   |       |         
|Cash and cash equivalents, beginning of period                                           |                                                             |                        |     |          |                    |   |     |                    |   |   |       |         
|                                                                                         |                                                             |                        |      |          |                    |   |      |                    |  
|Cash and cash equivalents, end of period                                                 |                                                             | $                      |     |          |                    | $ |     |                    |   | $ |       |         
|                                                                                         |                                                             |                        |      |          |                    |   |      |                    |  





| |         |                                                                                                                                                                                          
| | ------- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Note 1. | These statements should be read in conjunction with the
    consolidated financial statements of Triton PCS Holdings, Inc,
    and its subsidiaries and notes thereto filed on Form 10-K.

48



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##### Table of Contents



TRITON PCS HOLDINGS, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


TRITON PCS HOLDINGS, INC.


SCHEDULE II  VALUATION AND QUALIFYING
ACCOUNTS


|                                             |                              |                |   |           |            |  |            |             |  |  |             |         |  |         |   |        |   |  |   |         | 
|-------------------------------------------- | ---------------------------- | -------------- | - | --------- | ---------- |  | ---------- | ----------- |  |  | ----------- | ------- |  | ------- | - | ------ | - |  | - | ------- | 
|                                             |                              |                |   | Additions |            |  | Deductions |             |  |  |             |        
|                                             |                              | Balance at     |   |           | Charged to |  |            | Credited to |  |  | Purchase    |         |  | Balance |  
|                                             |                              | Beginning      |   |           | Cost and   |  |            | Costs and   |  |  | Accounting  |         |  | at End  |  
|                                             |                              | of Year        |   |           | Expenses   |  |            | Expenses    |  |  | Adjustments |         |  | of Year |  
|                                             |                              |                |   |           |            |  |            |             |  |  |             |         |  |         |  
|                                             |                              | (in thousands) |  
|Allowance for doubtful accounts:             |                              |                |   |           |            |  |            |             |  |  |             |         |  |         |   |        |   |  |   |        
|                                             | Year ended December 31, 2002 |                | $ | 3,345     |            |  | $          | 18,889      |  |  | $           | 15,226  |  |         | $ |       |   |  | $ | 7,008   | 
|                                             | Year ended December 31, 2003 |                |   | 7,008     |            |  |            | 8,530       |  |  |             | 11,699  |  |         |   |       |   |  |   | 3,839   | 
|                                             | Year ended December 31, 2004 |                |   | 3,839     |            |  |            | 7,761       |  |  |             | 7,876   |  |         |   | 3,861  |   |  |   | 7,585   | 
|Inventory Obsolescence Reserve:              |                              |                |   |           |            |  |            |             |  |  |             |         |  |         |   |        |   |  |   |        
|                                             | Year ended December 31, 2002 |                | $ | 686       |            |  | $          | 1,056       |  |  | $           | 1,096   |  |         | $ |       |   |  | $ | 646     | 
|                                             | Year ended December 31, 2003 |                |   | 646       |            |  |            | 3,092       |  |  |             | 3,049   |  |         |   |       |   |  |   | 689     | 
|                                             | Year ended December 31, 2004 |                |   | 689       |            |  |            | 1,335       |  |  |             | 1,526   |  |         |   |       |   |  |   | 498     | 
|Valuation Allowance for Deferred Tax Assets: |                              |                |   |           |            |  |            |             |  |  |             |         |  |         |   |        |   |  |   |        
|                                             | Year ended December 31, 2002 |                | $ | 236,567   |            |  | $          | 78,562      |  |  | $           |        |  |         | $ |       |   |  | $ | 315,129 | 
|                                             | Year ended December 31, 2003 |                |   | 315,129   |            |  |            | 36,502      |  |  |             |        |  |         |   |       |   |  |   | 351,631 | 
|                                             | Year ended December 31, 2004 |                |   | 351,631   |            |  |            |            |  |  |             | 162,451 |  |         |   | (9,328 | ) |  |   | 179,852 | 



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##### Table of Contents



(a)(3) Exhibits


|        |      |  |             |                                                                                                                                                                                                                                                                                                                                                                                                                           
|------- | ---- |  | ----------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |      |  |            
|Number  |      |  | Description
|        |      |  |            
|        | 2.1  |  |             | Exchange Agreement among Triton PCS Holdings, Inc., the entities
    defined therein as Triton Contributing Entities, AT&T
    Wireless Services, Inc., the entities defined therein as AWS
    Contributing Entities and Cingular Wireless LLC. (incorporated
    by reference to Exhibit 2.1 to the Form 10-Q of Triton PCS
    Holdings, Inc. filed August 9, 2004).                                                   
|       
|        | 3.1  |  |             | Second Restated Certificate of Incorporation of Triton PCS
    Holdings, Inc. (incorporated by reference to Exhibit 3.4 to
    the Form 10-Q of Triton PCS Holdings, Inc. for the quarter ended
    September 30, 1999).                                                                                                                                                                                                  
|       
|        | 3.2  |  |             | Second Amended and Restated Bylaws of Triton PCS Holdings, Inc.
    (incorporated by reference to Exhibit 3.6 to the Form 10-Q
    of Triton PCS Holdings, Inc. for the quarter ended
    September 30, 1999).                                                                                                                                                                                                            
|       
|        | 4.1  |  |             | Specimen Common Stock Certificate (incorporated by reference to
    Exhibit 4.1 to Amendment No. 3 to the Form S-1
    Registration Statement of Triton PCS Holdings, Inc., File
    No. 333-85149).                                                                                                                                                                                                                      
|       
|        | 4.2  |  |             | Indenture, dated as of January 19, 2001, among Triton PCS,
    Inc., the Guarantors party thereto and The Bank of New York, as
    trustee (incorporated by reference to Exhibit 4.5 to
    Amendment No. 2 to the Form S-3 Registration Statement
    of Triton PCS Holdings, Inc., File No. 333-49974).                                                                                                                 
|       
|        | 4.3  |  |             | Supplemental Indenture, dated as of November 18, 2004, by
    and among Triton PCS, Inc., Affiliate License Co., L.L.C. and
    The Bank of New York, to the Indenture, dated as of
    January 19, 2001, among Triton PCS, Inc., the Guarantors
    party thereto and The Bank of New York, as trustee.                                                                                                                  
|       
|        | 4.4  |  |             | Supplemental Indenture, dated as of January 27, 2005, by
    and among Triton PCS, Inc., AWS Network Newco, LLC, SunCom
    Wireless International, LLC, SunCom Wireless Puerto Rico
    Operating Company, LLC, Triton Network Newco, LLC and The Bank
    of New York to the Indenture, dated as of January 19, 2001,
    among Triton PCS, Inc., the Guarantors party thereto and The
    Bank of New York, as trustee.
|       
|        | 4.5  |  |             | Indenture, dated as of November 14, 2001, among Triton PCS,
    Inc., the Guarantors thereto and The Bank of New York, as
    trustee (incorporated by reference to Exhibit 4.1 to the
    Form 8-K/A of Triton PCS Holdings, Inc. filed November 15,
    2001).                                                                                                                                                          
|       
|        | 4.6  |  |             | Supplemental Indenture, dated as of November 18, 2004, by
    and among Triton PCS, Inc., Affiliate License Co., L.L.C. and
    The Bank of New York to the Indenture, dated as of
    November 14, 2001, among Triton PCS, Inc., the Guarantors
    thereto and The Bank of New York, as trustee.                                                                                                                        
|       
|        | 4.7  |  |             | Supplemental Indenture, dated as of January 27, 2005, by
    and among Triton PCS, Inc., AWS Network Newco, LLC, SunCom
    Wireless International, LLC, SunCom Wireless Puerto Rico
    Operating Company, LLC, Triton Network Newco, LLC and The Bank
    of New York to the Indenture, dated as of November 14,
    2001, among Triton PCS, Inc., the Guarantors thereto and The
    Bank of New York, as trustee.     
|       
|        | 4.8  |  |             | Indenture, dated as of June 13, 2003, among Triton PCS,
    Inc., the Guarantors thereto and The Bank of New York, as
    trustee (incorporated by reference to Exhibit 4.1 to the
    Form 8-K/A of Triton PCS Holdings, Inc. filed June 16,
    2003).                                                                                                                                                                  
|       
|        | 4.9  |  |             | Supplemental Indenture, dated as of November 18, 2004, by
    and among Triton PCS, Inc., Affiliate License Co., L.L.C. and
    The Bank of New York, to the Indenture, dated as of
    June 13, 2003, among Triton PCS, Inc., the Guarantors
    thereto and The Bank of New York, as trustee.                                                                                                                           
|       
|        | 4.10 |  |             | Supplemental Indenture, dated as of January 27, 2005, by
    and among Triton PCS, Inc., AWS Network Newco, LLC, SunCom
    Wireless International, LLC, SunCom Wireless Puerto Rico
    Operating Company, LLC, Triton Network Newco, LLC and The Bank
    of New York, to the Indenture, dated as of June 13, 2003,
    among Triton PCS, Inc., the Guarantors thereto and The Bank of
    New York, as trustee.        
|       
|        | 10.1 |  |             | Term Loan Agreement, dated as of November 18, 2004, among
    Triton PCS, Inc., the lenders party thereto, Lehman Commercial
    Paper Inc., as Administrative Agent, and Merrill Lynch, Pierce,
    Fenner & Smith Incorporated, as Syndication Agent
    (incorporated by reference to Exhibit 10.1 to the Form 8-K
    of Triton PCS Holdings, Inc. filed November 23, 2004).                                          

50



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|        |       |  |             |                                                                                                                                                                                                                                                                                                                                                                                   
|------- | ----- |  | ----------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |       |  |            
|Number  |       |  | Description
|        |       |  |            
|       
|        | 10.2  |  |             | Pledge Agreement, dated as of November 18, 2004, among
    Triton PCS, Inc., each Subsidiary of the Borrower party thereto,
    SunCom Wireless Investment Company LLC and Lehman Commercial
    Paper Inc., as Collateral Agent for the Secured Parties
    (incorporated by reference to Exhibit 10.2 to the Form 8-K
    of Triton PCS Holdings, Inc. filed November 23, 2004).
|       
|        | 10.3  |  |             | Security Agreement, dated as of November 18, 2004, among
    Triton PCS, Inc., each Subsidiary of the Borrower party thereto
    and Lehman Commercial Paper Inc., as Collateral Agent for the
    Secured Parties (incorporated by reference to Exhibit 10.3
    to the Form 8-K of Triton PCS Holdings, Inc. filed
    November 23, 2004).                                      
|       
|        | 10.4  |  |             | Guarantee Agreement, dated as of November 18, 2004, among
    each Subsidiary of Triton PCS, Inc. party thereto and Lehman
    Commercial Paper Inc., as Collateral Agent for the Secured
    Parties (incorporated by reference to Exhibit 10.4 to the
    Form 8-K of Triton PCS Holdings, Inc. filed November 23,
    2004).                                                   
|       
|        | 10.5  |  |             | Indemnity, Subrogation and Contribution Agreement, dated as of
    November 18, 2004, among Triton PCS, Inc., each Subsidiary
    of the Borrower party thereto and Lehman Commercial Paper Inc.,
    as Collateral Agent for the Secured Parties (incorporated by
    reference to Exhibit 10.5 to the Form 8-K of Triton PCS
    Holdings, Inc. filed November 23, 2004).       
|       
|        | 10.6  |  |             | Ericsson Acquisition Agreement, dated as of March 11, 1998,
    between Triton Equipment Company L.L.C. and Ericsson, Inc.
    (incorporated by reference to Exhibit 10.15 to Amendment
    No. 2 to the Form S-4 Registration Statement of Triton
    PCS, Inc. and its subsidiaries, File No. 333-57715).**                                                                     
|       
|        | 10.7  |  |             | First Addendum to Acquisition Agreement, dated as of
    May 24, 1999, between Triton PCS Equipment Company L.L.C.
    and Ericsson, Inc. (incorporated by reference to
    Exhibit 10.27 to Amendment No. 3 to the Form S-1
    Registration Statement of Triton PCS Holdings, Inc., File
    No. 333-85149).**                                                                  
|       
|        | 10.8  |  |             | Second Addendum to Acquisition Agreement, dated as of
    September 22, 1999, between Triton PCS Equipment Company
    L.L.C. and Ericsson, Inc. (incorporated by reference to
    Exhibit 10.13 to the Form 10-K of Triton PCS Holdings, Inc.
    for the year ended December 31, 2000).**                                                                                       
|       
|        | 10.9  |  |             | Third Addendum to Acquisition Agreement, dated as of
    June 20, 2000, between Triton PCS Equipment Company L.L.C.
    and Ericsson, Inc. (incorporated by reference to
    Exhibit 10.14 to the Form 10-K of Triton PCS Holdings, Inc.
    for the year ended December 31, 2000).**                                                                                             
|       
|        | 10.10 |  |             | Fourth Addendum to Acquisition Agreement, effective as of
    September 21, 2001, between Triton PCS Equipment Company
    L.L.C. and Ericsson Inc. (incorporated by reference to
    Exhibit 10.3 to the Form 10-Q of Triton PCS Holdings, Inc.
    for the quarter ended June 30, 2002).**                                                                                      
|       
|        | 10.11 |  |             | Employment Agreement, dated as of February 4, 1998, among
    Triton Management Company, Inc., Triton PCS Holdings, Inc. and
    Michael E. Kalogris (incorporated by reference to
    Exhibit 10.16 to the Form S-4 Registration Statement
    of Triton PCS, Inc. and its subsidiaries, File
    No. 333-57715).*                                                               
|       
|        | 10.12 |  |             | Amendment No. 1 to Employment Agreement, dated as of
    June 29, 1998, among Triton Management Company, Inc.,
    Triton PCS Holdings, Inc., and Michael E. Kalogris (incorporated
    by reference to Exhibit 10.16.1 to Amendment No. 1 to
    the Form S-4 Registration Statement of Triton PCS, Inc. and
    its subsidiaries, File No. 333-57715).*                         
|       
|        | 10.13 |  |             | Amendment No. 2 to the Employment Agreement by and among
    Triton Management Company, Inc., Triton PCS Holdings, Inc. and
    Michael E. Kalogris, dated December, 1998 (incorporated by
    reference to Exhibit 10.39 to Post-Effective Amendment
    No. 2 to the Form S-4 Registration Statement of Triton
    PCS, Inc. and its subsidiaries, File No. 333-57715).*        
|       
|        | 10.14 |  |             | Amendment No. 3 to the Employment Agreement by and among
    Triton Management Company, Inc., Triton PCS Holdings, Inc. and
    Michael E. Kalogris, dated June 8, 1999 (incorporated by
    reference to Exhibit 10.40 to Post-Effective Amendment
    No. 2 to the Form S-4 Registration Statement of Triton
    PCS, Inc. and its subsidiaries, File No. 333-57715).*          
|       
|        | 10.15 |  |             | Letter Agreement, dated as of May 6, 2003, by and among
    Triton PCS Holdings, Inc., Triton Management Company, Inc. and
    Michael E. Kalogris (incorporated by reference to
    Exhibit 10.2 to the Form 10-Q/A, Amendment No.1, of Triton
    PCS Holdings, Inc. for the quarter ended March 31, 2003).*                                                                    

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|        |       |  |             |                                                                                                                                                                                                                                                                                                                      
|------- | ----- |  | ----------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |       |  |            
|Number  |       |  | Description
|        |       |  |            
|       
|        | 10.16 |  |             | Employment Agreement, dated May 24, 2001, to be effective
    as of January 1, 2001, by and between Triton Management
    Company, Inc. and David D. Clark (incorporated by reference to
    Exhibit 10.1 to the Form 10-Q of Triton PCS Holdings, Inc.
    for the quarter ended June 30, 2001).*                   
|       
|        | 10.17 |  |             | Letter Agreement, dated as of May 6, 2003, by and among
    Triton PCS Holdings, Inc., Triton Management Company, Inc. and
    David D. Clark (incorporated by reference to Exhibit 10.3
    to the Form 10-Q/A, Amendment No.1, of Triton PCS Holdings, Inc.
    for the quarter ended March 31, 2003).*            
|       
|        | 10.18 |  |             | Employment Agreement, dated as of March 7, 2005, by and
    Triton PCS Holdings, Inc., Triton Management Company, Inc. and
    William A. Robinson (incorporated by reference to Exhibit [10.1]
    to the Form 8-K of Triton PCS Holdings, Inc. filed
    March 11, 2005).                                          
|       
|        | 10.19 |  |             | Amended and Restated Common Stock Trust Agreement for Management
    Employees and Independent Directors, dated as of June 26,
    1998 (incorporated by reference to Exhibit 10.19 to
    Amendment No. 1 to the Form S-4 Registration Statement
    of Triton PCS, Inc. and its subsidiaries, File No. 333-57715).*
|       
|        | 10.20 |  |             | Form of Stockholders Letter Agreement for Management Employees
    (incorporated by reference to Exhibit 10.43 to
    Post-Effective Amendment No. 2 to the Form S-4 Registration
    Statement of Triton PCS, Inc. and its subsidiaries, File
    No. 333-57715).*                                                  
|       
|        | 10.21 |  |             | Triton PCS Holdings, Inc. Directors Stock and Incentive
    Plan (incorporated by reference to Exhibit 10.5 to the Form
    10-Q of Triton PCS Holdings, Inc. for the quarter ended
    March 31, 2004).*                                                                                                           
|       
|        | 10.22 |  |             | Form of Directors Stock Award Agreement.*                                                                                                                                                                                                                                                                            
|       
|        | 10.23 |  |             | Form of 2002 Director Stock Award Agreement, as amended
    (incorporated by reference to Exhibit 10.9 to the Form 10-Q
    of Triton PCS Holdings, Inc. for the quarter ended June 30,
    2002).*                                                                                                                  
|       
|        | 10.24 |  |             | Triton PCS Holdings, Inc. Amended and Restated Stock and
    Incentive Plan (incorporated by reference to Exhibit 10.4
    to the Form 10-Q of Triton PCS Holdings, Inc. for the quarter
    ended March 31, 2004).*                                                                                                 
|       
|        | 10.25 |  |             | Form of Notification of Restricted Stock Award.*                                                                                                                                                                                                                                                                     
|       
|        | 10.26 |  |             | Triton PCS Holdings, Inc. Employee Stock Purchase Plan
    (incorporated by reference to Exhibit 10.46 to Amendment
    no. 1 to the Form S-1 Registration Statement of Triton PCS
    Holdings, Inc., File No. 333-85149).*                                                                                         
|       
|        | 10.27 |  |             | Triton PCS Holdings, Inc. Nonqualified Deferred Compensation
    Plan (incorporated by reference to Exhibit 10.3 to the Form
    10-Q of Triton PCS Holdings, Inc. for the quarter ended
    March 31, 2004).*                                                                                                       
|       
|        | 10.28 |  |             | Form of Executive Bonus Program Agreement (incorporated by
    reference to Exhibit 10.5 to the Form 10-Q of Triton PCS
    Holdings, Inc. for the quarter ended June 30, 2003).*                                                                                                                                    
|       
|        | 10.29 |  |             | Master Purchase Agreement, effective as of September 21,
    2001, between Ericsson Inc. and Triton PCS Equipment Company
    L.L.C. (incorporated by reference to Exhibit 10.4 to the
    Form 10-Q of Triton PCS Holdings, Inc. for the quarter ended
    June 30, 2002). **                                       
|       
|        | 10.30 |  |             | Statement of Work No. 1, effective as of September 21,
    2001, between Triton PCS Equipment Company L.L.C. and Ericsson
    Inc. (incorporated by reference to Exhibit 10.1 to the Form
    10-Q of Triton PCS Holdings, Inc. for the quarter ended
    June 30, 2002). **                                         
|       
|        | 10.31 |  |             | Statement of Work No. 2, effective as of April 10,
    2002, between Triton PCS Equipment Company L.L.C. and Ericsson
    Inc. (incorporated by reference to Exhibit 10.6 to the Form
    10-Q of Triton PCS Holdings, Inc. for the quarter ended
    June 30, 2002). **                                             
|       
|        | 10.32 |  |             | Purchase and License Agreement, effective as of May 16,
    2002, between Triton PCS Equipment Company L.L.C. and Nortel
    Networks Inc. (incorporated by reference to Exhibit 10.7 to
    the Form 10-Q of Triton PCS Holdings, Inc. for the quarter ended
    June 30, 2002). **                                 
|       
|        | 10.33 |  |             | GSM/GPRS Supplement to the Purchase and License Agreement,
    effective as of May 16, 2002, between Triton PCS Equipment
    Company L.L.C. and Nortel Networks Inc. (incorporated by
    reference to Exhibit 10.8 to the Form 10-Q of Triton PCS
    Holdings, Inc. for the quarter ended June 30, 2002). **      

52



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##### Table of Contents



|        |       |  |             |                                                                                                                                                                                                                                                                                                                                                                                              
|------- | ----- |  | ----------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |       |  |            
|Number  |       |  | Description
|        |       |  |            
|       
|        | 10.34 |  |             | Separation Letter Agreement, dated as of February 24, 2004,
    by and between Triton PCS Holdings, Inc. and John D. Beletic
    (incorporated by reference to Exhibit 10.41 to the
    Form 10-K of Triton PCS Holdings, Inc. for the year ended
    December 31, 2003). *                                                                                                                  
|       
|        | 10.35 |  |             | Separation Agreement, dated September 27, 2004, between
    Triton PCS Holdings, Inc. and Glen Robinson (incorporated by
    reference to Exhibit 10.3 to the Form 10-Q of Triton PCS
    Holdings, Inc. for the quarter ended September 30, 2004).                                                                                                                                          
|       
|        | 10.36 |  |             | Agreement, dated the July 7, 2004, by and among Triton PCS
    Holdings, Inc., AT&T Wireless Services, Inc., AT&T
    Wireless PCS LLC, and Cingular Wireless LLC (incorporated by
    reference to Exhibit 10.3 to the Form 10-Q of Triton PCS
    Holdings, Inc. for the quarter ended June 30, 2004).                                                                                     
|       
|        | 10.37 |  |             | Agreement, dated the July 7, 2004, by and among Triton PCS,
    Inc., AT&T Wireless Services, Inc., AT&T Wireless PCS
    LLC, and Cingular Wireless LLC (incorporated by reference to
    Exhibit 10.4 to the Form 10-Q of Triton PCS Holdings, Inc.
    for the quarter ended June 30, 2004).                                                                                              
|       
|        | 10.38 |  |             | License Exchange Agreement, dated July 7, 2004, by and
    among Triton PCS, Inc., Triton PCS License Company L.L.C., a
    Delaware limited liability company AT&T Wireless Services,
    Inc., AT&T Wireless PCS LLC, and Cingular Wireless LLC.
    (incorporated by reference to Exhibit 10.5 to the Form 10-Q
    of Triton PCS Holdings, Inc. for the quarter ended June 30,
    2004).
|       
|        | 10.39 |  |             | Spectrum Manager Lease, dated November 12, 2004, between
    AWS License Newco, LLC and AWS Network Newco, LLC (incorporated
    by reference to Exhibit 10.1 to the Form 8-K of Triton PCS
    Holdings, Inc. filed December 6, 2004).                                                                                                                                                      
|       
|        | 10.40 |  |             | Spectrum Manager Lease, dated October 27, 2004, between
    TeleCorp Communications, LLC, and AWS Network Newco, LLC
    (incorporated by reference to Exhibit 10.2 to the Form 8-K
    of Triton PCS Holdings, Inc. filed December 6, 2004).                                                                                                                                                
|       
|        | 21.1  |  |             | Subsidiaries of Triton PCS Holdings, Inc.                                                                                                                                                                                                                                                                                                                                                    
|       
|        | 23.1  |  |             | Consent of PricewaterhouseCoopers LLP.                                                                                                                                                                                                                                                                                                                                                       
|       
|        | 24.1  |  |             | Power of Attorney (set forth on the signature page of this
    report).                                                                                                                                                                                                                                                                                                                      
|       
|        | 31.1  |  |             | Certification of Chief Executive Officer pursuant to Rule
    13a-14a under the Securities Exchange Act of 1934, as amended.                                                                                                                                                                                                                                                                 
|       
|        | 31.2  |  |             | Certification of Chief Financial Officer pursuant to Rule
    13a-14a under the Securities Exchange Act of 1934, as amended.                                                                                                                                                                                                                                                                 
|       
|        | 31.3  |  |             | Certification of Controller pursuant to Rule 13a-14a under the
    Securities Exchange Act of 1934, as amended.                                                                                                                                                                                                                                                                              
|       
|        | 32.1  |  |             | Certification of Chief Executive Officer pursuant to Rule
    13a-14(b) under the Securities Exchange Act of 1934, as amended.                                                                                                                                                                                                                                                               
|       
|        | 32.2  |  |             | Certification of Chief Financial Officer pursuant to Rule
    13a-14(b) under the Securities Exchange Act of 1934, as amended.                                                                                                                                                                                                                                                               






| |   |                                          
| | - | -----------------------------------------
| | * | Management contract or compensatory plan.



|   |                                                                                                                                  
|-- | ---------------------------------------------------------------------------------------------------------------------------------
|** | Portions of this exhibit have been omitted under an Securities
    and Exchange Commission order granting confidential treatment.

53



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##### Table of Contents






SIGNATURES






| |                          
| | -------------------------
| | Triton PCS Holdings, Inc.



| |     |                        
| | --- | -----------------------
| | By: | /s/ Michael E. Kalogris

| |                              
| | -----------------------------
| |                              
| | Michael E. Kalogris          
| | Chief Executive Officer      
| | (Principal Executive Officer)





| |     |                   
| | --- | ------------------
| | By: | /s/ David D. Clark

| |                              
| | -----------------------------
| |                              
| | David D. Clark               
| | Executive Vice President and 
| | Chief Financial Officer      
| | (Principal Financial Officer)





---



##### Table of Contents



Power of Attorney






|                                               |  |                                                                                                       |  |                |  | 
|---------------------------------------------- |  | ----------------------------------------------------------------------------------------------------- |  | -------------- |  | 
|Signature                                      |  | Title                                                                                                 |  | Date          
|                                               |  |                                                                                                       |  |               
|                                              
|/s/ Michael E. KalogrisMichael
    E. Kalogris |  | Chief Executive Officer and Chairman
    of the Board of Directors (Principal
    Executive Officer)  |  | March 16, 2005
|                                              
|/s/ David D. ClarkDavid
    D. Clark           |  | Executive Vice President, Chief
    Financial Officer and Secretary
    (Principal Financial Officer) |  | March 16, 2005
|                                              
|/s/ John MoermanJohn
    Moerman               |  | Vice President and Controller
    (Principal Accounting Officer)                                      |  | March 16, 2005
|                                              
|/s/ Scott I. AndersonScott
    I. Anderson     |  | Director                                                                                              |  | March 16, 2005
|                                              
|/s/ Arnold L. ChavkinArnold
    L. Chavkin     |  | Director                                                                                              |  | March 16, 2005
|                                              
|/s/ Rohit M. DesaiRohit
    M. Desai           |  | Director                                                                                              |  | March 16, 2005
|                                              
|/s/ Mathias DeVitoMathias
    DeVito           |  | Director                                                                                              |  | March 16, 2005
|                                              
|/s/ Eric HaskellEric
    Haskell               |  | Director                                                                                              |  | March 16, 2005
|                                              
|/s/ David N. WatsonDavid
    N. Watson         |  | Director                                                                                              |  | March 16, 2005