Sixth Amendment to Amended and Restated PCS Services Agreement Between Sprint Spectrum L.P. andVirgin Mobile USA, L.P.

EX-10.1 2 dex101.htm SIXTH AMENDMENT TO AMENDED AND RESTATED PCS SERVICES AGREEMENT Sixth Amendment to Amended and Restated PCS Services Agreement

Exhibit 10.1

Note: Certain portions have been omitted from this Sixth Amendment to the Amended and Restated PCS Services Agreement in accordance with a request for confidential treatment submitted to the Securities and Exchange Commission. Omitted information has been replaced with an asterisk. Omitted information has been filed separately with the Securities and Exchange Commission.

Sixth Amendment to Amended and Restated PCS Services Agreement

Between Sprint Spectrum L.P. and Virgin Mobile USA, L.P.

This Sixth Amendment (“Sixth Amendment”) is made to that certain Amended and Restated PCS Services Agreement between Sprint Spectrum L.P. (“Sprint PCS”) and Virgin Mobile USA, L.P. (formerly Virgin Mobile USA, LLC) (“VMU”) dated October 16, 2007, as amended, (the “PCS Services Agreement”). Capitalized terms not defined in this Sixth Amendment are defined in the PCS Services Agreement.

 

1. Schedule 1.0 of the PCS Services Agreement is deleted in its entirety and replaced with Schedule 1.0 attached to this Sixth Amendment.

 

2. Except as specifically provided above, the PCS Services Agreement remains in effect in accordance with its terms.

IN WITNESS HEREOF, the parties have executed this Sixth Amendment as of the dates indicated below.

 

SPRINT SPECTRUM L.P.     VIRGIN MOBILE USA, L.P. (formerly Virgin
Mobile USA, LLC)
By:   /s/ James D. Patterson     By:   /s/ Daniel H. Schulman
Name:   James D. Patterson     Name:   Daniel H. Schulman
Title:   President, Wholesale     Title:   Chief Executive Officer
Date:   December 22, 2008     Date:   December 22, 2008

 

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Schedule 1.0

PCS Service Pricing

 

1. Pricing Effective from Fifth Amendment Commencement Date through December 2008

Except as expressly set forth in Section 1.14 below, the rates and charges set forth in Section 1 below only apply to PCS Service and Roaming usage that takes place during the time period commencing with the Fifth Amendment Commencement Date through the end of the final December 2008 bill cycle. For clarification purposes, the rates and charges set forth in Section 1 below will also apply to any bill cycle that commences during December 2008 even if a portion of the PCS Service and Roaming usage for such bill cycle takes place during January 2009.

 

  1.1 Voice PCS Service and Sprint 2G Data Service Rates

For End Users voice PCS Service and Sprint 2G Data Service usage, Sprint PCS will charge VMU (i) the peak per minute rate set forth in the table below for Peak Time Period minutes of use (“MOU”) during each monthly billing cycle, and (ii) the off-peak per minute rate set forth in the table below for Off-Peak Time Period MOU during each monthly billing cycle. The peak and off-peak rates below include any applicable interconnection charges. The peak and off-peak rates DO NOT include Roaming charges, Travel MOU charges, domestic toll charges or international toll charges. VMU will be charged the rates set forth in Sections 1.3 or 1.4 below for Roaming, the rate set forth in Section 1.2 for Travel MOU, the rate set forth in Section 1.5 for domestic toll calls and the rates set forth in Section 1.6 for international toll calls. For the avoidance of doubt, the rates in this Section 1.1 apply to End User voice PCS Service and Sprint 2G Data Service usage on a Sprint PCS Service Provider Affiliate Network for End Users with MIN’s assigned within the home network of such Sprint PCS Service Provider Affiliate.

Voice PCS Service and Sprint 2G Data Service Rates

 

Peak Per Minute Rate

  

Off-Peak Per Minute Rate

$*

   $*

“Peak Time Period”: **, **, except national holidays observed by the United States Postal Service.

“Off-Peak Time Period”: **, * * and **, and national holidays observed by the United States Postal Service.

 

  1.2 Travel MOU Rate

For End Users Travel MOU, Sprint PCS will charge VMU the per minute rate set forth below based on VMU’s total Travel MOUs during the monthly billing cycle. The Travel MOU rate below includes any applicable interconnection charges. The Travel MOU rate DOES NOT include Roaming charges, domestic toll charges or international toll charges. VMU will be charged the rates set forth in Sections 1.3 or 1.4 below for Roaming, the rate set forth in Section 1.5 for domestic toll calls and the rates set forth in Section 1.6 for international toll calls.

Travel MOU Per Minute Rate

$*

 

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  1.3 Automatic Roaming

For Roaming calls that are completed despite VMU’s instructions that Sprint PCS block Roaming pursuant to Section 9.2.3 of the Agreement, Sprint PCS will charge VMU the rates set forth below. The parties acknowledge that Roaming shall not include Sprint PCS Service Provider Affiliate travel usage.

 

  1.3.1 Domestic Roaming Charges

For automatic Roaming calls End Users make or receive in the United States, Sprint PCS will charge VMU an average pass through domestic Roaming rate of $* per minute plus taxes, if applicable. Each quarter, Sprint PCS will perform an analysis of Sprint PCS’ domestic voice Roaming charges, and if such analysis results in a different average pass through rate, Sprint PCS will update the rate it charges VMU prospectively consistent with such analysis.

 

  1.3.2 Automatic Roaming for Guam, Puerto Rico & US Virgin Islands

For Roaming calls that End Users make or receive in Guam, Puerto Rico or the US Virgin Islands, Sprint PCS will charge VMU an average pass through rate of $* per minute, plus all other applicable charges such as taxes and surcharges. Each quarter, Sprint PCS will perform an analysis of Sprint PCS’ voice Roaming charges for Guam, Puerto Rico and the US Virgin Islands, and if such analysis results in a different average pass through rate, Sprint PCS will update the rate it charges VMU prospectively consistent with such analysis.

 

  1.3.3 Automatic International Roaming for All Countries Except Guam, Puerto Rico and US Virgin Islands

Sprint PCS will charge VMU the average pass through international Roaming rates set forth below. Each quarter, Sprint PCS will perform an analysis of Sprint PCS’ international voice Roaming charges, and if such analysis results in different average pass through rates, Sprint PCS will update the rates it charges VMU prospectively consistent with such analysis.

For international Roaming services in all countries where Sprint PCS provides international Roaming, excluding Guam, Puerto Rico and the US Virgin Islands (each an “International Roaming Country”), Sprint PCS will charge VMU as follows:

 

  (i) For: (x) calls that originate and terminate within the same International Roaming Country, (y) calls that originate in the International Roaming Country and terminate in the United States, and (z) all incoming calls in International Roaming Countries regardless of their origination point, the applicable average pass through per minute airtime rate for the International Roaming Country where the call originates as set forth below, plus all other applicable charges such as taxes and surcharges; or

 

  (ii) For calls that originate in an International Roaming Country and terminate in any other International Roaming Country other than the United States, the applicable average pass through per minute airtime rate for the International Roaming Country where the call originates as set forth below, plus applicable international toll charges for the terminating country as set forth in Exhibit A to Schedule 1.0, plus all other applicable charges such as taxes and surcharges.

 

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International Roaming Airtime Average Pass Through Per Minute Rates

 

Country

   Roaming Rates
Per Minute

Canada

   $*

Mexico

   $*

All other countries (except Guam, Puerto Rico & US Virgin Islands)

   $*

 

  1.4 Manual Roaming Charges

For manual Roaming in areas where Sprint PCS does not provide Roaming, Roaming charges are billed directly to the End User credit or calling card by the serving carrier at carrier-defined rates.

 

  1.5 Interstate and Intrastate (Domestic) Toll Charge

For interstate and intrastate long distance services (domestic toll charges for terminating service beyond the applicable local exchange provider local calling area) provided to End Users, Sprint PCS will charge VMU the following rate:

Interstate and Intrastate Toll Per Minute Rate

$*

 

  1.6 Unbilled Local Toll

Since Sprint PCS’ billing system does not rate and bill certain toll usage (“unbilled local toll”), for each monthly bill cycle, Sprint PCS will invoice VMU for unbilled local toll as follows: total interstate and intrastate toll charges for a monthly bill cycle X *% = unbilled local toll. By way of example, if VMU’s total interstate and intrastate toll charges for a monthly bill cycle are $*, Sprint PCS will invoice VMU for $* for unbilled local toll.

 

  1.7 International Toll Charges

 

  1.7.1 International Toll Services Provided by Sprint PCS

For international toll voice PCS Service that Sprint PCS provides to End Users, Sprint PCS will charge VMU the international per minute base rates set forth in Exhibit A to Schedule 1.0. Sprint PCS may modify the rates in Exhibit A from time to time, but will provide advance notice prior to any rate increase.

 

  1.7.2 Call Network Routing

In the event that VMU wishes to route international traffic to a switch designated by VMU (CNR):

 

  (i) VMU will notify Sprint PCS and follow the Work Order process, and Sprint PCS will reasonably assist VMU in facilitating a routing solution in accordance with such Work Order process.

 

  (ii) VMU will be responsible for all development and interconnection costs associated with routing such calls to the designated switch.

 

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  (iii) For international calls that are routed to a switch designated by VMU, Sprint PCS will not charge VMU the international rates in Exhibit A to Schedule 1.0, but the domestic voice PCS Service rates listed in Section 1.1, above plus $* per minute will apply for the domestic portion of all international terminating calls, and where applicable, the Travel MOU rate listed in Section 1.2 above and the domestic toll charge listed in Section 1.5 above will also apply.

 

  (iv) All “011” destined calls will be routed to a switch designated by VMU, subject to all applicable terms and conditions in this Section 1.7.2.

 

  (v) Following are North American Dialing Plan (“NADP”) countries and applicable NPA/NXX designations for which calls to such NADP countries will be routed to a switch designated by VMU:

 

   

American Somoa (684)

 

   

Anguilla (264)

 

   

Antigua and Barbuda (268)

 

   

Bahamas (242)

 

   

Barbados (246)

 

   

Bermuda (441)

 

   

British Virgin Islands (284)

 

   

Canada:

204 - Manitoba

226 - Ontario

250 - British Columbia

289 - Ontario

306 - Saskatchewan

403 - Alberta

438 - Quebec

416 - Ontario

418 - Quebec

450 - Quebec

506 - New Brunswick

514 - Quebec

519 - Ontario

581 - Quebec

587 - Alberta

604 - British Columbia

613 - Ontario

647 - Ontario

705 - Ontario

709 - Newfoundland

778 - British Columbia

780 - Alberta

807 - Ontario

819 - Quebec

867 - Yukon & NW Territories

902 - Nova Scotia

905 - Ontario

 

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Cayman Islands (345)

 

   

Dominica (767)

 

   

Dominican Republic (809)

 

   

Dominican Republic (829)

 

   

Grenada (473)

 

   

Jamaica (876)

 

   

Montserrat (664)

 

   

St. Kitts and Nevis (869)

 

   

St. Lucia (758)

 

   

St. Vincent and the Grenadines (784)

 

   

Trinidad and Tobago (868)

 

   

Turks and Caicos Islands (649)

 

  (vi) Following are NADP countries and applicable NPA/NXX designations for which calls to such countries will NOT be routed to a switch designated by VMU since Sprint PCS considers calls to such countries domestic calls, and Sprint PCS will charge VMU the domestic voice PCS Service rates listed in Section 1.1 above plus $* per minute for calls to such NADP countries, and where applicable, the Travel MOU rate listed in Section 1.2 above and the domestic toll charge listed in Section 1.5 above will also apply:

 

   

Virgin Islands (340)

 

   

Commonwealth of Northern Marianas Islands – Saipan, Tinian and Rota (670)

 

   

Guam (671)

 

   

Puerto Rico (787 & 939)

 

  1.8 Short Message Service (SMS)

Sprint PCS will charge VMU the per SMS rate set forth below for VMU’s total number of mobile terminated SMS and mobile originated SMS messages during the monthly billing cycle. Sprint PCS may modify the SMS rate below from time to time with respect to those SMS messages sent and received outside of the United States, but will provide advance notice, if possible, prior to any rate increase.

Per SMS Rate

$*

 

  1.9 Sprint 3G Data Transport Service

Sprint PCS will charge VMU the per megabyte (“MB”) rate set forth below for VMU’s total number of Sprint 3G Data Transport Service MB usage during each monthly billing cycle. For reference purposes, the per kilobyte (“KB”) rate is also shown below. The rates below include any applicable interconnection charges. The rates below DO NOT include Travel 3G Data Transport charges. VMU will be charged the rate set forth in Section 1.10 below for Travel 3G Data Transport. The Sprint 3G Data Transport Service rates below are for data transport only and do not include access to individual Sprint-provided 3G data services.

 

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Sprint 3G Data Transport Service Rates

 

Per MB Rate

   Per KB Rate

$*

   $*

 

  1.10 Travel 3G Data Transport

Sprint PCS will charge VMU the per megabyte (“MB”) rate set forth below for VMU’s total number of Travel 3G Data Transport MB usage during each monthly billing cycle. For reference purposes, the per kilobyte (“KB”) rate is also shown below. The rates below include any applicable interconnection charges. The Travel 3G Data Transport rates below are for data transport only and do not include access to individual Sprint-provided 3G data services.

Travel 3G Data Transport Rates

 

Per MB Rate

  

Per KB Rate

$*

   $*

 

  1.11 Control-Plane Location Look-Up Charges

Sprint PCS will determine the monthly Control-Plane Location Look-Up charges by multiplying the total number of Control -Plane Location Look-Ups for the just-completed bill cycle by the applicable volume based “Rate Per Control -Plane Location Look-Up” from the table below. For avoidance of doubt, Sprint PCS will charge VMU for each Control-Plane Location Look-Up attempt whether or not the location information is ultimately returned to the Control-Plane Requesting Device. Since Control -Plane Location Look-Up charges are manually calculated and added to VMU’s monthly invoice, the bill cycle time period for Control -Plane Location Look-Up charges included on a monthly invoice will not be the same as the time period for systematically-billed charges included on such invoice.

 

Control-Plane Location Look-
Ups per Monthly Bill Cycle

  

Rate per Control- Plane
Location Look-Up

* - *

   $*

* - *

   $*

* - *

   $*

* and above

   $*

 

  1.12 User-Plane Location Services

 

  1.12.1  User-Plane Location Application Certification Fee: *

 

  1.12.2  User-Plane Location Look-Up Charges:

Sprint PCS will determine the monthly User-Plane Location Look-Up charges by multiplying the total number of User-Plane Location Look-Ups for the just-completed bill cycle by the applicable volume based “Rate Per User-Plane Location Look-Up” from the table below. For avoidance of doubt, Sprint PCS will charge VMU for each User-Plane Location Look-Up attempt whether or not the location information is ultimately returned to the User-Plane Location Handset. Since User-Plane Location Look-Up charges are manually calculated and added to VMU’s monthly invoice, the bill cycle time period for User-Plane Location Look-Up charges included on a monthly invoice will not be the same as the time period for systematically-billed charges included on such invoice.

 

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User-Plane Location Look-

Ups per Monthly Bill Cycle

  

Rate per User-Plane

Location Look-Up

* - *

   $*

* - *

   $*

* - *

   $*

* and above

   $*

 

  1.13 Other Charges:

 

  1.13.1  Call Forwarding: Sprint PCS will charge VMU standard airtime rates, plus applicable toll charges.

 

  1.13.2  Operator Services: Sprint PCS will charge VMU its standard retail rates and charges for operator services.

 

  1.13.3  Directory Assistance: Sprint PCS will charge VMU $* per call, plus all other applicable charges including airtime
     charges, for directory assistance services.

 

  1.13.4  911 and E911: Standard airtime and toll rates

 

  1.13.5  Non-standard reports: As quoted

 

  1.13.6  Handset Certification: As quoted

 

  1.14 New End User Credits

 

  A. Subject to the conditions set forth below in this Section 1.14, VMU is eligible to receive “New End User Credits” equal to $2.50 for: (i) each new End User that VMU activates under the Agreement (pursuant to Sprint PCS’ reporting systems) from the first day of the first calendar month following the effective date of the Acquisition Agreement through December 31, 2009 (“Eligibility Period”), and (ii) each new end user customer that Helio activates under the Helio Agreement from the first day of the first calendar month following the effective date of the Acquisition Agreement through the Acquisition Closing Date. Notwithstanding the foregoing, in no event shall the total amount of New End User Credits exceed $10,000,000.

 

  B.

During the time period between the effective date of the Acquisition Agreement up to and including the Acquisition Closing Date (“Interim Period”) all New End User Credits will be accrued and held by Sprint PCS. If (i) VMU is not past due on any undisputed amounts (in accordance with Section 7.6 of the PCS Services Agreement) owed Sprint PCS under the PCS Services Agreement (including undisputed amounts owed under a Work Order) no later than forty-five (45) days following the Acquisition Closing Date, and (ii) Helio is not past due on any undisputed amounts owed Sprint PCS under Helio’s wholesale services agreement with Sprint PCS as of the Acquisition Closing Date, the total of the New End User Credits accrued by Sprint PCS during the Interim Period will be issued to VMU’s next available invoice following the date conditions (i) and (ii) are met. If conditions (i) and (ii) in the

 

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immediately preceding sentence are not met, VMU will not be eligible to receive the New End User Credits accrued by Sprint PCS during the Interim Period. For avoidance of doubt, if VMU is not eligible to receive New End User Credits accrued during the Interim Period, such New End User Credits will not be included in the $10,000,000 cap described in Section 1.14(A) above. Disputes regarding this Section1.14(B) are to be handled in accordance with standard dispute resolution procedures contained in Section 17 of the PCS Services Agreement.

 

  C. Following the Interim Period and during the remainder of the Eligibility Period, Sprint will calculate New End User Credits at the end of each bill cycle for new End Users activated during the just-completed bill cycle (except for new End Users activated during the Interim Period), and no later than five (5) days following the Due Date for such bill cycle, if VMU is not past due on any undisputed amounts owed Sprint PCS under the PCS Services Agreement (including undisputed amounts owed under a Work Order), VMU is eligible to receive the New End User Credits calculated by Sprint at the end of such bill cycle. If VMU is eligible to receive New End User Credits as described in the immediately preceding sentence, Sprint PCS will apply such New End User Credits to VMU’s next available invoice that corresponds with such bill cycle (e.g., bill cycle 1 or bill cycle 19). If VMU is not eligible to receive any New End User Credits as described herein, such credits will not be included in the $10,000,000 cap described in Section 1.14(A) above.

 

  1.15 2008 Minimum Annual Commitment

 

  A. The following definitions only apply to Section 1.15:

2008 Actual Revenue” means the total of all amounts invoiced to VMU under the PCS Services Agreement on an Invoice for each of VMU’s 2008 bill cycles for 2008 Service Usage including credits or debits related to disputed charges or billing errors for 2008 Service Usage that are typically included on the “True-Up Statement” VMU receives as part of the supporting documentation for each invoice, which does not include the Additional Amounts, and does not include New End User Credits, if any, issued for each new End User that activates during calendar year 2008, as described in Section 1.14 above or 4Q New End User Credits, if any, issued for each new End User that activates during the 4Q Eligibility Period, as described in Section 1.16 below. For clarification purposes, 2008 Actual Revenue will include invoices for any bill cycle that commences after January 1, 2008 and will include invoices for any bill cycle that commences during December 2008 even if such bill cycle ends in January 2009 (e.g., a January 19, 2009 invoice for a December 19, 2008 through January 18, 2009 bill cycle will be counted towards 2008 Actual Revenue). For the 2008 calendar year only, 2008 Actual Revenue will also include the Helio Revenue;

2008 Service Usage” means (i) prior to the Fifth Amendment Commencement Date: (a) voice and data usage for airtime services billed in minutes of use as described in Schedule 1.0 (including toll, unbilled local toll, Roaming, Roaming toll and travel MOUs), (b) directory assistance and operator services billed to VMU as described in Schedule 1.0, (c) SMS usage billed by number of messages as described in Schedule 1.1, (d) 3G Data Transport service billed by number of MB usage as described in Schedule 1.2, and (e) ADC codes, if applicable, as described in Section 2.14 of the PCS Services Agreement; and (ii) commencing on the Fifth Amendment Commencement Date: (x) usage for all services listed in Schedule 1.0 (as amended from time to time) and (y) ADC codes, if applicable, as described in Section 2.14 of the PCS Services Agreement.

 

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Additional Amounts” means (i) amounts invoiced to VMU for any Customized Service, (ii) royalty payment amounts, (iii) Late Payment Fees, (iv) any unique amounts invoiced to VMU for which pricing is not described in Schedule 1.0, or (v) any credits (other than New End User Credits and 4Q New End User Credits) invoiced to VMU that are not directly related to disputed charges or billing errors for Voice/SMS/Data Usage;

Helio Revenue” means amounts from “Helio’s applicable invoices,” (described below) for “Ancillary Charges”, “Current Activity Charges”, “Adjustments” (where applicable), and any other charges for services included on such invoices that have not been previously applied to Helio’s account, which does not include interest on amounts not paid by Helio to Sprint PCS by the applicable due date set forth in the Helio Agreement, and “Customized Service Charges” (as defined in the Helio Agreement) invoiced to Helio; provided that for purposes of this definition, “Helio’s applicable invoices” means invoices generated to Helio under the Helio Agreement for usage commencing June 19, 2008 until the Acquisition Closing Date;

Invoice” means the applicable monthly electronic invoice following the just-completed monthly bill cycle, for “Ancillary Charges”, “Current Activity Charges”, “Adjustments” (where applicable), identified as such on the Invoice, and any other charges for services included on such electronic invoice that have not been previously applied to VMU’s account, and including credits or debits that are included on the True-Up Statement in the ordinary course of business consistent with past practice between VMU and Sprint PCS;

Late Payment Fees” means interest on amounts not paid to Sprint PCS by the applicable Due Date as described in Section 7.5 of the PCS Services Agreement; and

Remaining 2008 Usage Months” means the seven (7) consecutive Usage Months commencing with June 2008; and

Usage Month” means the bill cycles that commence on the 1st and 19th days of the same calendar month.

 

 

B.

For the June 2008 through December 2008 Usage Months, in lieu of VMU paying the Actual Revenue portion of each Invoice generated during such Usage Months (it being understood that there are two invoice cycles), VMU will pay to Sprint PCS “Monthly Owed Revenue” equal to: (A) the greater of (i) the Actual Revenue portion of such Invoice, or (ii) an amount equal to “x” percentage of the amount in the “Required Revenue” column in the table set forth below for the applicable Usage Month, where “x” is *% for invoices dated the 1st day of a calendar month, and “x” is *% for invoices dated the 19th day of a calendar month, minus (B) applicable New End User Credits, if any, minus (C) applicable 4Q New End User Credits, if any. For example, if the August 2008 / 1st day cycle Invoice shows an Actual Revenue portion of $*, VMU would be required to pay, with respect to such Invoice, $* [*% of $*], minus any applicable New End User Credits. For any Invoice in a Usage Month in which the applicable 2008 Actual Revenue amount associated with such Invoice is greater than the applicable portion of the 2008 Required Revenue amount for such Usage Month (using the *%/*% calculation immediately above), the 2008 Required

 

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Revenue amount for the corresponding Invoice cycle during the succeeding Usage Month will be temporarily reduced by the difference (prior to subtracting any applicable New End User Credits and 4Q New End User Credits), solely for the purpose of determining what Purchaser’s Monthly Owed Revenue amount will be for such corresponding Invoice for the immediately succeeding Usage Month. By way of example (continuing from above), if Purchaser’s August 2008 / 1st day cycle Invoice shows an Actual Revenue portion of $*, VMU will be required to pay, with respect to such Invoice, $* minus any applicable New End User Credits, and the amount in excess of the applicable portion of Required Revenue for such period [$* which is $* – (*% of $*)] would be used to temporarily reduce the applicable Required Revenue for the September 2008 / 1st day cycle Invoice . In this example, the September 2008 / 1st day cycle Invoice Required Revenue, before reduction due to any applicable New End User Credits, would be temporarily reduced to $* [(*% of $*) less $*]. In no event will the annual 2008 Required Revenue amount of $318,000,000 be reduced by any temporary reductions in 2008 Required Revenue amounts for individual Usage Months. For the avoidance of doubt, the 2008 Required Revenue for each Usage Month will be reduced by applicable New End User Credits, if any, and applicable 4Q New End User Credits, if any, which will reduce the Annual 2008 Required Revenue amount of $318,000,000 by the same amount. In addition, VMU will also pay Sprint PCS any Additional Amounts invoiced to VMU during each Usage Month. Also shown in the table below are Required Revenue amounts for the January through May 2008 Usage Months, which equal the 2008 Actual Revenue amounts for the Invoices generated for 2008 Service Usage during the January through May 2008 Usage Months.

2008 Required Revenue Table

 

Usage Month

   2008
Required Revenue

January

   $*

February

   $*

March

   $*

April

   $*

May

   $*

June

   $*

July

   $*

August

   $*

September

   $*

October

   $*

November

   $*

December

   $*

Annual 2008 Required Revenue

   $318,000,000

 

  1.16 4Q New End User Credits

 

  A.

Subject to the conditions set forth below in this Section 1.16, VMU is eligible to receive “4Q New End User Credits” equal to an additional $2.00 for each new End User that VMU activates under the Agreement (pursuant to Sprint PCS’ reporting

 

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systems) from October 1, 2008 through December 31, 2008 (“4Q Eligibility Period”). For the avoidance of doubt, VMU is eligible to receive both New End User Credits and 4Q New End User Credits for each new End User that VMU activates under the Agreement (pursuant to Sprint PCS’ reporting systems) from October 1, 2008 through December 31, 2008.

 

  B. Sprint will calculate 4Q New End User Credits at the end of each calendar month for new End Users activated during the just-completed calendar month in the 4Q Eligibility Period, and no later than five (5) days following the Due Date for such calendar month, if VMU is not past due on any undisputed amounts owed Sprint PCS under the PCS Services Agreement (including undisputed amounts owed under a Work Order), VMU is eligible to receive the 4Q New End User Credits calculated by Sprint at the end of such calendar month. If VMU is eligible to receive 4Q New End User Credits as described in the immediately preceding sentence, Sprint PCS will apply such 4Q New End User Credits to VMU’s next available invoice for bill cycle 1. For the avoidance of doubt, the 4Q New End User Credits are in addition to the New End User Credits described in Section 1.14, and the 4Q New End User Credits do not apply to, and are not subject to, the $10,000,000 cap contained in Section 1.14.

 

2. Pricing Effective for 2009 and thereafter

The rates and charges that Sprint PCS will charge VMU for PCS Service and Roaming for 2009 and until expiration or earlier termination of the Agreement are set forth in Section 2 below. The rates and terms listed in this Section 2 may be modified only by mutual agreement of the parties, and the parties agree to conduct any negotiation of this Section 2 in a commercially reasonable manner, and until such mutual agreement of the parties to modify the rates or terms, the rates and terms in this Section 2 apply. For the avoidance of doubt, beginning with calendar year 2011 and going forward for the remainder of the PCS Services Agreement, unless otherwise negotiated by the parties, there will not be a minimum annual commitment for any given year.

 

  2.1 Voice PCS Service, Sprint 2G Data Service, SMS and Sprint 3G Data Transport Service Pricing

At the end of calendar year December 2008 and each subsequent calendar quarter, Sprint PCS will calculate the Actual Revenue (defined in Section 1.15 above for calendar year 2008 or parts thereof and in Section 2.9 below for subsequent periods) for all monthly bill cycles that commenced during the four (4) most recent calendar quarters (“Rolling 4-Quarter Actual Revenue”), and such Rolling 4-Quarter Actual Revenue will determine the Rolling 4-Quarter Actual Revenue tier in the table set forth below in this Section 2.1 that will apply to all monthly bill cycles that commence during the subsequent calendar quarter. For purposes of determining Rolling 4-Quarter Actual Revenue, Helio Revenue will be included ignoring the last proviso of such definition. By way of example, if VMU’s Rolling 4-Quarter Actual Revenue for all monthly bill cycles that commenced during the first, second, third and fourth calendar quarters of 2008 was $*, the rates for tier #2 in the table below ($* - $*) will apply for all monthly bill cycles that commence during January 2009 through March 2009.

 

  A. Voice PCS Service and Sprint 2G Data Service Rates

 

   

For End Users voice PCS Service and Sprint 2G Data Service usage, Sprint PCS will charge VMU (i) the volume-based peak per minute rates set forth in the table below for Peak Time Period MOU during each monthly billing cycle, and (ii) the volume-based off-peak per minute rates set forth in the table below for Off-Peak Time Period MOU during each monthly billing cycle. The peak and off-peak rates below include

 

  Sprint PCS / Virgin Mobile USA Confidential Information    12


 

domestic toll charges, Travel MOU charges and any applicable interconnection charges. The peak and off-peak rates DO NOT include Roaming charges or international toll charges. VMU will be charged the rates set forth in Sections 2.2 or 2.3 below for Roaming and the rates set forth in Section 2.4 for international toll calls.

 

  B. SMS Rates

Sprint PCS will charge VMU the per SMS rates set forth in the table below for VMU’s total number of mobile terminated SMS and mobile originated SMS messages during the monthly billing cycle. Sprint PCS may modify the SMS rate below from time to time with respect to those SMS messages sent and received outside of the United States, but will provide advance notice if possible prior to any rate increase.

 

  C. Sprint 3G Data Transport Service

Sprint PCS will charge VMU the per MB rates set forth in the table below for VMU’s total number of Sprint 3G Data Transport Service MB usage during each monthly billing cycle. For reference purposes, the per kilobyte (“KB”) rates are also shown below. The rates below include any applicable interconnection charges and Travel 3G Data Transport charges. The Sprint 3G Data Transport Service rates in the table below are for data transport only and do not include access to individual Sprint-provided 3G data services.

Voice PCS Service, Sprint 2G Data Service, SMS and Sprint 3G Data Transport Service Table

 

Tier #

   Rolling 4-Quarter
Actual Revenue
  Peak Per
Minute
Rate
   Off-Peak
Per Minute
Rate
   Per SMS
Rate
   Per MB
Rate
   Per KB
Rate

1

   * - $*   $*    $*    $*    $*    $*

2

  

$* - $*

  $*    $*    $*    $*    $*

3

  

$* - $*

  $*    $*    $*    $*    $*

4

  

$* - $*

  $*    $*    $*    $*    $*

5

  

$* - $*

  $*    $*    $*    $*    $*

6

  

$* - $*

  $*    $*    $*    $*    $*

7

  

$* - $*

  $*    $*    $*    $*    $*

8

  

$* - $*

  $*    $*    $*    $*    $*

9

  

$* - $*

  $*    $*    $*    $*    $*

10

  

$* - $*

  $*    $*    $*    $*    $*

11

  

$* - $*

  $*    $*    $*    $*    $*

12

  

$* - $*

  $*    $*    $*    $*    $*

13

  

$* - $*

  $*    $*    $*    $*    $*

14

  

$* - $*

  $*    $*    $*    $*    $*

15

  

$* - $*

  $*    $*    $*    $*    $*

16

  

$* - $*

  $*    $*    $*    $*    $*

17  

   $* and above   $*    $*    $*    $*    $*

Voice PCS Service and Sprint 2G Data Service Peak and Off-Peak Time Periods

“Peak Time Period”: **, * *, except

national holidays observed by the United States Postal Service.

“Off-Peak Time Period”: **, ** and **, and national holidays observed by the United States Postal Service.

 

  Sprint PCS / Virgin Mobile USA Confidential Information    13


  2.2 Automatic Roaming

For Roaming calls that are completed despite VMU’s instructions that Sprint PCS block Roaming pursuant to Section 9.2.3 of the Agreement, Sprint PCS will charge VMU the rates set forth below. The parties acknowledge that Roaming shall not include Sprint PCS Service Provider Affiliate travel usage.

 

  A. Domestic Roaming Charges

For automatic Roaming calls End Users make or receive in the United States, Sprint PCS will charge VMU an average pass through domestic Roaming rate of $* per minute plus taxes, if applicable. Each quarter, Sprint PCS will perform an analysis of Sprint PCS’ domestic voice Roaming charges, and if such analysis results in a different average pass through rate, Sprint PCS will update the rate it charges VMU prospectively consistent with such analysis.

 

  B. Automatic Roaming for Guam, Puerto Rico & US Virgin Islands

For Roaming calls that End Users make or receive in Guam, Puerto Rico or the US Virgin Islands, Sprint PCS will charge VMU an average pass through rate of $* per minute, plus all other applicable charges such as taxes and surcharges. Each quarter, Sprint PCS will perform an analysis of Sprint PCS’ voice Roaming charges for Guam, Puerto Rico and the US Virgin Islands, and if such analysis results in a different average pass through rate, Sprint PCS will update the rate it charges VMU prospectively consistent with such analysis.

 

  C. Automatic International Roaming for All Countries Except Guam, Puerto Rico and US Virgin Islands

Sprint PCS will charge VMU the average pass through international Roaming rates set forth below. Each quarter, Sprint PCS will perform an analysis of Sprint PCS’ international voice Roaming charges, and if such analysis results in different average pass through rates, Sprint PCS will update the rates it charges VMU prospectively consistent with such analysis.

For international Roaming services in all countries where Sprint PCS provides international Roaming, excluding Guam, Puerto Rico and the US Virgin Islands (each an “International Roaming Country”), Sprint PCS will charge VMU as follows:

 

  (i) For: (x) calls that originate and terminate within the same International Roaming Country, (y) calls that originate in the International Roaming Country and terminate in the United States, and (z) all incoming calls in International Roaming Countries regardless of their origination point, the applicable average pass through per minute airtime rate for the International Roaming Country where the call originates as set forth below, plus all other applicable charges such as taxes and surcharges; or

 

  (ii) For calls that originate in an International Roaming Country and terminate in any other International Roaming Country other than the United States, the applicable average pass through per minute airtime rate for the International Roaming Country where the call originates as set forth below, plus applicable international toll charges for the terminating country as set forth in Exhibit A to Schedule 1.0, plus all other applicable charges such as taxes and surcharges.

 

  Sprint PCS / Virgin Mobile USA Confidential Information    14


International Roaming Airtime Average Pass Through Per Minute Rates

 

Country

   Roaming Rates
Per Minute

Canada

   $*

Mexico

   $*

All other countries (except Guam, Puerto Rico & US Virgin Islands)

   $*

 

  2.3 Manual Roaming Charges

For manual Roaming in areas where Sprint PCS does not provide Roaming, Roaming charges are billed directly to the End User credit or calling card by the serving carrier at carrier-defined rates.

 

  2.4 International Toll Charges

 

  A. International Toll Services Provided by Sprint PCS

For international toll voice PCS Service that Sprint PCS provides to End Users, Sprint PCS will charge VMU the international per minute base rates set forth in Exhibit A to Schedule 1.0. Sprint PCS may modify the rates in Exhibit A from time to time, but will provide advance notice prior to any rate increase.

 

  B. Call Network Routing

In the event that VMU wishes to route international traffic to a switch designated by VMU (CNR):

 

  (i) VMU will notify Sprint PCS and follow the Work Order process, and Sprint PCS will reasonably assist VMU in facilitating a routing solution in accordance with such Work Order process.

 

  (ii) VMU will be responsible for all development and interconnection costs associated with routing such calls to the designated switch.

 

  (iii) For international calls that are routed to a switch designated by VMU, Sprint PCS will not charge VMU the international rates in Exhibit A to Schedule 1.0, but the domestic voice PCS Service rates listed in Section 2.1, above plus $* per minute will apply for the domestic portion of all international terminating calls.

 

  (iv) All “011” destined calls will be routed to a switch designated by VMU, subject to all applicable terms and conditions in this Section 2.4(B).

 

  (v) Following are North American Dialing Plan (“NADP”) countries and applicable NPA/NXX designations for which calls to such NADP countries will be routed to a switch designated by VMU:

 

   

American Somoa (684)

 

   

Anguilla (264)

 

   

Antigua and Barbuda (268)

 

  Sprint PCS / Virgin Mobile USA Confidential Information    15


   

Bahamas (242)

 

   

Barbados (246)

 

   

Bermuda (441)

 

   

British Virgin Islands (284)

 

   

Canada:

204 - Manitoba

226 - Ontario

250 - British Columbia

289 - Ontario

306 - Saskatchewan

403 - Alberta

438 - Quebec

416 - Ontario

418 - Quebec

450 - Quebec

506 - New Brunswick

514 - Quebec

519 - Ontario

581 - Quebec

587 - Alberta

604 - British Columbia

613 - Ontario

647 - Ontario

705 - Ontario

709 - Newfoundland

778 - British Columbia

780 - Alberta

807 - Ontario

819 - Quebec

867 - Yukon & NW Territories

902 - Nova Scotia

905 - Ontario

 

   

Cayman Islands (345)

 

   

Dominica (767)

 

   

Dominican Republic (809)

 

   

Dominican Republic (829)

 

   

Grenada (473)

 

   

Jamaica (876)

 

   

Montserrat (664)

 

   

St. Kitts and Nevis (869)

 

   

St. Lucia (758)

 

   

St. Vincent and the Grenadines (784)

 

   

Trinidad and Tobago (868)

 

   

Turks and Caicos Islands (649)

 

  (vi) Following are NADP countries and applicable NPA/NXX designations for which calls to such countries will NOT be routed to a switch designated by VMU since Sprint PCS considers calls to such countries domestic calls, and Sprint PCS will charge VMU the domestic voice PCS Service rates listed in Section 2.1 above plus $* per minute for calls to such NADP countries:

 

   

Virgin Islands (340)

 

  Sprint PCS / Virgin Mobile USA Confidential Information    16


   

Commonwealth of Northern Marianas Islands – Saipan, Tinian and Rota (670)

 

   

Guam (671)

 

   

Puerto Rico (787 & 939)

 

  2.5 Control-Plane Location Look-Up Charges

Sprint PCS will determine the monthly Control-Plane Location Look-Up charges by multiplying the total number of Control -Plane Location Look-Ups for the just-completed bill cycle by the applicable volume based “Rate Per Control -Plane Location Look-Up” from the table below. For avoidance of doubt, Sprint PCS will charge VMU for each Control-Plane Location Look-Up attempt whether or not the location information is ultimately returned to the Control-Plane Requesting Device. Since Control -Plane Location Look-Up charges are manually calculated and added to VMU’s monthly invoice, the bill cycle time period for Control -Plane Location Look-Up charges included on a monthly invoice will not be the same as the time period for systematically-billed charges included on such invoice.

 

Control-Plane Location Look-
Ups per Monthly Bill Cycle

   Rate per Control -Plane
Location Look-Up

* - *

   $*

* - *

   $*

* - *

   $*

* and above

   $*

 

  2.6 User-Plane Location Services

 

  A. User-Plane Location Application Certification Fee: *

 

  B. User-Plane Location Look-Up Charges:

Sprint PCS will determine the monthly User-Plane Location Look-Up charges by multiplying the total number of User-Plane Location Look-Ups for the just-completed bill cycle by the applicable volume based “Rate Per User-Plane Location Look-Up” from the table below. For avoidance of doubt, Sprint PCS will charge VMU for each User-Plane Location Look-Up attempt whether or not the location information is ultimately returned to the User-Plane Location Handset. Since User-Plane Location Look-Up charges are manually calculated and added to VMU’s monthly invoice, the bill cycle time period for User-Plane Location Look-Up charges included on a monthly invoice will not be the same as the time period for systematically-billed charges included on such invoice.

 

User-Plane Location Look-
Ups per Monthly Bill Cycle

   Rate per User-Plane
Location Look-Up

* - *

   $*

* - *

   $*

* - *

   $*

* and above

   $*

 

  Sprint PCS / Virgin Mobile USA Confidential Information    17


  2.7 Other Charges:

 

  A. Call Forwarding: Sprint PCS will charge VMU standard airtime rates, plus applicable toll charges.

 

  B. Operator Services: Sprint PCS will charge VMU its standard retail rates and charges for operator services.

 

  C. Directory Assistance: Sprint PCS will charge VMU $* per call, plus all other applicable charges including airtime charges, for directory assistance services.

 

  D. 911 and E911: Standard airtime and toll rates

 

  E. Non-standard reports: As quoted

 

  F. Handset Certification: As quoted

 

  2.8 New End User Credits

The terms and conditions set forth in Section 1.14 above will also apply for calendar year 2009.

 

  2.9 Minimum Annual Commitment

The terms and conditions set forth in this Section 2.9 apply for calendar years 2009 and 2010.

 

  A. The following definitions only apply to Sections 2.1 and 2.9:

Actual Revenue” means the total of all amounts invoiced to VMU under the PCS Services Agreement on an Invoice for each of VMU’s bill cycles for the applicable calendar year for Service Usage including credits or debits related to disputed charges or billing errors for Service Usage that are typically included on the “True-Up Statement” VMU receives as part of the supporting documentation for each invoice, which does not include the Additional Amounts, and for calendar year 2009 or part thereof, does not include New End User Credits, if any, issued for each new End User that activates during calendar year 2009 or part thereof, as described in Section 1.14 above. For clarification purposes, Actual Revenue will include invoices for any bill cycle that commences after January 1st of the respective calendar year and will include invoices for any bill cycle that commences during December of the respective calendar year even if such bill cycle ends in January of the following calendar year (e.g., a January 19, 2010 invoice for a December 19, 2009 through January 18, 2010 bill cycle will be counted towards Actual Revenue for calendar year 2009);

Additional Amounts” means (i) amounts invoiced to VMU for any Customized Service, (ii) royalty payment amounts, (iii) Late Payment Fees, (iv) any unique amounts invoiced to VMU for which pricing is not described in Schedule 1.0, or (v) any credits (other than New End User Credits) invoiced to VMU that are not directly related to disputed charges or billing errors for Service Usage;

Invoice” means the applicable monthly electronic invoice following the just-completed monthly bill cycle, for “Ancillary Charges”, “Current Activity Charges”, “Adjustments” (where applicable), identified as such on the Invoice, and any other charges for services included on such electronic invoice that have not been

 

  Sprint PCS / Virgin Mobile USA Confidential Information    18


previously applied to VMU’s account, and including credits or debits that are included on the True-Up Statement in the ordinary course of business consistent with past practice between VMU and Sprint PCS;

Late Payment Fees” means interest on amounts not paid to Sprint PCS by the applicable Due Date as described in Section 7.5 of the PCS Services Agreement;

Service Usage” means (a) usage for all services listed in Schedule 1.0 (as amended from time to time) and (b) ADC codes, if applicable, as described in Section 2.14 of the PCS Services Agreement; and

Usage Month” means the bill cycles that commence on the 1st and 19th days of the same calendar month.

 

  B. In lieu of including an “Annual Required Revenue Table” for each of 2009 and 2010 calendar years, VMU will provide Sprint PCS with an Annual Required Revenue Table, approved by VMU’s Board of Directors, in the same format as the 2008 Required Revenue Table set forth in Section 1.15 above that represents a good-faith statement of its anticipate allocation of the respective commitments across the succeeding calendar year and that is prepared in accordance with the following requirements:

 

  (i) VMU must provide Sprint PCS with an estimated Annual Required Revenue Table with Required Revenue amounts for each Usage Month no later than October 1 of 2008 and 2009 for the succeeding calendar year;

 

  (ii) VMU must provide Sprint PCS with a final Annual Required Revenue Table with Required Revenue amounts for each Usage Month no later than December 15 of 2008 and 2009 for the succeeding calendar year;

 

  (iii) Required Revenue amounts for the 2009 Annual Required Revenue Table must be at least $* for each Usage Month, must not exceed $* collectively for the last three Usage Months of the year, and the total of all Required Revenue amounts for 2009 must equal $370,000,000;

 

  (iv) Required Revenue amounts for the 2010 Annual Required Revenue Table must be at least $* for each Usage Month, must not exceed $*collectively for the last three Usage Months of the year, and the total of all Required Revenue amounts for 2010 must equal $420,000,000;

If VMU fails to provide an Annual Required Revenue Table for 2009 or 2010 that meets the requirements set forth in subsections (i) through (iv) above, the Annual Required Revenue Table will be as follows:

2009 and 2010 Required Revenue Table

 

Usage Month

  

2009
Required Revenue

  

2010
Required Revenue

January

   $*    $*

February

   $*    $*

March

   $*    $*

April

   $*    $*

May

   $*    $*

June

   $*    $*

July

   $*    $*

August

   $*    $*

September

   $*    $*

October

   $*    $*

November

   $*    $*

December

   $*    $*

Annual Required Revenue

   $370,000,000    $420,000,000

 

  Sprint PCS / Virgin Mobile USA Confidential Information    19


 

C.

During 2009 and 2010, in lieu of VMU paying the Actual Revenue portion of each Invoice generated during each Usage Month, VMU will pay to Sprint PCS “Monthly Owed Revenue” equal to: (A) the greater of (i) the Actual Revenue portion of such Invoice, or (ii) an amount equal to “x” percentage of the Required Revenue amount in the applicable Annual Required Revenue Table for the applicable Usage Month, where “x” is *% for invoices dated the 1st day of a calendar month, and “x” is *% for invoices dated the 19th day of a calendar month, minus (B) for 2009 only, applicable New End User Credits, if any. For any Invoice in a Usage Month in which the applicable Actual Revenue amount associated with such Invoice is greater than applicable portion of the Required Revenue amount for such Usage Month (using the same *%/*% calculation from Section 1.15(B) above), the Required Revenue amount for the corresponding Invoice cycle for the succeeding Usage Month will be temporarily reduced by the difference (prior to subtracting any applicable New End User Credits for 2009 only), solely for the purpose of determining what Purchaser’s Monthly Owed Revenue amount will be for such corresponding Invoice for the immediately succeeding Usage Month. In no event will either the 2009 Annual Required Revenue amount of $370,000,000 or the 2010 Annual Required Revenue amount of $420,000,000 be reduced by any temporary reductions in Required Revenue amounts for individual 2009 and 2010 Usage Months. VMU agrees that for calendar year 2009 it will pay Sprint the Annual Required Revenue of $370,000,000 minus any New End User Credits, and for calendar year 2010 it will pay Sprint the Annual Required Revenue of $420,000,000. For the avoidance of doubt, the Required Revenue for each Usage Month in 2009 will be reduced by applicable New End User Credits, if any, which will reduce the 2009 Annual Required Revenue amount of $370,000,000 by the same amount. In addition, VMU will also pay Sprint PCS any Additional Amounts invoiced to VMU during each Usage Month.

 

  2.10 Pricing Adjustments

In the event that Sprint PCS enters into a wireless service agreement:

 

  A. To sell PCS Services (not including services used for product or service testing or demonstration purposes and not including international toll calls, Roaming, directory assistance, operator services and Customized Services) to a Direct Strategic Competitor of VMU, other than Sprint PCS;

 

  B. The material terms of which are substantially similar to those applicable to VMU under this Services Agreement, (with respect to such things as sales volume, territory, and scope of product and service offering applicable to VMU at the time Sprint PCS enters into such agreement with the third party);

 

  Sprint PCS / Virgin Mobile USA Confidential Information    20


  C. Sprint PCS and its Affiliates own less that 37.5% of such third party; and

 

  D. The agreement commits Sprint PCS to sell to third party wireless voice and/or data services (other than services that would be Customized Services under this Agreement) at a lower price (in the aggregate) than Sprint PCS sells such services to VMU under this Services Agreement (in the aggregate);

VMU may request and Sprint PCS will, on a prospective basis, make such PCS Services available to VMU at the same price and under the same terms and conditions (in addition to the terms and conditions of the Services Agreement) in lieu of prices in this Schedule 1.0.

 

   

Nothing contained in this provision will relieve VMU from charges for Customized Service Costs, Implementation Costs or any other charges applicable under this Services Agreement.

 

   

If Sprint PCS enters into such agreement, it will notify VMU of the existence and relevant terms of such agreement within a commercially reasonable period of time.

 

   

Other cost and pricing terms are specifically set forth in the Agreement.

 

  Sprint PCS / Virgin Mobile USA Confidential Information    21


Exhibit A to Schedule 1.0

International Toll Charges

 

* denotes NADP countries

 

         Per Minute Rates

Country

   Country Code   Wireline
Terminated
   Mobile
Terminated

Afghanistan

   93   $*    $*

Albania

   355   $*    $*

Algeria

   213   $*    $*

American Samoa

   +1-684*   $*    $*

Andorra

   376   $*    $*

Angola

   244   $*    $*

Anguilla

   +1-264*   $*    $*

Antigua & Barbuda

   +1-268*   $*    $*

Argentina

   54   $*    $*

Armenia

   374   $*    $*

Aruba

   297   $*    $*

Ascension Island

   247   $*    $*

Australia - all calls except to Satellite

   61   $*    $*

Australia - all calls to Satellite

   611   $*    $*

Australian External Territories

   672   $*    $*

Austria

   43   $*    $*

Azerbaijan

   994   $*    $*

Bahamas

   +1-242*   $*    $*

Bahrain

   973   $*    $*

Bangladesh

   880   $*    $*

Barbados

   +1-246*   $*    $*

Belarus

   375   $*    $*

Belgium

   32   $*    $*

Belize

   501   $*    $*

Benin

   229   $*    $*

Bermuda

   +1-441*   $*    $*

Bhutan

   975   $*    $*

Bolivia

   591   $*    $*

Bosnia & Herzegovina

   387   $*    $*

Botswana

   267   $*    $*

Brazil

   55   $*    $*

British Virgin Islands

   673   $*    $*

Brunei

   359   $*    $*

Bulgaria

   226   $*    $*

Burkina Faso

   257   $*    $*

Burundi

   +1-284*   $*    $*

Cambodia

   855   $*    $*

 

  Sprint PCS / Virgin Mobile USA Confidential Information    22


Exhibit A to Schedule 1.0 (continued)

International Toll Charges

 

* denotes NADP countries

 

         Per Minute Rates

Country

   Country Code   Wireline
Terminated
   Mobile
Terminated

Cameroon

   237   $*    $*

Canada

   +1*   $*    $*

Cape Verde Islands

   238   $*    $*

Cayman Islands

   +1-345*   $*    $*

Central African Republic

   236   $*    $*

Chad Republic

   235   $*    $*

Chile

   56   $*    $*

China

   86   $*    $*

Colombia

   57   $*    $*

Comoros

   269   $*    $*

Congo

   242   $*    $*

Congo Dem Rep. (Zaire)

   243   $*    $*

Cook Islands

   682   $*    $*

Costa Rica

   506   $*    $*

Croatia

   385   $*    $*

Cuba

   53   $*    $*

Cyprus

   357   $*    $*

Czech Republic

   420   $*    $*

Denmark

   45   $*    $*

Diego Garcia

   246   $*    $*

Djibouti

   253   $*    $*

Dominica

   +1-767*   $*    $*

Dominican Republic

   +1-809* and +1-829*   $*    $*

East Timor

   670   $*    $*

Ecuador

   593   $*    $*

Egypt

   20   $*    $*

El Salvador

   503   $*    $*

Equatorial Guinea

   240   $*    $*

Eritrea

   291   $*    $*

Estonia

   372   $*    $*

Ethiopia

   251   $*    $*

Falkland Islands

   500   $*    $*

Faroe Islands

   298   $*    $*

Fiji Islands

   679   $*    $*

Finland

   358   $*    $*

France

   33   $*    $*

French Guiana

   594   $*    $*

 

  Sprint PCS / Virgin Mobile USA Confidential Information    23


Exhibit A to Schedule 1.0 (continued)

International Toll Charges

 

* denotes NADP countries

 

         Per Minute Rates

Country

   Country Code   Wireline
Terminated
   Mobile
Terminated

French Polynesia

   689   $*    $*

Gabon

   241   $*    $*

Gambia

   220   $*    $*

Georgia

   995   $*    $*

Germany

   49   $*    $*

Ghana

   233   $*    $*

Gibraltar

   350   $*    $*

Global Mobile Satellite System (GMSS) - Ellipso-3

   8813   $*    $*

Global Mobile Satellite System (GMSS) - Iridium-6

   8816   $*    $*

Global Mobile Satellite System (GMSS) - Iridium-7

   8817   $*    $*

Global Mobile Satellite System (GMSS) - Globalstar-8

   8818   $*    $*

Global Mobile Satellite System (GMSS) - Globalstar-9

   8819   $*    $*

Greece

   30   $*    $*

Greenland

   299   $*    $*

Grenada

   +1-473*   $*    $*

Guadeloupe

   590   $*    $*

Guantanamo Bay

   5399   $*    $*

Guatemala

   502   $*    $*

Guinea

   224   $*    $*

Guinea-Bissau

   245   $*    $*

Guyana

   592   $*    $*

Haiti

   509   $*    $*

Honduras

   504   $*    $*

Hong Kong

   852   $*    $*

Hungary

   36   $*    $*

Iceland

   354   $*    $*

India

   91   $*    $*

Indonesia

   62   $*    $*

Inmarsat SNAC (Satellite-Based Networks)

   870   $*    $*

Inmarsat - Ocean Atlantic East

   871   $*    $*

Inmarsat - Ocean Atlantic West

   874   $*    $*

Inmarsat - Ocean Indian

   873   $*    $*

Inmarsat - Ocean Pacific

   872   $*    $*

International Networks - Thuraya Rmss Network

   88216   $*    $*

International Networks - Emsat

   88213   $*    $*

International Networks - MCP

   88232   $*    $*

International Networks - Global Networks Antartica

   88234   $*    $*

International Networks - Telenor

   88299   $*    $*

 

  Sprint PCS / Virgin Mobile USA Confidential Information    24


Exhibit A to Schedule 1.0 (continued)

International Toll Charges

 

* denotes NADP countries

 

         Per Minute Rates

Country

   Country Code   Wireline
Terminated
   Mobile
Terminated

Iran

   98   $*    $*

Iraq

   964   $*    $*

Ireland

   353   $*    $*

Israel

   972   $*    $*

Italy - all calls except to Satellite Elsacom

   39   $*    $*

Italy - all calls to Satellite Elsacom

   39310   $*    $*

Ivory Coast

   225   $*    $*

Jamaica

   +1-876*   $*    $*

Japan

   81   $*    $*

Jordan

   962   $*    $*

Kazakhstan

   7   $*    $*

Kenya

   254   $*    $*

Kiribati

   686   $*    $*

Kuwait

   965   $*    $*

Kyrgyzstan

   996   $*    $*

Laos

   856   $*    $*

Latvia

   371   $*    $*

Lebanon

   961   $*    $*

Lesotho

   266   $*    $*

Liberia

   231   $*    $*

Libya

   218   $*    $*

Liechtenstein

   423   $*    $*

Lithuania

   370   $*    $*

Luxembourg

   352   $*    $*

Macau

   853   $*    $*

Macedonia

   389   $*    $*

Madagascar

   261   $*    $*

Malawi

   265   $*    $*

Malaysia

   60   $*    $*

Maldives

   960   $*    $*

Mali Republic

   223   $*    $*

Malta

   356   $*    $*

Marshall Islands

   692   $*    $*

Martinique

   596   $*    $*

Mauritania

   222   $*    $*

Mauritius

   230   $*    $*

Mayotte Island

   262   $*    $*

 

  Sprint PCS / Virgin Mobile USA Confidential Information    25


Exhibit A to Schedule 1.0 (continued)

International Toll Charges

 

* denotes NADP countries

 

         Per Minute Rates

Country

   Country Code   Wireline
Terminated
   Mobile
Terminated

Mexico:

       

Mexico - Factor Two Cities

   See Factor Two List below   $*    $*

Mexico - Guadalajara

   5233   $*    $*

Mexico - Mexico City

   5255   $*    $*

Mexico - Monterrey

   5281   $*    $*

Mexico - all other calls

   52   $*    $*

Micronesia

   691   $*    $*

Moldova

   373   $*    $*

Monaco

   377   $*    $*

Mongolia

   976   $*    $*

Montenegro

   382   $*    $*

Montserrat

   +1-664*   $*    $*

Morocco

   212   $*    $*

Mozambique

   258   $*    $*

Myanmar (Burma)

   95   $*    $*

Namibia

   264   $*    $*

Nauru

   674   $*    $*

Nepal

   977   $*    $*

Netherlands

   31   $*    $*

Netherlands Antilles

   599   $*    $*

New Caledonia

   687   $*    $*

New Zealand

   64   $*    $*

Nicaragua

   505   $*    $*

Niger

   227   $*    $*

Nigeria

   234   $*    $*

Niue Island

   683   $*    $*

North Korea

   850   $*    $*

Norway

   47   $*    $*

Oman

   968   $*    $*

Pakistan

   92   $*    $*

Palau

   680   $*    $*

Palestine Authority

   970   $*    $*

Panama

   507   $*    $*

Papua New Guinea

   675   $*    $*

Paraguay

   595   $*    $*

Peru

   51   $*    $*

Philippines

   63   $*    $*

Poland

   48   $*    $*

 

  Sprint PCS / Virgin Mobile USA Confidential Information    26


Exhibit A to Schedule 1.0 (continued)

International Toll Charges

 

* denotes NADP countries

 

         Per Minute Rates

Country

   Country Code   Wireline
Terminated
   Mobile
Terminated

Portugal

   351   $*    $*

Qatar

   974   $*    $*

Reunion Island

   262   $*    $*

Romania

   40   $*    $*

Russia

   7   $*    $*

Rwanda

   25   $*    $*

San Marino

   378   $*    $*

Sao Tome & Principe

   239   $*    $*

Saudi Arabia

   966   $*    $*

Senegal

   221   $*    $*

Serbia

   381   $*    $*

Seychelles

   248   $*    $*

Sierra Leone

   232   $*    $*

Singapore

   65   $*    $*

Slovakia

   421   $*    $*

Slovenia

   386   $*    $*

Solomon Islands

   677   $*    $*

Somalia

   252   $*    $*

South Africa

   27   $*    $*

South Korea (Republic of)

   82   $*    $*

Spain

   34   $*    $*

Sri Lanka

   94   $*    $*

St Helena

   290   $*    $*

St Kitts & Nevis

   +1-869*   $*    $*

St Lucia

   +1-758*   $*    $*

St Pierre & Miquelon

   508   $*    $*

St Vincent and The Grenadines

   +1-784*   $*    $*

Sudan

   249   $*    $*

Suriname

   597   $*    $*

Swaziland

   268   $*    $*

Sweden

   46   $*    $*

Switzerland

   41   $*    $*

Syria

   963   $*    $*

Taiwan

   886   $*    $*

Tajikistan

   992   $*    $*

Tanzania

   255   $*    $*

Thailand

   66   $*    $*

Togo

   228   $*    $*

 

  Sprint PCS / Virgin Mobile USA Confidential Information    27


Exhibit A to Schedule 1.0 (continued)

International Toll Charges

 

* denotes NADP countries

 

         Per Minute Rates

Country

   Country Code   Wireline
Terminated
   Mobile
Terminated

Tokelau

   69   $*    $*

Tonga Islands

   676   $*    $*

Trinidad & Tobago

   +1-868*   $*    $*

Tunisia

   216   $*    $*

Turkey

   90   $*    $*

Turkmenistan

   993   $*    $*

Turks & Caicos Islands

   +1-649*   $*    $*

Tuvalu

   688   $*    $*

Uganda

   256   $*    $*

Ukraine

   380   $*    $*

United Arab Emirates

   971   $*    $*

United Kingdom

   44   $*    $*

Uruguay

   598   $*    $*

Uzbekistan

   998   $*    $*

Vanuatu

   678   $*    $*

Vatican City

   39   $*    $*

Venezuela

   58   $*    $*

Vietnam

   84   $*    $*

Wallis & Futuna Islands

   681   $*    $*

Western Samoa

   685   $*    $*

Yemen, Republic of

   967   $*    $*

Zambia

   260   $*    $*

Zimbabwe

   263   $*    $*

Mexico - Factor Two Cities

 

City

   City Code    Digit String

Acaponeta

   325    52-325

Acapulco

   744    52-744

Actopan

   772    52-772

Agua Prieta

   633    52-633

Aguascalientes

   449    52-449

Allende

   826    52-826

Apatzingan

   453    52-453

Apizaco

   241    52-241

Arcelia

   732    52-732

 

  Sprint PCS / Virgin Mobile USA Confidential Information    28


Exhibit A to Schedule 1.0 (continued)

Mexico - Factor Two Cities

 

City

   City Code    Digit String

Atlacomulco

   712    52-712

Atlixco

   244    52-244

Autlan

   317    52-317

Bahia De Huatulco

   958    52-958

Cabo San Lucas

   624    52-624

Caborca

   637    52-637

Cadereyta Jimenez

   828    52-828

Campeche

   981    52-981

Cananea

   645    52-645

Cancun

   998    52-998

Celaya

   461    52-461

Cerralvo

   892    52-892

Chetumal

   983    52-983

Chihuahua

   614    52-614

Chilapa

   756    52-756

Chilpancingo

   747    52-747

Cintalapa De Figueroa

   968    52-968

Ciudad Acuna

   877    52-877

Ciudad Altamirano

   767    52-767

Ciudad Camargo B

   891    52-891

Ciudad Constitucion

   613    52-613

Ciudad Cuauhtemoc

   625    52-625

Ciudad Del Carmen

   938    52-938

Ciudad Delicias

   639    52-639

Ciudad Guzman

   341    52-341

Ciudad Hidalgo

   962    52-962

Ciudad Juarez

   656    52-656

Ciudad Lazaro Cardenas

   753    52-753

Ciudad Mante

   831    52-831

Ciudad Obregon

   644    52-644

Ciudad Sahagun

   791    52-791

Ciudad Valles

   481    52-481

Ciudad Victoria

   834    52-834

Coatzacoalcos

   921    52-921

Colima

   312    52-312

Cordoba

   271    52-271

Cosamaloapan

   288    52-288

Cozumel

   987    52-987

Cuautla

   735    52-735

Cuernavaca

   777    52-777

 

  Sprint PCS / Virgin Mobile USA Confidential Information    29


Exhibit A to Schedule 1.0 (continued)

Mexico - Factor Two Cities

 

City

   City Code    Digit String

Culiacan

   667    52-667

Durango

   618    52-618

Encarnacion De Diaz

   475    52-475

Ensenada

   646    52-646

Estación Manuel

   836    52-836

Fresnillo

   493    52-493

General Tapia/China

   823    52-823

Guamuchil

   673    52-673

Guanajuato

   473    52-473

Guasave

   687    52-687

Guaymas

   622    52-622

Guerrero Negro/Santa Rosa

   615    52-615

Hermosillo

   662    52-662

Heroica Ciudad De Ures

   623    52-623

Hidalgo

   829    52-829

Huatabampo

   647    52-647

Huetamo

   435    52-435

Huimanguillo

   917    52-917

Huitzuco

   727    52-727

Iguala

   733    52-733

Irapuato

   462    52-462

Ixtlan Del Rio

   324    52-324

Ixtlan Del Rio

   324    52-324

Izucar De Matamoros

   243    52-243

Jalapa

   228    52-228

Jalpa

   463    52-463

Jerez De Garcia Salinas

   494    52-494

Jojutla

   734    52-734

Juchitan

   971    52-971

La Barca

   393    52-393

La Paz

   612    52-612

La Piedad

   352    52-352

Lagos De Moreno

   474    52-474

Leon

   477    52-477

Lerdo De Tejada

   284    52-284

Lerma

   728    52-728

Linares

   821    52-821

Los Mochis

   668    52-668

Los Reyes

   354    52-354

Magdalena

   632    52-632

 

  Sprint PCS / Virgin Mobile USA Confidential Information    30


Exhibit A to Schedule 1.0 (continued)

Mexico - Factor Two Cities

 

City

   City Code    Digit String

Manuel Ojinaga

   626    52-626

Manzanillo

   314    52-314

Martinez De La Torre

   232    52-232

Matamoros

   868    52-868

Matehuala

   488    52-488

Mazatlan (including Puebla)

   222    52-222

Merida

   999    52-999

Mexicali

   686    52-686

Minatitlan

   922    52-922

Monclova

   866    52-866

Morelia

   443    52-443

Moroleon

   445    52-445

Nacozari De Garcia

   634    52-634

Navojoa

   642    52-642

Nogales

   631    52-631

Nuevo Casas Grandes

   636    52-636

Nuevo Laredo

   867    52-867

Oaxaca De Juarez

   951    52-951

Ocotlan

   392    52-392

Ometepec

   741    52-741

Orizaba

   272    52-272

Pachuca

   771    52-771

Palenque

   916    52-916

Parral

   627    52-627

Parras De La Fuente

   842    52-842

Patzcuaro

   434    52-434

Penjamo

   469    52-469

Petatlan

   758    52-758

Piedras Negras

   878    52-878

Playas De Rosarito

   661    52-661

Poza Rica De Hgo

   782    52-782

Puerto Peñasco

   638    52-638

Puerto Vallarta

   322    52-322

Puruandiro

   438    52-438

Queretaro

   442    52-442

Quimichis /Tecuala

   389    52-389

Reynosa

   899    52-899

Rio Grande

   498    52-498

Rio Verde

   487    52-487

Sabinas

   861    52-861

 

  Sprint PCS / Virgin Mobile USA Confidential Information    31


Exhibit A to Schedule 1.0 (continued)

Mexico - Factor Two Cities

 

City

   City Code    Digit String

Sahuayo

   353    52-353

Salamanca

   464    52-464

Saltillo

   844    52-844

Salvatierra

   466    52-466

San Andres Tuxtla

   294    52-294

San Cristobal De Las Casas

   967    52-967

San Fernando

   841    52-841

San Jose De Gracia

   381    52-381

San Juan Del Rio

   427    52-427

San Luis De La Paz

   468    52-468

San Luis Potosi

   444    52-444

San Luis Rio Colorado

   653    52-653

San Martin Pachivia /Teloloapa

   736    52-736

San Miguel De Allende

   415    52-415

San Quintin

   616    52-616

Santa Ana

   641    52-641

Santa Rosalia De Camargo

   648    52-648

Santiago Ixcuintla

   323    52-323

Santiago Papasquiaro

   674    52-674

Santiago Tianguistenco

   713    52-713

Silao

   472    52-472

Tala

   384    52-384

Tampico

   833    52-833

Tapachula

   962    52-962

Taxco

   762    52-762

Tecate

   665    52-665

Tecoman

   313    52-313

Tecpan De Galeana

   742    52-742

Tehuacan

   238    52-238

Tenancingo

   714    52-714

Tenango Del Aire/Tlalmanalco

   597    52-597

Tepatitlan

   378    52-378

Tepic

   311    52-311

Tequila

   374    52-374

Texcoco

   595    52-595

Teziutlan

   231    52-231

Ticul

   997    52-997

Tijuana

   664    52-664

Tizayuca

   779    52-779

 

  Sprint PCS / Virgin Mobile USA Confidential Information    32


Exhibit A to Schedule 1.0 (continued)

Mexico - Factor Two Cities

 

City

   City Code    Digit String

Tizimin

   986    52-986

Tlapa De Comonfort/Alcozauca De Gro.

   757    52-757

Tlaxcala

   246    52-246

Toluca

   722    52-722

Torreon

   871    52-871

Tula

   773    52-773

Tulancingo

   775    52-775

Tuxpan

   783    52-783

Tuxtepec

   287    52-287

Tuxtla Gutierrez

   961    52-961

Uruapan

   452    52-452

Valle De Bravo

   726    52-726

Veracruz

   229    52-229

Villa Flores

   965    52-965

Villahermosa

   993    52-993

Yurecuaro

   356    52-356

Zacapu

   436    52-436

Zacatecas

   492    52-492

Zamora

   351    52-351

Zihuatanejo

   755    52-755

Zinapecuaro

   451    52-451

Zitacuaro

   715    52-715

Zumpango

   591    52-591

 

  Sprint PCS / Virgin Mobile USA Confidential Information    33