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Western Wireless Corp. - Wireless Service -
Category Directory
3650
131st Avenue S.E.
Bellevue, Washington 98006
(425) 586-8700
www.wwireless.com
Sales
$11 billion
Business Description
WWe are one of the largest providers of rural wireless communications
services in the United States. Our wireless operations are primarily in
rural areas due to our belief that there are significant strategic
advantages to operating in these areas. We believe rural markets provide
growth opportunities greater than those that exist in more densely populated
urban areas because these markets typically have lower current penetration
rates and less competition.
We provide wireless services, under the CellularONE® and Western Wireless®
brand names, to approximately 1.3 million subscribers in the western United
States using multiple digital and analog technologies. We operate in 88
Rural Service Areas (“RSAs”) and 19 Metropolitan Service Areas (“MSAs”) with
a combined population of approximately 11 million people. Our network is one
of the nation’s largest rural wireless communications systems, covering
approximately 25% of the continental United States in 19 western states. We
support our customers through our retail locations throughout our service
area and through our call centers in Manhattan, Kansas, and Issaquah,
Washington.
Our cellular network operates over radio frequencies licensed by the Federal
Communication Commission (“FCC”). We own 25 MHz of spectrum in the 800 MHz
band throughout our markets supplemented by 5 MHz and 10 MHz of 1900 MHz
spectrum utilized for the capacity needs of our subscribers, and to meet the
needs of our roaming partners.
A significant portion of our domestic revenues have historically been
derived from roaming. Our network includes the four major technologies
currently available in the U.S. These technologies include analog and three
digital standards: Time Division Multiple Access (“TDMA”); Code Division
Multiple Access (“CDMA”); and Global System for Mobile Communications (“GSM”).
All of the digital technologies employed by us allow for enhanced capacity
and data services.
Our subsidiary, Western Wireless International Holding Corporation (“WWI”),
is licensed to provide wireless communications services to over 72 million
people in eight countries. As of December 31, 2003, WWI’s consolidated
subsidiaries served, in aggregate, approximately 1.2 million mobile
subscribers.
Markets and Systems
We operate cellular systems in 88 RSAs and 19 MSAs. Inherent attributes of
RSAs and small MSAs make such markets attractive. Such attributes typically
include:
• Relative under-penetration as compared to more urban areas
• Population bases of customers with substantial needs for communications
services
• The ability to receive USF support in certain rural, insular and high cost
areas
• The ability to cover large geographic areas with fewer cell sites as
compared to urban areas
• Less intense competitive environments
• Less vulnerability to PCS and other competition
• Large distances between population centers resulting in a higher
proportion of roaming revenues than in urban areas
In addition to our cellular licenses, we have also acquired certain PCS
licenses. We believe that there are inherent advantages to acquiring and
owning such PCS licenses which include:
• The ability to supplement our coverage and reduce incollect costs with our
roaming partners
• The ability to expand our roaming offerings to 1900 MHz band PCS carriers
• Leveraging our existing infrastructure, which enables us to offer roaming
services at competitive rates that create a disincentive for our competitors
to build their own PCS systems in our markets
In many cases, our PCS licenses overlap populations already covered by our
cellular licenses. However, in some cases, our PCS licenses also have
incremental population outside of our cellular license coverage areas. As a
result, the total licensed population of 11,149,000, noted at the end of the
table below, includes 100% of our cellular licenses, plus the incremental
population covered by our PCS licenses.
The following table sets forth the populations covered by our cellular and
PCS licenses. The population data is estimated for 2004 based upon 2003
Claritas, Inc., (“Claritas”) estimates, and is adjusted by us by applying
Claritas’ positive and negative growth factors.
Cellular:
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Licensed |
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Incremental |
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State |
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MHz |
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Population |
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Population |
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|
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Arizona(1)
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|
|
25
MHz |
|
|
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202,000 |
|
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202,000 |
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Arkansas
|
|
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25
MHz |
|
|
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67,000 |
|
|
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67,000 |
|
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California
|
|
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25
MHz |
|
|
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193,000 |
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|
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193,000 |
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Colorado
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|
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25
MHz |
|
|
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417,000 |
|
|
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417,000 |
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Idaho(2)
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|
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25
MHz |
|
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82,000 |
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82,000 |
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Iowa
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|
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25
MHz |
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180,000 |
|
|
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180,000 |
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Kansas
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|
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25
MHz |
|
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671,000 |
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671,000 |
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Minnesota(3)
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25
MHz |
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861,000 |
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861,000 |
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Missouri
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25
MHz |
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84,000 |
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84,000 |
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Montana
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25
MHz |
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914,000 |
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914,000 |
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Nebraska
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25
MHz |
|
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1,029,000 |
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1,029,000 |
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Nevada
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25
MHz |
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149,000 |
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149,000 |
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New Mexico(4)
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25
MHz |
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251,000 |
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251,000 |
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North Dakota
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25
MHz |
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711,000 |
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711,000 |
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Oklahoma
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25
MHz |
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464,000 |
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464,000 |
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South Dakota
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25
MHz |
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770,000 |
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770,000 |
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Texas
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25
MHz |
|
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2,820,000 |
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2,820,000 |
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Utah
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25
MHz |
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322,000 |
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322,000 |
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Wyoming(5)
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25
MHz |
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356,000 |
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356,000 |
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Total Cellular Population
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10,543,000 |
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10,543,000 |
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PCS:
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| |
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Licensed |
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Incremental |
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State |
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MHz |
|
Population |
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Population |
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Arizona
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5 MHz |
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48,000 |
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— |
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Arkansas
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5 MHz |
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67,000 |
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— |
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Colorado
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5 MHz |
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|
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270,000 |
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|
|
— |
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Idaho
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|
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5 MHz |
|
|
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36,000 |
|
|
|
— |
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Iowa
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5 MHz |
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159,000 |
|
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— |
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Iowa
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10
MHz |
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11,000 |
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11,000 |
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Kansas
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5 MHz |
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284,000 |
|
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— |
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Kansas
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10
MHz |
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36,000 |
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36,000 |
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Minnesota
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5 MHz |
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216,000 |
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— |
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Minnesota
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10
MHz |
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513,000 |
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236,000 |
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Missouri
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5 MHz |
|
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34,000 |
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— |
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Montana
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5 MHz |
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914,000 |
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— |
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Nebraska
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5 MHz |
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754,000 |
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|
|
— |
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Nevada
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5 MHz |
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|
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7,000 |
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|
— |
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New Mexico
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5 MHz |
|
|
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327,000 |
|
|
|
— |
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New Mexico
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|
|
10
MHz |
|
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80,000 |
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76,000 |
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North Dakota
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5 MHz |
|
|
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429,000 |
|
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|
— |
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Oklahoma
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|
|
5 MHz |
|
|
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218,000 |
|
|
|
— |
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Oklahoma
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|
|
10
MHz |
|
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30,000 |
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— |
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South Dakota
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5 MHz |
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523,000 |
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— |
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Texas
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5 MHz |
|
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1,015,000 |
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— |
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Texas
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|
10
MHz |
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413,000 |
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228,000 |
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Utah
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5 MHz |
|
|
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181,000 |
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|
|
— |
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Wyoming
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5 MHz |
|
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375,000 |
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19,000 |
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Total PCS Population
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6,940,000 |
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606,000 |
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Total Licensed Population
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11,149,000 |
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