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   &lt;div align="left" style="font-family: 'Times New Roman',Times,serif"&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 12pt"&gt;&lt;b&gt;2. Summary of Significant Accounting Policies&lt;/b&gt;
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;The condensed consolidated financial statements have been prepared in accordance with
   accounting principles generally accepted in the United States of America, which we refer to as U.S.
   GAAP, and pursuant to the rules and regulations of the Securities and Exchange Commission, which we
   refer to as the SEC. The same accounting policies are followed for preparing the quarterly and
   annual financial information unless otherwise disclosed in the notes below.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&lt;i&gt;Reclassifications &lt;/i&gt;&amp;#8212; For the three months ended March&amp;#160;31, 2010, we reclassified Losses from
   abandonment of network assets from Cost of goods and services and network costs to a separate line
   item in the condensed consolidated statements of operations. We also reclassified costs associated
   with ongoing maintenance of network assets that have been deployed from Selling, general and
   administrative expense to Cost of goods and services and network costs.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&lt;i&gt;Subsequent Events &amp;#8212; &lt;/i&gt;We evaluated subsequent events occurring through the date the financial
   statements were issued.
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;The following accounting policies were adopted in the three months ended March&amp;#160;31, 2011:
   &lt;/div&gt;
   &lt;div align="left" style="font-size: 10pt; margin-top: 6pt"&gt;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&amp;#160;&lt;i&gt;Revenue Recognition &amp;#8212; &lt;/i&gt;In October&amp;#160;2009, the Financial Accounting Standards Board, which we
   refer to as the FASB, issued new accounting guidance that amends the revenue recognition for
   multiple-element arrangements and expands the disclosure requirements
   related to such arrangements.
   The new guidance amends the criteria for separating consideration in multiple-deliverable
   arrangements,
   establishes a selling price hierarchy for determining the selling price of a deliverable,
   eliminates the residual method of allocation, and requires the application of relative selling
   price method in allocating the arrangement consideration to all deliverables. We adopted the new
   accounting guidance on January&amp;#160;1, 2011. The adoption of the new accounting guidance did not have a
   significant effect on our financial condition or results of operations.
   &lt;/div&gt;
   &lt;/div&gt;
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 -Publisher AICPA
 -Name Accounting Principles Board Opinion (APB)
 -Number 22
 -Paragraph 8

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