Over the past several years, both wireless subscribers and wireless capacity demand have grown substantially in the United States. According to the CTIA — The Wireless Association, a non-profit membership organization of wireless industry companies, the 109.5 million total U.S. wireless subscribers in December 2000 grew to 255.4 million by December 2007, which represents an approximately 13% compound annual growth rate. During that same time period, bandwidth demand, as measured by voice-minutes-of-use or MOUs, increased from 533.8 billion MOUs to 2.1 trillion MOUs, which represents an approximately 22% compound annual growth rate.

Similarly, annualized wireless data revenues increased from approximately $211 million in 2000 to approximately $23 billion in 2007, which represents a more than 95% compound annual growth rate. Historically, traditional wireless sites, primarily wireless tower sites, have provided the coverage and capacity infrastructure to support this substantial wireless demand growth. For example, from 2000 to 2007, the total number of traditional U.S. wireless sites increased by an approximately 11% compounded annual growth rate — from 104,288 to 213,299 traditional wireless sites.

It is expected demand for wireless services and capacity to continue to grow. In its March 2008 report, International Data Corporation, or IDC, an independent market research firm, predicts that total U.S. wireless subscribers will grow from 256 million in 2007 to 320.2 million by 2012, representing a 4.6% compound annual growth rate. IDC also forecasts that total United States wireless service revenue will grow from $152 billion in 2007 to $185 billion in 2012, representing a 4.0% compound annual growth rate. IDC expects that increased individual wireless subscriber usage, along with aggregate increases in wireless subscriber numbers, will drive this growth.

Instead, the Company builds its DAS sites utilizing existing right-of-way infrastructure, such as utility poles, traffic lights, and city lamp posts. The Company then inter-connect its DAS sites to the customer’s centralized base station, or group of base stations, using a high bandwidth fiber-optic connection.

Each of the Company’s DAS sites consists of an optical-to-electrical converter, a radio frequency transceiver, and one or more radiating antennas. Using a broad-band fiber network, the Company inter-connects multiple DAS sites to a centralized location where the optical signals are converted to electrical signals and delivered to the wireless operators’ network.

In many cases, one or more wireless service providers locate groups of base station equipment in this centralized location to provide multiple services, protocols, and frequency bands to the remote DAS-site locations. Significantly, the Company can transport all services, bands, and capacity over its broad-band fiber network to the base-station hotel.

As an alternative to the base-station hotel, a wireless carrier’s base-station equipment can be maintained at the wireless carrier’s existing cell site or switch location. In this manner, the wireless carrier can leverage its existing cell-site assets to also serve the corresponding DAS system, which can give the wireless carrier attractive cost-efficiencies.

Cost of operations was $0.9 million for the three months ended March 31, 2008, as compared to $0.7 million for the three months ended March 31, 2007.

Sales and marketing expense was $0.9 million for the three months ended March 31, 2008 and March 31, 2007.

Interest income and other, net was $0.3 million for the three months ended March 31, 2008, as compared to $0.2 million for the three months ended March 31, 2007.

Interest expense was $0.1 million for the three months ended March 31, 2008 and 2007.