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build and operate the cellular telephone system that serviced the
area.
As a result of an agreement among various applicants who
sought the rural statistical number one area cellular telephone
license, they agreed to withdraw their license applications to
service the area as follows: (1) All the applicants except a
company called Ameritech would withdraw their applications to
service the area's northern portion; and (2) all the applicants
would either withdraw or amend their applications so that NITCO
and certain of the other applicants could form and participate in
a partnership to service the area's southern portion.
Subsequently, RSA #1, a limited partnership, was formed for this
purpose. Ameritech further agreed to pay the other applicants
$750,000 each for their agreement to cede the northern portion of
the rural statistical number one area to Ameritech.
On or about September 24, 1990, an LMN&G attorney sent
letters advising the other participants in RSA #1 that Serv-U-
Cellular, rather than NITCO, would be a limited partner in the
RSA #1 limited partnership. The attorney's letter to them stated
that Serv-U-Cellular was a newly formed “subchapter S
corporation” whose shares of stock were owned by individual
members of the Mussman family and that Mr. Mussman would own and
vote 51 percent of Serv-U-Cellular's shares.
By October 9, 1990, the RSA #1 partnership agreement was
amended to reflect Serv-U-Cellular's substitution in place of
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