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Ntelos Holdings is a leading provider of wireless and wireline communications services to consumers and businesses in Virginia and West Virginia under the Ntelos brand name. It concentrate on providing services to meet the current and future communciations needs of customers and that it believed in representing high growth opportunities. Its wireless operations are composed of an Ntelos branded retail business and a wholesale business that operates under an exclusive contract with Sprint Nextel Corp. Ntelos Holdings Corp. has a market cap of $654.6 million; its shares were traded at around $15.45 with a P/E ratio of 12.2 and P/S ratio of 1.2. The dividend yield of Ntelos Holdings Corp. stocks is 6.8%. Highlight of Business Operations: We amended our agreement with Sprint Spectrum L.P. during 2007 to act as their exclusive wholesale provider of network services through July 31, 2015. Under this arrangement, which we refer to as the Strategic Network Alliance, we are the exclusive PCS service provider in our western Virginia and West Virginia service area for all Sprint CDMA wireless customers. For the three months ended September 30, 2009, we realized wholesale revenues of $28.5 million, representing an increase of 4.4% over the three months ended September 30, 2008. Of this total, $27.1 million related to the Strategic Network Alliance, a decline of $2.8 million from the second quarter of 2009 primarily due to the travel data rate being at a contractually pre-set rate that was substantially higher in the second quarter of 2009. Following the travel data rate reset on July 1, 2009, our monthly revenue from Sprint was approximately equal to the $9.0 million minimum revenue stipulated in the contract and based on the magnitude of the rate reset, is projected to remain at that level for the balance of the year and for 2010. For the nine months ended September 30, 2009, we realized wholesale revenues of $89.9 million, representing an increase of 17.2% over the nine months ended September 30, 2008. Of this total, $85.8 million related to the Strategic Network Alliance.
We own a 2,500 route-mile regional fiber optic network as of September 30, 2009 and participate in partnerships that directly connect our networks with many of the largest markets in the mid-Atlantic region. This reflects an increase of approximately 200 route-miles in the third quarter of 2009 which includes the completion of a fiber route in which we purchased an Indefeasible Right of Use (IRU) for $4.5 million and a fiber swap agreement, which together allow us to expand our broadband and high-capacity business communications services to Culpeper, Madison and Warrenton, Virginia. Additionally, on October 6, 2009, we announced that we had executed an agreement to purchase certain fiber optic and network assets and related transport and data customer service agreements and associated revenues from Allegheny Energy, Inc. The purchase includes approximately 2,200 route-miles of fiber located primarily in central and western Pennsylvania and West Virginia, with portions also in Maryland, Kentucky and Ohio. Closing, which is expected by year-end 2009, is subject to regulatory approvals and customary closing conditions. Projected 2009 service revenues, including revenues from NTELOS, and adjusted EBITDA, pro forma for the terms and conditions of the agreement, on this fiber network are approximately $8.0 million and $4.5 million, respectively. The purchase price for the transaction assets is approximately $27 million.
Operating revenues increased $0.6 million, or 0.5%, from the three months ended September 30, 2008 to the three months ended September 30, 2009 and increased $18.2 million, or 4.6%, from the nine months ended September 30, 2008 to the nine months ended September 30, 2009. Wireless PCS accounted for approximately 54% and 91% of the respective three- and nine-month increases, with growth occurring from wholesale revenues and equipment sales in each respective period, and additionally retail subscriber revenues in the nine-month period. Wireline contributed the remaining revenue increases primarily from growth in key strategic product revenues in the Competitive segment.
Operating income increased $1.9 million over the comparative three months, from $30.9 million for the three months ended September 30, 2008 to $32.9 million for the three months ended September 30, 2009. Operating margin increased from 22.9% for the three months ended September 30, 2008 to 24.2% for the three months ended September 30, 2009. Operating income increased $15.0 million over the comparative nine months, from $86.9 million for the nine months ended September 30, 2008 to $101.9 million for the nine months ended September 30, 2009. Operating margin increased from 21.8% for the nine months ended September 30, 2008 to 24.5% for the nine
Net income attributable to NTELOS Holdings Corp. increased $1.9 million from the comparative three months. As noted above, operating income increased $1.9 million. Additionally, we recognized a $3.1 million favorable change in gain on interest rate swap, from a loss of $2.4 million in the three months ended September 30, 2008 to a gain of $0.7 million in the three months ended September 30, 2009. Partially offsetting these favorable changes were a $0.9 million increase in interest expense, a $0.9 million decrease in other income, consisting primarily of interest income, a $1.2 million increase in income tax expense and a $0.2 million increase in net income attributable to noncontrolling interests.
Net income attributable to NTELOS Holdings Corp. increased $8.9 million over the comparative nine months. In addition to the $15.0 million increase in operating income, interest expense decreased $4.2 million. These changes were partially offset by a $1.8 million decrease in other income, consisting primarily of interest income, an unfavorable change in gain on interest rate swap of $1.8 million, from a gain of $3.9 million in the nine months ended September 30, 2008 to a gain of $2.1 million in the nine months ended September 30, 2009, an increase in income tax expense of $6.0 million and an increase in net income attributable to noncontrolling interests of $0.6 million.
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