Cricket Wireless 2011 Annual Report Download - page 50

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carrier, or by the regulatory body having jurisdiction in the applicable foreign country. If the charges are
modified, the terminating or interconnecting carrier may attempt to assess such charges retroactively on us or our
third party international long distance provider. If such charges are substantial, or we cease providing service to
the foreign destination, prospective customers may elect not to use our service and current customers may choose
to terminate service. Such events could limit our ability to grow our customer base, which could have a material
adverse effect on our business, financial condition and operating results.
If We Experience High Rates of Credit Card, Subscription or Dealer Fraud, Our Ability to Generate Cash
Flow Will Decrease.
Our operating costs could increase substantially as a result of fraud, including customer credit card,
subscription or dealer fraud. We have implemented a number of strategies and processes to detect and prevent
efforts to defraud us, and we believe that our efforts have substantially reduced the types of fraud we have
identified. However, if our strategies are not successful in detecting and controlling fraud, the resulting loss of
revenue or increased expenses could have a material adverse impact on our financial condition and results of
operations.
Related to Ownership of Leap Common Stock
Our Stock Price May Be Volatile, and You May Lose All or Some of Your Investment.
The trading prices of the securities of telecommunications companies have been highly volatile.
Accordingly, the trading price of Leap common stock has been, and is likely to continue to be, subject to wide
fluctuations. Factors affecting the trading price of Leap common stock may include, among other things:
• variations in our operating results or those of our competitors;
• announcements of technological innovations, new services or service enhancements, strategic alliances or
significant agreements by us or by our competitors;
• entry of new competitors into our markets, changes in product and service offerings by us or our
competitors, changes in the prices charged for product and service offerings by us or our competitors, or
changes or upgrades in the network technologies used by us or our competitors;
• significant developments with respect to intellectual property or other litigation;
• announcements of and bidding in auctions for new spectrum;
• recruitment or departure of key personnel;
• changes in the estimates of our operating results or changes in recommendations by any securities
analysts that elect to follow Leap common stock, or changes in our credit ratings or those of our
competitors;
• changes in the levels of our indebtedness;
• any default under any of the indentures governing our secured or unsecured senior notes or convertible
senior notes because of a covenant breach or otherwise;
• rumors or speculation in the marketplace regarding acquisitions or consolidation in our industry,
including regarding transactions involving Leap; and
• market conditions in our industry and the economy as a whole.
The occurrence of any one or more of these events could significantly impact the trading price of Leap common
stock, and you could lose all or some of your investment.
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