Metro PCS 2007 Annual Report Download - page 3

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A Message From
Chairman, President and Chief Executive Officer
Roger D. Linquist
To Our Stockholders,
Since launching service in 2002, our mission at MetroPCS has been to change the
way in which wireless services are provided by offering flexible, affordable and
predictable unlimited wireless communications services. We are the leader in
providing unlimited wireless services, and in 2007, we added over 1 million
subscribers for the second consecutive year. We currently serve more than 4 million
subscribers in 12 major metropolitan markets in the United States. The past five years
have been nothing short of remarkable – and today, we are among the fastest growing
wireless broadband PCS providers in the United States.
At the core of our continued success is the simplicity of our service plans. We offer a
simple, affordable, flat-rate, unlimited wireless service with no signed contract to a
mass market, which we believe has been largely underserved by traditional wireless
carriers. Furthermore, with our unlimited service plans, our subscribers do not need to
be concerned with their minutes of use. As a result, our subscribers use their phones
on average over 2,000 minutes per month, or in other words, well over an hour every
day.
MetroPCS’ current service area covers a population of approximately 60 million
consumers across the United States. We expect to continue to increase our
subscriber base in 2008 while at the same time building out our network, which, when
completed, will cover a population of approximately 100 million consumers. We
believe this network expansion will provide outstanding potential for the future.
We operate in a competitive industry that is growing and evolving quickly. One factor,
in particular, that we believe is helping to fuel our impressive growth is landline
replacement. From studies we’ve conducted, we have found that approximately 85%
of our subscribers use our service as their primary phone. Furthermore, a recent
Government study revealed that 1 in 8 families have discontinued their landline phone
and now rely completely on wireless service. We believe our affordable, unlimited, flat-
rate service provides a compelling value proposition, especially as families
increasingly “cut the cord.”
With this increased opportunity comes a critical challenge, and that is to maintain our
low cost structure while offering a differentiated product that provides customers the
most value for their dollar. We built MetroPCS from the ground up and with every step
we have kept a critical eye on managing our costs while offering our subscribers
unlimited usage. An important measure we use to track our costs is Cost Per User
(CPU), and, for the full year 2007, our Core Markets reported a CPU of just under $15