Metro PCS 2008 Annual Report Download - page 14

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5
this report or any other filing we make with the Securities and Exchange Commission, or the SEC. We file
with, or furnish to, the SEC, all our periodic filings and reports, including an annual report on Form 10-K,
quarterly reports on Form 10-Q, current reports on Form 8-K, and any amendments thereto, as well as other
information. All of our filings with the SEC are available free of charge through the Investor Relations
page of our web site as soon as practicable after providing such information to the SEC. Copies of any of
our filings may also be requested, without charge, by sending a written request to Investor Relations,
MetroPCS Communications, Inc., 2250 Lakeside Blvd., Richardson, Texas 75082.
Business Overview
We currently provide our wide array of wireless broadband mobile services primarily in selected major
metropolitan areas in the United States, including the Atlanta, Boston, Dallas/Ft. Worth, Detroit, Las
Vegas, Los Angeles, Miami, New York, Orlando/Jacksonville, Philadelphia, Sacramento, San Francisco,
and Tampa/Sarasota metropolitan areas. As of December 31, 2008, we hold, or have access to, wireless
spectrum covering a total population of approximately 150 million people and 9 of the top 12 and 14 of the
top 25 most populous metropolitan areas in the United States. We provide our services using code division
multiple access, or CDMA, networks, using 1xRTT technology.
In September 2008, we entered into a national roaming agreement and an agreement to exchange
wireless spectrum with Leap Wireless International, Inc., or Leap, and at the same time we settled all
outstanding litigation between the parties. The nationwide roaming agreement, which has an initial term of
10 years, covers our, Royal Street Communications, LLC, or Royal Street Communications’, and Leap’s
existing and future markets. Additionally, we and Leap entered into a spectrum exchange agreement
covering licenses in certain markets, with Leap acquiring from us 10 MHz of spectrum in San Diego,
Fresno, Seattle and certain other Washington and Oregon markets, and our acquiring from Leap an
additional 10 MHz of spectrum in Dallas-Ft. Worth, Shreveport-Bossier City, Lakeland-Winter Haven,
Florida and certain other North Texas markets, with consummation subject to customary closing
conditions.
Competitive Strengths
We believe our business model has the following competitive strengths that distinguish us from our
principal wireless competitors:
xOur Fixed Price Unlimited Service Plans. We offer our services on a no long-term contract,
paid-in-advance, flat-rate, unlimited usage basis. We believe we offer a compelling value
proposition to our customers through our service offerings that provide unlimited usage from
within a local calling area for a lower fixed price than any of our primary competitors, which
differentiates our offerings from those of the national wireless broadband mobile carriers. Our
average per minute costs to our customers for our service plans are significantly lower than the
average per minute costs of other traditional wireless broadband mobile carriers. We believe
our low average cost per minute positions us very well for the growing trend of wireline
displacement.
xOur Densely Populated Markets. The aggregate population density of the metropolitan areas
we currently serve and plan to serve is substantially higher than the national average. We
believe the high relative population density of the metropolitan areas we serve or plan to serve
results in increased efficiencies in network deployment, operations and product distribution.
xOur Cost Leadership Position. We believe we have the lowest costs of any of the providers of
wireless broadband mobile services in the United States, which allows us to offer our services
on a flat-rate basis at affordable prices while maintaining cash profits per subscriber as a
percentage of revenues per subscriber that we believe are among the highest in the wireless
broadband mobile services industry.
xOur Spectrum Portfolio. As of December 31, 2008, we hold or have access to wireless
spectrum covering a population of approximately 150 million in the United States and covering
9 of the top 12 and 14 of the top 25 most populous metropolitan areas in the United States.