Metro PCS 2008 Annual Report Download - page 29

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alleviate certain problems with the analog to digital TV conversion. In addition, the FCC has not yet established
final procedures and deadlines, including cost obligations for, wireless microphones users to vacate the band.
E-911 service. The FCC requires CMRS providers to implement basic 911 and enhanced, or E-911, emergency
services. Our obligation to implement these services is incurred in stages on a market-by-market basis as local
emergency service providers become equipped to handle E-911 calls. E-911 services allow state and local
emergency service providers to better identify and locate wireless callers, including callers using special devices for
the hearing impaired. The network equipment and handsets we utilize are capable of meeting the FCC’s E-911
requirements and we have constructed facilities to implement these capabilities in markets where we have had
requests from local public safety emergency service providers and are in the process of constructing E-911 facilities
in the markets we launched recently. Because we employ a handset-based location technology, the FCC also has
rules that require us to ensure that specified percentages of the handsets in service on our systems are location
capable and meet certain location accuracy standards. The FCC actively monitors the compliance by CMRS carriers
with E-911 requirements. For example, MetroPCS was notified on October 10, 2008, by the FCC that it is
investigating the compliance by MetroPCS with its E-911 obligations. In response, MetroPCS has provided the FCC
with information which we believe shows our compliance with our E-911 obligations; however, the matter is still
pending at this time. The FCC has in the past and may in the future, impose substantial fines and forfeitures on
wireless broadband mobile carriers for their failure to comply with the FCC’s E-911 rules and could impose other
sanctions, including revocation of licenses or the imposition of mandatory reporting requirements, license
conditions, and compliance programs. The FCC also has rules under which wireless broadband mobile carriers may
be required to offer priority E-911 services to the public safety agencies under certain circumstances. States in which
we do business may limit or eliminate our ability to recover our E-911 costs. However, federal legislation also may
limit our liability for uncompleted 911 calls to a similar level to wireline carriers in our markets.
The FCC is considering various alternative proposals for wireless E-911 Phase II location accuracy and reliability
and an FCC order currently is circulating at the FCC. We are unable at this time to predict the likely outcome of this
proceeding. These E-911 requirements may require us to expend additional capital and resources. The FCC also has
left open the possibility of further requirements.
Communications assistance for law enforcement act (CALEA). Federal law requires CMRS carriers to assist law
enforcement agencies with lawful wiretaps, and imposes wiretap-related record-keeping and personnel-related
obligations. Historically, our customer base may have been, and may continue to be, subject to a greater percentage
of law enforcement requests than those of other carriers and, as a result, our compliance expenses may be
proportionately greater.
Number administration. Because demand is increasing for a finite pool of telephone numbers, the FCC has
adopted number pooling rules that govern how telephone numbers are allocated. Number pooling is mandatory
inside the wireline rate centers that are located in counties included in the top 100 MSAs. We have implemented
number pooling procedures and support pooled number roaming in all of our metropolitan areas which are in the top
100 MSAs. The FCC also has authorized states to supplement federal numbering requirements in certain respects
and some of the states where we provide service have been authorized by the FCC to engage in limited numbering
administration. Our ability to access telephone numbers on a timely basis is important for our ability to continue to
grow our business.
Number portability. The FCC has ordered all telecommunications carriers, including CMRS carriers, to support
telephone number portability which enables subscribers to keep their telephone numbers when they change
telecommunications carriers, whether wireless to wireless or, in some instances, wireline to wireless, and vice versa.
Under these local number portability rules, a CMRS carrier located in one of the top 100 MSAs must have the
technology in place to allow its customers to keep their telephone numbers when they switch to a new carrier.
Outside of the top 100 MSAs, CMRS carriers receiving a request to allow end users to keep their telephone numbers
must be capable of doing so within six months of the request. All CMRS carriers are required to support nationwide
roaming for customers retaining their numbers.
Interconnection. FCC rules provide that all telecommunications carriers are obligated upon reasonable request to
interconnect directly or indirectly with the facilities and networks of other telecommunications carriers. All local
exchange carriers also must, upon request, enter into mutual or reciprocal compensation arrangements with CMRS
carriers for the exchange of intra-MTA traffic, under which each carrier compensates the other for terminated intra-
MTA traffic originating on the compensating carrier’s network. Further, at a CMRS carrier’s request, incumbent
local exchange carriers must exchange intra-MTA traffic with CMRS carriers at rates based on the FCC’s costing