Metro PCS 2008 Annual Report Download - page 35

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Other. Our operations also are subject to various other regulations, including those regulations promulgated by
the Federal Trade Commission, the Federal Aviation Administration, the Environmental Protection Agency, the
Occupational Safety and Health Administration and state and local regulatory agencies and legislative bodies.
State, local and other regulation
The Communications Act preempts state or local regulation of market entry or rates charged by any CMRS
provider. As a result, we are free to establish rates and offer new products and services with minimum state
regulation. However, states and local agencies may regulate “other terms and conditions” of wireless service, and
certain states where we operate have adopted rules and regulations to which we are subject, primarily focusing upon
consumer protection issues and resolution of customer complaints. In addition, several state authorities have
initiated actions or investigations of various wireless carrier practices. The outcome of these proceedings is
uncertain and could require us to change our marketing practices, ultimately increasing state regulatory authority
over the wireless industry. To the extent that applicable rules differ from state to state, our costs of compliance may
go up and our ability to have uniform policies and practices throughout our business may be impaired. State and
local governments also may manage public rights of way and can require fair and reasonable compensation from
telecommunications carriers, including CMRS providers, for the use of such rights of any, so long as the
government publicly discloses such compensation.
Various decisions have been rendered by, and other proceedings are pending before, state public utility
commissions and courts pertaining to the extent to which the FCC’s preemptive rights over CMRS rates and entry
prevent states from regulating aspects of wireless service, such as billing policies and other consumer issues.
Depending upon the ultimate resolution of these proceedings, which we cannot predict at this time, our services may
be subject to additional state regulation which could cause us to incur additional costs.
The location and construction of wireless antennas, DAS systems and nodes, base stations and towers are subject
to state and local environmental regulations, zoning, permitting, land use and other regulation. Before we can put a
DAS node or site into commercial operation, we, or the tower owner in the case of leased sites, must obtain all
necessary zoning and building permit approvals. The time needed to obtain necessary zoning approvals, building
permits and other state and local permits varies from market to market and state to state and, in some cases, may
materially delay our ability to provide service. Variations also exist in local zoning processes. Further, certain cities
and municipalities impose severe restrictions and limitations on the placement of wireless facilities which may
impede our ability to provide service in some areas. In addition, in order to deploy DAS systems, our DAS provider
may need to obtain authorization from a local municipality. In at least one instance, such authorization is subject to
challenge. Actions of this nature could have an adverse effect on our ability to construct and launch service in new
metropolitan areas or to expand service in existing markets. Further, we may be subject to environmental
compliance regulations with respect to the operation of standby power generators, batteries and fuel storage for our
telecommunications equipment. A failure or inability to obtain necessary zoning approvals or state permits, or to
satisfy environmental rules, may make construction impossible or infeasible on a particular site, might adversely
affect our network design, increase our network design costs, require us to use more costly alternative technologies,
such as DAS systems, reduce the service provided to our customers, and affect our ability to attract and retain
customers. Local zoning and building ordinances also may make it difficult for us to comply with certain federal
requirements, such as the backup power requirements under consideration by the FCC.
We cannot assure you that any state or local regulatory requirements currently applicable to our systems will not
be changed in the future or that regulatory requirements will not be adopted in those states and localities which
currently have none.
Certain states and municipalities in which we provide service or plan to provide service have passed laws
prohibiting the use of wireless phones while driving or requiring the use of wireless headsets, other states and
municipalities may adopt similar restrictions in the future, and one national organization is advocating a total ban on
the use of wireless phones while driving. If state and local governments in areas where we conduct business adopt
regulations restricting the use of wireless handsets while driving, we could experience reduced demand for our
services.
Certain states in which we provide service are in the process of reviewing proposed legislation that would require
persons selling prepaid wireless services, such as ours, to verify a customer’s identity using government
identification. We currently do not require our subscribers to provide a government issued identification to initiate