Metro PCS 2009 Annual Report Download - page 26

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14
Inflation
We do not believe that inflation has had a material effect on our operations.
Employees
As of December 31, 2009, we have approximately 3,600 employees. We believe our relationship with our
employees is good. None of our employees are covered by a collective bargaining agreement or represented by an
employee union.
Regulation
The wireless telecommunications industry is regulated extensively by the federal government and, to varying
degrees, by state and local governments. Congress, state legislatures, municipalities, and federal, state and local
regulators have enacted legislation, ordinances, codes, rules, regulations, instituted administrative rulemakings, and
courts have issued judicial decisions, affecting the telecommunications industry. Due to the latest change in the
party affiliation of the President of the United States and changes in the composition of Federal and state
legislatures, the political environment, and financial conditions, the regulation of the telecommunications industry
has been, and is expected to remain in the future, in a state of constant flux.
Federal Regulation
Our business is subject to extensive federal regulation under the Communications Act of 1934, as amended, or the
Communications Act, the implementing regulations adopted thereunder by the FCC, judicial and regulatory
decisions interpreting and implementing the Communications Act, and other federal statutes, and judicial and
regulatory decisions. These statutes, regulations, decisions and associated policies govern, among other things, the
allocation and licensing of radio spectrum; the ownership, lease, revocation, transfer of control and assignment of
wireless licenses; the ownership of our stock by non-United States citizens; the ongoing technical, operational and
service requirements under which we must operate; the timing, nature and scope of network construction; the rates,
terms and conditions of our service; our protection and use of customer information; roaming policies; our
obligations to meet various law enforcement and public safety requirements such as E-911; the interconnection of
communications networks; the provision of subscriber equipment; the location of network assets; and the use of
rights of way.
Broadband Spectrum Allocations
We utilize paired radio spectrum licensed by the FCC to provide our wireless broadband mobile services. The
FCC has allocated paired broadband spectrum in a variety of different bands, and we and many of our competitors
utilize a combination of spectrum in the various bands to provide wireless services. The principal spectrum bands
used to provide terrestrial broadband wireless mobile services in the United States are as follows, all of which can be
used to provide services competitive with the services we offer:
Cellular spectrum. The FCC has assigned two cellular licenses with 25 MHz of spectrum each in the 800 MHz
band on a metropolitan statistical area, or MSA, and rural service area, or RSA, basis. There are 306 MSAs and 428
RSAs in the United States. MSAs and RSAs are defined by the Office of Management and Budget, or OMB, and the
FCC, respectively.
PCS spectrum. The FCC has assigned licenses to use 130 MHz of radio spectrum in the 1.9 GHz band for
broadband personal communications services, or PCS. The PCS spectrum has been licensed in a variety of
bandwidths (30 MHz, 15 MHz and 10 MHz) and market areas (nationwide, major trading areas, or MTAs, and basic
trading areas, or BTAs). Under the broadband PCS licensing plan, the United States and its possessions and
territories are divided into 493 BTAs, all of which are included within 51 MTAs. Both MTAs and BTAs are defined
by Rand McNally & Company, as supplemented by the FCC.
SMR spectrum. The FCC has licensed 19 MHz of specialized mobile radio, or SMR spectrum, plus an additional
7.5 MHz of spectrum that is available for SMR as well as other services. FCC policy permits flexible use of this
spectrum, including the provision of enhanced mobile wireless services.