Metro PCS 2009 Annual Report Download - page 38

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Occupational Safety and Health Administration and state and local regulatory agencies and legislative bodies. The
failure to meet or maintain compliance with such regulations could subject us to fines, penalties, potential
administrative and enforcement proceedings or legal action. See “—Risk Factors.”
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. These proceedings 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. These
proceedings could subject us to additional state regulation which could cause us to incur additional costs.
The FCC recently ruled that the rates to be charged by competitive local exchange carriers, or CLECs, to CMRS
carriers should be resolved by the pertinent state regulatory commissions. We have appealed this ruling. In the
meantime, CLECs have begun filing applications with state regulatory commissions seeking to set rates for their
termination services, which could subject us to a multiplicity of state rate cases in which the state regulatory
commission would set the rates to be charged by CLECs to CMRS carriers for the termination of traffic by CMRS
carriers to CLECs.
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. The FCC recently issued an order limiting the time a municipality
could not act on an application before the applicant could appeal such inaction. 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.
Certain states and municipalities in which we provide service or plan to provide service have passed laws
prohibiting texting or 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.
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
service with us.