Metro PCS 2009 Annual Report Download - page 39

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Future Regulation
From time to time, federal, state or local government regulators enact new or revise existing legislation or
regulations that could affect us, either beneficially or adversely. Ongoing changes in the political and financial
climate may foster increased legislation or regulation, which might adversely affect us.
Item 1A. Risk Factors
Risks Related to Our Business
Our business strategy may not succeed in the long term.
Our business strategy has been to offer unlimited wireless broadband mobile services with limited geographic
coverage on a paid-in-advance basis for flat monthly rates without requiring a long-term service contract or a credit
check. Recent competitive pressures have forced us to change our service plans, which may prove to be unsuccessful
in the long term. A number of other carriers, resellers and mobile virtual network operators, or MVNOs, are
offering, or in the future may offer, services plans similar to, or competitive with, our service plans with more
extensive geographic coverage than ours and other differentiating features. In response, we have introduced new
service plans, which all include service coverage on a nationwide, tax-inclusive basis. If our business strategy is
unsuccessful, we may be forced to alter our service offerings, cost structure and geographic focus, all of which may
have a material adverse effect on our business, financial condition and operating results. If we have a
disproportionate number of our customers on our lower priced service plans or if our customers do not purchase our
service plans in the mix we anticipate, it could result in lower revenues and lower profitability, which could have a
material adverse effect on our business, financial condition, or operating results. From time to time, we evaluate our
products, service offerings and the demands of our target customers and may, as a result, amend, change,
discontinue or adjust our products, service offerings or initiate or offer new permanent, trial or promotional product
or service offerings. These new or changed product and service offerings may not succeed in the long term or prove
to be profitable. These new or changed product and service offerings may result in reduced revenues, increased
expenses, and other adverse financial or operational consequences, which could have a material adverse effect on
our business, financial condition and operating results.
Our tax inclusive plans make us susceptible to increases in taxes and regulatory fees.
We have recently begun to offer service plans that include applicable taxes and regulatory fees for a flat fee.
Because of budget shortfalls and regulatory policies, the government and regulatory agencies may increase the taxes
and regulatory fees payable on our services. If the government or regulatory agencies increase the taxes or
regulatory fees that are attributable to our services, it could negatively impact the profitability of our services. If we
attempted to include such increased taxes and regulatory fees, we could experience increased churn, decreased
revenues or fewer customer additions. If we experience lower profitability, lower margins, increased churn, or
lower sales, it could have a material adverse effect on our business, financial condition and operating results.
The lack of a strong brand name or inability to maintain or strengthen our brands may reduce our ability to
retain and attract customers, which could adversely affect our business, financial condition and operating
results.
With increased competition in the wireless telecommunications industry, in particular in the fixed-price, unlimited
use of paid-in-advance services, we believe marketing and promotional activities are critical to the success of the
business and a strong brand and image is an essential part of our marketing activities. Developing, promoting and
maintaining our brand and image requires a consistent capital investment and expense to promote our brands and
there can be no assurance that this investment in our brand and image or the promotion of our brand and image will
be successful. If we fail to develop, promote and maintain a strong brand and image or we are unsuccessful in
promoting our brands it could have a material adverse effect on our business, financial condition and operating
results.