Metro PCS 2009 Annual Report Download - page 41

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29
• adverse changes in the legislative and regulatory environment that may limit our ability to grow our customer
base.
If we are unable to achieve the aggregate levels of customer penetration that we currently believe are possible
with our business model, our ability to continue to increase our customer base and revenues at the rates we currently
expect may be limited and we may fail to achieve additional economies of scale. Any failure to achieve the
penetration levels we currently believe are possible with our business model and to successfully increase our
customer base may have a material adverse impact on our business, financial condition and operating results.
Our business is seasonal and our operating results for future periods will be affected negatively if we fail to
have strong customer growth in the first and fourth quarters.
Our business is seasonal and reflective of promotional activity, competition in the industry and the existing
economic conditions. Our largest numbers of subscribers are typically added in the first and fourth quarters.
However, sales activity and churn can be strongly affected by the launch of new and surrounding metropolitan areas
and promotional activity, which can reduce or outweigh certain seasonal effects. If we fail to meet our expectations
for customer additions in the first or fourth quarter, it could have a material adverse impact on our business,
financial condition and operating results for future periods.
Failing to manage our churn rate or experiencing a higher rate of customer turnover than we have forecasted
could adversely affect our business, financial condition and operating results.
Our customers do not have long-term contracts and can discontinue their service at any time without penalty. In
addition, as handset prices continue to decline, they become more disposable for our customers, who may then
change wireless providers or phones, increasing our churn. Our rate of customer churn can be affected by a number
of factors, including the following:
• network issues, including network coverage, network reliability, technology upgrades, dropped and blocked
calls, and network availability;
• geographic coverage, including roaming coverage, which is less extensive than our competitors;
• affordability and general economic conditions;
• supplier or vendor failures;
• customer perceptions of our services and offerings;
• customer care concerns, including reliance on automated customer service solutions that do not provide
customers with the one on one attention they desire;
• our rate of growth;
• handset, application, and content selection and issues, including lack of early access to the newest handsets,
innovative wireless applications, and content, handset prices and handset problems;
• the types, make-up and nature of our service plans and our marketing and promotional offers;
• wireless number portability requirements that allow customers to keep their wireless phone numbers when
switching between service providers;
• our inability to offer bundled services or services offered by our competitors;
• our lack of a third generation, or 3G, broadband wireless network in most of our metropolitan areas;
• delays or problems in our roll-out of LTE; and