Metro PCS 2009 Annual Report Download - page 42

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• competition and competitive offers by other wireless broadband mobile service providers, including offers
by compatible carriers allowing our customers to keep their handsets when they sign up for service with
such other carrier.
We cannot assure you that our strategies to address customer churn will be successful. In addition, we may not be
able to profitably replace customers who leave our service or replace them at all. If we experience a churn rate
higher than we expect or fail to replace lost customers, we could experience reduced revenues and increased
marketing costs to attract replacement customers required to sustain our business plan, which could reduce our profit
margin and could reduce the cash available to construct and operate new metropolitan areas, to expand coverage and
capacity in existing metropolitan areas, or to upgrade our networks to LTE, all of which could have a material
adverse effect on our business, financial condition and operating results.
Our operations require continued capital expenditures and a failure to access additional capital could have a
material adverse effect on our business, financial condition and operating results.
Our business strategy involves expanding into and competing in major metropolitan areas, all of which have
significant established competition from other providers. To compete effectively, we must continue to upgrade and
enhance our network and services. As a result, we have invested and expect to continue to invest a significant
amount of capital in the future to construct, maintain, upgrade and operate our network, billing, customer care and
information systems, to implement our business plans, including our 4G network, and to support future growth of
our wireless business.
Historically, we have been able to finance our growth and build out of our existing and planned metropolitan areas
and fund capital expenditures and service our debt from cash internally generated from our operations and various
debt and equity offerings. If our current cash and excess internally generated cash flows are insufficient to fund our
business plan, improve and expand our network infrastructure and services, participate in new opportunities, engage
in acquisitions of additional spectrum or businesses or participate in future FCC auctions, or service our debt, we
may be forced to sell additional equity, seek additional debt financing, borrow additional amounts under our existing
senior secured credit facility, refinance our existing indebtedness, or delay certain of our planned expansion or other
initiatives, additions of capacity, and technological advances. Our senior secured credit facility and indentures
governing our 9¼% senior notes permit us, subject to specific limitations and restrictions, to incur additional
indebtedness. Our senior secured credit facility includes a presently undrawn revolving line of credit that is to be
funded by a number of commercial and investment banks. However, deteriorating worldwide economic conditions, a
banking crisis, or tightening capital markets may affect whether our lenders are able to honor their commitments to
fund our revolving line of credit should we need to draw on such line of credit to pursue new opportunities, engage
in acquisitions, or purchase additional spectrum. Additionally, we may require additional capital to fund our long-
term business plan, including operating losses, network expansion and upgrades, servicing of our debt, possible
spectrum acquisitions or other business combinations or acquisitions. Our success and viability will depend on our
ability to maintain and increase revenues and to raise additional capital, when and if needed, on reasonable terms.
We may not have the cash or be able to arrange additional financing, whether debt, equity or otherwise, to fund our
future needs on terms acceptable to us or at all. Our ability to arrange additional financing will depend on, among
other factors, our credit ratings, the prospects for our business, our leverage, financial and operating performance,
general economic, financial, competitive, legislative and regulatory conditions, consumer credit conditions,
consumer confidence, unemployment rates and prevailing capital market conditions. Many of these factors are
beyond our control.
Should we need to access the market for additional funds, the competitiveness of the wireless telecommunications
industry, the volatility and demand of the capital markets, any change in our credit rating, change in our business or
business prospects, and uncertainty in the credit and capital markets may make it more difficult and costly for us to
raise capital through the issuance of any equity securities or incur any additional debt or refinance existing debt on
terms acceptable to us or at all. Failure to obtain suitable financing when needed could, among other things, result
in our inability to continue to expand our businesses as planned or to meet competitive challenges; forego strategic
opportunities; delay and/or reduce network deployments, upgrades, and capital expenditures, operations, spectrum
acquisitions and investments; and restructure or refinance our indebtedness prior to maturity or sell additional equity
or seek additional debt financing. We cannot assure you that our business will generate sufficient cash flow from
operations, or that future borrowings, including borrowings under our senior secured credit facility, will be available
to us in an amount sufficient to enable us to pay our indebtedness or to fund our working capital and other liquidity
needs, or at all. Further, as our operations grow, it may be more difficult to adapt and modify our business plan
based on the availability of funding. If we incur significant additional indebtedness, or if we do not continue to