Metro PCS 2009 Annual Report Download - page 50

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able to operate. See the risk factor entitled “We rely on third parties to provide products, software and services that
are integral to our business.” The resulting impact of such economic conditions on our customers, on consumer and
discretionary spending and on our service providers could have a material adverse effect on demand for our services
and on our business, financial condition and operating results.
Additionally, there have been significant changes in the political climate and in the composition of the FCC as a
result of the outcome of recent state elections and the Presidential election in the United States. Several recent
actions indicate that the FCC will be proactive in the regulation of wireless services, and we cannot predict with any
certainty the nature and extent of the changes in federal, state and local laws, regulations and policy we will face, or
the effect of such elections on any pending legislation. For example, changes in the political climate could affect the
extent to which further consolidation of wireless carriers will be approved by the government and such changes
could reduce our strategic merger and acquisition options. Any changes in regulation, new policy initiatives,
increased taxes or any other changes in federal law may have an adverse effect on our business, financial condition
and operating results.
We are exposed to counterparty risk in our senior secured credit facility and related interest rate protection
agreements.
We have entered into interest rate protection agreements to manage the Company’s interest rate risk exposure by
fixing a portion of the interest expense we pay on our long-term debt under our senior secured credit facility. There
has been considerable turmoil in the world economy and banking markets, which could affect whether the
counterparties to such interest rate protection agreements are able to honor their agreements. If the counterparties
fail to honor their commitments, we could experience higher interest rates, which could have a material adverse
effect on our business, financial condition and operating results.
The investment of our substantial cash balances are subject to risk.
We can and have historically invested our substantial cash balances in, among other things, securities issued and
fully guaranteed by the United States or any state, highly rated commercial paper and auction rate securities, money
market funds meeting certain criteria, and demand deposits. These investments are subject to credit, liquidity,
market and interest rate risk. Such risks may result in a loss of liquidity, substantial impairment to our investments,
realization of substantial future losses, or a complete loss of the investment in the long-term, which may have a
material adverse effect on our business, financial condition, operating results and liquidity.
We currently have an exclusive arrangement with our billing services vendor.
Amdocs Software Systems Limited and Amdocs, Inc., or Amdocs, subject to certain exclusions, is our exclusive
vendor for billing services in North America. If Amdocs does not perform its obligations under the agreement, or
ceases to continue to develop, or substantially delays development of, new features or billing services, or ceases to
support its existing billing systems, we may be unable to secure alternative billing services from another provider or
providers in a timely manner, for a reasonable cost or otherwise, which could cause us, among other things, not to
be able to bill our customers, provide customer care, grow our business, report financial results, or manage our
business and we may have increased churn, all of which could have a material adverse effect on our business,
financial condition and operating results.
We may be unable to enforce or protect our intellectual property and intellectual property rights.
We own, license, develop and use intellectual property, including trade secrets, in our business. While we engage
in measures to protect our intellectual property, such measures offer limited protection and may not prevent the
misappropriation of information or our proprietary rights. Further, the enforcement of our intellectual property
rights may require legal action, which may be costly and may not be successful, even if our rights are infringed.
We cannot assure you that any patent, trademark or service mark, whether pending or future, or any application
for such will be granted or that any existing patent, trademark or service mark will not be infringed, challenged or
invalidated or that any such registration will adequately protect our brand, products or image. If any of our
intellectual property rights are infringed, challenged or invalidated, the costs associated with the protection and
attempted enforcement of our rights and the potential loss of such rights could have a material adverse effect on our
business, financial condition and operating results.