Metro PCS 2009 Annual Report Download - page 59

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Risks Related to Legal and Regulatory Matters
Our ability to provide service to our customers and generate revenues could be harmed by adverse regulatory
action.
Our FCC licenses are major assets that we use to provide our services. Our FCC licenses are subject to revocation
and we may be subject to fines, forfeitures, penalties or other sanctions, including the imposition of mandatory
reporting requirements, license conditions, corporate monitors, and limitations on our ability to participate in future
FCC auctions, if the FCC were to find that we are not in compliance with its rules or the requirements of the
Communications Act. Many of our licenses are subject to interim or final construction requirements and there is no
guarantee that the FCC will find our construction, or the construction of prior licensees, sufficient to meet the
applicable construction requirement. If the FCC finds that our construction, or the construction of prior licensees, is
insufficient, the FCC could, among other things, terminate our licenses. In addition, a failure to comply with
applicable license conditions or regulatory requirements could result in revocation or termination of our licenses, in
the loss of rights to serve unbuilt areas and/or fines and forfeitures. We have had inquiries from regulatory agencies
regarding our compliance with regulatory requirements and we may in the future receive additional inquiries. We
have responded, are in the process of responding, or will respond to such inquiries. We cannot give any assurances
that the FCC will agree with our compliance efforts or that the FCC will not impose fines, fees, or forfeitures, seek a
consent decree, or take other adverse action against us.
We must renew our FCC licenses periodically. Renewal applications are subject to FCC review and public
comment to ensure that licensees meet their licensing requirements and comply with other applicable FCC
requirements, rules and regulations. For all PCS, AWS and 700 MHz licenses, the FCC also requires that a licensee
provide substantial service in order to receive a renewal expectancy. There is no guarantee that the FCC will find the
completed system construction sufficient to meet the build out or renewal requirement. Additionally, while
incumbent licensees enjoy a certain renewal expectancy if they provide substantial service, the substantial service
standard is not well articulated and there is no guarantee that the FCC will conclude that we are providing
substantial service, that we are entitled to a renewal expectancy, or will renew all or any of our licenses, without the
imposition of adverse conditions. If we fail to file for renewal of any particular license at the appropriate time, or fail
to meet any regulatory requirements for renewal, including construction and substantial service requirements, we
could be denied a license renewal or be subject to a competing application. The FCC also may impose additional
regulatory requirements or conditions on our licenses or our business and may impose a substantial renewal fee to
allow a licensee to continue to use a particular spectrum. Such additional regulatory requirements, fees or
conditions could increase the cost of doing business, could cause disruption to existing networks, and could require
us to make substantial investments. Any loss or impairment of any of these licenses, failure to renew, fines and
forfeitures, the imposition of conditions, or other actions by the FCC could have a material adverse effect on our
business, financial condition and operating results.
We may be unable to obtain necessary governmental authorizations and permits on reasonable terms and
conditions.
Our ability to operate our business is dependent on, among other things, our ability to obtain governmental
authorizations and permits in the planning, construction and operation of our networks. Obtaining governmental
authorizations and permits can be very time sensitive and require compliance with administrative and procedural
rules. To remain competitive, we must obtain such authorizations and permits on a timely basis, at a reasonable cost
and on acceptable terms and conditions. If we cannot obtain the necessary governmental authorizations and permits
at all or on reasonable terms and conditions, we may incur substantial costs associated with finding an alternate,
viable resolution, relocating sites and infrastructure, writing off cost and expenses associated with sites we are
unable to use, and we may experience a delay or impairment in the provisioning of our services which could have a
material adverse effect on our business, financial condition and operating results.
We are subject to significant federal and state regulation.
The FCC regulates the licensing, construction, modification, operation, ownership, sale and interconnection of
wireless communications systems, as do some state and local regulatory agencies. We cannot assure you that the
FCC or any state or local agencies having jurisdiction over our business will not impose new or revised regulatory
requirements, new or increased costs, or require changes in our current or planned operations. Indeed, the FCC has
initiated a series of inquiries and rulemaking proceedings pertaining to the wireless industry that could result in
material changes in the applicable rules and policies. The FCC and state regulatory agencies also are increasingly