Metro PCS 2010 Annual Report Download - page 20

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10
________________________________________________
(1) Includes 10 MHz of spectrum from West REA 6 (WQGA732).
(2) Comprised of 127 counties out of 204 counties under the REA 5.
(3) Includes 11 of 25 counties in BTA101.
(4) Comprised of Grayson and Fannin counties only.
(5) Counties are covered under REA 5.
(6) Santa Barbara County portion of West REA 006 (WQMM379).
(7) Spectrum licensed as part of Northeast REA 1.
(8) Includes 10 MHz of spectrum from Northeast REA 1 (WQGA731).
(9) Portions listed in connection with other metropolitan areas.
(10) Includes 10 MHz of spectrum from Central REA 5 (WQMM368).
The map below illustrates the geographic coverage of our licensed spectrum as of December 31, 2010:
Royal Street
In November 2004, we entered into a cooperative arrangement with C9 Wireless, LLC, or C9, an unaffiliated
very small business entrepreneur and, as part of that arrangement, acquired an 85% non-controlling interest in Royal
Street Communications, LLC, an entity controlled by C9. Royal Street Communications, LLC, or Royal Street
Communications, participated in FCC Auction 58, was the high bidder on, and was granted 10 MHz of spectrum in
the Los Angeles basic trading area, or BTA, and 10 MHz of spectrum in certain other BTAs in Northern Florida,
including Orlando. Auction 58 was designed to allow small businesses, very small businesses and other so-called
designated entities, or DEs, to acquire spectrum and construct wireless networks to promote competition with
existing carriers. Royal Street Communications qualified as a very small business DE and was granted in December
2005 certain “open” broadband PCS licenses on which it received a 25% bidding credit, and certain other “closed”
broadband PCS licenses which only qualified DEs could be granted. C9 had the right to put, or require us to
purchase, all or part of its ownership interest in Royal Street Communications. From 2005 through 2010, Royal
Street Communications and its wholly-owned subsidiaries constructed networks with our assistance in its licensed
service areas and, pursuant to agreements with us that were reviewed and approved by the FCC, sold us services on
its network on a wholesale basis which we in turn marketed on a retail basis under the MetroPCS
®
brand to our
customers. Due to our relationship with Royal Street Communications, we were able to consolidate its results from
an accounting perspective with those of our subsidiaries. In April 2010, C9 provided us with notice that it was
exercising its right to put its interest to us pursuant to its agreement with us and, in December 2010, we
consummated the purchase of C9’s interest in Royal Street Communications with the consent of the FCC, resulting
in Royal Street Communications and its wholly-owned subsidiaries becoming wholly-owned and controlled
subsidiaries of the Company. Additionally, Royal Street Communications has been renamed MetroPCS Networks,
LLC.