Metro PCS 2010 Annual Report Download - page 3

A Message From
Chairman, President and Chief Executive Officer Roger D. Linquist
To Our Stockholders,
What a difference a year makes. In early 2010, we substantially changed our go-to-market strategy with the
introduction of Wireless for All. A year later, I am proud to report, we generated record 2010 operational and financial
results. In addition, we solidified our already strong balance sheet, and we took key initial steps in our evolution with
the deployment of the first state-of-the-art commercial 4G LTE network in the United States, launched the world’s first
4G LTE handset, and launched new exciting service offerings.
These successes were in large part enabled by the transformation of our business with the Wireless for All service
plans, as well as maintaining our best in class cost structure. As a Company, we are proud of our achievements in
2010, as well as our continued leadership position within the no-contract wireless business.
Accomplishments during 2010
x Successfully introduced Wireless for All, the most significant go-to-market strategy transformation for
MetroPCS in company history since it introduced its unlimited, no long-term contract service in 2002
x Added a record 1.5 million net subscriber additions for the year, representing 23% total subscriber growth
and improved Consolidated Adjusted EBITDA margin from 30% to 32%
x Fifth consecutive year of over 1 million net subscriber additions and surpassed the 8 million subscriber
milestone
x Reduced year over year churn rate by 190 basis points
x Launched 4G LTE monthly service in: Las Vegas, Dallas/Ft. Worth, Detroit, Los Angeles, Philadelphia,
Boston, New York, Sacramento, San Francisco, and in early 2011 launched Atlanta, Jacksonville, Miami and
Orlando and introduced the world’s first commercially available 4G LTE handset, the Samsung Craft
x Expanded our service area through Metro USA to provide service to over 280 million POPs
x Generated record total revenue of $4.07 billion and record consolidated Adjusted EBITDA of $1.18 billion
x Recorded unlevered free cash flow (Adjusted EBITDA less capital expenditures) of $386 million
x Introduced two Android handsets: the LG Optimus M and the Huawei Ascend
x Introduced MetroStudio, a new source of multimedia content including access to full-track downloads,
ringtones and ring-back tones, as well as premium video content
x Significantly strengthened our balance sheet through extending and staggering our debt maturity profile
primarily facilitated by amending and extending our existing Senior Secured Credit Facility and completing
two successful bond offerings; the issuance of $1 billion of 7 7/8% Senior Notes due 2018 and the issuance
of $1 billion of 6 5/8% Senior Notes due 2020 and the redemption of our existing 9 1/4% Senior Notes due
2014.
In a year highlighted by superior execution, we are particularly pleased with the introduction of the Wireless for All
service plans and the launch of our 4G LTE network. At the end of 2010, total subscribers were over 8.1 million,
representing an increase of 23% from 2009 and an increase of 52% over the past two years. Over the past five years,
we have grown consolidated Adjusted EBITDA and total subscribers at a 31% and 29% CAGR, respectively -- truly
best-in-class growth rates within the wireless industry.
Wireless for All
Building on a history of innovation, in January of 2010, we introduced the Wireless for All service plans which
reinforced the basic tenets of our business: providing predictable, affordable and flexible service plans for all
consumers. For MetroPCS, these changes were nothing short of revolutionary for both the Company and our
subscribers. Now that customers pay for the first month of service, we were able to reduce handset and Smartphone
prices in order to make them more affordable for consumers. Our strategy of introducing these plans was to retain
and strengthen our market and category leadership within the no-contract segment. Our subscribers now have a