Metro PCS 2010 Annual Report Download - page 41

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• our inability to offer bundled services or services offered by our competitors;
• our lack of 4G LTE broadband wireless network over all of our current CDMA service area and in our
roaming service areas;
• delays or problems in our roll-out of 4G LTE; and
• competition and competitive offers by other wireless broadband mobile service providers.
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 4G 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 LTE network, and to support future growth
of our wireless business. No assurance can be given that our future capital expenditures will generate a positive
return or that we will have adequate capital available to finance future upgrades and enhancements to our network.
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, sell markets or spectrum, or delay certain of our
planned expansion or other initiatives, additions of capacity, and technological advances. Our senior secured credit
facility and indentures and supplemental indentures governing our 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,
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 associated with new markets and
businesses, 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.
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.