Metro PCS 2010 Annual Report Download - page 48

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services to support our deployment of 4G LTE. In addition, we have not and may not gain access to certain of the
applications or proprietary data content available to national wireless broadband mobile operators. If we are unable
in the future to successfully incorporate the most advanced wireless data services, including certain 4G LTE
technologies, into our service offerings or gain access to popular applications and content, our customer additions
and ARPU could decrease and our churn could increase. Studies suggest that, while the volume of mobile data users
will increase exponentially, the profitability of such services will decline or evaporate as we may be unable to
maintain or improve our ARPU or our margins. We could experience higher than anticipated usage of our 1xRTT
and 4G LTE services that could result in performance of our 1xRTT or our 4G LTE services not meeting customer
expectations. As a result, we may be required to spend additional capital to increase the capacity of our 1xRTT and
4G LTE networks or purchase additional spectrum or limit usage by our customers of 1xRTT and 4G LTE services.
Since we have limited spectrum in some of our metropolitan areas, we may be unable to meet customer demand for
service, which may lead to us having to limit service in those metropolitan areas, limit usage or applications useable
by customers, or adopt tiered pricing service plans. If we are unable to meet the customer demand for our 1xRTT
and 4G LTE data services, it could have a material adverse effect on our business, financial condition and operating
results. Furthermore, we rely on third parties to provide us access to most data, music and video content,
applications, and access to new handsets to deliver these advanced services. If we are unable to obtain access to such
services, content, or applications, incorporate such services, content, or applications, into our service offerings, or
purchase handsets, applications, content or services from third parties, at a reasonable cost and on a timely basis in
the future, it could have a material adverse effect on our business, financial condition and operating results.
We may be unable to acquire additional spectrum in the future at a reasonable cost.
Because we primarily offer unlimited calling and data services for a flat rate, our customers tend, on average, to
use our services more than the customers of other wireless broadband mobile carriers. We believe that the average
minutes of use and data usage of our customers may continue to rise. We intend to meet this demand by utilizing
spectrum-efficient state-of-the-art technologies, such as six-sector cell site technology, 4G LTE, EVRC-B, voice
over 4G LTE, or VoLTE, or other 4G LTE handsets and intelligent antennas. Nevertheless, in the future we may
need to acquire additional spectrum in order to maintain our quality of service, to meet increasing customer demands
or to allow the deployment of these technologies. However, we cannot assure you that additional spectrum will be
made available by the FCC, through auction or otherwise, on a timely basis, on terms and conditions or under
service rules that we consider to be suitable for our commercial uses, or be compatible with existing spectrum, or
that we will be able to acquire additional spectrum at a reasonable cost. In addition, the FCC may impose conditions
on the use of new wireless broadband mobile spectrum, such as heightened build-out requirements or open access
requirements, that may make it less attractive to, or less economical for, us to acquire such spectrum. If additional
spectrum is unavailable on reasonable terms and conditions when needed, unavailable at a reasonable cost, or
unavailable without conditions that impose significant costs or restrictions on us, we may not be able to continue to
increase our customer base, meet the requirements of our customers’ usage of our services or to offer new services
and as a result we could lose customers or revenues, which could have a material adverse effect on our business,
financial condition, and operating results.
Further, if we participate in a future FCC auction for additional spectrum, the FCC anti-collusion rules place
certain restrictions on business communications and disclosures by participants in an FCC auction. These anti-
collusion rules may restrict the normal conduct of our business and/or disclosures relating to an FCC auction, which
could last three to six months or more. These restrictions could have an adverse effect on our business, financial
condition and operating results.
We may undertake mergers, acquisitions or strategic transactions that could result in operating difficulties,
dilution and distraction from our business.
We may in the future expand the markets in which we operate or the services provided through the acquisition of
selected spectrum or operating markets from other telecommunication service providers, the acquisition of
additional spectrum from FCC auctions or auctions in other countries, the acquisition of other telecommunication
service providers or through other strategic transactions. Any such transactions can entail risk, may require a
disproportionate amount of our management and financial resources, may divert management’s attention, and may
create various operating difficulties and expenditures, among which may include:
• uncertain revenues and expenses, including difficulty in achieving projected synergies, with the result that
we may not realize the growth in revenues, anticipated cost structure, profitability, or return on investment
that we expect;