Metro PCS 2010 Annual Report Download - page 5

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Our commitment to 4G LTE was predicated on the idea to invest in the next evolution of wireless technology. As 4G
LTE is the new world standard, we see this technological shift as a game changer. This technology and the flat IP
network structure will improve spectral efficiency and significantly moderate our future capex requirements and
enable accelerated growth of free cash flow as we continue to grow our subscriber base. In 2011 we expect to add
subscribers to our 4G LTE network, providing us an opportunity to gain scale as we address a larger subscriber base.
We are planning for the future and making way for the migration from traditional voice to IP voice services through
voice over LTE standard (VoLTE), which we expect will provide important spectral efficiency and costs savings in the
future.
Since our initial launch, we have now introduced 4G LTE service in all of our markets and expect to complete the
build out of the majority of our footprint with 4G LTE by the end of 2011. We believe the Smartphone is where the
greatest mobile broadband opportunity lies, and we are aggressively pursuing this avenue. Concurrent with our 4G
LTE service launches, we unveiled the world’s first commercially available 4G LTE phone, the Samsung Craft,
followed by the Samsung Galaxy Indulge. We plan on launching additional 4G LTE Smartphones in the future and as
ecosystems develop further, we expect subscribers will have additional choices in finding the best wireless
broadband device that meets their needs and budget.
Just recently, we achieved another milestone by announcing our second 4G LTE device and the world’s first 4G LTE
Android Smartphone, the Samsung Galaxy Indulge. Equipped with the latest Android 2.2 operating system and
1GHz processor, the Samsung Galaxy Indulge offers fantastic mobile broadband connectivity allowing customers to
experience entertainment features and access their image, music and video libraries with ease. Designed with a
touchscreen and QWERTY keyboard, this 4G LTE Smartphone addresses consumers who demand life management
tools with e-mail, intuitive content sharing, messaging functions and simple Web access. Going forward in 2011, we
believe Android will be a successful platform in the no-contract segment as it provides an enhanced experience and
competes well with other closed platforms.
Finally, we have priced our 4G LTE services to incentivize users to migrate to our 4G LTE platform. Our 4G LTE rate
plans begin as low as $40 per month, including all applicable taxes and regulatory fees, and offer unlimited talk, text
and Web browsing. Clearly, we have the best 4G LTE value rate plan in the United States.
With the introduction of MetroStudio, we are taking advantage of the 4G LTE network capabilities by providing our
subscribers with a new and affordable way to access video and multimedia content. This application provides access
to full-track downloads, ringtones and ring-back tones, as well as premium video content from NBC Universal, Black
Entertainment Television (BET) and Univision, all of which are available on-demand and on-the-go from your 4G LTE
handset.
We reached another key milestone in 2010 by implementing Metro USA which expands our service coverage to the
majority of the country. We believe this nationwide coverage provided on all service plans, is a great benefit for our
existing subscriber base and will possibly enhance our addressable market and provide consumers with a more
attractive wireless service.
Looking Forward
We believe we are well positioned with our current service offerings, 4G LTE network, and expanding future handset
and Smartphone lineup to continue driving profitable subscriber growth into the future. The wireless experience is
changing. From our vantage point, we are in the midst of a wireless revolution, as more and more Smartphones are
introduced to customers. As the current cost leader in the wireless industry, our transformational 4G LTE network
places our company in an excellent position to potentially increase our leadership of the no-contract segment. We
believe the efficiencies and economies to be gained through moving to a 4G LTE network will significantly enhance
EBITDA growth and cash flow.
We will continue to be disciplined, patient and decisive in our plans to improve long-term value. We believe we are
well positioned to maintain our strong growth momentum and provide a mobile broadband opportunity in which our
subscribers can enjoy services that deliver entertainment, social networking and more sharing of their content on
cutting-edge handsets. We believe demand for no-contract wireless service will continue to grow in 2011 and the