Metro PCS 2011 Annual Report Download - page 36

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Item 1A. Risk Factors
In addition to the other information contained in this Annual Report on Form 10-K, you should consider the following
risk factors, in evaluating our business, financial condition and operating results or an investment in our common stock or in
our indebtedness. Many of these risks, and the events which cause these risks, are beyond our control.
Although we describe below and elsewhere in this Annual Report the risks we consider to be the most material to our
business, financial condition and operating results or an investment in our common stock or our indebtedness, there may be
other known, unknown or unpredictable economic, business, competitive, regulatory or other risks or factors that also could
have a material adverse effect on our business, financial condition, and operating results in the future, or an investment in our
common stock or in our indebtedness. In addition, past performance may not be a reliable indicator of future performance and
historical trends should not be used to anticipate results or trends in future periods. Any information about our intentions,
projections or forward looking statements in this Annual Report is a statement of our intentions, projections and forward
looking statements as of the date of this report and is based upon, among other things, the regulatory, industry, competitive,
economic and market conditions as of such date, as well as various of our assumptions at such time. We may change our
intentions, projections or forward looking statements at any time and without notice, based upon any changes in such
conditions, in our assumptions or otherwise.
If any of the events, conditions or risks described below, individually or in combination, were to occur, our business,
financial condition, operating results, cash flow, and an investment in our common stock or in our indebtedness, could be
materially adversely affected.
Investors should also be aware that while we do communicate with securities analysts at various times, it is against our
policy to disclose to them selectively any material non-public information or other confidential information. Accordingly,
investors should not assume that we agree with any statement or report issued by an analyst irrespective of the content of the
statement or report. To the extent that reports issued by securities analysts contain any projections, forecasts or opinions, such
reports are those of the securities analysts making such projections, forecasts or opinions and we have no responsibility for
such projections, forecasts or opinions.
The risk factors described in this section have been separated into three groups for ease of review, including, (i) those risk
associated with our business, (ii) those risks related to legal and regulatory matters, and (iii) those other general risks relating to
our capitalization and financing, among other things. We urge you to read and consider all risk factors in evaluating our
business, financial condition and operating results, and in making any investment decision in our common stock or
indebtedness.
Risks Related to Our Business
We face intense competition from other telecommunications providers and new entrants in the marketplace and such
competition may intensify in the future.
We compete directly in each of our markets with wireless, wireline, cable, satellite, Internet and other communications
service providers, including CLECs, VoIP and broadband service providers, resellers, sales agents and facilities-based providers
that either use their own networks or lease networks. Further, as the growth in the post-pay sector of the wireless industry
continues to decrease, many of the largest nationwide competitors with significantly greater resources than we have are
entering into the unlimited, no long term contract paid-in-advance sector of the wireless industry, either directly or indirectly
through resellers or mobile virtual network operators, or MVNOs, significantly increasing competition and pushing down
prices with aggressive sales and marketing campaigns. All of our national wireless broadband mobile competitors and certain
of our regional competitors and MVNOs currently are offering unlimited service plans on a flat rate basis in the areas where we
operate. The competitive pressures of the wireless telecommunications industry may continue to cause other carriers to offer
unlimited service plans or service plans with increasingly large bundles of minutes of use or unlimited use at increasingly lower
prices on a national coverage basis. Since we primarily serve major metropolitan areas where the national wireless broadband
mobile carriers and MVNOs are also offering services and we believe the overall post-paid market is experiencing slowing
growth, we anticipate increased competition in the unlimited, no long term contract, paid-in-advance sector of the wireless
broadband mobile industry.
Market prices for wireless broadband mobile services in general, and for flat-rate, no long term contract, unlimited use of
paid-in-advance services in particular, have declined over time and we anticipate will continue to decline with increased
competition, including competition from carriers and MVNOs. Moreover, certain carriers we compete against, or may compete
against in the future, offer additional services, such as wireline phone service, cable or satellite television, media and Internet,