Metro PCS 2011 Annual Report Download - page 43

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at all levels of our business and the controls and systems we have implemented. Failure to successfully manage our growth and
development or any acquisitions or business combinations could increase our costs and adversely affect our level of service,
which could have a material adverse effect on our business, financial condition and operating results.
Our business strategy may not succeed in the long term.
Our business strategy historically has been to offer predominately unlimited wireless broadband mobile services
predominately on a paid-in-advance basis for flat monthly rates without requiring a long-term service contract or a credit check.
While we anticipate we will continue our strategy for the future, our service plans may not continue to meet our customers' or
potential customers' needs or demands, competitive offers could prove to be unprofitable in the long term, or could prove to be
unsuccessful in the long term. A number of other wireless broadband mobile carriers, resellers and MVNOs are offering, and in
the future may offer, services plans similar to, or competitive with, our service plans with more extensive geographic coverage
than ours, better brand awareness, lower prices, more features, greater speeds, more handset or device selections, greater or
different distribution channels, and other differentiating features. If our business strategy is unsuccessful, we may be forced to
alter our product and service offerings, distribution strategies, operating methods and processes, cost structure and geographic
focus, which could lead to lower revenues, higher expenses, lower profitability, and other adverse financial or operational
consequences, all of which may have a material adverse effect on our business, financial condition and operating results.
We plan for a certain amount of and type of usage from our customers and a certain mix of customers on our service plans. If
we have a disproportionate number of our customers on our lower priced service plans, if our customers do not purchase our
service plans in the mix we anticipate, if we lower our prices to remain competitive, or if our customers use more services, such
as data, roaming, domestic or international long distance, that we provide or purchase from third parties than we anticipate, it
could result in lower revenues, higher expenses, lower profitability, and other adverse financial or operational consequences,
which could have a material adverse effect on our business, financial condition, or operating results.
From time to time, we evaluate our products, service offerings and the demands of our target customers and may, as a result,
amend, change, discontinue or adjust our products and service offerings or initiate or offer new permanent, trial or promotional
product or service offerings. These new or changed product and service offerings may not meet customer demands, competitive
offers, or may not succeed in the long term, or may not be as profitable as our current offerings. These new or changed product
and service offerings may result in reduced revenues, increased expenses, lower profitability, and other adverse financial or
operational consequences, which could have a material adverse effect on our business, financial condition and operating results.
Our tax inclusive plans make us susceptible to increases in taxes and regulatory fees.
We offer service plans that include applicable taxes and regulatory fees for a flat fee and, as a result, we assume the risk of
any change in taxes and regulatory fees. The government and regulatory agencies may increase the taxes and regulatory fees
applicable or payable on our services and we may be at a greater risk from such increases because of budget shortfalls and
regulatory policies. We do not have any control over changes in tax rates, laws, regulations or rulings, or federal and state tax
assessments. If the government or regulatory agencies increase the taxes or regulatory fees that are attributable to our services,
or change the services on which such taxes or regulatory fees are to be paid, or change the methodology used to attribute
revenues in a broadband service plan to its various constituent services, it could increase our costs and negatively impact the
profitability of our services. In addition, if we attempted to pass through such increased taxes and regulatory fees to our
customers, we could experience increased churn, decreased revenues, or fewer customer additions. If we experience lower
profitability, lower margins, increased churn, decreased revenues or lower sales, it could have a material adverse effect on our
business, financial condition and operating results.
A failure to meet the demands of our customers could adversely affect our business, financial condition and operating
results.
Customer demand for our products and services are impacted by numerous factors including, but not limited to:
• the different types of products and services offered and the prices and range of service plans and products;
• service content, features, data speeds, technology, coverage, compatible handset options, distribution, service areas,
network operability and quality;
• customer perceptions;
• competitive offers; and
• customer care levels.