Metro PCS 2011 Annual Report Download - page 5

4G LTE
4G LTE represents a major evolution in the wireless experience and a transformation of our business. We planned for
this shift towards 4G LTE years ago, identifying the significant improvements in spectral efficiency that should provide
us with important spectrum management opportunities as well as future significant savings of capital expenditures.
We are at the forefront of network deployment, having already built out the majority of our geographic footprint as of
the end of 2011. Our 4G LTE build continues in 2012 and we expect to cover 100 percent of our 3G CDMA
geographic footprint by the end of 2012. Back when we launched our first 4G LTE markets in 2010, I said it was a
“giant step for our business.” Never has this statement been more appropriate as 4G LTE-enabled smartphones will
transform the wireless experience for years to come. Driving customers to this network will be motivated by an
increase in 4G LTE smartphone choice. Handset OEMs worldwide are responding and recently, the Global Mobile
Suppliers Association announced the number of LTE-enabled handsets is growing rapidly. From June 2011 to
January 2012, on a global basis, the number of LTE-enabled devices surged six-fold to approximately 269.
Production is widespread, as devices were manufactured by 57 companies. Additionally, it was reported that
approximately 49 operators globally have launched LTE networks. Clearly, this is a global movement, and here in the
U.S., we are pushing to lead this evolution.
The popularity of the Android operating system is strong, and we believe we are well positioned to continue to
capture share and add customers who demand more value. At the end of 2011, we were the fifth largest facilities
based wireless provider in the U.S. based on number of customers served. As we enter 2012, we believe 4G LTE
will help us to build on our leadership position as a low cost operator in a rapidly evolving data-centric world. We
currently provide our customers the latest Android smartphones on a 3G CDMA network, and in 2012, we will
enhance the capabilities of the 4G LTE network with more affordable smartphones. During the second half of 2012,
we believe that we will be able to purchase 4G LTE smartphones at a price point that enables us to sell them for less
than $150 to the consumer. Further, we are pioneering the use of voice over Internet Protocol, or VoIP, over 4G LTE
which will allow us to put customers on our 4G LTE network for all their services and allow us to begin the process of
refarming our existing 3G CDMA spectrum for 4G LTE, beginning potentially as early as 2013.
On a no annual contract basis, we continue to sell what was once only available in a postpaid environment and at
unmatched value to consumers. As 2012 unfolds, the wireless customer experience will continue to evolve, and it is
critical for us to remain flexible. It was our ability to quickly shift from 3G CDMA to 4G LTE that enabled us to be the
first U.S. mobile operator to launch a commercial 4G LTE network, as well as the first 4G LTE smartphone. We
pioneered the transformation to 4G LTE. Building on this legacy of innovation, we believe 4G LTE puts the Internet in
the palm of our customers’ hands – most of which rely on MetroPCS as their primary access to the Web, video and
social networking. We also believe there is an opportunity to reach a growing segment of consumers who demand
more value from their service, the latest smartphones, and a quality network. The amount of innovation currently
taking place in our industry is unprecedented. This is an exciting time for our Company, shareholders, and for our
customers.
Looking Forward
We are beginning to write the next great chapter in MetroPCS’ history. We have grown from a company that had
revenue in its first year of operation in 2002 of only $129 million to revenue approaching $5 billion on an annual basis.
Over the past ten years we have grown our customer base by a 38 percent compounded annual growth rate –
impressive for any business, but especially for a late entrant into the highly competitive wireless broadband mobile
industry. We pioneered unlimited services and, today, we are a leader in the no annual contract wireless broadband
segment. We plan to maintain our entrepreneurial spirit and also are committed to provide value for our customers,
employees and our shareholders. Our team of approximately 3,700 employees consistently endeavors to provide our
customers with outstanding service at unmatched value. We have aligned our marketing, media, and sales strategies
to effectively communicate our value to consumers. Our new campaign theme “Everyone is Moving to Metro”
represents our belief that we have a compelling offer to motivate consumers who deserve to have it all with their
wireless experience.
We enter 2012 with enthusiasm about our future and a commitment to executing a strategy that will further set
MetroPCS apart from the other pay-in-advance wireless broadband mobile providers. I am proud to work with a