Metro PCS 2011 Annual Report Download - page 62

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New rules regarding net neutrality may have a material adverse effect on our business
In 2010, the FCC enacted new “net neutrality” rules based on three core principles of (1) transparency, (2) no blocking, and
(3) no unreasonable discrimination. Mobile broadband Internet providers, such as us, are subject to transparency disclosure
requirements and a requirement that such carriers would not block access to lawful websites or applications that compete with
such carriers voice or video telephony application. These rules became effective on November 20, 2011. These new rules will
permit broadband service providers to exercise “reasonable network management” for legitimate management purposes, such
as management of congestion, harmful traffic, and network security. The rules also permit usage-based billing, and permit
broadband service providers to offer additional specialized services such as facilities-based IP voice services, without being
subject to restrictions on discrimination. These rules are subject to interpretation and have not been applied by the FCC or
reviewed by the courts. The rules have also been challenged before the Court of Appeals for the District of Columbia Circuit
by us and others, and we are unable to predict the outcome of these appeals. Prior to the effective date of such rules, we already
have been the subject of third party challenges at the FCC to the manner in which we are configuring and managing our
wireless broadband mobile Internet access services and network. These challenges, and others that might follow, could limit
our ability to offer differentiated services, and to price our services to be competitive with other providers of broadband Internet
access services. They have and could in the future subject us to negative publicity and damage to our reputation and good will,
and could distract the attention of management and resources of the company. These net neutrality rules will be enforced based
on a case by case complaint basis and may adversely affect our business by limiting our ability to manage our customers' use of
our network, requiring us to provide third party access to our networks on terms and conditions that jeopardize our flat-rate,
unlimited usage pricing plans or constrain our ability to offer innovative differentiated services, or could limit our ability to
offer our services on a competitive basis with other providers, or require us to disclose information that may subject us to
further litigation. Our ability to employ network management techniques, or to manage bandwidth-intensive applications or
uses, may be impaired in a manner that reduces the quality of our services for all customers. The result could be a decline in the
quality of our services. If any of these risks occur, it could have a material adverse effect on our business, financial condition
and operating results.
General Matters
Our stock price has historically been, and may continue to be, volatile and you may lose all or some of your investment.
The trading prices of the securities of telecommunications companies historically have been highly volatile. In particular, the
trading price of our common stock has been, and is likely to be, subject to wide fluctuations. Our stock price may fluctuate in
reaction to a number of events and factors that may include, among other things:
• actual or anticipated fluctuations in our or our competitors' operating and financial results;
• introduction of new products and services by us or our competitors or changes in service plans or pricing by us or our
competitors;
• analyst projections, analyst target prices for our securities and changes in, or our failure to meet, securities analysts'
expectations;
• entry of new competitors into our markets or perceptions of increased price competition, including a price war;
• concentration of offered services and assets in the U.S., in particular limited major metropolitan areas;
• changes in our credit rating or future prospects;
• disruptions of our operations or service providers necessary to our network operations;
• seasonal effects on, or other variations in, our customer base and our business metrics, including churn and net gains;
• market perceptions relating to our services, network, handsets and deployment of our 4G LTE platform;
• our ability to develop and market new and enhanced products and services on a timely basis that are attractive to our
customers;
• challenges to our intellectual property rights or claims that we infringe the intellectual property rights of others;
• pending or threatened litigation or regulatory investigations;
• adoption of or changes in governmental regulations and new accounting standards;
• conditions and trends in the communications and high technology markets;
• adverse publicity regarding our Company;