Tucows 2013 Annual Report Download - page 31

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taxation; and
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the characteristics and quality of products and services.
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Laws and regulations directly applicable to online commerce or Internet communications are becoming more
prevalent. Laws and regulations such as those listed above or others, if enacted, could expose us to substantial liability and
increase our costs of compliance and doing business.
Sprint’s failure to obtain the proper licenses and governmental approvals from regulatory authorities would cause Ting to
be unable to successfully operate its business.
The FCC licenses currently held by Sprint and its third-party affiliates to provide wireless services are subject to
renewal and revocation. There is no guarantee that Sprint’s or its third-party affiliates’ wireless licenses will be renewed. The
FCC requires all wireless licensees to meet certain requirements, including so-called “build-out” requirements, to retain their
licenses. Sprint Nextel’s or its third-party affiliates’ failure to comply with certain FCC requirements in a given license area
could result in the revocation of Sprint Nextel’s or such third-party affiliates’ wireless license for that geographic area.
Government regulation could adversely affect Ting’s prospects and results of operations; the FCC and state regulatory
commissions may adopt new regulations or take other actions that could adversely affect its business prospects, future
growth or results of operations.
The FCC and other federal, state and local, as well as international, governmental authorities have jurisdiction over
our business and could adopt regulations or take other actions that would adversely affect our business prospects or results of
operations.
The licensing, construction, operation, sale and interconnection arrangements of wireless telecommunications
systems are regulated by the FCC and, depending on the jurisdiction, international, state and local regulatory agencies. In
particular, the FCC imposes significant regulation on licensees of wireless spectrum with respect to how radio spectrum is
used by licensees, the nature of the services that licensees may offer and how the services may be offered, and resolution of
issues of interference between spectrum bands.
The FCC grants wireless licenses for terms of generally ten years that are subject to renewal and revocation. There
is no guarantee that Sprint’s licenses will be renewed. Failure to comply with FCC requirements applicable to a given license
could result in revocation of that license and, depending on the nature of the non-compliance, other Sprint licenses.
Various states are considering regulations over terms and conditions of service, including certain billing practices
and consumer-related issues that may not be pre-empted by federal law. If imposed, these regulations could make it more
difficult and expensive to implement national sales and marketing programs and could increase the costs of our wireless
operations.
Risks Related to our Stock
We do not intend to declare dividends on our common stock in the immediate future.
We anticipate that in the immediate future, our earnings, if any, will be retained for use in the business and that no
cash dividends will be paid on our common stock. While we may decide to declare such dividends in the future, declaration
of dividends on our common stock will depend upon, among other things, future earnings, our operating and financial
condition, our capital requirements, ongoing market conditions and general business conditions.
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Our share price is volatile, which may make it difficult for shareholders to sell their shares of common stock when they
want to, at an attractive price.