US Cellular 2011 Annual Report Download - page 34

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•U.S. Cellular is subject to numerous surcharges and fees from federal, state and local governments,
and the applicability and the amount of these fees are subject to great uncertainty.
•Changes in U.S. Cellular’s enterprise value, changes in the market supply or demand for wireless
licenses, adverse developments in the business or the industry in which U.S. Cellular is involved and/or
other factors could require U.S. Cellular to recognize impairments in the carrying value of its license
costs, goodwill and/or physical assets.
•Costs, integration problems or other factors associated with developing and enhancing business
support systems, acquisitions/divestitures of properties or licenses and/or expansion of U.S. Cellular’s
business could have an adverse effect on U.S. Cellular’s business, financial condition or results of
operations.
•A significant portion of U.S. Cellular’s revenues is derived from customers who buy services through
independent agents who market U.S. Cellular’s services on a commission basis. If U.S. Cellular’s
relationships with these agents are seriously harmed, its business, financial condition or results of
operations could be adversely affected.
•U.S. Cellular’s investments in technologies which are unproven may not produce the benefits that
U.S. Cellular expects.
•A failure by U.S. Cellular to complete significant network construction and systems implementation
activities as part of its plans to improve the quality, coverage, capabilities and capacity of its network
and support systems could have an adverse effect on its operations.
•Financial difficulties (including bankruptcy proceedings) or other operational difficulties of any of
U.S. Cellular’s key suppliers or vendors, termination or impairment of U.S. Cellular’s relationships with
such suppliers or vendors, or a failure by U.S. Cellular to manage its supply chain effectively could
result in delays or termination of U.S. Cellular’s receipt of required equipment or services, or could
result in excess quantities of required equipment or services, any of which could adversely affect
U.S. Cellular’s business, financial condition or results of operations.
•U.S. Cellular has significant investments in entities that it does not control. Losses in the value of such
investments could have an adverse effect on U.S. Cellular’s financial condition or results of operations.
•A failure by U.S. Cellular to maintain flexible and capable telecommunication networks or information
technology, or a material disruption thereof, including breaches of network or information technology
security, could have an adverse effect on U.S. Cellular’s business, financial condition or results of
operations.
•Wars, conflicts, hostilities and/or terrorist attacks or equipment failures, power outages, natural disasters
or other events could have an adverse effect on U.S. Cellular’s business, financial condition or results
of operations.
•The market price of U.S. Cellular’s Common Shares is subject to fluctuations due to a variety of factors.
•Identification of errors in financial information or disclosures could require amendments to or
restatements of financial information or disclosures included in this or prior filings with the Securities
and Exchange Commission (‘‘SEC’’). Such amendments or restatements and related matters, including
resulting delays in filing periodic reports with the SEC, could have an adverse effect on U.S. Cellular’s
business, financial condition or results of operations.
•The existence of material weaknesses in the effectiveness of internal control over financial reporting
could result in inaccurate financial statements or other disclosures or failure to prevent fraud, which
could have an adverse effect on U.S. Cellular’s business, financial condition or results of operations.
•Changes in facts or circumstances, including new or additional information that affects the calculation
of potential liabilities for contingent obligations under guarantees, indemnities, claims, litigation or
otherwise, could require U.S. Cellular to record charges in excess of amounts accrued in the financial
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