US Cellular 2012 Annual Report Download - page 36

•A failure by U.S. Cellular to successfully execute its business strategy (including planned acquisitions,
divestitures and exchanges) or allocate resources or capital could have an adverse effect on U.S.
Cellular’s business, financial condition or results of operations.
•A failure by U.S. Cellular’s service offerings to meet customer expectations could limit U.S. Cellular’s
ability to attract and retain customers and could have an adverse effect on U.S. Cellular’s business,
financial condition or results of operations.
•U.S. Cellular’s system infrastructure may not be capable of supporting changes in technologies and
services expected by customers, which could result in lost customers and revenues.
•An inability to obtain or maintain roaming arrangements with other carriers on terms that are acceptable
to U.S. Cellular could have an adverse effect on U.S. Cellular’s business, financial condition or results of
operations.
•U.S. Cellular currently receives a significant amount of roaming revenues. Further consolidation within
the wireless industry, continued network build-outs by other wireless carriers and/or the inability to
negotiate 4G LTE roaming agreements with other operators could cause roaming revenues to decline
from current levels, which would have an adverse effect on U.S. Cellular’s business, financial condition
and results of operations.
•A failure by U.S. Cellular to obtain access to adequate radio spectrum to meet current or anticipated
future needs and/or to accurately predict future needs for radio spectrum could have an adverse effect
on U.S. Cellular’s business, financial condition or results of operations.
•To the extent conducted by the Federal Communications Commission (‘‘FCC’’), U.S. Cellular is likely to
participate in FCC auctions of additional spectrum in the future as an applicant or as a noncontrolling
partner in another auction applicant and, during certain periods, will be subject to the FCC’s
anti-collusion rules, which could have an adverse effect on U.S. Cellular.
•Changes in the regulatory environment or a failure by U.S. Cellular to timely or fully comply with any
applicable regulatory requirements could adversely affect U.S. Cellular’s business, financial condition or
results of operations.
•Changes in Universal Service Fund (‘‘USF’’) funding and/or intercarrier compensation could have an
adverse impact on U.S. Cellular’s business, financial condition or results of operations.
•An inability to attract and/or retain highly competent management, technical, sales and other personnel
could have an adverse effect on U.S. Cellular’s business, financial condition or results of operations.
•U.S. Cellular’s assets are concentrated in the U.S. wireless telecommunications industry. As a result, its
results of operations may fluctuate based on factors related primarily to conditions in this industry.
•U.S. Cellular’s lower scale relative to larger competitors could adversely affect its business, financial
condition or results of operations.
•Changes in various business factors could have an adverse effect on U.S. Cellular’s business, financial
condition or results of operations.
•Advances or changes in technology could render certain technologies used by U.S. Cellular obsolete,
could put U.S. Cellular at a competitive disadvantage, could reduce U.S. Cellular’s revenues or could
increase its costs of doing business.
•Complexities associated with deploying new technologies present substantial risk.
•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.
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