US Cellular 2013 Annual Report Download - page 35

United States Cellular Corporation
Management’s Discussion and Analysis of Financial Condition and 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.
• Performance under device purchase agreements could have a material adverse impact on U.S.
Cellular’s business, financial condition or results of operations.
• 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
licenses, goodwill and/or physical assets.
• Costs, integration problems or other factors associated with acquisitions, divestitures or exchanges 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 and third-party
national retailers. If U.S. Cellular’s relationships with these agents or third-party national retailers are
seriously harmed, its business, financial condition or results of operations could be adversely affected.
• U.S. Cellular’s investments in unproven technologies 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,
support and other systems and infrastructure could have an adverse effect on its operations.
• Financial difficulties (including bankruptcy proceedings) or other operational difficulties of U.S.
Cellular’s key suppliers, termination or impairment of U.S. Cellular’s relationships with such suppliers,
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
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