Juno 2014 Annual Report Download - page 26

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Table of Contents
on the Clearwire network by November 2015. The implementation of this plan will affect our mobile broadband subscribers that utilize the Clearwire
network. Our transition plan may not be successful or we may incur significant costs in implementing such plan. If our transition plan is not successful, or is
not accepted by subscribers, our business, financial condition, results of operations, and cash flows could be materially and adversely impacted.
Our dial-up Internet access services also rely on their compatibility with other third-party systems, products and features, including operating systems.
Incompatibility with third-party systems and products could adversely affect our ability to deliver our services or a user's ability to access our services and
could also adversely impact the distribution channels for our services. Our dial-up Internet access services are dependent on dial-up modems and an
increasing number of computer manufacturers, including certain manufacturers with whom we have distribution relationships, do not pre-load their new
computers with dial-up modems, requiring the user to separately acquire a modem to access our services. We cannot assure you that, as the dial-up Internet
access market declines and new technologies emerge, we will be able to continue to effectively distribute and deliver our services.

We face intense competition that could result in the failure of our social networking services and loyalty marketing service to be commercially successful.
As consumers continue to spend more time and money online, the competition for their time and engagement has continued to intensify. Consumers
have a great number of options for online content and entertainment, including, by way of example, games, websites offering news and current events,
movies, television shows, videos, information about any and virtually every topic, and the opportunity to communicate, socialize, and interact with
acquaintances and others. Certain aspects of our social networking services compete with major social networking platforms, such as Facebook, as well as
Internet search engines such as Google. Many of our competitors offer their content and services free of charge.
The market for loyalty marketing services is highly competitive, and we expect competition to significantly increase in the future as loyalty marketing
programs continue to grow in popularity and expand to mobile platforms. Our MyPoints loyalty marketing service faces competition for members from other
loyalty marketing programs, such as Ebates, as well as offline loyalty marketing programs that have a significant online presence, such as those operated by
credit card, airline, and hotel companies. In addition, we also face competition for members from online providers of discounted offerings and coupons, such
as Groupon and LivingSocial.
Some of our competitors have longer operating histories, greater name and brand recognition, larger user bases, significantly greater financial, technical,
sales, and marketing resources, and engage in more extensive research and development than we do. Some of our competitors also have lower customer
acquisition costs than we do, offer a wider variety of services, have more compelling websites with more extensive user-generated or third-party content, or
offer their services or content free to their users. Some of our competitors have been more successful than we have been in attracting and retaining visitors and
members, and our ability to attract visitors to our websites and maintain a large and growing member base has been adversely affected by such competition.
In particular, Facebook's membership base currently far exceeds that of any of its competitors. If our competitors provide services similar to our social
networking services for free, we may not be able to charge for our social networking services or we may need to reduce our membership fees. We rely on some
of our competitors, such as Facebook, to promote our services and for new member acquisitions. Any changes to such competitors' rules or policies or any
other changes implemented by such competitor could adversely affect our business or our strategies. Competition has adversely affected our subscription
revenues from social networking services, as well as our advertising revenues from our social
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