Tucows 2013 Annual Report Download - page 24

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wireless services necessary to operate our business. In addition, transition to an alternative provider is limited to a provider
with a CDMA network as our handsets are not capable of operating on all networks. Such a transition could be time-
consuming and costly and we could lose a substantial number of customers during the transition period.
Our dependence on Sprint is not limited to our use of the nationwide Sprint network. We rely on Sprint and its third-
party affiliates for other critical operational matters, including:
●
continued expansion and improvement by Sprint of the nationwide Sprint network and its third-party affiliates’
networks, which is expected to require additional investment;
●
deployment of upgrades and maintenance of the nationwide Sprint network by Sprint and its third-party
affiliates;
●
maintenance by Sprint of its relationships with its third-party affiliates;
●
maintenance by Sprint and its third-party affiliates of FCC authorizations in good standing;
●
integration of new services into the nationwide Sprint network;
●
certification of new handsets for use on the nationwide Sprint network;
●
compliance with FCC, state E911 and other regulatory requirements;
●
obtaining telephone numbers;
●
maintenance of interconnection agreements; and
●
compliance with applicable laws and regulations.
Ting competes with Sprint’s products.
We compete with several of Sprint’s products. In addition, Sprint may from time to time create products or acquire
interests in business that directly or indirectly compete with us. As a result, Sprint’s interests may be different from, or
adverse to, ours.
22
Our business and financial performance could be adversely affected, directly or indirectly, by disasters, by
terrorist activities or by international hostilities.
Neither the occurrence nor the potential impact of disasters, terrorist activities and international hostilities can be
predicted. However, these occurrences could impact us directly as a result of damage to our facilities or by preventing us
from conducting our business in the ordinary course, or indirectly as a result of their impact on our customers, suppliers or
other counterparties. We could also suffer adverse consequences to the extent that disasters, terrorist activities or
international hostilities affect the financial markets or the economy in general or in any particular region. For example, a
significant earthquake could impact us directly by disrupting our business operations.
Our ability to mitigate the adverse consequences of such occurrences is in part dependent on the quality of our
resiliency planning, and our ability, if any, to anticipate the nature of any such event that occurs. The adverse impact of
disasters or terrorist activities or international hostilities also could be increased to the extent that there is a lack of
preparedness on the part of national or regional emergency responders or on the part of other organizations and businesses
that we deal with, particularly those that we depend upon but have no control over
Risks Related To the Internet and Our Technology
Our business could be materially harmed if the administration and operation of the Internet no longer rely upon the
existing domain system.
The domain registration industry continues to develop and adapt to changing technology. This development may
include changes in the administration or operation of the Internet, including the creation and institution of alternate systems
for directing Internet traffic without the use of the existing domain system. Some of our competitors have begun registering