1035985--2/28/2007--DOBSON_COMMUNICATIONS

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{product, market, service}

{customer, product, revenue}

{system, service, information}

{cost, regulation, environmental}

{acquisition, growth, future}

{personnel, key, retain}

{debt, indebtedness, cash}

{stock, price, share}

{stock, price, operating}

{cost, operation, labor}

We depend on roaming revenue for a substantial portion of our total revenue. If our long-term roaming agreements are terminated, are not renewed or the terms of such arrangements become less favorable to us or the amount of roaming traffic under these agreements decrease materially, our business could be harmed. We may experience a high rate of customer turnover, which would adversely affect our financial performance. We face intense competition from other wireless providers. The wireless industry is experiencing rapid technological change, and we may lose customers if we fail to keep up with these changes. We depend on roaming partners to provide service for our customers who travel outside of our coverage areas. ETC revenues are growing considerably as we gain ETC status in more states. However, if changes were made to the federal Universal Service Fund that reduced our monthly ETC revenues, it would have an adverse effect on our financial results. We may continue to experience network capacity constraints related to our implementation of GSM technology. Our choice for the next generation of technology, EDGE, is a new technology and could quickly become obsolete and/or not commercially accepted, which could result in a delay in offering new services. System failures could result in reduced user traffic and reduced revenue and could harm our reputation. We have committed a substantial amount of capital and will need to continue to provide substantial amounts of capital to continuously upgrade and enhance our wireless voice networks to offer advanced data services, but there can be no assurance that widespread demand for these services will develop. The restrictive covenants in our debt instruments may limit our operating flexibility. Our failure to comply with these covenants could result in defaults under our debt instruments even though we may be able to meet our debt service obligations. We rely on a limited number of key suppliers and vendors for timely supply of equipment and services relating to our network infrastructure. If these suppliers or vendors experience problems or favor our competitors, we may not be able to obtain sufficient quantities of the products and services we require to operate our businesses successfully. Our operations are subject to governmental regulation that could have an adverse effect on our business. We are subject to environmental regulation and environmental compliance expenditures and liabilities. The loss of any of our licenses could adversely affect our ability to provide wireless service. We may not be able to obtain additional spectrum, which may adversely affect our ability to implement our business plan. We depend in large part on the efforts of our key personnel. The loss of our key personnel in a competitive employment environment could affect our growth and future success. We may not be able to successfully integrate acquired or exchanged properties, which could have an adverse effect on our financial results. Concerns that the use of wireless handsets may pose health and safety risks may discourage the use of our wireless handsets. In addition, the costs relating to compliance with safety requirements, requirements to provide access to persons with disabilities, and potential litigation could have a material adverse effect on our business, financial condition and results of operations. We are controlled by Dobson CC Limited Partnership through its ownership of our Class B common stock.

Full 10-K form ▸

1035985--2/28/2007--DOBSON_COMMUNICATIONS_CORP