1158324--3/1/2010--COGENT_COMMUNICATIONS_GROUP

related topics

{system, service, information}

{acquisition, growth, future}

{cost, contract, operation}

{operation, international, foreign}

{regulation, government, change}

{operation, natural, condition}

{debt, indebtedness, cash}

{competitive, industry, competition}

{personnel, key, retain}

{stock, price, share}

{tax, income, asset}

{control, financial, internal}

{property, intellectual, protect}

{loss, insurance, financial}

{capital, credit, financial}

{product, market, service}

{condition, economic, financial}

If our operations do not consistently produce positive cash flow to pay for our growth or meet our operating and financing obligations, and we are unable to otherwise raise additional capital to meet these needs, our ability to implement our business plan will be materially and adversely affected. We need to retain existing customers and continue to add new customers in order to become profitable and cash flow positive. Our growth and financial health are subject to a number of economic risks. We are experiencing rapid growth of our business and operations and we may not be able to efficiently manage our growth. We may experience difficulties in implementing our expansion in Eastern Europe and Mexico and may incur related unexpected costs and regulatory issues. We may experience delays and additional costs in expanding our on-net buildings. Our connections to the Internet require us to establish and maintain relationships with other providers, which we may not be able to maintain. We may be required to censor content on the Internet, which we may find difficult to do and which may impact our ability to provide service in some countries as well as impact the growth of Internet usage, upon which we depend. We may not successfully make or integrate acquisitions or enter into strategic alliances. We depend upon our key employees and may be unable to attract or retain sufficient qualified personnel. Our business could suffer because telephone companies and cable companies may provide better delivery of Internet content originating on their own networks. We have substantial debt which we may not be able to repay when due. Our operations outside of the United States expose us to economic, regulatory and other risks. Fluctuations in foreign exchange rates may adversely affect our financial position and results of operations. Our business could suffer delays and problems due to the actions of network providers on whom we are partially dependent. Our network could suffer serious disruption if certain locations experience serious damage. If the information systems that we depend on to support our customers, network operations, sales, billing and financial reporting do not perform as expected, our operations and our financial results may be adversely affected. We have historically incurred operating losses and these losses may continue for the foreseeable future. We may have difficulty intercepting communications as required by the U.S. Communications Assistance for Law Enforcement Act and similar laws of other countries. Our business could suffer from an interruption of service from our fiber providers. Our business depends on agreements with carrier neutral data center operators, which we could fail to obtain or maintain. Our ability to serve customers in multi-tenant office buildings depends on license agreements with building owners and managers, which we could fail to obtain or maintain. We may not be able to obtain or construct additional building laterals to connect new buildings to our network. Impairment of our intellectual property rights and our alleged infringement on other companies' intellectual property rights could harm our business. The sector in which we operate is highly competitive, and we may not be able to compete effectively. We issue projected results and estimates for future periods from time to time, and such projections and estimates are subject to inherent uncertainties and may prove to be inaccurate. The utilization of our certain of net operating loss carryforwards are limited and depending upon the amount of our taxable income we may be subject to paying income taxes earlier than planned. Network failure or delays and errors in transmissions expose us to potential liability. As an Internet access provider, we may incur liability for information disseminated through our network. The holders of our senior convertible notes have the right to convert their notes to common stock. Legislation and government regulation could adversely affect us. Terrorist activity throughout the world, military action to counter terrorism and natural disasters could adversely impact our business.

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1158324--3/1/2010--COGENT_COMMUNICATIONS_GROUP_INC