1283699--3/2/2009--METROPCS_COMMUNICATIONS

related topics

{system, service, information}

{capital, credit, financial}

{debt, indebtedness, cash}

{product, market, service}

{stock, price, operating}

{tax, income, asset}

{regulation, government, change}

{financial, litigation, operation}

{cost, operation, labor}

{control, financial, internal}

{acquisition, growth, future}

{interest, director, officer}

{cost, contract, operation}

{operation, natural, condition}

{stock, price, share}

{investment, property, distribution}

{operation, international, foreign}

{provision, law, control}

{personnel, key, retain}

{customer, product, revenue}

{property, intellectual, protect}

{competitive, industry, competition}

Our business is seasonal and our operating results for future periods will be affected negatively if we fail to have strong customer growth in the first and fourth quarters. Failing to manage our churn rate or experiencing a higher rate of customer turnover than we have forecasted could adversely affect our business, financial condition and operating results. Our operations require continued capital expenditures and a failure to have access to capital could materially adversely affect our business, financial condition and operating results. We face intense competition from other telecommunications providers and new entrants in the marketplace. We may face increasing competitive pricing and service bundling. The wireless industry is experiencing rapid technological change. We are dependent on certain network technology improvements which may not occur, or may be materially delayed. We may be unable to acquire additional spectrum in the future at a reasonable cost. We may be unable to successfully develop and incorporate additional wireless data services into our service offerings in the future. We may undertake mergers, acquisitions or strategic transactions that could result in operating difficulties, dilution and distraction from our business. Business, political, regulatory and economic factors may significantly affect our operations, the manner in which we conduct our business and slow our rate of growth. Recent disruptions in the financial markets could adversely affect our ability to obtain debt or equity on reasonable terms or at all. We are exposed to counterparty risk in our senior secured credit facility and related interest rate protection agreements. The investment of our substantial cash balances are subject to risk. We currently are migrating our billing services to a new vendor. We and our suppliers may be subject to claims of infringement. Substantially all of our network infrastructure equipment is manufactured or provided by a single infrastructure vendor. We rely on third-parties to provide products, software and services that are integral to our business. We utilize a limited number of DAS providers. We may be unable to obtain the roaming and other services we need from other carriers at rates that allow us to remain competitive or at all. We may incur higher than anticipated intercarrier compensation costs. A significant portion of our revenue is derived from geographic areas susceptible to natural and other disasters. Our success depends on our ability to attract and retain qualified management and other personnel. Recent political changes could have an adverse effect on our relationship with our workforce. We are subject to numerous surcharges and fees from federal, state and local governments, and the applicability and the amount of these fees is subject to great uncertainty. Concerns about whether wireless telephones pose health and safety risks may lead to the adoption of new regulations or lawsuits which could decrease demand for our services. System failures, security breaches and the unauthorized use of or interference with our network could cause delays or interruptions of service, increase our cost of operations, and result in harm to our business reputation which could cause us to lose customers. Risks Related to Legal and Regulatory Matters Our ability to provide service to our customers and generate revenues could be harmed by adverse regulatory action. We may be unable to obtain necessary governmental authorizations and permits on reasonable terms and conditions. We are subject to significant federal and state regulation. The structure of the transaction with Royal Street Communications creates risks because Royal Street Communications may be required to pay back credits received in the grant of its open licenses or to forfeit closed licenses. Royal Street owns certain licenses that we do not control and that may never be sold to us. Spectrum for which we have been granted licenses as a result of AWS Auction 66 and Auction 73 is subject to certain legal challenges, which may ultimately result in the FCC revoking our licenses. Legal actions by the Copyright Office of the Library of Congress and by third parties may have an adverse effect on our distribution strategy. Our stock price has historically been and may continue to be volatile and you may lose all or some of your investment. Your ownership interest could be diluted by future issuances of shares that our Board has the authority to issue, and such future issuances or sales of such shares may adversely affect the market price of MetroPCS common stock. If we fail to manage our planned growth effectively and maintain an effective system of internal controls, we may not be able to accurately report our financial results or prevent fraud. The value of our FCC licenses may drop in the future as a result of volatility in the marketplace and the sale of additional spectrum by the FCC. Declines in our operating performance could ultimately result in an impairment of our indefinite-lived assets, including FCC licenses, or our long-lived assets, including property and equipment. We may be unable to service our debt and to refinance our indebtedness before maturity. Our senior secured credit facility and the indentures governing our senior notes include restrictive covenants that limit our operating flexibility. Our substantial indebtedness could adversely affect our business, financial condition and operating results and our senior creditors would have a prior secured claim to any collateral securing the debt owed to them. Settlements, judgments, restraints on our current or future manner of doing business or legal costs resulting from pending or future litigation could have an adverse effect on our business, financial condition, and operating results. We are currently controlled by a limited number of stockholders, and their interests may be different from yours. Our stockholder rights plan could prevent a change in control of our Company in instances in which some stockholders may believe a change in control is in their best interests. Conflicts of interest may arise because some of our directors are principals of our stockholders, and we have waived our rights to certain corporate opportunities.

Full 10-K form ▸

1283699--3/2/2009--METROPCS_COMMUNICATIONS_INC