Sprint - Nextel 2008 Annual Report Download - page 22

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need to cease our use of a portion of the 800 MHz spectrum on our iDEN network in a particular market before
we are able to begin use of replacement 800 MHz spectrum in that market. To mitigate the temporary loss of the
use of this spectrum, we may need to construct additional transmitter and receiver sites or acquire additional
spectrum. In markets where we are unable to construct additional sites or acquire additional spectrum as needed,
the decrease in capacity may adversely affect the performance of our iDEN network.
Various states are considering regulations over terms and conditions of service, including certain billing
practices and consumer-related issues that may not be pre-empted by federal law. If imposed, these regulations
could make it more difficult and expensive to implement national sales and marketing programs and could
increase the costs of our wireless operations.
Degradation in network performance caused by compliance with government regulation, loss of
spectrum or additional rules associated with the use of spectrum in any market could result in an inability to
attract new subscribers or higher subscriber churn in that market, which could adversely affect our revenues and
results of operations. In addition, additional costs or fees imposed by governmental regulation could adversely
affect our revenues, future growth and results of operations.
The current economic environment may make it difficult for our business partners and subscribers to meet
their contractual obligations, which could negatively affect our results of operations.
The current economic environment has made it difficult for businesses and consumers to obtain credit,
which could cause our suppliers, distributors and subscribers to have problems meeting their contractual
obligations with us. If our suppliers are unable to fulfill our orders or meet their contractual obligations with us,
we may not have the services or devices available to meet the needs of our current and future subscribers, which
could cause us to lose current and potential subscribers to other carriers. In addition, if our distributors are unable
to stay in business, we could lose distribution points, which could negatively affect our business and results of
operations. Finally, if our subscribers are unable to pay their bills or potential subscribers feel they are unable to
take on additional financial obligations, they may be forced to forgo our services, which could negatively affect
our results of operations.
Our business could be negatively impacted by security threats and other disruptions.
Major equipment failures, natural disasters, including severe weather, terrorist acts, cyber attacks or
other breaches of network or information technology security that affect our wireline and wireless networks,
including transport facilities, communications switches, routers, microwave links, cell sites or other equipment or
third-party owned local and long-distance networks on which we rely, could have a material adverse effect on
our operations. These events could disrupt our operations, require significant resources, result in a loss of
subscribers or impair our ability to attract new subscribers, which in turn could have a material adverse effect on
our business, results of operations and financial condition.
Concerns about health risks associated with wireless equipment may reduce the demand for our services.
Portable communications devices have been alleged to pose health risks, including cancer, due to radio
frequency emissions from these devices. Purported class actions and other lawsuits have been filed against
numerous wireless carriers, including us, seeking not only damages but also remedies that could increase our cost
of doing business. We cannot be sure of the outcome of those cases or that our business and financial condition
will not be adversely affected by litigation of this nature or public perception about health risks. The actual or
perceived risk of mobile communications devices could adversely affect us through a reduction in subscribers,
reduced network usage per subscriber or reduced financing available to the mobile communications industry.
Further research and studies are ongoing, and we cannot guarantee that additional studies will not demonstrate a
link between radio frequency emissions and health concerns.
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