Sprint - Nextel 2012 Annual Report Download - page 66

Table of Contents
The words “
may, ” “could,” "should," “estimate,” “project,” “forecast,” “intend,” “expect,” "anticipate," “believe,” “target,” “plan,”
“providing guidance” and similar expressions are intended to identify forward - looking statements. Forward - looking statements are found throughout
this Management's Discussion and Analysis of Financial Condition and Results of Operations, and elsewhere in this report. Readers are cautioned
that other factors, although not listed above, could also materially affect our future performance and operating results. The reader should not place
undue reliance on forward
- looking statements, which speak only as of the date of this report. We are not obligated to publicly release any revisions to
forward
- looking statements to reflect events after the date of this report, including unforeseen events.
We are primarily exposed to the market risk associated with unfavorable movements in interest rates, foreign currencies, and equity prices.
The risk inherent in our market risk sensitive instruments and positions is the potential loss arising from adverse changes in those factors.
Interest Rate Risk
The communications industry is a capital intensive, technology driven business. We are subject to interest rate risk primarily associated
with our borrowings. Interest rate risk is the risk that changes in interest rates could adversely affect earnings and cash flows. Specific interest rate risk
includes: the risk of increasing interest rates on floating
- rate debt and the risk of increasing interest rates for planned new fixed rate long - term
financings or refinancings.
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our ability to access additional spectrum capacity, including through Clearwire;
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changes in available technology and the effects of such changes, including product substitutions and deployment costs;
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our ability to obtain additional financing on terms acceptable to us, or at all;
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volatility in the trading price of our common stock and expected volatility in the trading price of New Sprint common stock after
consummation of the SoftBank Merger, current economic conditions and our ability to access capital;
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the impact of unrelated parties not meeting our business requirements, including a significant adverse change in the ability or
willingness of such parties to provide devices or infrastructure equipment for our networks;
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the costs and business risks associated with providing new services and entering new geographic markets;
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the financial performance of Clearwire and its ability to fund, build, operate, and maintain its 4G network, including an LTE network;
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the compatibility of Sprint's LTE network with Clearwire's LTE network;
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the effects of mergers and consolidations and new entrants in the communications industry and unexpected announcements or
developments from others in the communications industry;
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unexpected results of litigation filed against us or our suppliers or vendors;
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the impact of adverse network performance;
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the costs or potential customer impacts of compliance with regulatory mandates including, but not limited to, compliance with the
FCC's Report and Order to reconfigure the 800 MHz band and government regulation regarding "net neutrality" and conflict minerals;
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equipment failure, natural disasters, terrorist acts or other breaches of network or information technology security;
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one or more of the markets in which we compete being impacted by changes in political, economic or other factors such as monetary
policy, legal and regulatory changes, or other external factors over which we have no control; and
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other risks referenced from time to time in this report and other filings of ours with the Securities and Exchange Commission (SEC).
Item 7A.
Quantitative and Qualitative Disclosures About Market Risk