Sprint - Nextel 2015 Annual Report Download - page 9

Table of Contents
band reconfigurations which, in turn, delays our access to our 800 MHz replacement channels in these areas. In the areas where band reconfiguration is complete,
Sprint has received its replacement spectrum in the 800 MHz band and Sprint is deploying 3G CDMA and 4G LTE on this spectrum in combination with its
spectrum in the 1.9 GHz and 2.5 GHz bands.
911 Services
Pursuant to FCC rules, CMRS providers, including us, are required to provide enhanced 911 (E911) services including, depending upon the capabilities
of the requesting public safety answering point (PSAP), the location of the cell site from which the call is being made or the location of the subscriber's handset
using latitude and longitude. CMRS providers are also now required to provide text-to-911 services upon request by a capable PSAP. The FCC recently revised the
location accuracy standards for the provision of wireless 911 services indoors and these requirements may impose additional obligations.
Cybersecurity
Cybersecurity continues to receive attention at the federal, state and local levels. Congress has passed and continues to consider various forms of
cybersecurity legislation to increase the security and resiliency of the nation's digital infrastructure. In addition, over the past few years the President has issued
executive orders directing the Department of Homeland Security and other government agencies to take a number of steps to improve the security of the nation's
critical infrastructure. Additionally, the Communications Security, Reliability and Interoperability Council approved Cybersecurity Risk Management and Best
Practices, a report providing the communication industry guidance in using the National Institute of Standards and Technology Cybersecurity Framework.
Implementation of these guidelines or the adoption of further cybersecurity laws or regulation may impose additional costs on Sprint. See "Item 1A. Risk Factors—
Our reputation and business may be harmed and we may be subject to legal claims if there is a loss, disclosure, misappropriation of, unauthorized access to, or
other security breach of our proprietary or sensitive information ."
National Security Agreement
As a precondition to CFIUS approval of the SoftBank Merger, the USG Parties required that SoftBank and Sprint enter into the NSA, under which
SoftBank and Sprint have agreed to implement certain measures to protect national security, certain of which may materially and adversely affect our operating
results due to the increased cost of compliance with security measures, and limits over our control of certain U.S. facilities, contracts, personnel, vendor selection
and operations. If we fail to comply with our obligations under the NSA our ability to operate our business may be adversely affected. See "Item 1A. Risk Factors
—Regulatory authorities have imposed measures to protect national security and classified projects as well as other conditions that could have an adverse effect on
Sprint."
State and Local Regulation
While the Communications Act generally preempts state and local governments from regulating entry of, or the rates charged by, wireless carriers,
certain state PUCs and local governments regulate customer billing, termination of service arrangements, advertising, certification of operation, use of handsets
when driving, service quality, sales practices, management of customer call records and protected information and many other areas. Also, some state attorneys
general have become more active in bringing lawsuits related to the sales practices and services of wireless carriers. Varying practices among the states may make
it more difficult for us to implement national sales and marketing programs. States also may impose their own universal service support requirements on wireless
and other communications carriers, similar to the contribution requirements that have been established by the FCC, and some states are requiring wireless carriers
to help fund additional programs, including the implementation of E911 and the provision of intrastate relay services for consumers who are hearing impaired. We
anticipate that these trends will continue to require us to devote legal and other resources to work with the states to respond to their concerns while attempting to
minimize any new regulation and enforcement actions that could increase our costs of doing business.
Regulation and Wireline Operations
Competitive Local Service
The Telecommunications Act of 1996 (Telecom Act), which was the first comprehensive update of the Communications Act, was designed to promote
competition, and it eliminated legal and regulatory barriers for entry into local and long distance communications markets. It also required incumbent local
exchange carriers (ILECs) to allow resale of specified local services at wholesale rates, negotiate interconnection agreements, provide nondiscriminatory access to
certain unbundled network elements and allow co-location of interconnection equipment by competitors. The rules implementing the Telecom Act continue to be
interpreted by the courts, state PUCs and the FCC , and Congress is considering possible changes
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