These excerpts taken from the USM 10-K filed Feb 29, 2008.
A failure by U.S. Cellular to complete significant network build and system implementation as part of its plans to improve the quality, coverage, capabilities and capacity of its network could have an adverse effect on its operations.
U.S. Cellulars business plan includes significant build activities and enhancements to its network. As U.S. Cellular deploys, expands, and enhances its network, it may need to acquire additional spectrum. Also, as U.S. Cellular continues to build out and enhance its network, U.S. Cellular must, among other things, continue to:
· lease, acquire or otherwise obtain rights to cell and switch sites;
· obtain zoning variances or other local governmental or third-party approvals or permits for network construction;
· complete and update the radio frequency design, including cell site design, frequency planning and network optimization, for each of U.S. Cellulars markets; and
· improve, expand and maintain customer care, network management, billing and other financial and management systems.
Any difficulties encountered in completing these activities, as well as problems in vendor equipment availability, technical resources, system performance or system adequacy, could delay expansion of operations and product capabilities in new or existing markets or result in increased costs in all markets. Failure to successfully build out and enhance U.S. Cellulars network and necessary support facilities and systems in a cost effective manner, and in a manner that satisfies customer expectations for quality and coverage, could have an adverse effect on U.S. Cellulars business, business prospects, financial condition or results of operations.
Financial difficulties of U.S. Cellulars key suppliers or vendors, or termination or impairment of U.S. Cellulars relationships with such suppliers or vendors, could result in a delay or termination of U.S. Cellulars receipt of equipment, services or content which could adversely affect U.S. Cellulars business and results of operations.
U.S. Cellular depends upon certain vendors to provide it with equipment, services or content that U.S. Cellular needs to continue U.S. Cellulars network build and upgrade and to operate its business. U.S. Cellular does not have operational or financial control over any of such key suppliers and has limited influence with respect to the manner in which these key suppliers conduct their businesses. If these key suppliers experience financial difficulties and are unable to provide equipment, services or content to U.S. Cellular on a timely basis or cease to provide such equipment, services or content or if such key suppliers otherwise fail to honor their obligations to U.S. Cellular, U.S. Cellular may be unable to maintain and upgrade its network or provide services to its customers in a competitive manner, or could suffer other disruptions to its business. In that event, U.S. Cellulars business, financial condition or results of operations could be adversely affected.
A failure by U.S. Cellular to complete significant
U.S. Cellulars business plan includes significant
· lease, acquire
· obtain zoning
· complete and
· improve, expand
Any difficulties encountered in completing these
Financial difficulties of U.S. Cellulars key
U.S. Cellular depends upon certain vendors to provide