UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of report (date of earliest event reported): March 20, 2008
METROPCS COMMUNICATIONS, INC.
(Exact Name of Registrant as Specified in Charter)
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DELAWARE
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1-33409
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20-0836269 |
(State or Other Jurisdiction
of Incorporation)
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(Commission File Number)
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(I.R.S. Employer Identification No.) |
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2250 Lakeside Boulevard
Richardson, Texas
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75082 |
(Address of Principal Executive Offices)
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(Zip Code) |
Registrants telephone number, including area code: 214-570-5800
(Former name or former address, if changed since last report): Not Applicable
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of the registrant under any of the following provisions (see General
Instruction A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c)) |
MetroPCS Communications, Inc. (MetroPCS, and together with MetroPCSs wholly-owned
subsidiaries, we), participated as a bidder in the Federal Communications Commissions (the
FCC) recent Auction No. 73 for wireless spectrum in the 700 MHz band (Auction 73) directly
through MetroPCSs wholly-owned subsidiary, MetroPCS 700 MHz, LLC (Auction Sub).
On March 20, 2008, the FCC released a Public Notice announcing that Auction 73 was closed and
that Auction Sub was the high bidder for the 12 MHz Lower Band Block A license for the
Boston-Worcester, Massachusetts/New Hampshire/Rhode Island/Vermont Economic Area (the 700 MHz
License) with an aggregate purchase price of approximately $313 million. The 700 MHz License
supplements the 10 MHz of advanced wireless spectrum previously granted to us in the
Boston-Worcester, Massachusetts/New Hampshire/Rhode Island/Vermont Economic Area as a result of FCC
Auction No. 66 (Auction 66).
Based on our high bid, we are obligated to make a final payment to the FCC on or before April
17, 2008 in the amount of approximately $160 million, at which point we will have paid in full for
the 700 MHz License. The grant of the 700 MHz License remains subject to an FCC application
approval process, and we cannot guarantee that the FCC will award the 700 MHz License to Auction
Sub or when the FCC will take action. In addition, the use of the 700 MHz License is subject to
protection of incumbent analog and digital television licenses from harmful interference until
February 17, 2009. After February 17, 2009, we will be required to operate in accordance with FCC
rules designed to reduce potential interference with public reception of digital television channel
51, as well as in accordance with all other FCC rules applicable to wireless spectrum in the 700
MHz band. For a more detailed discussion of the FCC rules applicable to wireless spectrum in the
700 MHz band and the build-out requirements for the 700 MHz License, please see our Annual Report
on Form 10-K for the year ended December 31, 2007.
We believe that the funds provided by our existing unrestricted cash and cash equivalents and
our anticipated cash flows from operations will be sufficient to meet the projected operating and
capital requirements for our existing and currently planned business expansions, including the
remaining payment we owe to the FCC for the 700 MHz License.
Forward-Looking Statements
This Current Report includes forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, as amended. Any statements
made in this Current Report that are not statements of historical fact, including statements about our beliefs and
expectations, are forward-looking statements and should be evaluated as such. Forward-looking
statements include information concerning possible or assumed future results of operations,
including statements that may relate to our plans, objectives, strategies, goals, future events,
future revenues or performance, capital expenditures, financing needs and other information that is
not historical information. These forward-looking statements often include words such as
anticipate, expect, suggests, plan, believe, intend, estimates, targets,
projects, should, would, could, may, will, forecast, and other similar expressions.
These forward-looking statements or projections are based on reasonable assumptions at the time
they are made, including our current expectations, plans and assumptions that have been made in
light of our experience in the industry, as well as our perceptions of historical trends, current
conditions, expected future developments and other factors we believe are appropriate under the
circumstances. Forward-looking statements or projections are not guarantees of future performance
or results. Actual financial results, performance or results of operations may differ materially
from those expressed in the forward-looking statements and projections. Factors that may materially
affect such forward-looking statements and projections include:
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the highly competitive nature of our industry; |
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the rapid technological changes in our industry; |
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our ability to maintain adequate customer care and manage our churn rate; |