SHEN Shenandoah Telecommunications Co.

Risks

• Intensifying competition in all segments of our business may limit our ability to sustain profitable operations.
• Alternative technologies, changes in the regulatory environment and current uncertainties in the marketplace may reduce future demand for existing telecommunication services.
• Adverse economic conditions in the United States and in our market area involving significantly reduced consumer spending could have a negative impact on our results of operations.
• Regulation by government agencies may increase our costs of providing service or require changes in services, either of which could impair our financial performance.
• Our access revenue may be adversely impacted by legislative or regulatory actions or by technology developments that decrease access rates or exempt certain traffic from paying for access to our regulated telephone network.
• Our distribution networks may be subject to weather-related events that may damage our networks and adversely impact our ability to deliver promised services or increase costs related to such events.
• Our success largely depends on our ability to retain and recruit key personnel, and any failure to do so could adversely affect our ability to manage our business.
• We may not benefit from our acquisition strategy.
• Our ability to comply with the financial covenants in our credit agreement depends primarily on our ability to generate sufficient operating cash flow.
• Our level of indebtedness could adversely affect our financial health and ability to compete.
• Disruptions of our information technology infrastructure could harm our business.
• We could suffer a loss of revenue and increased costs, exposure to significant liability, reputational harm and other serious negative consequences if we sustain cyber-attacks or other data security breaches that disrupt our operations or result in the dissemination of proprietary or confidential information about us or our customers or other third parties.
• Negative outcomes of legal proceedings may adversely affect our business and financial condition.
• We have an underfunded non-contributory defined benefit pension plan.
• Our business may be impacted by new or changing tax laws or regulations and actions by federal, state and/or local agencies, or how judicial authorities apply tax laws.
• New disclosure or usage requirements could adversely affect the results of our wireless operations.
• Regulation by governmental authorities or potential litigation relating to the use of wireless handsets while driving could adversely affect the results of our wireless operations.
• Our business may suffer as a result of competitive pressures.
• We may not be able to implement our business plan successfully if our operating costs are higher than we anticipate.
• The dynamic nature of the wireless market may limit management’s ability to correctly identify causes of volatility in key operating performance measures.
• We may experience a high rate of affiliate subscriber turnover, in our territory, which could adversely affect our future financial performance.
• Our business could be adversely affected by customer concerns over radio frequency emissions, findings of product liability for health/safety risks from wireless devices and transmission equipment, as well as by changes to regulations/radio frequency emission standards.
• The performance of our Wireless reporting segment may be materially adversely affected by any interruption in, or other adverse change to, Sprint’s business, liquidity or financial condition.
• The costs associated with our ongoing participation in Sprint’s network upgrade and expansion plans may affect our operating results, liquidity and financial position.
• Sprint may make business decisions that are not in our best interests, which may adversely affect our business and our relationships with subscribers in our territory, increase our expenses and decrease our revenues.
• The pending dispute with Sprint over the resetting of the travel fee could have a material adverse effect on our financial and operating results in our Wireless segment.
• Our dependence on Sprint for services may limit our ability to forecast operating results.
• We are subject to risks relating to Sprint’s provision of back-office services and to changes in Sprint's products, services, plans and programs.
• Sprint’s roaming arrangements to provide service outside of the Sprint National Network may not be competitive with other wireless service providers, which may restrict our ability to attract and retain subscribers and may increase our costs of doing business.
• Some provisions of the Sprint agreements may diminish the value of our common stock and restrict or diminish the value of our PCS business.
• We may have difficulty in obtaining an adequate supply of wireless handsets from Sprint.
• If Sprint does not continue to enhance its nationwide digital wireless network, we may not be able to attract and retain subscribers in our Sprint Affiliate Area.
• If Sprint’s wireless spectrum licenses are not renewed or are revoked, our wireless business would be harmed.
• Our programming costs are subject to demands for increased payments.
• Changes to key regulatory requirements can affect our ability to compete.
• Increases in broadband usage may cause network capacity limitations, resulting in service disruptions, reduced capacity or slower transmission speeds for our customers.
• Our broadband services may be adversely impacted by legislative or regulatory changes that affect our ability to develop and offer services or that could expose us to liability from customers or others.
• Offering voice communications service may subject us to additional regulatory burdens, causing us to incur additional costs.