Clearwire 2007 Annual Report Download - page 4

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High-Speed Wireless Networks Require Massive Spectrum Depth
We have concluded that the 2.5 GHz band is the optimal spectrum for building and
operating a high-speed wireless network as it combines adequate spectrum depth,
channel size, and propagation characteristics with the ability to deploy next-generation
OFDM technologies.
Our extensive spectrum holdings represent
a signifi cant strategic advantage.
During 2007, we increased our holdings even further by adding more than 3 billion MHz/
POPs, bringing Clearwire’s consolidated global spectrum holdings to more than 23 billion
MHz/POPs (15 billion MHz/POP domestically). To put our spectrum position in perspective,
approximately 15 billion MHz/POPs were sold in the recently completed 700MHz auction
for an amount exceeding $19 billion.
These extensive spectrum holdings, coupled with the deployment of new technologies
such as mobile WiMAX, create an unparalleled opportunity to transform peoples’ lives
both at work and home.
2007: Surpassing Key Milestones
While our future is incredibly exciting, the performance of our existing market operations
has also been impressive.
In 2007, we almost doubled our customer base to nearly 400,000 subscribers, and we more
than doubled our service revenues year-over-year, making us the largest provider of true
broadband wireless services in the world. Most importantly, we increased the number of
our operating markets that were cash fl ow positive on a Market EBITDA basis from just
four markets at the end of 2006 to 24 markets in the fourth quarter of 2007, representing
more than half of our domestic operating markets.
We had 50 markets in operation by the end of 2007 on a global basis, and the network
in those markets covered approximately 16.3 million people. This represents a more than
70 percent annual increase in the number of people who can now subscribe for Clearwire
broadband services. To put our 2007 development progress in perspective, just three years
ago, we operated in only three markets covering less than half a million people.