Clearwire 2008 Annual Report Download - page 15

120 m
illi
on peop
l
e
b
yt
h
een
d
o
f
2010. However, t
h
eu
l
t
i
mate scope an
d
t
i
m
i
ng o
f
our networ
kb
u
ild
-out w
ill l
arge
ly
be driven b
y
our performance in our launched markets and the availabilit
y
of additional capital, which is uncertain.
Our networ
k
s
i
n our newest mar
k
ets, Ba
l
t
i
more, Mary
l
an
d
an
d
Port
l
an
d
, Oregon, ut
ili
ze tec
h
no
l
ogy
b
ase
d
on
t
he IEEE mobile Worldwide Interoperabilit
y
of Microwave Access 802.16e-200
5
, or mobile WiMAX, standards. I
n
our remaining 50 markets, we currently operate networks based on pre-WiMAX technology. We intend to deplo
y
m
o
bil
eW
i
MAX tec
h
no
l
o
gy i
na
ll
o
f
t
h
e mar
k
ets we current
ly h
ave un
d
er
d
eve
l
opment an
d
to up
g
ra
d
e most o
f
ou
r
e
xisting pre-WiMAX markets in the United States to mobile WiMAX technology over the next two years.
Mo
bil
eW
i
MAX tec
h
no
l
ogy ena
bl
es us to o
ff
er mo
bil
ean
dfi
xe
d
commun
i
cat
i
ons serv
i
ces over a s
i
ng
le
wireless network. We expect manufacturers to offer a number of embedded handheld communications an
d
c
onsumer e
l
ectron
i
c
d
ev
i
ces t
h
at w
ill b
e ena
bl
e
d
to commun
i
cate us
i
n
g
our mo
bil
eW
i
MAX networ
k
.T
h
ere
are more than 40 subscriber devices that are mobile WiMAX certified alread
y
, and man
y
more are currentl
y
in the
m
o
bil
eW
i
MAX cert
ifi
cat
i
on process. We expect near
l
y 100 mo
bil
eW
i
MAX capa
bl
e
d
ev
i
ces to
b
eava
il
a
bl
e
by
y
ear end. We believe these devices will enable us to deliver a broader ran
g
e of mobile communications services than
we o
ff
er to
d
ay.
Our services are both competitive with and complementar
y
to existin
g
wireline and wireless networks. Our
s
u
b
scr
ib
ers are a
bl
e to access t
h
e same r
i
c
h
content, app
li
cat
i
ons an
d
serv
i
ces as su
b
scr
ib
ers o
f
w
i
re
li
ne
b
roa
db
an
d
s
ervices, while also experiencin
g
much of the freedom and flexibilit
y
that lar
g
e scale wireless networks enable. W
e
believe our networks combine some of the best features of cellular
,
cable modem
,
DSL and Wi-Fi networks into
a
si
n
gl
e serv
i
ce o
ff
er
i
n
g
t
h
at
l
e
g
ac
y
networ
k
s
d
o not current
ly
matc
h
.Aso
f
Decem
b
er 31, 2008, we o
ff
ere
d
Vo
i
ce
over Internet Protocol, which we refer to as VoIP, telephon
y
services in 4
5
of our domestic pre-WiMAX markets an
d
i
nFe
b
ruary we
b
egan o
ff
er
i
ng VoIP te
l
ep
h
ony serv
i
ces
i
n Port
l
an
d
. As our capa
bili
t
i
es evo
l
ve w
i
t
h
t
h
e
i
ntro
d
uct
i
o
n
of mobile WiMAX networks in new and existing markets, we also expect to develop and offer additional innovativ
e
an
d diff
erent
i
ate
d
pro
d
ucts an
d
serv
i
ces. T
h
ese ma
yi
nc
l
u
d
e serv
i
ces suc
h
as mo
bil
e
b
roa
d
cast v
id
eo, v
id
eo on
demand for mobile media pla
y
ers, mobile video conferencin
g
, advanced telematics, multipla
y
er online
g
ames an
d
ot
h
er ser
vi
ces
.
B
ased on earl
y
results in our two new mobile WiMAX markets, we believe customers are attracted to our
wireless broadband services because our services are:
•
F
ast
.
W
e offer connectivit
y
speeds that t
y
picall
y
exceed cellular networks and we believe offer
a
c
ompet
i
t
i
ve a
l
ternat
i
ve to w
i
re
li
ne
b
roa
db
an
d
o
ff
er
i
ngs.
•
S
imp
l
e. Our serv
i
ces are eas
y
to acqu
i
re an
d
use, w
i
t
hli
tt
l
e or no pro
f
ess
i
ona
li
nsta
ll
at
i
on t
y
p
i
ca
lly
re
q
uired
.
•
M
o
b
i
l
e
.
U
n
lik
ew
i
re
li
ne networ
k
s, our customers
h
ave t
h
ea
bili
ty to access our networ
k
s
f
rom anyw
h
ere
within our covera
g
e area
.
•
Re
l
ia
bl
e.
W
e use
li
cense
d
ra
di
o
f
requenc
i
es, or spectrum, w
hi
c
h
ena
bl
es us to m
i
n
i
m
i
ze
i
nter
f
erenc
e
c
ommon on certain wireless networks that use unlicensed or shared radio fre
q
uencies.
•
A
ff
ordable. We offer a value proposition that is competitive while recognizing the unique benefits of our
s
erv
i
ce o
ff
er
i
n
g
s
.
We believe that substantiall
y
all of the households we cover in the United States have access to cable modem
an
d
/or DSL Internet serv
i
ces,
l
ea
di
n
g
us to conc
l
u
d
et
h
at our
hi
stor
i
ca
l
su
b
scr
ib
er
g
rowt
h
rates re
fl
ect t
h
e mas
s
m
arket a
pp
eal and robust customer demand for our differentiated services, even in the
p
resence of these wireline
b
roa
db
an
d
a
l
ternat
i
ves. We
b
e
li
eve
d
eman
df
or our serv
i
ces w
ill
expan
d
to more mo
bil
ew
i
re
l
ess uses w
i
t
h
t
h
e
advent of new form factors like PC ex
p
ress cards, USB modems and embedded chi
p
sets in la
p
to
p
s and other mobil
e
or porta
bl
e
d
ev
i
ces
.
We are an ear
ly
sta
g
e compan
y
,an
d
as suc
h
we are
i
nvest
i
n
gh
eav
ily i
n
b
u
ildi
n
g
our networ
k
an
d
acqu
i
r
i
n
g
ot
h
er assets necessary to expan
d
our
b
us
i
ness. O
ld
C
l
earw
i
re an
d
t
h
e Spr
i
nt W
i
MAX Bus
i
ness
h
ave a
hi
story o
f
operatin
g
losses. Consequentl
y
, we expect to have si
g
nificant losses in the future. As of December 31, 2008, our
accumulated deficit was approximately
$
29.9 million, and the total principal amount due on our debt was
approximatel
y
$1.41 billion.
3