Clearwire 2008 Annual Report Download - page 20

•
Levera
g
in
gk
e
y
strate
g
ic re
l
ations
h
ips.
W
e expect to
b
ene
fi
t
f
rom our
k
ey strateg
i
cre
l
at
i
ons
hi
ps w
i
t
h
i
ndustr
y
-leaders that have a stron
g
track record of drivin
g
technolo
gy
innovation, deliverin
g
premium
c
ontent, and marketing compelling products and services to consumers, including Sprint, Intel, Google,
Comcast, T
i
me Warner Ca
bl
ean
d
Br
i
g
h
t House. Eac
h
o
f
Spr
i
nt, Comcast, T
i
me Warner Ca
bl
ean
d
Br
i
g
ht
House are entitled to market and resell wireless broadband services over our network as
p
art of a defined
b
un
dl
e, su
bj
ect to certa
i
n except
i
ons, un
d
er t
h
e
i
rown
b
ran
d
names to t
h
e more t
h
an 100 m
illi
on peop
l
e
i
nt
he
Un
i
te
d
States rece
i
v
i
ng t
h
e
i
r serv
i
ces, w
hi
c
h
we
b
e
li
eve w
ill l
ea
d
to more rap
id
growt
hi
nt
h
e num
b
er o
f
peop
l
eus
i
n
g
our networ
k
.Ina
ddi
t
i
on, we
b
e
li
eve t
h
ese re
l
at
i
ons
hi
ps p
l
ace us
i
nana
d
vanta
g
eous pos
i
t
i
on
with respect to access to existing wireless infrastructure, cutting-edge online applications and subscribe
r
d
evices with embedded mobile WiMAX capabilities
.
•
O
ffering premium va
l
ue-a
dd
e
d
services an
d
content.
W
e
i
nten
d
to
g
enerate
i
ncrementa
l
revenues,
l
evera
g
e
our cost structure and improve subscriber retention b
y
offerin
g
a variet
y
of premium services and conten
t
over our network. We intend initially to focus on voice services as a primary premium service. As of
D
ecem
b
er 31, 2008, we o
ff
er VoIP te
l
ep
h
ony serv
i
ces on a
fi
xe
db
as
i
s to our su
b
scr
ib
ers’
h
omes an
d
o
ffi
ce
s
i
n4
5
of our domestic markets. We currentl
y
also offer fixed VoIP telephon
y
services in Portland, Ore
g
on,
and expect to offer mobile VoIP telephon
y
services in each of our mobile WiMAX markets within two t
o
t
h
ree years. Ot
h
er
f
uture serv
i
ce an
d
content o
ff
er
i
ngs may
i
nc
l
u
d
e
li
ve v
id
eocon
f
erenc
i
ng, on
li
ne games
and music broadcast pro
g
rammin
g
, video on demand, and location based services. We believe that ou
r
planned mobile WiMAX deplo
y
ment will enable us to offer additional premium services and content over
our networ
k
as manu
f
acturers
d
eve
l
op an
d
se
ll
su
b
scr
ib
er
d
ev
i
ces t
h
at ta
k
ea
d
vantage o
f
t
h
e capa
bili
t
i
es o
f
m
o
bil
eW
i
MAX tec
h
no
l
o
gy
.
•
Achieving e
ff
icient economics.
W
e believe our economic model for deplo
y
in
g
our network combine
s
m
ean
i
ng
f
u
l
ear
l
y coverage w
hil
e opt
i
m
i
z
i
ng t
h
e cap
i
ta
l
out
l
ay requ
i
re
df
or us to
b
u
ild
t
h
e networ
k
an
d
o
b
ta
i
nsu
b
scr
ib
ers. We
b
e
li
eve our
b
us
i
ness requ
i
res s
ig
n
ifi
cant
ly l
ower
fi
xe
d
cap
i
ta
l
an
d
operat
i
n
g
e
xpenditures relative to other wireless and wireline broadband service providers. Our deplo
y
ment pla
n
i
s based on replicable and scalable individual market builds, allowing us to repeat our build-out processes a
s
we expan
d
.Un
d
er our commerc
i
a
l
a
g
reements w
i
t
h
Spr
i
nt, we expect to
b
ea
bl
eto
l
evera
g
eex
i
st
i
n
g
Spr
i
n
t
n
etwor
ki
n
f
rastructure to
b
ot
h
acce
l
erate t
h
e
b
u
ild
-out an
d
re
d
uce t
h
e costs o
f
networ
kd
ep
l
o
y
ment,
i
ncluding utilizing its towers, collocation facilities and fiber resources. We also expect to achieve lowe
r
s
u
b
scr
ib
er acqu
i
s
i
t
i
on costs
d
ue to manu
f
acturers’ p
l
ans to em
b
e
d
mo
bil
eW
i
MAX c
hi
psets
i
nto
h
an
dh
e
ld
c
ommun
i
cat
i
ons an
d
consumer e
l
ectron
i
c
d
ev
i
ces, suc
h
as note
b
oo
k
computers, net
b
oo
k
s, mo
bil
e Interne
t
d
evices, or MIDs, PDAs,
g
amin
g
consoles and MP3 pla
y
ers. This should reduce subscriber acquisition cost
s
b
yre
d
uc
i
ng su
b
s
idi
es an
dl
everag
i
ng manu
f
acturers’
di
str
ib
ut
i
on networ
k
s. As our capa
bili
t
i
es evo
l
ve, w
e
a
l
so expect to generate
i
ncrementa
l
revenue
f
rom our su
b
scr
ib
er
b
ase
b
y
d
eve
l
op
i
ng an
d
o
ff
er
i
ng prem
i
u
m
products and services, such as VoIP telephon
y
services.
S
ervice
s
As o
f
Decem
b
er 31, 2008, we o
ff
er our serv
i
ces pr
i
mar
il
y
i
n 47 mar
k
ets t
h
roug
h
out t
h
eUn
i
te
d
States an
di
n
4
i
nternational markets. Our services toda
y
consist primaril
y
of providin
g
wireless broadband connectivit
y
, and, as of
D
ecember 31, 2008, in 4
5
of our domestic markets, we also offer fixed VoIP telephon
y
services. Domestic sales
accounte
df
or approx
i
mate
l
y 87% o
f
our serv
i
ce revenue
f
or t
h
e year en
d
e
d
Decem
b
er 31, 2008, w
hil
eou
r
i
nternational sales accounted for approximatel
y
13% of service revenue over the same period.
We plan to continue to offer our subscribers a number of Internet and voice services, includin
g
mobile services,
as our pr
i
mary serv
i
ce o
ff
er
i
ngs. We a
l
so p
l
an to o
ff
er va
l
ue-a
dd
e
d
serv
i
ces t
h
roug
h
partners
hi
ps w
i
t
hd
ev
i
ce
m
anufacturers/develo
p
ers, value-added a
pp
lication develo
p
ers, and content develo
p
ment com
p
anies. Unlik
e
e
xistin
g
cellular networks, applications over our mobile WiMAX network will be Internet Protocol-based wit
h
open App
li
cat
i
on Programm
i
ng Inter
f
aces, w
hi
c
h
we re
f
er to as APIs, w
hi
c
h
can
b
e accesse
d
on a var
i
ety o
f
el
ectron
i
c
d
ev
i
ces. We
b
e
li
eve t
hi
s approac
h
s
h
ou
ld
encoura
g
et
h
e cont
i
nua
l
creat
i
on o
f
new app
li
cat
i
ons an
d
t
he
s
erv
i
ces to support t
h
em. Amon
g
ot
h
ers, we expect to
b
ea
bl
e to eventua
lly
o
ff
er
li
ve v
id
eocon
f
erenc
i
n
g
,v
id
eo on
demand, online gaming and music broadcast programming and location-based services as value-added services.
8