Clearwire 2008 Annual Report Download - page 21

Cl
earwire Wire
l
ess Broa
db
an
d
Services
We believe that current Clearwire subscribers in our
p
re-WiMAX markets are attracted to our current wireless
broadband services primarily because our existing networks combine certain features of cable modem, DSL an
d
c
e
ll
u
l
ar networ
k
s
i
nto a s
i
n
gl
e serv
i
ce o
ff
er
i
n
g
at an attract
i
ve pr
i
ce. W
hil
e we serve a
l
ar
g
evar
i
et
y
o
f
su
b
scr
ib
ers,
we believe that the ma
j
orit
y
of our subscriber base can be divided into the followin
g
broad cate
g
ories:
•su
b
scr
ib
ers w
h
o requ
i
re a porta
bl
eormo
bil
e
hi
g
h
-spee
d
Internet connect
i
on, suc
h
as on-t
h
e-go pro
f
es
-
s
ionals, field salespeople, contractors, public safet
y
personnel and others
;
• subscribers who value the flexibility of a portable or mobile wireless broadband service;
•su
b
scr
ib
ers w
h
o
d
es
i
re a s
i
mp
l
e way to o
b
ta
i
nan
d
use
hi
g
h
-spee
d
Internet access at a reasona
bl
epr
i
ce; an
d
• subscribers who are dissatisfied with other service offerings, often because of perceived or actual poo
r
q
ua
li
ty o
f
serv
i
ce, s
l
ow spee
d
s, pr
i
ce, t
h
e requ
i
rement to part
i
c
i
pate
i
nun
d
es
i
re
db
un
dl
e
d
o
ff
ers,
diffi
cu
l
ty o
f
i
nsta
ll
at
i
on or unsat
i
s
f
actor
y
customer serv
i
ce
.
B
ased on a subscriber surve
y
we conducted in the fourth quarter of 2008, approximatel
y
60% of our ne
w
d
omest
i
csu
b
scr
ib
ers
i
nt
h
at quarter reporte
d
t
h
ey were su
b
scr
ib
ers o
f
e
i
t
h
er DSL or ca
bl
emo
d
em serv
i
ce at t
h
et
i
m
e
t
hat the
y
subscribed for our services, while approximatel
y
20% of our new domestic subscribers in that month wer
e
Internet users mi
g
ratin
g
from dial-up to broadband and a small minorit
y
of our new domestic subscribers wer
e
s
u
b
scr
ib
ers o
f
ot
h
er serv
i
ces or t
h
ey were
fi
rst t
i
me Internet su
b
scr
ib
ers. As o
f
Decem
b
er 31, 2008, approx
i
mate
ly
73% of our United States subscribers in our pre-WiMAX markets selected one of our premium offerin
g
s that offe
r
i
ncreased download s
p
eeds and additional features, such as our ClearPremium or ClearPremium Plus branded
o
ff
er
i
ngs
.
I
n our pre-W
i
MAX mar
k
ets
i
nt
h
eUn
i
te
d
States an
di
nternat
i
ona
lly
, our su
b
scr
ib
ers
g
enera
lly
ma
k
et
h
e
i
r
p
a
y
ments throu
g
h an automatic char
g
e to a credit or debit card or bank account. In the future, we expect to offer
a
ddi
t
i
ona
lf
orms o
f
payment as we target new customer segments. For examp
l
e,
i
nt
h
eUn
i
te
d
States, we
b
egan
i
mp
l
ement
i
n
g
apo
i
nt o
f
sa
l
es
y
stem
i
n 2009 an
d
are now accept
i
n
g
cas
h
pa
y
ments at our Port
l
an
d
C
l
earw
i
re reta
il
outlets for those subscribers who prefer the convenience of pa
y
in
g
with cash. We expect to offer the cash pa
y
ment
a
l
ternat
iv
e
wi
t
h
our
f
uture mar
k
et
l
aunc
h
es.
T
o use our C
l
earw
i
re w
i
re
l
ess
b
roa
db
an
d
serv
i
ces
i
n our
p
re-W
i
MAX mar
k
ets, our su
b
scr
ib
ers must o
b
ta
i
non
e
of our residential modems or PC cards. Our subscribers generally lease a residential modem from us at a rate of
$
4.99 per month or a PC card at
$
6.99 per month in our United States markets. We also offer modems and PC cards
f
or sa
l
etot
h
ose su
b
scr
ib
ers w
h
o pre
f
er to own rat
h
er t
h
an
l
ease. We requ
i
re su
b
scr
ib
ers un
d
er our “no contract
”
p
a
y
ment plan to purchase a modem or PC card in order to subscribe for our broadband services
.
As of December 31, 2008, we offered our VoIP telephony services in 45 out of our 46 domestic pre-WiMAX
m
arkets. We continue to explore options for deplo
y
in
g
residential voice services in our international markets, bu
t
we do not have specific plans to deplo
y
VoIP telephon
y
services in those markets in the near term. In our pre
-
Wi
MAX mar
k
ets w
h
ere we o
ff
er VoIP te
l
ep
h
ony serv
i
ces, we are current
l
yo
ff
er
i
ng a s
i
ng
l
e serv
i
ce p
l
an t
h
a
t
p
rov
id
es su
b
scr
ib
ers w
i
t
h
un
li
m
i
te
dl
oca
l
an
dl
on
gdi
stance ca
lli
n
g
,
i
nc
l
u
di
n
g
ca
ll
sw
i
t
hi
nt
h
eUn
i
te
d
States
,
Canada, and Puerto Rico, for a fixed monthl
y
fee of $25 to $30 per month, with various promotional discounts
available. Our VoIP telephony service permits calls outside these countries on a charge-per-call basis. Our VoI
P
t
e
l
ep
h
on
y
serv
i
ce pac
k
a
g
e
i
nc
l
u
d
es en
h
ance
d
ca
lli
n
gf
eatures suc
h
as vo
i
ce ma
il
,ca
ll
wa
i
t
i
n
g
, 3-wa
y
ca
lli
n
g
an
d
c
a
ll
er ID. Our serv
i
ce
i
sa
l
so E911 comp
li
ant an
d
o
ff
ers num
b
er porta
bili
t
y
.Ina
ddi
t
i
on, our VoIP su
b
scr
ib
ers can se
t
a range of telephony options online, such as call forwarding and call blocking. We provide optional emai
l
n
ot
ifi
cat
i
on o
f
vo
i
cema
il
messa
g
es t
h
rou
gh
w
hi
c
h
asu
b
scr
ib
er ma
y
c
h
oose to rece
i
ve a vo
i
cema
il
messa
g
e attac
h
e
d
as a
fil
e to an ema
il
messa
g
e.
Our VoIP te
l
ep
h
ony serv
i
ce
i
s
f
ac
ili
t
i
es-
b
ase
d
,w
hi
c
h
means t
h
at t
h
e serv
i
ce
i
s prov
id
e
d
across our networ
k
an
d
s
w
i
tc
h
es t
h
roug
hi
n
f
rastructure we contro
l
.We
b
e
li
eve t
hi
sa
ll
ows us to
d
e
li
ver
b
etter average ca
ll
qua
li
ty t
h
an
is
g
enerall
y
available on non facilities-based VoIP s
y
stems, while usin
g
less data capacit
y
.
9