Clearwire 2008 Annual Report Download - page 22

Download and view the complete annual report

Please find page 22 of the 2008 Clearwire annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 152

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152

Cl
ear Mo
b
i
l
e Broa
db
an
d
Service
s
Our initial mobile WiMAX network was launched in September 2008 in Baltimore, Mar
y
land. On Januar
y6
,
2009, we commerciall
y
launched our Clea
r
TM
b
randed mobile broadband service in Portland, Ore
g
on. We intend t
o
d
ep
l
oy mo
bil
eW
i
MAX tec
h
no
l
ogy
i
na
ll
o
f
t
h
e networ
k
s we current
l
y
h
ave un
d
er
d
eve
l
opment an
d
to upgra
d
e most
o
f
our ex
i
st
i
n
g
pre-W
i
MAX mar
k
ets to mo
bil
eW
i
MAX over t
h
e next two
y
ears
.
We intend to offer potential subscribers a number of different service plans, with pricin
g
available based on
ei
t
h
er a recurr
i
ng su
b
scr
i
pt
i
on or a use-
b
ase
d
(e.g., one-t
i
me,
d
a
il
y, wee
kl
y)
billi
ng mo
d
e
l
. We expect to
i
n
i
t
i
a
lly
o
ff
er p
l
ans t
h
at are spec
ifi
ca
lly
ta
il
ore
df
or mo
bil
e use as we
ll
as separate p
l
ans
f
or res
id
ent
i
a
l
an
db
us
i
ness serv
i
ces.
W
e also expect to introduce service bundles that will include multiple subscriptions for a sin
g
le famil
y
or business.
I
n Portland, we currentl
y
offer a number of plans. Our mobile plans consist of a dail
y
pass for a fixed fee, tw
o
li
m
i
te
d
use mont
hl
yp
l
ans w
h
ere su
b
scr
ib
ers purc
h
ase a spec
ifi
e
d
amount o
fd
ata usage (e.g., 200 mega
b
ytes or 2
g
i
g
ab
y
tes) for a fixed price (with surchar
g
es for excess data use) and an unlimited monthl
y
plan that does not limit
t
he amount of data usa
g
e, sub
j
ect to our acceptable use policies. Our residential plans offer subscribers differen
t
m
ax
i
mum
d
own
l
oa
d
an
d
up
l
oa
d
spee
d
satvar
i
ous pr
i
ce po
i
nts. T
h
e
b
us
i
ness serv
i
ces we current
l
yo
ff
er a
l
so
i
nc
l
u
de
faster u
p
load s
p
eeds for a fixed Internet access service and
p
lans that bundle multi
p
le mobile subscri
p
tions
.
We are workin
g
with equipment vendors to develop dual mode devices that will enable subscribers to acces
s
both our mobile WiMAX networks and those of Sprint. Under the commercial agreements with Sprint, we have th
e
righ
ttoo
ff
er our su
b
scr
ib
ers access to Spr
i
nt’s CDMA an
d
EVDO Rev. A networ
k
s, w
hi
c
h
w
ill
expan
d
t
h
e
g
eo
g
raphic area in which our subscribers that elect to purchase this access will be able to receive service while w
e
are buildin
g
our network.
We a
l
so
i
nten
d
to o
ff
er a var
i
ety o
f
prem
i
um serv
i
ces an
d
content over our mo
bil
eW
i
MAX networ
k
.We
i
nten
d
t
o
f
ocus on vo
i
ce serv
i
ces as our pr
i
mar
y
prem
i
um serv
i
ce. We p
l
an to
i
n
i
t
i
a
lly
o
ff
er VoIP te
l
ep
h
on
y
serv
i
ces on a
fixed basis to our subscribers’ homes and offices in each of our mobile WiMAX markets. In Portland, we currentl
y
offer fixed VoIP services for a fixed monthly fee of
$
25 per month. Within two years, we plan to offer mobile VoIP
t
e
l
ep
h
on
y
serv
i
ces
i
n eac
h
o
f
our mo
bil
eW
i
MAX mar
k
ets. Ot
h
er
f
uture prem
i
um serv
i
ce an
d
content o
ff
er
i
n
g
sma
y
i
nclude live videoconferencin
g
, video on demand, online
g
ames and music broadcast pro
g
rammin
g
and location
based services. We believe that manufacturers will enable a broad array of handheld communications and consume
r
el
ectron
i
c
d
ev
i
ces to wor
k
on our mo
bil
eW
i
MAX networ
k
,w
hi
c
h
may
i
nc
l
u
d
e note
b
oo
k
computers, net
b
oo
k
s,
M
IDs, PDAs,
g
amin
g
consoles, MP3 pla
y
ers, and other productivit
y
and mobile Internet devices. As these products
are introduced, we intend to explore offerin
g
new services desi
g
ned to take advanta
g
e of the capabilities of these
d
e
vi
ces.
As w
i
t
h
our current pre-W
i
MAX serv
i
ces, we
i
nten
d
to
i
n
i
t
i
a
lly
requ
i
re our su
b
scr
ib
ers to
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. However, we also expect to
i
mplement a point of sale system that will allow our subscribers to make cash payments, and we expect that we may
o
ff
er a
ddi
t
i
ona
lf
orms o
f
pa
y
ment
i
nt
h
e
f
uture as we tar
g
et new customer se
g
ments
.
M
arkets
S
erved and De
p
lo
y
men
t
We use the term “market” to refer to one or more municipalities in a
g
eo
g
raphicall
y
distinct location in whic
h
w
e provide our services. Our markets range from major metropolitan areas to smaller cities and the surroundin
g
areas.
We pursue market clusterin
g
opportunities which allow our customers to roam in areas of re
g
ional interest. A
c
lusterin
g
strate
gy
can also deliver cost efficiencies and sales and marketin
g
s
y
ner
g
ies compared to areas in which
m
ar
k
ets are not
d
ep
l
oye
di
n a geograp
hi
cc
l
uster.
As o
f
Decem
b
er 31, 2008, we o
ff
ere
d
our serv
i
ces
i
n 47 mar
k
ets
i
nt
h
eUn
i
te
d
States cover
i
n
g
an est
i
mate
d
15
.3 million people, and we had approximatel
y
424,000 subscribers in the United States. The commercial launch o
f
our Clear mobile broadband services coverin
g
an additional 1.6 million people over our mobile WiMAX network in
P
ortland, Oregon occurred on January
6
, 2009
.
1
0