Clearwire 2008 Annual Report Download - page 24

We a
l
so o
ff
er our serv
i
ces pursuant to
di
str
ib
ut
i
on agreements t
h
roug
h
nat
i
ona
l
reta
il
c
h
a
i
ns, an
d
we
b
e
li
eve
t
hat the percenta
g
e of our total sales from this indirect sales channel will continue to increase
.
Cl
earwire Owne
d
an
d
O
p
erate
d
Retai
l
Out
l
et
s
We market our products and services throu
g
h a number of Clearwire-operated retail outlets, includin
g
retail
s
tores, but primaril
y
kiosks located in malls and shoppin
g
centers. We
g
enerall
y
compensate the emplo
y
ees at these
l
ocat
i
ons on an
h
our
l
y
b
as
i
sp
l
us comm
i
ss
i
ons.
I
nternet and Telephone Sale
s
We
di
rect prospect
i
ve su
b
scr
ib
ers to our we
b
s
i
te or our te
l
esa
l
es centers
i
n our a
d
vert
i
s
i
ng. Our we
b
s
i
te
i
s
a
f
u
ll
y
f
unct
i
ona
l
sa
l
es c
h
anne
l
w
h
ere su
b
scr
ib
ers can c
h
ec
k
pr
i
c
i
ng an
d
serv
i
ce ava
il
a
bili
ty, researc
h
serv
i
ce p
l
an
s
and activate accounts usin
g
a credit card. Prospective subscribers can also call into one of our telesales centers t
o
act
iv
ate ser
vi
ce.
Em
bedded
D
ev
i
ces
An important component of our distribution strategy includes embedding mobile WiMAX into consume
r
el
ectron
i
c
d
ev
i
ces
,
w
hi
c
hi
st
h
e current
di
str
ib
ut
i
on mo
d
e
lf
or W
i
-F
id
ev
i
ces. As mo
bil
eW
i
MAX
i
s a stan
d
ar
d
s-
b
ased technolo
gy
that is alread
y
bein
g
adopted internationall
y
, chipset and device vendors and manufacturers are
c
ontemplatin
g
developin
g
and inte
g
ratin
g
these chipsets into a number of consumer electronic devices such as
n
ote
b
oo
k
computers, net
b
oo
k
s, MIDs, PDAs, gam
i
ng conso
l
es, MP3 p
l
ayers an
d
ot
h
er
h
an
dh
e
ld d
ev
i
ces. Ven
d
or
s
and manufacturers that have committed to mobile WiMAX include chi
p
vendors such as Intel, Beceem Commu
-
n
ications Inc., GCT Semiconductor, Inc, and Se
q
uans Communications and device manufacturers such as Acer Inc.,
D
e
ll
Inc., ASUSTe
k
Computer Incorporat
i
on, ZTE, ZyXEL Commun
i
cat
i
ons Inc., Fu
ji
tsu L
i
m
i
te
d
, Samsung,
L
enovo Group, Tos
hib
a Corporat
i
on an
d
Panason
i
c Corporat
i
on o
f
Nort
h
Amer
i
ca. Em
b
e
ddi
n
g
mo
bil
eW
i
MA
X
c
hipsets into consumer electronic devices is expected to provide
g
reater exposure to potential subscribers who will
b
e able to purchase devices compatible with our network through the vendors’ and manufacturers’ existing
di
str
ib
ut
i
on c
h
anne
l
s. We
b
e
li
eve t
h
at em
b
e
ddi
n
g
mo
bil
eW
i
MAX tec
h
no
l
o
gy i
nto consumer e
l
ectron
i
c
d
ev
i
ces
will
ena
bl
et
h
ose w
h
o purc
h
ase t
h
ese
d
ev
i
ces to
i
mme
di
ate
ly
act
i
vate serv
i
ces w
i
t
hi
n our mo
bil
eW
i
MAX mar
k
e
t
c
overage areas without the need for an external WiMAX module, professional installation or a separate visit to a
Cl
ear
wi
re reta
il
or ot
h
er
l
ocat
i
on
.
W
holesale Distribution
We expect our w
h
o
l
esa
l
e arrangements to prov
id
eusw
i
t
h
s
i
gn
ifi
cant a
ddi
t
i
ona
ldi
str
ib
ut
i
on c
h
anne
l
s
f
or our
s
erv
i
ces. Un
d
er t
h
e 4G MVNO A
g
reement w
i
t
h
Spr
i
nt an
d
t
h
e Investors, eac
h
o
f
Spr
i
nt, Comcast, T
i
me Warne
r
Cable and Bright House, which we refer to collectively as the 4G MVNOs, and which collectively deliver services
t
o more than 100 million people in the United States, are enabled to market and resell wireless broadband service
s
over our networ
k
to t
h
e
i
ren
d
user customers as part o
f
a
d
e
fi
ne
db
un
dl
e, su
bj
ect to certa
i
n except
i
ons. We expect t
he
4
G MVNOs to resell our wireless broadband services under their own brand names. An
y
purchasers of wireless
b
roadband services through the 4G MVNOs will remain customers of the 4G MVNOs, but we are entitled to receive
p
a
y
ment
di
rect
ly f
rom t
h
e 4G MVNOs
f
or prov
idi
n
g
t
h
ew
i
re
l
ess
b
roa
db
an
d
serv
i
ces to t
h
ose customers. In a
ddi
t
i
o
n
t
o the 4G MVNOs, Clearwire ma
y
seek to enter into other wholesale relationships with other third parties.
C
ustomer Service an
d
Tec
h
nica
l
Su
pp
ort
We are
f
ocuse
d
on prov
idi
n
g
as
i
mp
l
e,
y
et compre
h
ens
i
ve, set o
f
set-up an
d
se
lf
-serv
i
ce too
l
s. T
h
e
i
ntent
i
st
o
s
upport an environment where customers acquire their mobile WiMAX devices from a variety of distributio
n
ch
anne
l
san
dh
ave t
h
e opt
i
on to eas
ily
su
b
scr
ib
ean
di
n
i
t
i
ate se
lf
-act
i
vat
i
on t
h
rou
gh
an on
li
ne we
b
-
b
ase
d
porta
l
.
However, w
hil
e pursu
i
n
g
ase
lf
-serv
i
ce strate
gy
,t
h
ere w
ill
st
ill b
e a nee
df
or
li
ve support
f
or tec
h
n
i
ca
l
an
d
non
-
t
echnical customer issues
.
12