Clearwire 2008 Annual Report Download - page 31

Download and view the complete annual report

Please find page 31 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

Sate
ll
ite
Satellite providers like WildBlue Communications, Inc. and Hu
g
hes Communications, Inc. offer broadband
d
ata serv
i
ces t
h
at a
dd
ress a n
i
c
h
e mar
k
et, ma
i
n
l
y
l
ess
d
ense
l
y popu
l
ate
d
areas t
h
at are unserve
d
or un
d
erserve
db
y
c
ompet
i
n
g
serv
i
ce prov
id
ers. A
l
t
h
ou
gh
sate
lli
te o
ff
ers serv
i
ce to a
l
ar
g
e
g
eo
g
rap
hi
c area,
l
atenc
y
cause
dby
t
h
et
i
m
e
i
t takes for the signal to travel to and from the satellite may challenge the ability to provide some services, such as
V
oIP
,
an
d
re
d
uces t
h
es
i
ze o
f
t
h
ea
dd
ressa
bl
e mar
k
et
.
WISPs an
d
Wi-F
i
We a
l
so com
p
ete w
i
t
h
ot
h
er w
i
re
l
ess Internet serv
i
ce
p
rov
id
ers, w
hi
c
h
we re
f
er to as WISPs, t
h
at use
unlicensed spectrum. In addition to these commercial operators, many local governments, universities and other
governmenta
l
or quas
i
-governmenta
l
ent
i
t
i
es are prov
idi
ng or su
b
s
idi
z
i
ng W
i
-F
i
networ
k
s over un
li
cense
d
s
pectrum,
i
n some cases at no cost to t
h
e user. Un
li
cense
d
spectrum ma
yb
esu
bj
ect to
i
nter
f
erence
f
rom ot
h
e
r
users of the spectrum, which can result in disruptions and interruptions of service. We rel
y
exclusivel
y
on licensed
s
pectrum
f
or our networ
k
an
dd
o not expect s
i
gn
ifi
cant compet
i
t
i
on
f
rom prov
id
ers us
i
ng un
li
cense
d
spectrum t
o
d
e
liv
er ser
vi
ces to t
h
e
i
r customers
.
I
ntern
a
tion
al
I
n our international markets, we
g
enerall
y
face competition from incumbent telecommunications companies
th
at prov
id
et
h
e
i
r own w
i
re
l
ess
b
roa
db
an
d
or VoIP te
l
ep
h
ony serv
i
ces, as we
ll
as
f
rom ot
h
er compan
i
es t
h
at prov
id
e
Internet connect
i
v
i
ty serv
i
ces. A
l
t
h
oug
hi
n certa
i
n European countr
i
es,
i
ncum
b
ent te
l
ecommun
i
cat
i
ons compan
i
es
m
a
y
have a dominant market share based on their past status as the sin
g
le operator of telecommunications service
s
i
n a part
i
cu
l
ar country, t
h
ese
i
ncum
b
ent te
l
ecommun
i
cat
i
ons compan
i
es re
l
y on systems
i
n
i
t
i
a
ll
y
d
es
i
gne
df
or vo
i
ce
t
ransm
i
ss
i
on w
hi
c
hh
ave
b
een up
g
ra
d
e
d
to prov
id
ew
i
re
l
ess
b
roa
db
an
d
serv
i
ces
.
O
t
h
er
We believe other emer
g
in
g
technolo
g
ies ma
y
also enter the broadband services market. For example, certai
n
Internet serv
i
ce prov
id
ers are wor
ki
ng w
i
t
h
e
l
ectr
i
c
di
str
ib
ut
i
on ut
ili
t
i
es to
i
nsta
ll b
roa
db
an
d
over power
li
ne, w
hi
c
h
we re
f
er to as BPL, tec
h
no
l
ogy on e
l
ectr
i
c
di
str
ib
ut
i
on
li
nes to prov
id
e
b
roa
db
an
d
serv
i
ces. T
h
ese Internet serv
i
c
e
and BPL providers are potential competitors. BPL technolo
gy
ma
y
turn electrical lines into lar
g
e unshielded
t
ransmitting antennas that would allow transmission of data over these lines, but could potentially creat
e
i
nter
f
erence
wi
t
h
some
wi
re
l
ess net
w
or
k
s
.
Re
g
ulatory Matters
O
vervie
w
Th
e regu
l
atory env
i
ronment re
l
at
i
ng to our
b
us
i
ness an
d
operat
i
ons
i
sevo
l
v
i
ng. A num
b
er o
fl
eg
i
s
l
at
i
ve an
d
r
e
g
ulator
y
proposals under consideration b
y
federal, state and local
g
overnmental entities ma
y
lead to the repeal,
m
odification or introduction of laws or re
g
ulations that could affect our business. Si
g
nificant areas of existin
g
an
d
p
otent
i
a
l
regu
l
at
i
on
f
or our
b
us
i
ness
i
nc
l
u
d
e
b
roa
db
an
d
Internet access, te
l
ecommun
i
cat
i
ons,
i
nterconnecte
d
Vo I
P
t
elephon
y
service, spectrum re
g
ulation and Internet taxation
.
Broa
db
an
d
Internet Access Re
g
u
l
atio
n
T
he result of recent court decisions and the FCC’s 200
5
classification of wireline broadband Internet access
s
erv
i
ce as an “
i
n
f
ormat
i
on serv
i
ce,” rat
h
er t
h
an a “te
l
ecommun
i
cat
i
ons serv
i
ce” resu
l
te
di
na
ll
ow
i
ng
b
ot
h
DSL an
d
c
able modem providers to retain exclusive use of their broadband Internet access lines without havin
g
to open the
m
up to competin
g
Internet service providers. This re
g
ulator
y
framework ma
y
encoura
g
e independent Internet service
p
rov
id
ers to exp
l
ore ot
h
er opt
i
ons
f
or
b
roa
db
an
d
Internet access,
i
nc
l
u
di
ng w
i
re
l
ess serv
i
ces
.
On September 23, 200
5
, the FCC released an Internet Polic
y
Statement outlinin
g
its
g
eneral views toward
e
nsurin
g
that broadband networks are widel
y
deplo
y
ed, open, affordable and accessible to all consumers. It adopte
d
f
our pr
i
nc
i
p
l
es to encourage
b
roa
db
an
dd
ep
l
oyment an
d
preserve an
d
promote t
h
e open an
di
nterconnecte
d
natur
e
1
9