Clearwire 2008 Annual Report Download - page 48

• potent
i
a
ll
ys
i
gn
ifi
cant
i
ncreases
i
n spectrum pr
i
ces,
b
ecause o
fi
ncrease
d
compet
i
t
i
on
f
or t
h
e
li
m
i
te
d
supp
ly
of licensed spectrum both in the United States and internationall
y
;an
d
•
i
nva
lid
at
i
on o
f
our aut
h
or
i
zat
i
on to use a
ll
or a s
ig
n
ifi
cant port
i
on o
f
our spectrum, resu
l
t
i
n
gi
n, amon
g
ot
h
e
r
things, impairment charges related to assets recorded for such spectrum
.
We expect the FCC to make additional spectrum available from time to time. Additionall
y
, other companie
s
h
o
ld
spectrum r
i
g
h
ts t
h
at cou
ld b
ema
d
eava
il
a
bl
e
f
or
l
ease or sa
l
e. T
h
eava
il
a
bili
ty o
f
a
ddi
t
i
ona
l
spectrum
i
nt
he
m
arketplace could chan
g
e the market value of spectrum ri
g
hts
g
enerall
y
and, as a result, ma
y
adversel
y
affect th
e
value of our s
p
ectrum assets
.
I
nterruption or failure of our information technology and communications systems could impair our abil
-
it
y
to
p
rovi
d
e our services, w
h
ic
h
cou
ld d
amage our re
p
utation an
dh
arm our o
p
erating resu
l
ts.
O
ld Clearwire has experienced service interruptions in some markets in the past and we ma
y
experienc
e
s
erv
i
ce
i
nterrupt
i
ons or system
f
a
il
ures
i
nt
h
e
f
uture. Any serv
i
ce
i
nterrupt
i
on a
d
verse
l
ya
ff
ects our a
bili
ty to operat
e
our
b
us
i
ness an
d
cou
ld
resu
l
t
i
nan
i
mme
di
ate
l
oss o
f
revenues. I
f
we exper
i
ence
f
requent or pers
i
stent system o
r
n
etwork failures, our reputation and brand could be permanentl
y
harmed. We ma
y
make si
g
nificant capita
l
e
xpen
di
tures
i
nane
ff
ort to
i
ncrease t
h
ere
li
a
bili
ty o
f
our systems,
b
ut t
h
ese cap
i
ta
l
expen
di
tures may not ac
hi
eve t
h
e
r
esu
l
ts we expect.
O
ur serv
i
ces
d
epen
d
on t
h
e
d
eve
l
opment an
d
cont
i
nu
i
n
g
operat
i
on o
f
var
i
ous
i
n
f
ormat
i
on tec
h
no
l
o
gy
an
d
c
ommun
i
cat
i
ons s
y
stems,
i
nc
l
u
di
n
g
our
billi
n
g
s
y
stem, some o
f
w
hi
c
h
are not w
i
t
hi
n our contro
l
. Current
ly
,we
d
o
n
ot have in place information technology and communication systems that will meet all of our future business
r
equ
i
rements. T
h
us, we must
b
ea
bl
eto
d
eve
l
op t
h
ese
i
n
f
ormat
i
on tec
h
no
l
ogy an
d
commun
i
cat
i
on systems, an
d
an
y
f
a
il
ure to
d
osoma
yli
m
i
t our a
bili
t
y
to o
ff
er t
h
e serv
i
ces we
i
nten
d
to o
ff
er an
d
ma
y
a
d
verse
ly
a
ff
ect our operat
i
n
g
r
esults. An
y
dama
g
e to or failure of our current or future information technolo
gy
and communications s
y
stems
c
ou
ld
resu
l
t
i
n
i
nterrupt
i
ons
i
n our serv
i
ce. Interrupt
i
ons
i
n our serv
i
ce cou
ld
re
d
uce our revenues an
d
pro
fi
ts, an
d
our
b
ran
d
cou
ld b
e
d
amage
dif
peop
l
e
b
e
li
eve our networ
ki
s unre
li
a
bl
e. Our systems are vu
l
nera
bl
eto
d
amage o
r
i
nterru
p
tion from earth
q
uakes and other natural disasters, terrorist attacks, floods, fires,
p
ower loss, telecommu
-
ni
cat
i
ons
f
a
il
ures, computer v
i
ruses, computer
d
en
i
a
l
o
f
serv
i
ce attac
k
sorot
h
er attempts to
h
arm our systems, an
d
si
m
il
ar events. Some o
f
our s
y
stems are not
f
u
lly
re
d
un
d
ant, an
d
our
di
saster recover
y
p
l
ann
i
n
g
ma
y
not
b
e
ade
q
uate. The occurrence of a natural disaster or unantici
p
ated
p
roblems at our network centers could result in
lengthy interruptions in our service and adversely affect our operating results
.
C
ertain aspects of our VoIP residential telephony services differ from traditional telephone service, which
m
a
yl
imit t
h
e attractiveness o
f
our services
.
We
i
nten
d
to cont
i
nue to o
ff
er res
id
ent
i
a
l
VoIP te
l
ep
h
ony as a va
l
ue a
dd
e
d
serv
i
ce w
i
t
h
our w
i
re
l
ess
b
roa
db
an
d
Internet serv
i
ce. Our res
id
ent
i
a
l
VoIP te
l
ep
h
ony serv
i
ces
diff
er
f
rom tra
di
t
i
ona
l
p
h
one serv
i
ce
i
n severa
l
respects
,
i
ncludin
g
:
• our su
b
scr
ib
ers ma
y
exper
i
ence
l
ower ca
ll
qua
li
t
y
t
h
an t
h
e
y
exper
i
ence w
i
t
h
tra
di
t
i
ona
l
w
i
re
li
ne te
l
ep
h
one
c
ompanies, includin
g
static, echoes and transmission dela
y
s
;
• our subscribers ma
y
experience hi
g
her dropped-call rates than the
y
experience with traditional wireline
te
l
ep
h
one compan
i
es; an
d
• a power
l
oss or Internet access
i
nterrupt
i
on may cause our serv
i
ce to
b
e
i
nterrupte
d.
I
f our subscribers do not accept the differences between our residential VoIP telephony services and traditional
t
e
l
ep
h
one serv
i
ce, t
h
e
y
ma
y
not a
d
opt or
k
eep our res
id
ent
i
a
l
VoIP te
l
ep
h
on
y
serv
i
ces or our ot
h
er serv
i
ces, or ma
y
c
hoose to retain or return to service provided b
y
traditional telephone companies.
Althou
g
h we are compliant with the FCC’s November 28, 200
5
mandate that all interconnected VoIP provider
s
t
ransm
i
ta
ll
911 ca
ll
stot
h
e appropr
i
ate pu
bli
csa
f
ety answer
i
ng po
i
nt, our VoIP emergency ca
lli
ng serv
i
ce
i
s
si
gn
ifi
cant
l
y more
li
m
i
te
d
t
h
an t
h
e emergency ca
lli
ng serv
i
ces o
ff
ere
db
y tra
di
t
i
ona
l
te
l
ep
h
one compan
i
es. Ou
r
V
oIP emer
g
enc
y
callin
g
service can transmit to a dispatcher at a public safet
y
answerin
g
point onl
y
the location
36