Clearwire 2008 Annual Report Download - page 49

i
n
f
ormat
i
on t
h
at t
h
esu
b
scr
ib
er
h
as reg
i
stere
d
w
i
t
h
us, w
hi
c
h
may at t
i
mes
b
e
diff
erent
f
rom t
h
e actua
ll
ocat
i
on at t
h
e
t
ime of the call due to the portabilit
y
of our services. As a result, if our subscribers fail to properl
y
re
g
ister or updat
e
t
heir registered locations, our emergency calling systems may not assure that the appropriate public safet
y
answer
i
ng po
i
nt
i
s reac
h
e
d
an
d
may cause s
i
gn
ifi
cant
d
e
l
ays, or even
f
a
il
ures,
i
nca
ll
ers’ rece
i
pt o
f
emergency
assistance. Our failure to develop or operate an adequate emer
g
enc
y
callin
g
service could sub
j
ect us to substantial
li
a
bili
t
i
es an
d
may resu
l
t
i
n
d
e
l
ays
i
nsu
b
scr
ib
er a
d
opt
i
on o
f
our VoIP serv
i
ces or our ot
h
er serv
i
ces, a
b
an
d
onment o
f
our serv
i
ces
b
ysu
b
scr
ib
ers, an
dli
t
i
gat
i
on costs,
d
amage awar
d
san
d
negat
i
ve pu
bli
c
i
ty, any o
f
w
hi
c
h
cou
ld h
arm ou
r
b
us
i
ness,
p
ros
p
ects,
fi
nanc
i
a
l
con
di
t
i
on or resu
l
ts o
f
o
p
erat
i
ons.
Finally, potential changes by the FCC to current intercarrier compensation mechanisms could result in
sig
n
ifi
cant c
h
an
g
es to our costs o
f
prov
idi
n
g
VoIP te
l
ep
h
on
y
,t
h
ere
by
e
li
m
i
nat
i
n
g
pr
i
c
i
n
gb
ene
fi
ts
b
etween VoI
P
t
elephon
y
services and traditional telephone services and our potential profitabilit
y.
I
f our data security measures are breached or customer data is compromised, subscribers may perceive
o
ur network and services as not secure.
Our networ
k
secur
i
t
y
an
d
t
h
e aut
h
ent
i
cat
i
on o
f
our su
b
scr
ib
er cre
d
ent
i
a
l
s are
d
es
ig
ne
d
to protect unaut
h
or
i
ze
d
access to
d
ata on our networ
k
. Because tec
h
n
i
ques use
d
to o
b
ta
i
n unaut
h
or
i
ze
d
access to or to sa
b
ota
g
e networ
k
s
c
hange frequently and may not be recognized until launched against us, we may be unable to anticipate or
i
mp
l
ement a
d
equate prevent
i
ve measures aga
i
nst unaut
h
or
i
ze
d
access or sa
b
otage. Consequent
l
y, unaut
h
or
i
ze
d
p
art
i
es ma
y
overcome our networ
k
secur
i
t
y
an
d
o
b
ta
i
n access to
d
ata on our networ
k
,
i
nc
l
u
di
n
g
on a
d
ev
i
ce
c
onnected to our network. In addition, because we o
p
erate and control our network and our subscribers’ Internet
c
onnect
i
v
i
ty, unaut
h
or
i
ze
d
access or sa
b
otage o
f
our networ
k
cou
ld
resu
l
t
i
n
d
amage to our networ
k
an
d
to t
h
e
c
omputers or ot
h
er
d
ev
i
ces use
db
y our su
b
scr
ib
ers. An actua
l
or perce
i
ve
db
reac
h
o
f
networ
k
secur
i
ty, regar
dl
ess o
f
our responsibilit
y
, could harm public perception of the effectiveness of our securit
y
measures, adversel
y
affect ou
r
a
bili
ty to attract an
d
reta
i
nsu
b
scr
ib
ers, expose us to s
i
gn
ifi
cant
li
a
bili
ty an
d
a
d
verse
l
ya
ff
ect our
b
us
i
ness prospects.
We are su
bj
ect to extensive regu
l
ation t
h
at cou
ld l
imit or restrict our activities an
d
a
d
verse
l
y affect our
ab
i
l
ity to ac
h
ieve our
b
usiness o
bj
ectives. If we fai
l
to comp
l
y wit
h
t
h
ese regu
l
ations, we may
b
esu
bj
ect
t
o penalties, including fines and suspensions, which may adversely affect our financial condition and
r
esults of operations
.
Our acqu
i
s
i
t
i
on,
l
ease, ma
i
ntenance an
d
use o
f
spectrum
li
censes are extens
i
ve
l
y regu
l
ate
db
y
f
e
d
era
l
, state
,
local and forei
g
n
g
overnmental entities. These re
g
ulations are sub
j
ect to chan
g
e over time. In addition, a number of
ot
h
er
f
e
d
era
l
, state,
l
oca
l
an
df
ore
i
gn pr
i
vacy, secur
i
ty an
d
consumer
l
aws a
l
so app
l
y to our
b
us
i
ness,
i
nc
l
u
di
ng our
i
nterconnecte
d
VoIP te
l
ep
h
ony serv
i
ce. T
h
ese regu
l
at
i
ons an
d
t
h
e
i
r app
li
cat
i
on are su
bj
ect to cont
i
nua
l
c
h
ange a
s
n
ew
l
e
gi
s
l
at
i
on, re
g
u
l
at
i
ons or amen
d
ments to ex
i
st
i
n
g
re
g
u
l
at
i
ons are a
d
opte
df
rom t
i
me to t
i
me
by g
overnmenta
l
or regulatory authorities, including as a result of judicial interpretations of such laws and regulations. For example,
i
t is also possible that the FCC could subject our capital stock to foreign ownership limitations. If our capital stoc
k
were to
b
ecome su
bj
ect to suc
hli
m
i
tat
i
ons, owners o
f
our cap
i
ta
l
stoc
k
ma
yb
ecome su
bj
ect to o
blig
ator
y
r
edemption provisions, such as those in the Clearwire Charter. Such restrictions ma
y
also decrease the value of ou
r
s
tock by reducing the pool of potential investors in our company and making the acquisition of control of us by
p
otent
i
a
lf
ore
ig
n
i
nvestors more
diffi
cu
l
t. Current re
g
u
l
at
i
ons
di
rect
ly
a
ff
ect t
h
e
b
rea
d
t
h
o
f
serv
i
ces we are a
bl
et
o
offer and ma
y
impact the rates, terms and conditions of our services. FCC spectrum licensin
g
, service and othe
r
c
urrent or future rules, or inter
p
retations of current or future rules, could affect the breadth of the IP-base
d
b
roa
db
an
d
serv
i
ces we are a
bl
etoo
ff
er,
i
nc
l
u
di
ng IP te
l
ep
h
ony, v
id
eo an
d
certa
i
not
h
er serv
i
ces. Regu
l
at
i
on o
f
c
ompanies that offer competin
g
services, such as cable and DSL providers and incumbent telecommunication
s
c
arriers, also affects our business indirectl
y
.
I
nor
d
er to prov
id
e“
i
nterconnecte
d
” VoIP serv
i
ce, we nee
d
to o
b
ta
i
n, on
b
e
h
a
lf
o
f
our customers, Nort
h
A
mer
i
can Num
b
er
i
n
g
P
l
an te
l
ep
h
one num
b
ers, t
h
eava
il
a
bili
t
y
o
f
w
hi
c
h
ma
yb
e
li
m
i
te
di
n certa
i
n
g
eo
g
rap
hi
c area
s
of the United States and subject to other regulatory restrictions. As an “interconnected” VoIP and facilities-base
d
w
i
re
l
ess
b
roa
db
an
d
prov
id
er, we were requ
i
re
d
un
d
er FCC ru
l
es,
by
Ma
y
2007, to comp
ly
w
i
t
h
t
h
e Commun
i
cat
i
ons
A
ss
i
stance
f
or Law En
f
orcement Act, w
hi
c
h
we re
f
er to as CALEA, w
hi
c
h
requ
i
res serv
i
ce prov
id
ers to
b
u
ild
c
ertain capabilities into their networks and to accommodate wiretap requests from law enforcement a
g
encies
.
3
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