Clearwire 2009 Annual Report Download - page 18

e
m
b
e
d
4G mo
bil
e
b
roa
db
an
d
c
hi
psets
i
nto
h
an
dh
e
ld
commun
i
cat
i
ons an
d
consumer e
l
ectron
i
c
d
ev
i
ces. We
believe third part
y
development of consumer products with embedded 4G mobile broadband capabilitie
s
will eventually reduce subscriber acquisition costs by reducing equipment subsidy requirements and
e
n
h
ance our
di
str
ib
ut
i
on e
ffi
c
i
ency
b
y
l
everag
i
ng manu
f
acturers’
d
ev
i
ce
di
str
ib
ut
i
on networ
k
san
d
mar
-
k
etin
g
spend.
S
ervice
s
As of December 31, 2009, we offered our services primaril
y
in 57 markets throu
g
hout the United States and in
4
mar
k
ets
i
n Europe. Our serv
i
ces to
d
a
y
cons
i
st pr
i
mar
ily
o
f
prov
idi
n
g
w
i
re
l
ess
b
roa
db
an
d
connect
i
v
i
t
y
,an
d
,aso
f
D
ecember 31, 2009, in
5
6 of our domestic markets, we also offered fixed VoIP telephony services. Our retai
l
s
erv
i
ces are o
ff
ere
d
un
d
er our CLEAR
b
ran
di
n our 4G mar
k
ets an
d
un
d
er t
h
eC
l
earw
i
re
b
ran
di
n our
l
e
g
ac
y
m
arkets, and we offer 4G mobile broadband services in each of our 4G markets throu
g
h our Wholesale Partners.
D
omestic sales accounted for approximatel
y
88% of our service revenue for the period ended December 31, 2009
,
whil
e our
i
nternat
i
ona
l
sa
l
es accounte
df
or approx
i
mate
l
y 12% o
f
serv
i
ce revenue over t
h
e same per
i
o
d
.
W
hil
e we serve a
l
ar
g
evar
i
et
y
o
f
su
b
scr
ib
ers, we
b
e
li
eve t
h
at t
h
ema
j
or
i
t
y
o
f
our su
b
scr
ib
er
b
ase can
b
e
di
v
id
e
d
i
nto the following broad categories
:
•su
b
scr
ib
ers w
h
o requ
i
re a porta
bl
eormo
bil
e
hi
g
h
-spee
d
Internet connect
i
on
;
• subscribers who value the flexibilit
y
of a portable or mobile wireless broadband service;
• subscribers who desire a simple way to obtain and use high-speed Internet access at a reasonable price; an
d
•su
b
scr
ib
ers w
h
o are
di
ssat
i
s
fi
e
dfi
xe
d
or mo
bil
ew
i
t
h
ot
h
er serv
i
ce o
ff
er
i
ngs, o
f
ten
b
ecause o
f
perce
i
ve
d
o
r
actual poor qualit
y
of service, slow speeds, price, the requirement to participate in undesired bundled offers
,
d
ifficulty of installation or unsatisfactory customer service.
We o
ff
er our su
b
scr
ib
ers a num
b
er o
f
Internet an
d
vo
i
ce serv
i
ces,
i
nc
l
u
di
ng mo
bil
e access, as our pr
i
mary
s
ervice offerin
g
s. We also plan to eventuall
y
offer value-added services throu
g
h partnerships with device man-
u
f
acturers/
d
eve
l
opers, va
l
ue-a
dd
e
d
app
li
cat
i
on
d
eve
l
opers an
d
content
d
eve
l
opment compan
i
es. Un
lik
eex
i
st
i
n
g
c
e
ll
u
l
ar networ
k
s, app
li
cat
i
ons over our 4G mo
bil
e
b
roa
db
an
d
networ
k
are Internet Protoco
l
-
b
ase
d
w
i
t
h
open
A
pplication Pro
g
rammin
g
Interfaces, which can be accessed on a variet
y
of electronic devices. We believe this
approach should encourage the continual creation of new applications and the services to support them.
C
LEAR
TM
M
obile Broadband
S
ervice
s
As of December 31, 2009, we offered our CLEAR
TM
R
branded retail services over our 4G mobile broadband
n
etwor
k
s
i
n 27 mar
k
ets. We o
ff
er our CLEAR su
b
scr
ib
ers c
h
o
i
ce an
d
s
i
mp
li
c
i
ty
i
n our serv
i
ce o
ff
er
i
ngs, w
hi
c
h
ca
n
be combined in multiple wa
y
s to meet the subscribers’ specific needs. These offerin
g
s include da
y
passes, service
c
ontract and no-contract plans, and bundled services. Our mobile plans consist of a dail
y
pass for a fixed fee, limited
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
ga
b
ytes)
f
or a
fi
xe
d
pr
i
ce (w
i
t
h
surc
h
ar
g
es
f
or excess
d
ata use) an
d
un
li
m
i
te
d
mont
hly
p
l
ans t
h
at
d
o not
li
m
i
tt
h
e amount o
f
data usa
g
e, sub
j
ect to our acceptable use policies. Our residential plans offer subscribers different maximum
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
d
e
f
aster
up
l
oa
d
spee
d
s
f
or a
fi
xe
d
Internet access serv
i
ce an
d
p
l
ans t
h
at
b
un
dl
emu
l
t
i
p
l
emo
bil
esu
b
scr
i
pt
i
ons. A
ddi
t
i
ona
lly
,
we offer bundled packa
g
es that allow subscribers to pick and choose from amon
g
the mobile and residential plans,
as well as our VoIP telephony service, enabling them to access the Internet when and where they need it
.
We a
l
so o
ff
er a
d
ua
l
mo
d
e
d
e
vi
ce t
h
at ena
bl
es su
b
scr
ib
ers to access
b
ot
h
our 4
G
mo
bil
e
b
roa
db
an
d
net
w
or
k
s
and networks operated b
y
Sprint. Under the commercial a
g
reements with Sprint, we have the ri
g
ht to offer ou
r
s
ubscribers access to Sprint’s CDMA and EVDO Rev. A networks, which will expand the geographic area in whic
h
our su
b
scr
ib
ers t
h
at e
l
ect to purc
h
ase t
hi
s access w
ill b
ea
bl
e to rece
i
ve serv
i
ce w
hil
e we are
b
u
ildi
n
g
our networ
k
.
We also intend to offer a variet
y
of premium services and content over our 4G mobile broadband network. We
are current
l
y
f
ocuse
d
on vo
i
ce serv
i
ces as our pr
i
mary prem
i
um serv
i
ce. As o
f
Decem
b
er 31, 2009, we o
ff
ere
d
VoIP
t
elephony services on a fixed basis to our subscribers’ homes and offices in 2
6
of our 27 4G markets, and we intend
t
o offer fixed VoIP in all new markets that we launch. We are currentl
y
offerin
g
a service plan that provide
s
8