Clearwire 2009 Annual Report Download - page 37

a
d
vert
i
s
i
ng, customer support, an
d billi
ng an
d
co
ll
ect
i
on
f
unct
i
ons o
f
our
b
us
i
ness w
hil
e prov
idi
ng re
li
a
bl
e networ
k
s
ervice that meets our subscribers’ expectations. Our failure in an
y
of these areas could adversel
y
affect customer
s
atisfaction
,
increase subscriber churn
,
increase our costs
,
decrease our revenues and otherwise have a material
a
d
verse e
ff
ect on our
b
us
i
ness, prospects,
fi
nanc
i
a
l
con
di
t
i
on an
d
resu
l
ts o
f
operat
i
ons.
We a
l
so outsource some operat
i
n
gf
unct
i
ons to t
hi
r
d
part
i
es. T
h
ese t
hi
r
d
part
i
es ma
y
exper
i
ence errors o
r
di
srupt
i
ons t
h
at cou
ld
a
d
verse
ly i
mpact us an
d
over w
hi
c
h
we ma
yh
ave
li
m
i
te
d
contro
l
.Wea
l
so
f
ace r
i
s
kf
rom t
he
i
ntegration of new infrastructure platforms and/or new third party providers of such platforms into our existing
b
us
i
nesses. We are current
ly
un
d
erta
ki
n
g
a pro
j
ect to trans
f
er
f
rom an
i
nterna
l billi
n
g
s
y
stem to a new
billi
n
g
pl
at
f
orm t
h
at w
ill
resu
l
t
i
nat
hi
r
d
part
y
prov
idi
n
g billi
n
g
serv
i
ces
f
or our customer accounts. Our a
bili
t
y
t
o
s
uccessfull
y
transition to this new platform as well as the third part
y
’s on
g
oin
g
abilit
y
to provide services to us,
c
ou
ld i
mpact our per
f
ormance
i
nt
h
e
f
uture
.
Th
e interests o
f
t
h
e contro
ll
ing stoc
kh
o
ld
ers o
f
C
l
earwire ma
y
con
fl
ict wit
hy
our interests as stoc
kh
o
ld
ers
.
Sprint, the Investors and Eagle River own a majority of the voting power of Clearwire through ownership of
Class A Common Stock or Class B Common Stock. Sprint, the Investors and Eagle River may have interests that
di
ver
g
e
f
rom t
h
ose o
f
ot
h
er
h
o
ld
ers o
f
C
l
earw
i
re’s cap
i
ta
l
stoc
k
. Eac
h
o
f
Spr
i
nt, t
h
e Investors an
d
Ea
gl
eR
i
ver are a
p
art
y
to the Equit
y
holders’ A
g
reement, which requires, amon
g
other thin
g
s, the approval of:
•7
5
% of the votin
g
power of all outstandin
g
stock of Clearwire for certain actions, includin
g
an
y
mer
g
er,
c
onso
lid
at
i
on, s
h
are exc
h
ange or s
i
m
il
ar transact
i
on an
d
any
i
ssuance o
f
cap
i
ta
l
stoc
k
t
h
at wou
ld
const
i
tute a
ch
ange o
f
contro
l
o
f
C
l
earw
i
re or any o
fi
ts su
b
s
idi
ar
i
es
;
• eac
h
o
f
Spr
i
nt, Inte
l
an
d
t
h
e representat
i
ve
f
or t
h
e Strate
gi
c Investors, as a
g
roup, so
l
on
g
as eac
h
o
f
Spr
i
nt,
I
ntel and the Strate
g
ic Investors, as a
g
roup, respectivel
y
, owns securities representin
g
at least 5% of th
e
outstanding voting power of Clearwire, in order to
:
•
amend our Amended and Restated Certificate of Incor
p
oration, which we refer to as the Charter, th
e
b
y
l
aws o
f
C
l
earw
i
re, w
hi
c
h
we re
f
er to as t
h
eBy
l
aws, or t
h
e Amen
d
e
d
an
d
Restate
d
Operat
i
n
g
A
g
reement
g
overnin
g
Clearwire Communications, which we refer to as the Operatin
g
A
g
reement
;
•
c
h
an
g
et
h
es
i
ze o
f
t
h
e
b
oar
d
o
fdi
rectors o
f
C
l
earw
i
re;
•li
qu
id
ate C
l
earw
i
re or C
l
earw
i
re Commun
i
cat
i
ons or
d
ec
l
are
b
an
k
ruptc
y
o
f
C
l
earw
i
re or
i
t
s
subsidiaries;
•
effect an
y
material capital reor
g
anization of Clearwire or an
y
of its material subsidiaries, includin
g
Cl
earw
i
re Commun
i
cat
i
ons, ot
h
er t
h
an a
fi
nanc
i
a
l
transact
i
on (
i
nc
l
u
di
ng secur
i
t
i
es
i
ssuances)
i
nt
h
e
o
rdinar
y
course of business
;
•
ta
k
ean
y
act
i
on t
h
at cou
ld
cause C
l
earw
i
re Commun
i
cat
i
ons or an
y
o
fi
ts mater
i
a
l
su
b
s
idi
ar
i
es to
b
e
t
axed as a cor
p
oration for federal income tax
p
ur
p
oses; and
•
sub
j
ect to certain exceptions, issue an
y
Class B Common Stock or an
y
equit
y
interests of Clearwire
C
ommunications;
• Eagle River, for so long as Eagle River owns at least 50% of the shares of the Clearwire common stoc
k
rece
i
ve
db
y
i
t
i
nt
h
e Transact
i
ons, an
d
t
h
e propose
d
act
i
on wou
ld di
sproport
i
onate
l
yan
d
a
d
verse
l
ya
ff
ec
t
Ea
g
le River, the public stockholders of Clearwire or Clearwire in its capacit
y
as a member of Clearwir
e
C
ommunications, in order to amend the Charter, the Bylaws or the Operating Agreement or to change th
e
si
ze o
f
t
h
e
b
oar
d
o
fdi
rectors o
f
C
l
earw
i
re
;
an
d
• eac
h
o
f
Spr
i
nt, Inte
l
an
d
t
h
e Strate
gi
c Investors, as a
g
roup, so
l
on
g
as eac
h
o
f
Spr
i
nt, Inte
l
an
d
t
h
e Strate
gi
c
I
nvestors, as a
g
roup, respectivel
y
, owns both (1) at least 50% of the number of shares of Clearwire commo
n
s
tock received b
y
it in the Transactions and (2) securities representin
g
at least
5
% of the outstandin
g
votin
g
power o
f
C
l
earw
i
re,
i
nor
d
er
f
or C
l
earw
i
re to enter
i
nto a transact
i
on
i
nvo
l
v
i
ng t
h
esa
l
eo
f
a certa
in
percentage o
f
t
h
e conso
lid
ate
d
assets o
f
C
l
earw
i
re an
di
ts su
b
s
idi
ar
i
es to, or t
h
e merger o
f
C
l
earw
i
re w
i
t
h,
c
ertain s
p
ecified com
p
etitors of the Investors.
2
7