Clearwire 2010 Annual Report Download - page 12

•Taking advantage of our leading spectrum position: We believe broadband subscribers will continue to
demand greater access to information, applications and online entertainment over the Internet. Each will
require service providers to be able to offer greater bandwidth access. With an average of approximately
140 MHz of spectrum across our national spectrum footprint and an average of approximately 160 MHz of
spectrum in the largest 100 markets in the United States, we believe we are uniquely positioned to satisfy this
demand. We expect to take advantage of our extensive spectrum holdings, both in terms of spectrum depth
and breadth, in the 2.5 GHz band to offer compelling service offerings. Our spectrum position enables us to
offer our subscribers significant mobile data bandwidth with potentially higher capacity than is currently
available from other carriers. Our spectrum depth may also allow us to deploy alternative technologies to
mobile WiMAX, such as LTE, on our network, and, subject to obtaining additional funding, we continue to
explore future opportunities.
•Leveraging key strategic relationships: We continue to expect to benefit from our key strategic relation-
ships. Our Initial Wholesale Partners continue to offer our 4G mobile broadband services and accounted for
approximately 74% of our ending subscriber base as of December 31, 2010, substantially all of which is
attributable to Sprint. We are also a party to other commercial agreements with Sprint that enable us to
leverage existing Sprint network infrastructure, including utilizing its towers, collocation facilities and fiber
resources. As of the end of the year, approximately a third of our sites were collocated with Sprint.
Additionally, our agreements with Sprint allow us to provide our retail subscribers with multi-mode devices
that allow roaming between our 4G network and Sprint’s nationwide 3G network. We intend to continue to
discuss opportunities for expanding our relationships with our key strategic partners in an effort to maximize
operating efficiencies and cost structure efficiencies.
Services
As of December 31, 2010, we offered our services primarily in 88 markets throughout the United States
covering an estimated 114.2 million people and in 4 markets in Europe covering an estimated 2.9 million people.
Our services today consist primarily of providing wireless broadband connectivity and as of December 31, 2010, we
also offered fixed Voice over Internet Protocol, which we refer to as VoIP, telephony services in all of our domestic
markets. Our retail services are offered under our CLEAR brand in our 4G markets and under the Clearwire brand in
our legacy markets, and we offer 4G mobile broadband services in each of our 4G markets through at least one of
our Initial Wholesale Partners in each market. Domestic sales accounted for approximately 96% of our service
revenue for the period ended December 31, 2010, while our international sales accounted for approximately 4% of
service revenue over the same period.
While we serve a large variety of subscribers, we believe that the majority of our subscriber base can be divided
into the following broad categories:
• subscribers who require a portable or mobile high-speed Internet connection for a mobile phone, portable
computer or other devices;
• subscribers who value the flexibility 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;
• subscribers who are dissatisfied with other fixed or mobile service offerings, often because of perceived or
actual poor quality of service, slow speeds, price, the emphasis on participating in undesired bundled offers,
difficulty of installation or unsatisfactory customer service; and
• subscribers who desire 4G mobile broadband service as part of bundled offerings or multi-mode devices
offered by our wholesale partners;
We offer our subscribers a number of Internet and voice services, including mobile Internet access, as our
primary service offerings. Unlike existing cellular networks, applications over our 4G mobile broadband network
are Internet Protocol-based, which we refer to as IP-based, with open Application Programming Interfaces, which
can be accessed on a variety of electronic devices. We believe this approach should encourage the continual creation
of new applications and the services to support them.
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