Clearwire 2010 Annual Report Download - page 14

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local and long distance calling, for a fixed monthly fee, with various promotional discounts available. The VoIP
service may also be purchased in a bundled offering with our other services.
Our subscribers generally make their payments through an automatic charge to a credit or debit card or bank
account. In addition, in our CLEAR markets, we have implemented a point of sale system that allows our
subscribers to make cash payments, and we expect that we may offer additional forms of payment in the future as we
target new subscriber segments.
Clearwire
TM
Pre-4G Mobile Broadband Services
As of December 31, 2010, we offered our Clearwire-branded Pre-4G service in 17 markets in the United States
covering 2.2 million people and 2 markets in Europe covering 1.3 million people. We believe that our subscribers in
our legacy markets are attracted to our wireless broadband services primarily because our existing network
combines certain features of cable modem, DSL and cellular networks into a single service offering at an attractive
price. To use our Clearwire Pre-4G services in our legacy markets, our subscribers must obtain one of our residential
modems or PC cards. In our United States markets, our subscribers generally lease a residential modem from us or a
PC card, each for a monthly fee. We also offer modems and PC cards for sale to those subscribers who prefer to own
rather than lease. We require subscribers under our “no contract” payment plan to purchase a modem or PC card in
order to subscribe for our broadband services. We offer subscribers a choice of service plans designed to
accommodate users that require greater access speeds or more email addresses and web hosting accounts.
Subscribers may sign up for long-term service contracts or choose month-to-month plans.
As of December 31, 2010, we offered our VoIP telephony services in all of our 17 domestic legacy markets. In
our legacy markets, we are currently offering a single service plan that provides subscribers with unlimited local and
long distance calling, including calls within the United States, Canada, and Puerto Rico, for a fixed monthly fee,
with various promotional discounts available. In our legacy markets, our subscribers generally make their payments
through an automatic charge to a credit or debit card or bank account.
Markets Served and Deployment
We use the term “market” to refer to one or more municipalities in a geographically distinct location in which
we provide our services. Our markets range from major metropolitan areas to smaller cities and the surrounding
areas.
We pursue market clustering opportunities which allow our subscribers to roam in areas of regional interest. A
clustering strategy can also deliver cost efficiencies and sales and marketing synergies compared to areas in which
markets are not deployed in a geographic cluster.
As of December 31, 2010, we offered our services in 88 markets in the United States covering an estimated
114 million people, and we had approximately 1.1 million retail and 3.3 million wholesale subscribers in the United
States. We operate a 4G mobile broadband network in 71 of our markets in the United States, covering an estimated
population of 112 million people, as of December 31, 2010. These markets include, among others, Atlanta,
Baltimore, Boston, Charlotte, Chicago, Dallas, Honolulu, Houston, Kansas City, Las Vegas, Los Angeles New
York, Philadelphia, Pittsburgh, Portland, Orlando, Salt Lake City, San Antonio, San Francisco, Seattle, St. Louis and
Washington D.C. Additionally, at least one of our Initial Wholesale Partners offers a branded version of our 4G
services in each of our 4G markets.
Outside the United States, as of December 31, 2010, we offered our Pre-4G services in Ghent and Brussels,
Belgium and our 4G mobile broadband services in Seville and Malaga, Spain, where our networks cover
approximately 2.9 million people. As of December 31, 2010, we had approximately 40,000 subscribers in Belgium
and Spain. We also have minority investments in companies that offer services in Mexico and Ireland.
Sales and Marketing
Our current marketing efforts include reliance on a full range of integrated marketing campaigns and sales
activities, including advertising, direct marketing, public relations and promotional events (including contests and
sweepstakes) to support our sales channels. We have also offered promotional pricing plans and other financial
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