Clearwire 2010 Annual Report Download - page 16

Download and view the complete annual report

Please find page 16 of the 2010 Clearwire annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 137

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137

purchase or lease options, and activate accounts by using a credit card. Prospective subscribers can also call in to one
of our telesales centers to activate service.
Direct and Retail Presence
We have hired salespeople and other agents to sell our services directly to consumers, primarily from retail
stores and kiosks. Our direct sales and marketing efforts include direct mailings to potential subscribers in our
network coverage area. Our salespeople and agents also set up mobile kiosks at local community events and near
retail establishments or educational institutions to demonstrate our services. We market our products and services
through a number of Clearwire operated retail outlets, including retail stores, but primarily kiosks located in malls
and shopping centers.
Embedded Devices
An additional component of our distribution strategy includes embedding 4G mobile broadband technology or
chip sets into consumer electronic devices, which is the current distribution model for Wi-Fi devices. As mobile
WiMAX is a standards-based technology that is already being adopted internationally, chipset and device vendors
and manufacturers are integrating these chipsets into a number of consumer electronic devices such as notebook
computers and netbooks. Vendors and manufacturers that have delivered mobile WiMAX technology include chip
vendors such as Intel, Beceem Communications Inc., GCT Semiconductor, Inc., Samsung Electronics Co., Ltd,
which we refer to as Samsung, and Sequans Communications and device manufacturers such as Dell Inc., Hewlett
Packard, Sony, Acer/Gateway, Fujitsu Limited, Samsung, Lenovo Group, and Toshiba Corporation. Embedded
notebooks and netbooks can be purchased from a number of retailers including Best Buy, Fry’s and Dell.com.
Embedding 4G mobile broadband chipsets into consumer electronic devices, such as notebook computers and
netbooks, is expected to provide greater exposure to potential subscribers who will be able to purchase devices
compatible with our network through the vendors’ and manufacturers’ existing distribution channels. We believe
that embedding 4G mobile broadband technology into consumer electronic devices will enable those who purchase
these devices to have the option to immediately activate services within our market coverage areas without the need
for an external modem, professional installation or a separate visit to a Clearwire retail or other location.
Customer Service and Technical Support
We are focused on providing a simple, yet comprehensive, set of set-up and self-service tools. The intent is to
support an environment where subscribers acquire their 4G mobile broadband devices from a variety of distribution
channels and have the option to easily subscribe and initiate self-activation through an online web-based portal.
However, while pursuing a self-service strategy, there will still be a need for live support for technical and non-
technical subscriber issues.
We believe reliable customer service and technical support are critical to attracting and retaining subscribers,
and we currently provide the following support for all retail subscribers:
toll-free, live telephone and email-based assistance available seven days a week;
resources on our website that cover frequently asked questions and provide signal and networking tips;
online account access and, for VoIP telephony subscribers, web-based resources that allow them to control
their telephony features and settings; and
We operate two call centers in the United States, which are staffed with our own employees. In addition, we
provide support services utilizing service contracts with vendors.
Our Networks
Overview
Our 4G mobile broadband network is a telecommunications system designed to support fixed, portable and
mobile service offerings over a single network architecture. This telecommunications system consists of three
11