Clearwire 2010 Annual Report Download - page 56

CLEARWIRE CORPORATION AND SUBSIDIARIES
ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis should be read in conjunction with our consolidated financial
statements and related notes included elsewhere in this filing.
Forward-Looking Statements
Statements and information included in this Annual Report on Form 10-K that are not purely historical are
forward-looking statements within the “safe harbor” provisions of the Private Securities Litigation Reform Act of
1995. When used in this report, the words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “evaluate,”
“opinion,” “may,” “could,” “future,” “potential,” “probable,” “if,” “will” and similar expressions generally identify
forward-looking statements.
Forward-looking statements in this Annual Report on Form 10-K represent our beliefs, projections and
predictions about future events. These statements are necessarily subjective and involve known and unknown risks,
uncertainties and other important factors that could cause our actual results, performance or achievements, or
industry results, to differ materially from any future results, performance or achievement described in or implied by
such statements. Actual results may differ materially from the expected results described in our forward-looking
statements, including with respect to the correct measurement and identification of factors affecting our business or
the extent of their likely impact, the accuracy and completeness of publicly available information relating to the
factors upon which our business strategy is based, or the success of our business. The factors or uncertainties that
could cause actual results, performance or achievement to differ materially from forward-looking statements
contained in this report are described in Item 1A, Risk Factors, and elsewhere in this report.
Overview
We are a leading provider of 4G wireless broadband services. We build and operate next generation mobile
broadband networks that provide high-speed mobile Internet and residential access services, as well as residential
voice services, in communities throughout the country. Our 4G mobile broadband network provide a connection
anywhere within our coverage area.
During 2010, we focused on building out and augmenting our networks, increasing our retail and wholesale
subscriber bases, expanding our wholesale partnerships, and obtaining additional capital. We increased the number
of people covered by our networks by over 72.4 million in 2010, and increased our total subscriber base by almost
3.7 million subscribers. Additionally, we added new wholesale partners such as Best Buy and CBeyond during the
year. As of December 31, 2010, our networks covered an estimated 117.1 million people in the United States and
Europe. We offered our services in 88 markets in the United States covering an estimated 114.2 million people,
including an estimated 112.0 million people covered by our 4G mobile broadband network in 71 markets. We ended
the year with approximately 1.1 million retail and 3.3 million wholesale subscribers. Approximately 27% of our
wholesale subscribers were users of multi-mode 3G/4G devices residing in areas where we have not yet launched
4G service, but from whom we currently receive nominal revenue. By the end of 2010, our 71 4G mobile broadband
markets in the United States included major metropolitan areas such as Atlanta, Baltimore, Boston, Chicago,
Cincinnati, Cleveland, Columbus, Dallas, Honolulu, Houston, Kansas City, Las Vegas, Los Angeles, Miami, New
York, Philadelphia, Pittsburg, Orlando, Salt Lake City, San Antonio, San Francisco, Seattle, St. Louis and
Washington D.C. As of December 31, 2010, the remaining 17 markets in the United States continue to operate
with a legacy network technology. Internationally, as of December 31, 2010, our networks covered an estimated
2.9 million people. We offer 4G mobile broadband services in Seville and Malaga, Spain.
In 2010, we raised approximately $1.7 billion in additional funding. In the fourth quarter of 2009, we distributed
subscription rights at a price of $7.33 per share that were exercisable for up to 93,903,300 shares of our Class A common
stock, which we refer to as the Rights Offering. The Rights Offering expired on June 21, 2010 and. rights to purchase
39.6 million shares of Class A Common Stock were exercised for an aggregate purchase price of $290.3 million. During
the fourth quarter of 2009, Clearwire Communications completed offerings of $2.52 billion 12% senior secured notes
due 2015, which we refer to as the Senior Secured Notes. During December 2010, we issued an additional $175.0 million
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