Clearwire 2010 Annual Report Download - page 7

PART I
Explanatory Note
This Annual Report on Form 10-K, including the “Management’s Discussion and Analysis of Financial
Condition and Results of Operations,” contains “forward-looking statements” that represent our beliefs, projec-
tions 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. You
should review carefully the section entitled “Risk Factors” for a discussion of these and other risks that relate to our
business.
Except as otherwise noted, references to “we”, “us”, or “our” refer to Clearwire Corporation and its
subsidiaries.
ITEM 1. Business
Overview
We are a leading provider of fourth generation, or 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
provides a connection anywhere within our coverage area.
To date, we have invested heavily in building and augmenting our networks. We have a history of operating
losses, and we expect to have significant losses in the future. As of December 31, 2010, our accumulated deficit was
approximately $900.5 million. In December 2010, we raised approximately $1.40 billion in a debt offering to
provide us with necessary additional funding for our business, and, as of the end of the year, the total principal
outstanding on our debt was approximately $4.31 billion.
In 2010, we increased the number of people covered by our networks by over 72.4 million. As of December 31,
2010, our networks covered an estimated 117.1 million people in the United States and Europe. In the United States,
our networks covered an estimated 114.2 million people in 88 markets, including an estimated 112.0 million people
covered by our 4G mobile broadband network in 71 markets. By the end of 2010, our 4G mobile broadband markets
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, Pittsburgh,
Orlando, Salt Lake City, San Antonio, San Francisco, Seattle, St. Louis and Washington D.C. As of December 31,
2010, our other 17 markets in the United States continued to operate with a legacy network technology, which we
refer to as Pre-4G, that is based on a proprietary set of technical standards offered by a subsidiary of Motorola
Solutions, Inc, which we refer to as Motorola. Internationally, as of December 31, 2010, our networks covered an
estimated 2.9 million people in 4 markets, including 4G mobile broadband network in Seville and Malaga, Spain
and Pre-4G network in Brussels and Ghent, Belgium.
In our 4G mobile broadband markets, we offer our services through retail channels and through our wholesale
partners. Sprint Nextel Corporation, which we refer to as Sprint, Comcast Corporation, which we refer to as
Comcast, and Time Warner Cable Inc., which we refer to as Time Warner Cable, who we collectively refer to as our
Initial Wholesale Partners, account for all of our wholesale sales to date. At least one of our Initial Wholesale
Partners offers services in each of our 4G markets. Additionally, we added Best Buy and CBeyond as new wholesale
partners during the year and expect them to commence sales in early 2011.
Our total subscriber base increased by almost 3.7 million subscribers in 2010, which included the addition of
over 3.2 million wholesale subscribers, substantially all of which came from Sprint. We ended the year with
approximately 1.1 million retail and 3.3 million wholesale subscribers. Approximately 27% of our wholesale
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