Clearwire 2007 Annual Report Download - page 12

will enable us to continue to increase our subscriber base. We expect to deploy mobile WiMAX technology
in our new markets beginning in the second half of 2008 in the United States and when commercially
available in other countries and, over time, migrate our existing markets to the same technology. The timing
and extent of our new market roll-outs will largely be determined by access to additional funding.
•Build our spectrum position. We intend to continue acquiring spectrum in the United States and in other
countries, thereby increasing the number of markets in which we may offer our services in the future.
•Enhance mobility. We will continue to focus on enhancing the mobility of our services and to work with
vendors to introduce devices that will optimize the mobile capabilities of our WiMAX network. In October
2007 we introduced a PC card for our pre-WiMAX network that facilitates greater portable access to our
services. We further believe that commercial deployment of mobile WiMAX technology will lead to the
development and availability of mobile products that are compatible with our mobile WiMAX network.
•Offer premium value added services. We intend to generate incremental revenues, leverage our cost
structure and improve subscriber retention by offering a variety of premium services. As of December 31,
2007, we offered VoIP telephony services in 41 markets, and plan to expand this offering to our remaining
domestic markets in 2008. We also offered a PC card for use within our existing pre-WiMAX network in all
of our markets by the end of 2007. Additional products and services such as a WiMAX PC card,
ExpressCard, USB driven devices and other products and services are expected over the course of 2008.
Services
We offer our services in both U.S. and international markets. Our services consist primarily of providing
wireless broadband connectivity, but in 41 of our domestic markets, we also offer VoIP telephony services. Our
service revenue accounted for virtually all of total revenues. Prior to the launch of our first market in August 2004,
equipment and other revenue accounted for all of our total revenues. Domestic sales accounted for approximately
81% of our service revenue for the year ended December 31, 2007, while our international sales accounted for
approximately 19%, of service revenue over the same period. We began introducing VoIP telephony services in a
limited number of our United States markets in 2006 and completed a much broader deployment in 2007. VoIP
subscribers are now beginning to ramp at an increasing pace.
United States Wireless Broadband Services
We offer subscribers a fast, simple, portable, reliable and affordable way to connect to the Internet. In our
domestic markets, 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. As of December 31, 2007, our primary service
plans for our current wireless broadband services in the United States include:
Service Plan
Download
Speed to
End-User
Upload
Speed From
End-User
Base Rate
($/month)* Additional Features
ClearValue Up to 768 Kbps Up to 256 Kbps $24.99-$39.99 3 email addresses
ClearPremium Up to 1.5 Mbps Up to 256 Kbps $34.99-$49.99 5 email addresses
ClearPremium Plus Up to 2.0 Mbps Up to 256 Kbps $44.99-$69.99 5 email addresses
PC Card Up to 1.5 Mbps Up to 256 Kbps $59.99 5 email addresses
ClearBusiness Up to 1.5 Mbps Up to 256 Kbps $49.99-$69.99 8 email addresses,
1 static IP address
* Excludes monthly modem lease fee of $4.99 and monthly PC card lease fee of $6.99, where applicable, and
excludes introductory and promotional rates and rate packages.
We believe that our subscribers are attracted to our current wireless broadband services primarily because our
networks combine certain features of cable modem, DSL and cellular networks into a single service offering at an
4