Clearwire 2007 Annual Report Download - page 5

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Our fast, simple, portable and reliable
residential broadband service
has mass market appeal.
Customers are Embracing Clearwire’s Product and Service Offerings
Despite robust competition from DSL and “triple play” cable operators, the penetration rate
in some of our most successful markets is now exceeding 20 percent of the homes covered
by the Clearwire network. Nearly two-thirds of our markets in operation for 12 months or
longer now have 10 percent or greater penetration of covered households, with more than
a quarter of those markets ending the year with 15 percent penetration rate or higher.
Equally important is that customer satisfaction with our sales and activation process
exceeded 80 percent throughout 2007. This kind of demand for and satisfaction with our
services was a major factor in the excellent penetration rates we saw for new offerings,
such as our residential voice services (or VoIP) and PC Card services launched last year.
We anticipate demand to increase even further as the breadth of devices that can connect
to the Clearwire network continues to expand. In mid-2008 we expect to introduce
ExpressCards in our existing markets, and later in the year we should see mobile WiMAX-
based residential gateway modems, PC Cards, ExpressCards, USB driven devices, and
embedded chipsets in PCs available in our new WiMAX markets.
Smart Growth
While we are making compelling penetration and market share gains, we have continued
our emphasis on generating cash fl ow from our operating markets. We made great progress
in 2007 by signifi cantly increasing the number of our markets that were EBITDA positive at
the market level – and we expect this trend to continue in 2008.
A key area of focus for Clearwire is balancing the tremendous growth opportunity we see
in front of us with the realities of today’s fi nancing environment. One of the great things
about our business is that we can modulate our rate of growth based on the availability
of capital on reasonable terms.
Clearwire currently has new markets in various stages of design, construction and
development representing more than 36 million additional people that will be covered
by our networks when these markets are launched. We are working on the long lead
time but less capital intensive aspects of these new markets so that we can more quickly
launch these markets when capital is available.