Clearwire 2009 Annual Report Download - page 129

w
i
t
h
t
h
e prov
i
s
i
on o
f
w
i
re
l
ess commun
i
cat
i
ons serv
i
ces,
i
nc
l
u
di
ng attac
h
ment o
f
antennas to t
h
e towers at t
h
es
i
tes.
T
h
e term o
f
t
h
e Master S
i
te Agreement w
ill b
e ten years
f
rom t
h
eC
l
os
i
ng. T
h
e term o
f
eac
hl
ease
f
or eac
h
spec
ifi
c
s
ite will be five
y
ears, but the lessee has the ri
g
ht to extend the term for up to an additional 20
y
ears. The basic fee is
$
600 per month per site. The monthly fee will increase 3% per year. The lessee is also responsible for the utilit
y
c
osts and for certain additional fees, such as an application fee of
$
1,000 per site.
Master Agreement for Network Services
—
We entere
di
nto a master a
g
reement
f
or networ
k
serv
i
ces, w
hi
c
h
we refer to as the Master A
g
reement for Network Services, with various Sprint affiliated entities, which we refer t
o
as t
h
e Spr
i
nt Ent
i
t
i
es, pursuant to w
hi
c
h
t
h
e Spr
i
nt Ent
i
t
i
es an
d
we w
ill
esta
bli
s
h
t
h
e contractua
lf
ramewor
k
an
d
p
roce
d
ures
f
or us to purc
h
ase networ
k
serv
i
ces
f
rom Spr
i
nt Ent
i
t
i
es. We ma
y
or
d
er var
i
ous serv
i
ces
f
rom t
h
e Spr
i
n
t
Entities, includin
g
IP network transport services, data center co-location, toll-free services and access to th
e
f
o
ll
ow
i
ng
b
us
i
ness p
l
at
f
orms: vo
i
cema
il
,
i
nstant messag
i
ng serv
i
ces,
l
ocat
i
on-
b
ase
d
systems an
d
me
di
a server
s
ervices. The Sprint Entities will provide a service level a
g
reement that is consistent with the service levels provide
d
t
o similarl
y
situated customers. Pricin
g
is specified in separate product attachments for each t
y
pe of service; in
genera
l
,t
h
epr
i
c
i
ng
i
s
b
ase
d
on t
h
em
id
-po
i
nt
b
etween
f
a
i
r mar
k
et va
l
ue o
f
t
h
e serv
i
ce an
d
t
h
e Spr
i
nt Ent
i
t
i
es’
f
u
lly
a
ll
ocate
d
cost
f
or prov
idi
n
g
t
h
e serv
i
ce. T
h
e term o
f
t
h
e Master A
g
reement
f
or Networ
k
Serv
i
ces w
ill b
e
fi
ve
y
ears,
but the lessee will have the ri
g
ht to extend the term for an additional five
y
ears. Additionall
y
, in accordance with th
e
Master Agreement for Network Services with the Sprint Entities, we assumed certain agreements for backhaul
s
erv
i
ces w
i
t
h
certa
i
no
f
t
h
e Investors t
h
at conta
i
n comm
i
tments t
h
at exten
d
up to
fi
ve
y
ears
.
IT Master
S
ervices Agreement — We entered into an IT master services a
g
reement with the Sprint Entities,
which we refer to as the IT Master Services A
g
reement, pursuant to which the Sprint Entities and us will establis
h
t
h
e contractua
lf
ramewor
k
an
d
proce
d
ures
f
or us to purc
h
ase
i
n
f
ormat
i
on tec
h
no
l
ogy, w
hi
c
h
we re
f
er to as IT,
application services from the Sprint Entities. We ma
y
order various information technolo
gy
application service
s
from the Sprint Entities, includin
g
human resources applications, suppl
y
chain and finance applications, device
m
anagement serv
i
ces,
d
ata ware
h
ouse serv
i
ces, cre
di
t/a
dd
ress c
h
ec
k
,IT
h
e
l
p
d
es
k
serv
i
ces, repa
i
r serv
i
ce
s
app
li
cat
i
ons, customer trou
bl
e mana
g
ement, covera
g
e map app
li
cat
i
ons, networ
k
operat
i
ons support app
li
cat
i
ons,
and other services. The specific services requested b
y
us will be identified in Statements of Work to be completed b
y
the S
p
rint Entities and us. The S
p
rint Entities will
p
rovide service levels consistent with the service levels the S
p
rint
Ent
i
t
i
es prov
id
etot
h
e
i
ra
ffili
ates
f
or t
h
e same serv
i
ces. Pr
i
c
i
n
g
w
ill b
e spec
ifi
e
di
n eac
h
separate Statement o
f
Wor
k
f
or eac
h
t
y
pe o
f
serv
i
ce. T
h
e term o
f
t
h
e IT Master Serv
i
ces A
g
reement w
ill b
e
fi
ve
y
ears,
b
ut we w
ill h
ave t
h
er
ight
to extend the term for an additional five
y
ears
.
4
G MVNO A
g
reement
—
We entere
di
nto a non-exc
l
us
i
ve 4G MVNO agreement at t
h
eC
l
os
i
ng w
i
t
h
Comcast
MVNO II, LLC, TWC W
i
re
l
ess, LLC, BHN S
p
ectrum Investments, LLC an
d
S
p
r
i
nt S
p
ectrum L.P., w
hi
c
h
we re
f
er
to as the 4G MVNO A
g
reement. We will sell wireless broadband services to the other parties to the 4G MVN
O
A
greement for the purposes of the purchasers marketing and reselling the wireless broadband services to each o
f
t
h
e
i
r res
p
ect
i
ve en
d
user customers. T
h
ew
i
re
l
ess
b
roa
db
an
d
serv
i
ces to
b
e
p
rov
id
e
d
un
d
er t
h
e 4G MVN
O
Ag
reement
i
nc
l
u
d
e stan
d
ar
d
networ
k
serv
i
ces, an
d
,att
h
e request o
f
an
y
o
f
t
h
e part
i
es, certa
i
n non-stan
d
ar
d
networ
k
s
ervices. We will sell these services at our retail prices less agreed upon discounts.
I
nte
l
Mar
k
et Deve
l
o
p
ment Agreement
—
We entere
di
nto a mar
k
et
d
eve
l
opment agreement w
i
t
h
Inte
l
,w
hi
c
h
we refer to as the Intel Market Development A
g
reement, pursuant to which we committed to deplo
y
mobil
e
WiMAX on our network and to
p
romote the use of certain notebook com
p
uters and mobile Internet devices on ou
r
n
etwor
k
,an
d
Inte
l
wou
ld d
eve
l
op, mar
k
et, se
ll
an
d
support W
i
MAX em
b
e
dd
e
d
c
hi
psets
f
or use
i
n certa
i
n note
b
oo
k
c
omputers an
d
mo
bil
e Internet
d
ev
i
ces t
h
at ma
yb
e use
d
on our networ
k
.T
h
e Inte
l
Mar
k
et Deve
l
opment A
g
reement
will last for a term of seven
y
ears from the date of the a
g
reement, with Intel havin
g
the option to renew the
agreement for successive one year terms up to a maximum of 13 additional years provided that Intel meets certai
n
requ
i
rements. I
f
Inte
l
e
l
ects to renew t
h
ea
g
reement
f
or t
h
e max
i
mum 20-
y
ear term, t
h
ea
g
reement w
ill
t
h
erea
f
ter
automat
i
ca
lly
renew
f
or success
i
ve one
y
ear renewa
l
per
i
o
d
s unt
il
e
i
t
h
er part
y
term
i
nates t
h
ea
g
reement. Un
d
er t
h
e
I
ntel Market Development Agreement, Clearwire Communications will pay to Intel a portion of the revenues
119
CLEARWIRE CORPORATION AND
S
UB
S
IDIARIE
S
N
OTES TO CONSOLIDATED FINANCIAL STATEMENTS —
(
Continued
)