Clearwire 2009 Annual Report Download - page 21

N
ationa
l
an
d
Loca
l
In
d
irect
Our
i
n
di
rect sa
l
es c
h
anne
l
s
i
nc
l
u
d
eavar
i
ety o
f
aut
h
or
i
ze
d
representat
i
ves, suc
h
as tra
di
t
i
ona
l
ce
ll
u
l
ar reta
il
ers
,
c
onsumer e
l
ectron
i
cs stores, sate
lli
te te
l
ev
i
s
i
on
d
ea
l
ers an
d
computer sa
l
es an
d
repa
i
r stores. T
h
ese aut
h
or
i
ze
d
r
epresentatives t
y
picall
y
operate retail stores but, sub
j
ect to our approval, can also extend their sales efforts online.
A
uthorized representatives assist in developing awareness of and demand for our service by promoting our services
an
db
ran
d
as part o
f
t
h
e
i
r own a
d
vert
i
s
i
ng an
ddi
rect mar
k
et
i
ng campa
i
gns. We a
l
so o
ff
er our serv
i
ces pursuant to
distribution a
g
reements throu
g
h national retail chains, such as Best Bu
y
and Radio Shack, and we believe that th
e
p
ercentage o
f
our tota
l
sa
l
es
f
rom t
hi
s
i
n
di
rect sa
l
es c
h
anne
l
w
ill
cont
i
nue to
i
ncrease
.
I
nternet an
d
Te
l
e
ph
one Sa
l
e
s
We direct prospective subscribers to our website or our telesales centers in our advertising. Our website is
a
f
u
ll
y
f
unct
i
ona
l
sa
l
es c
h
anne
l
w
h
ere su
b
scr
ib
ers can c
h
ec
k
pr
i
c
i
ng an
d
serv
i
ce ava
il
a
bili
ty, researc
h
serv
i
ce p
l
an
s
an
d
act
i
vate accounts us
i
n
g
a cre
di
t car
d
. Prospect
i
ve su
b
scr
ib
ers can a
l
so ca
ll i
nto one o
f
our te
l
esa
l
es centers to
activate service.
Em
b
e
dd
e
d
Devices
An
i
mportant component o
f
our
di
str
ib
ut
i
on strate
gy i
nc
l
u
d
es em
b
e
ddi
n
g
4G mo
bil
e
b
roa
db
an
d
tec
h
no
l
o
gy
or
c
hi
p
sets into consumer electronic devices, which is the current distribution model for Wi-Fi devices. As mobile
Wi
MAX
i
s a stan
d
ar
d
s-
b
ase
d
tec
h
no
l
ogy t
h
at
i
sa
l
rea
d
y
b
e
i
ng a
d
opte
di
nternat
i
ona
ll
y, we
b
e
li
eve t
h
at c
hi
pset an
d
d
ev
i
ce ven
d
ors an
d
manu
f
acturers are contemp
l
at
i
n
gd
eve
l
op
i
n
g
an
di
nte
g
rat
i
n
g
t
h
ese c
hi
psets
i
nto a num
b
er o
f
c
onsumer electronic devices such as notebook computers, netbooks, MIDs, personal di
g
ital assistants, which w
e
r
e
f
er to as PDAs, gam
i
ng conso
l
es, MP3 p
l
ayers an
d
ot
h
er
h
an
dh
e
ld d
ev
i
ces. Ven
d
ors an
d
manu
f
acturers t
h
at
h
av
e
c
omm
i
tte
d
to mo
bil
eW
i
MAX
i
nc
l
u
d
ec
hi
pven
d
ors suc
h
as Inte
l
, Beceem Commun
i
cat
i
ons Inc., GCT Sem
i
con
-
ductor, Inc., Samsun
g
Electronics Co., Ltd, which we refer to as Samsun
g
, and Sequans Communications an
d
d
ev
i
ce manu
f
acturers suc
h
as De
ll
Inc., ZTE, ZyXEL Commun
i
cat
i
ons Inc., Fu
ji
tsu L
i
m
i
te
d
, Samsung, Lenov
o
G
roup, an
d
Tos
hib
a Corporat
i
on
.
Em
b
e
ddi
ng 4G mo
bil
e
b
roa
db
an
d
c
hi
psets
i
nto consumer e
l
ectron
i
c
d
ev
i
ces
i
s expecte
d
to prov
id
e greater
e
xposure to potent
i
a
l
su
b
scr
ib
ers w
h
ow
ill b
ea
bl
e to purc
h
ase
d
ev
i
ces compat
ibl
ew
i
t
h
our networ
k
t
h
rou
gh
t
h
e
vendors’ and manufacturers’ existin
g
distribution channels. We believe that embeddin
g
4G mobile broadband
t
echnology into consumer electronic devices will enable those who purchase these devices to have the option t
o
i
mme
di
ate
ly
act
i
vate serv
i
ces w
i
t
hi
n our mar
k
et covera
g
e areas w
i
t
h
out t
h
e nee
df
or an externa
l
mo
d
em,
p
ro
f
ess
i
ona
li
nsta
ll
at
i
on or a se
p
arate v
i
s
i
ttoaC
l
earw
i
re reta
il
or ot
h
er
l
ocat
i
on.
Wholesale Distribution
We
h
ave w
h
o
l
esa
l
e partners
hi
pa
g
reements w
i
t
h
Comcast, T
i
me Warner Ca
bl
e, Br
igh
t House an
d
Spr
i
nt
.
These a
g
reements provide us with si
g
nificant additional distribution channels for our services. Under thes
e
agreements, our Wholesale Partners are permitted to market and resell wireless broadband services over our
n
etwor
k
to t
h
e
i
ren
d
user customers as part o
f
a
d
e
fi
ne
db
un
dl
e, su
bj
ect to certa
i
n except
i
ons. Current
ly
a
ll
o
f
ou
r
W
holesale Partners have be
g
un offerin
g
, or have announced plans to offer, our 4G mobile broadband services a
s
p
art of their branded bundled offerin
g
. Sprint offers our services in 27 markets, includin
g
amon
g
others Phila
-
d
e
l
p
hi
a, C
hi
cago, At
l
anta, Seatt
l
e, Da
ll
as, an
d
Las Vegas. Comcast o
ff
ers our serv
i
ces
i
n seven mar
k
ets
i
nc
l
u
di
ng
P
hiladelphia, Chica
g
o, Atlanta, Seattle, Portland and Salem, Ore
g
on, and Bellin
g
ham, Washin
g
ton. Time Warne
r
Cable offers our service in ei
g
ht markets includin
g
Dallas and Charlotte, Greensboro and Ralei
g
h, NC. An
y
p
urc
h
asers o
f
4G mo
bil
e
b
roa
db
an
d
serv
i
ces t
h
roug
h
t
h
ese partners
hi
ps rema
i
n customers o
f
our W
h
o
l
esa
l
e
P
artners but we are entitled to receive pa
y
ment directl
y
from our Wholesale Partners for providin
g
the 4G mobil
e
broadband services to those customers. In addition to our wholesale a
g
reements with our current Wholesale
P
artners, we may see
k
to enter
i
nto ot
h
er w
h
o
l
esa
l
e agreements w
i
t
h
ot
h
er t
hi
r
d
part
i
es
.
11