Clearwire 2009 Annual Report Download - page 36

If
t
h
ir
dp
arties
f
ai
l
to
d
eve
l
o
p
an
dd
e
l
iver t
h
ee
q
ui
p
ment t
h
at we nee
df
or
b
ot
h
our existing an
df
utur
e
networks, we may be unable to execute our business strategy or operate our business
.
We current
l
y
d
epen
d
on t
hi
r
d
part
i
es to
d
eve
l
op an
dd
e
li
ver comp
l
ex systems, so
f
tware an
dh
ar
d
ware pro
d
ucts
an
d
components
f
or our networ
ki
nat
i
me
ly
manner, an
d
at a
high l
eve
l
o
f
qua
li
t
y
. Motoro
l
a
i
s our so
l
e supp
li
er o
f
e
quipment and software for the Expedience s
y
stem currentl
y
deplo
y
ed in our le
g
ac
y
markets. The Expedienc
e
s
ystem cons
i
sts o
f
networ
k
components use
db
yusan
d
su
b
scr
ib
er equ
i
pment use
db
y our su
b
scr
ib
ers. T
o
s
uccess
f
u
lly
cont
i
nue to operate
i
n most o
f
our ex
i
st
i
n
g
mar
k
ets, Motoro
l
a must cont
i
nue to support t
h
e Expe
di
enc
e
s
ystem, including continued production of the software and hardware components. Any failure by Motorola to mee
t
th
ese nee
d
s
f
or any reason may
i
mpa
i
r our a
bili
ty to operate
i
nt
h
ese mar
k
ets. I
f
Motoro
l
a
f
a
il
e
d
to meet our nee
d
s,
we ma
y
not
b
ea
bl
eto
fi
n
d
anot
h
er supp
li
er on terms accepta
bl
e to us, or at a
ll.
For our existing 4G markets, our planned mobile WiMAX deployment in new markets and the upgrade of ou
r
l
e
g
ac
y
mar
k
ets to mo
bil
eW
i
MAX, we are re
lyi
n
g
on t
hi
r
d
part
i
es to cont
i
nue to
d
eve
l
op an
dd
e
li
ver
i
nsu
ffi
c
i
en
t
q
uant
i
t
i
es t
h
e networ
k
components an
d
su
b
scr
ib
er
d
ev
i
ces necessar
yf
or us to
b
u
ild
an
d
operate our 4G mo
bile
broadband networks. As mobile WiMAX is a new and highly sophisticated technology, we cannot be certain tha
t
th
ese t
hi
r
d
part
i
es w
ill b
e success
f
u
li
nt
h
e
i
r cont
i
nu
i
ng
d
eve
l
opment e
ff
orts. T
h
e
d
eve
l
opment process
f
or ne
w
m
o
bil
eW
i
MAX networ
k
components an
d
su
b
scr
ib
er
d
ev
i
ces ma
yb
e
l
en
g
t
hy
,
h
as
b
een su
bj
ect to some s
h
ort-term
dela
y
s and ma
y
still encounter more si
g
nificant dela
y
s. If these third parties are unable or unwillin
g
to develop an
d
d
e
li
ver new mo
bil
eW
i
MAX networ
k
components an
d
su
b
scr
ib
er
d
ev
i
ces
i
nsu
ffi
c
i
ent quant
i
t
i
es on a t
i
me
l
y
b
as
is
th
at per
f
orm accor
di
ng to our expectat
i
ons, we may
b
e una
bl
eto
d
ep
l
oy mo
bil
eW
i
MAX tec
h
no
l
ogy
i
n our new
m
arkets or to up
g
rade our existin
g
markets to mobile WiMAX when we expect, or at all. If we are unable to deplo
y
m
o
bil
eW
i
MAX
i
nat
i
me
l
y manner or mo
bil
eW
i
MAX
f
a
il
s to per
f
orm as we expect, we may
b
e una
bl
e to execute
our
b
us
i
ness strategy an
d
our prospects an
d
resu
l
ts o
f
operat
i
ons wou
ld b
e
h
arme
d
.
We ma
y
ex
p
erience
d
i
ff
icu
l
ties in constructing, u
p
gra
d
ing an
d
maintaining our networ
k
,w
h
ic
h
cou
ld
a
dversely affect customer satisfaction, increase subscriber churn and costs incurred, and decrease our
revenues.
Our success
d
epen
d
son
d
eve
l
op
i
n
g
an
d
prov
idi
n
g
serv
i
ces t
h
at
gi
ve su
b
scr
ib
ers a
high
qua
li
t
y
exper
i
ence. W
e
e
xpect to expen
d
s
ig
n
ifi
cant resources
i
nconstruct
i
n
g
,ma
i
nta
i
n
i
n
g
an
di
mprov
i
n
g
our networ
k
,
i
nc
l
u
di
n
g
t
he
deployment of 4G technologies in new markets and the upgrade of our legacy markets to 4G mobile broadband
t
ec
h
no
l
o
gy
.A
ddi
t
i
ona
lly
,aswe
l
earn more a
b
out t
h
eper
f
ormance o
f
our networ
k
s, as t
h
e num
b
er o
f
su
b
scr
ib
ers us
i
n
g
our networ
ki
ncreases, as t
h
eusa
g
e
h
a
bi
ts o
f
our su
b
scr
ib
ers c
h
an
g
ean
d
as we
i
ncrease our serv
i
ce o
ff
er
i
n
g
s, we ma
y
n
eed to up
g
rade our network to maintain or improve the qualit
y
of our services. We ma
y
also need to up
g
rade our
n
etwor
k
s to stay compet
i
t
i
ve w
i
t
h
new tec
h
no
l
og
i
es
i
ntro
d
uce
db
y our compet
i
tors. T
h
ese upgra
d
es cou
ld i
nc
l
u
d
e,
amon
g
ot
h
er t
hi
n
g
s,
i
ncreas
i
n
g
t
h
e
d
ens
i
t
y
o
f
our networ
k
s
by b
u
ildi
n
g
more s
i
tes
i
n our mar
k
ets, or
d
ec
idi
n
g
to pursu
e
other 4G technolo
g
ies in the future, and we could incur substantial costs in undertakin
g
these actions. If we do not
s
uccess
f
u
ll
y construct, ma
i
nta
i
nan
di
mp
l
ement
f
uture upgra
d
es to our networ
k
s, t
h
e qua
li
ty o
f
our serv
i
ces ma
y
d
ec
li
ne an
d
t
h
erateo
f
our su
b
scr
ib
er c
h
urn may
i
ncrease
.
We ma
y
experience qualit
y
deficiencies, cost overruns and dela
y
s with our construction, maintenance an
d
upgra
d
e pro
j
ects,
i
nc
l
u
di
ng t
h
e port
i
ons o
f
t
h
ose pro
j
ects not w
i
t
hi
n our contro
l
.T
h
e construct
i
on o
f
our networ
k
s
r
equires permits and approvals from numerous
g
overnmental bodies, includin
g
municipalities and zonin
g
boards.
S
uc
h
ent
i
t
i
es o
f
ten
li
m
i
tt
h
e expans
i
on o
f
transm
i
ss
i
on towers an
d
ot
h
er construct
i
on necessary
f
or our networ
k
s. I
n
a
ddi
t
i
on, we o
f
ten are requ
i
re
d
to o
b
ta
i
nr
i
g
h
ts
f
rom
l
an
d
,
b
u
ildi
ng an
d
tower owners to
i
nsta
ll
t
h
e antennas an
d
other equipment that provide our service to our subscribers. We ma
y
not be able to obtain, on terms acceptable to u
s
or at all, the rights necessary to construct our networks and expand our services. Additionally, we will need a large
n
um
b
er o
f
a
ddi
t
i
ona
l
exper
i
ence
d
personne
l
to
b
u
ild
an
d
construct t
h
e networ
k
s
i
n new mar
k
ets, an
d
suc
h
personne
l
m
a
y
not a
l
wa
y
s
b
eava
il
a
bl
e
i
nt
h
e num
b
ers or
i
nt
h
et
i
me
f
rames
i
nw
hi
c
h
we want t
h
em. Fa
il
ure to rece
i
v
e
approvals in a timel
y
fashion can dela
y
new market deplo
y
ments and up
g
rades in existin
g
markets and raise the cos
t
of completing construction projects and prevent us from deploying our networks on our announced timelines
.
We a
l
so ma
yf
ace c
h
a
ll
en
g
es
i
n mana
gi
n
g
an
d
operat
i
n
g
our networ
k
s. T
h
ese c
h
a
ll
en
g
es cou
ld i
nc
l
u
de
e
nsurin
g
the availabilit
y
of subscriber devices that are compatible with our networks and mana
g
in
g
sales
,
26