Clearwire 2009 Annual Report Download - page 45

our
fi
nanc
i
a
l
resu
l
ts, our su
b
stant
i
a
li
n
d
e
b
te
d
ness an
d
our cre
di
t rat
i
ngs cou
ld
a
d
verse
l
ya
ff
ect t
h
eava
il
a
bili
ty an
d
t
erms o
f
a
ddi
t
i
ona
lfi
nanc
i
ng.
C
ertain as
p
ects o
f
our VoIP resi
d
entia
l
te
l
e
ph
on
y
services
d
i
ff
er
f
rom tra
d
itiona
l
te
l
e
ph
one service, w
h
ic
h
m
a
yl
imit t
h
e attractiveness o
f
our services
.
We intend to continue to offer residential VoIP telephon
y
as a value added service with our wireless broadban
d
Internet service. Our residential VoIP telephon
y
services differ from traditional phone service in several respects
,
i
ncluding
:
• our su
b
scr
ib
ers ma
y
exper
i
ence
l
ower ca
ll
qua
li
t
y
t
h
an t
h
e
y
exper
i
ence w
i
t
h
tra
di
t
i
ona
l
w
i
re
li
ne te
l
ep
h
one
c
ompanies, includin
g
static, echoes and transmission dela
y
s
;
• our subscribers may experience higher dropped-call rates than they experience with traditional wireline
te
l
ep
h
one compan
i
es; an
d
• a power loss or Internet access interruption ma
y
cause our service to be interrupted
.
If
our su
b
scr
ib
ers
d
o not accept t
h
e
diff
erences
b
etween our res
id
ent
i
a
l
VoIP te
l
ep
h
ony serv
i
ces an
d
tra
di
t
i
ona
l
t
e
l
ep
h
one serv
i
ce, t
h
ey may not a
d
opt or
k
eep our res
id
ent
i
a
l
VoIP te
l
ep
h
ony serv
i
ces or our ot
h
er serv
i
ces, or may
ch
oose to reta
i
n or return to serv
i
ce prov
id
e
dby
tra
di
t
i
ona
l
te
l
ep
h
one compan
i
es.
Although we are compliant with the FCC’s November 28, 200
5
mandate that all interconnected VoIP provider
s
t
ransmit all 911 calls to the appropriate public safety answering point, our VoIP emergency calling service is
si
gn
ifi
cant
l
y more
li
m
i
te
d
t
h
an t
h
e emergency ca
lli
ng serv
i
ces o
ff
ere
db
y tra
di
t
i
ona
l
te
l
ep
h
one compan
i
es. Ou
r
V
oIP emergency ca
lli
ng serv
i
ce can transm
i
ttoa
di
spatc
h
er at a pu
bli
csa
f
ety answer
i
ng po
i
nt on
l
yt
h
e
l
ocat
i
on
i
n
f
ormat
i
on t
h
at t
h
esu
b
scr
ib
er
h
as reg
i
stere
d
w
i
t
h
us, w
hi
c
h
may at t
i
mes
b
e
diff
erent
f
rom t
h
e actua
ll
ocat
i
on at t
h
e
ti
me o
f
t
h
eca
ll d
ue to t
h
e porta
bili
ty o
f
our serv
i
ces. As a resu
l
t,
if
our su
b
scr
ib
ers
f
a
il
to proper
l
y reg
i
ster or up
d
at
e
th
e
i
r reg
i
stere
dl
ocat
i
ons, our emergency ca
lli
ng systems may not assure t
h
at t
h
e appropr
i
ate pu
bli
csa
f
et
y
answer
i
ng po
i
nt
i
s reac
h
e
d
an
d
may cause s
i
gn
ifi
cant
d
e
l
ays, or even
f
a
il
ures,
i
nca
ll
ers’ rece
i
pt o
f
emergency
ass
i
stance. Our
f
a
il
ure to
d
eve
l
op or operate an a
d
equate emer
g
enc
y
ca
lli
n
g
serv
i
ce cou
ld
su
bj
ect us to su
b
stant
i
a
l
li
a
bili
t
i
es an
d
ma
y
resu
l
t
i
n
d
e
l
a
y
s
i
nsu
b
scr
ib
er a
d
opt
i
on o
f
our VoIP serv
i
ces or our ot
h
er serv
i
ces, a
b
an
d
onment o
f
our services b
y
subscribers, and liti
g
ation costs, dama
g
e awards and ne
g
ative publicit
y
,an
y
of which could harm ou
r
business, prospects, financial condition or results of operations. In addition, our deplo
y
ment of mobile intercon-
n
ected VoIP services faces additional E911 re
g
ulator
y
uncertaint
y
, as discussed above in “Business — Re
g
ulator
y
Matters — Interconnected VoIP services re
g
ulation.
”
F
i
na
lly
, potent
i
a
l
c
h
an
g
es
by
t
h
e FCC to current
i
ntercarr
i
er compensat
i
on mec
h
an
i
sms cou
ld
resu
l
t
i
n
sig
n
ifi
cant c
h
an
g
es to our costs o
f
prov
idi
n
g
VoIP te
l
ep
h
on
y
,t
h
ere
by
e
li
m
i
nat
i
n
g
pr
i
c
i
n
gb
ene
fi
ts
b
etween VoI
P
t
elephon
y
services and traditional telephone services and our potential profitabilit
y.
I
f our data security measures are breached or customer data is compromised, subscribers may perceive
o
ur network
a
nd services
a
s not secure.
Our network securit
y
and the authentication of our subscriber credentials are desi
g
ned to protect unauthorize
d
access to data on our network. Because techniques used to obtain unauthorized access to or to sabotage networks
c
hange frequently and may not be recognized until launched against us, we may be unable to anticipate or
i
mp
l
ement a
d
equate prevent
i
ve measures aga
i
nst unaut
h
or
i
ze
d
access or sa
b
otage. Consequent
l
y, unaut
h
or
i
ze
d
p
art
i
es may overcome our networ
k
secur
i
ty an
d
o
b
ta
i
n access to
d
ata on our networ
k
,
i
nc
l
u
di
ng on a
d
ev
i
ce
c
onnecte
d
to our networ
k
.Ina
ddi
t
i
on,
b
ecause we operate an
d
contro
l
our networ
k
an
d
our su
b
scr
ib
ers’ Internet
c
onnect
i
v
i
t
y
, unaut
h
or
i
ze
d
access or sa
b
ota
g
eo
f
our networ
k
cou
ld
resu
l
t
i
n
d
ama
g
e to our networ
k
an
d
to t
h
e
c
omputers or ot
h
er
d
ev
i
ces use
dby
our su
b
scr
ib
ers. An actua
l
or perce
i
ve
db
reac
h
o
f
networ
k
secur
i
t
y
,re
g
ar
dl
ess o
f
our respons
ibili
t
y
, cou
ld h
arm pu
bli
c percept
i
on o
f
t
h
ee
ff
ect
i
veness o
f
our secur
i
t
y
measures, a
d
verse
ly
a
ff
ect ou
r
abilit
y
to attract and retain subscribers, expose us to si
g
nificant liabilit
y
and adversel
y
affect our business prospects.
35