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2009 2008 200
7
Year Ended December
31,
We
igh
te
d
avera
g
eC
l
earw
i
re C
l
ass A Common S
h
ares outstan
di
n
g:
Basic
.
...................................................
194
,
696 189
,
92
1
Dil
uted
...................................................
741,071 694,92
1
(1) Pr
i
or to t
h
eC
l
os
i
ng, we
h
a
d
no equ
i
ty as we were a w
h
o
ll
y-owne
ddi
v
i
s
i
on o
f
Spr
i
nt. As suc
h
,we
did
not
c
alculate or present net loss per share for the period from Januar
y
1, 2008 to November 28, 2008. We have
c
alculated and presented basic and diluted net loss per share for the period from November 29, 2008 throu
gh
D
ecem
b
er 31, 2008 an
df
or t
h
e year en
d
e
d
Decem
b
er 31, 2009.
Reve
nu
es
R
evenues are pr
i
mar
ily g
enerate
df
rom su
b
scr
i
pt
i
on an
d
mo
d
em
l
ease
f
ees
f
or our 4G an
d
pre-4G serv
i
ces, a
s
well as from activation fees and fees for other services such as email, VoIP, and web hosting services
.
(
In thousands, except percenta
g
es) 2009 2008 200
7
P
ercenta
g
e
C
han
g
e 2009
V
ersus
2008
P
ercenta
ge
C
han
g
e 2008
V
ersus
200
7
Year Ende
d
December
31,
R
evenues
........................
$274,458 $20,489 $— 1239.5% N/M
T
he increase in revenues for 2009 compared to 2008 is primaril
y
due to twelve months of revenues received
f
rom our operat
i
on o
f
mar
k
ets
i
n 2009, compare
d
to one mont
hf
or 2008
f
o
ll
ow
i
ng t
h
eC
l
os
i
ng on Novem
b
er 28,
2
008, w
h
en we acqu
i
re
d
a
ll
o
f
t
h
eO
ld
C
l
earw
i
re mar
k
ets an
d
su
b
scr
ib
ers. We
l
aunc
h
e
d
10 new 4G mar
k
ets
i
n 2009
an
db
e
g
an o
ff
er
i
n
g
our serv
i
ces t
h
rou
gh
W
h
o
l
esa
l
e Partners
i
na
ll
o
f
our 4G mar
k
ets. Revenues
i
nt
h
eUn
i
te
d
States
r
epresented 88% and international represented 12% of total revenues for the year ended December 31, 2009,
c
ompare
d
to 87%
f
or t
h
eUn
i
te
d
States an
d
13%
f
or
i
nternat
i
ona
lf
or t
h
e year en
d
e
d
Decem
b
er 31, 2008. As o
f
D
ecember 31, 2009, we o
p
erated our services in 57 domestic and 4 international markets, com
p
ared to 47 domestic
and 4 international markets as of December 31, 2008. Total subscribers in all markets were approximatel
y
688,00
0
as of December 31, 2009, com
p
ared to 47
5
,000 as of December 31, 2008.
T
he increase in revenues for 2008 compared to 2007 is primaril
y
due to the revenues received from operation
s
o
f
C
l
earw
i
re
f
o
ll
ow
i
ng t
h
eC
l
os
i
ng on Novem
b
er 28, 2008, w
h
en we acqu
i
re
d
a
ll
o
f
t
h
eO
ld
C
l
earw
i
re mar
k
ets an
d
s
ubscribers. There were no subscribers as of December 31, 2007.
We ex
p
ect revenues to continue to increase due to the roll out of new 4G markets, which will increase th
e
m
arkets we serve and our subscriber base, and as a result of increased adoption of new services b
y
our customers. I
n
a
ddi
t
i
on, we expect t
h
at average revenue per user, w
hi
c
h
we re
f
er to as ARPU, to rema
i
n sta
bl
e
i
n 2010 compare
d
t
o
2
009 as
i
ncreases resu
l
t
i
n
gf
rom mu
l
t
i
p
l
e serv
i
ce o
ff
er
i
n
g
s per customer w
ill lik
e
ly b
eo
ff
set
by
t
h
e
i
mpact o
f
p
romotional pricin
g.
C
ost o
f
Goo
d
san
d
Services an
d
Networ
k
Costs (exc
l
usive o
fd
e
p
reciation an
d
amortization
)
C
ost of
g
oods and services includes costs associated with tower rents, direct Internet access and backhaul,
whi
c
hi
st
h
e transport
i
ng o
fd
ata tra
ffi
c
b
etween
di
str
ib
ute
d
s
i
tes an
d
a centra
l
po
i
nt
i
nt
h
e mar
k
et or Po
i
nt o
f
P
resence. Cost of
g
oods and services also includes certain network equipment, site costs, facilities costs, software
licensin
g
and certain office equipment. Network costs primaril
y
consist of external services and internal pa
y
roll
i
ncurre
di
n connect
i
on w
i
t
h
t
h
e
d
es
i
gn,
d
eve
l
opment an
d
construct
i
on o
f
t
h
e networ
k
.T
h
e externa
l
serv
i
ces
i
nc
l
u
de
c
onsultin
g
fees, contractor fees and pro
j
ect-based fees that are not capitalizable
.
(
In thousands, except percentages
)
2009 2008 2007
P
ercenta
g
e
Change 2009
Versus
2008
P
ercenta
ge
C
hange 2008
Versus
200
7
Y
ear Ended
D
ecember
31,
C
ost of goods and services an
d
net
w
or
k
cost
s
...............
$
422
,
116
$
131
,
489
$
48
,
865 221.0% 169.1
%
54