Clearwire 2010 Annual Report Download - page 3

LETTER TO SHAREHOLDERS —
Dear Fellow Shareholder:
It’s no secret that mobile Internet penetration is ramping far faster than it did in the wired
world. In fact, 2010 was a period of extraordinary growth for Clearwire: we had a record-setting
year as we built the nation’s first 4G wireless network, tripled our coverage, quintupled our
customer base, and more than doubled our revenue.We continue to believe that Clearwire is in
the right place at the right time with the right assets to capitalize on the unprecedented
opportunity in the mobile broadband space.
We expect our explosive growth to continue as customers take their entertainment, social
connections, information sources as well as their personal voice and messaging communica-
tions with them wherever they go. In 2010, Clearwire pioneered the 4G experience by com-
bining the two biggest technological phenomena of the last two decades — broadband
Internet and mobility. With our unmatched spectrum and all IP network, Clearwire is poised
to capitalize on the opportunity to best serve businesses and consumers during the mobile
data revolution.
Record Growth in 2010
Clearwire’s technical team grew our domestic 4G network from covering 34 million people to
112 million, and today we cover more than 120 million people. By adding approximately 10,000
incremental 4G sites we successfully completed one of the most aggressive network builds in
wireless history.
Our sales and marketing team grew our subscriber base from 700,000 to 4.4 million total
customers in a single year — now serving 1.1 million retail subscribers and 3.3 million wholesale
subscribers.
During the fourth quarter, Clearwire’s financial team successfully completed a debt offering,
raising approximately $1.4 billion of new capital. This funding, combined with our outstanding
revenue and subscriber growth, has positioned us well for the future. While 2010 was the year
of building the first 4G network; 2011 is the year we will improve operational efficiencies, reduce
costs and scale the business.
I joined this executive team as interim CEO in March 2011. COO Erik Prusch, CFO Hope Cochran,
CTO John Saw and General Counsel Broady Hodder deserve the credit for leading a terrific
team through the enormous challenges inherent in rapid growth. We are all dedicated to the
success of Clearwire in 2011 and beyond.
Strong Business Outlook
We firmly believe that our significant spectrum holdings, all-IP based network, and unique
backhaul approach remain a significant competitive advantage. In 2011 we will focus on
becoming profitable while continuing to grow the business. We’ll do this by maximizing our
wholesale revenue, optimizing our retail business for cash flow, increasing our operational
efficiencies, significantly lowering operating costs, and seeking additional funding to fuel our
growth.
By mid-year our network is expected to cover 130 million people in the U.S., and by the end of
the year we expect to double our subscriber base to more than 8.8 million subscribers. The
majority of subscribers will come from our wholesale business, although we do expect double-
digit retail subscriber and revenue growth. 4G is all about high usage, and Clearwire has the
spectrum to serve the tremendous demand for mobile broadband data.
Today, Clearwire has wholesale distribution partnerships with Sprint, Comcast, Time Warner
Cable, Best Buy, Cbeyond, Mitel, and Locus Telecommunications. In addition, we continue to
have strong relationships with our other strategic partners, including Google, Intel, and Bright
House Networks.