Profile: Clearwire Corp (CLWR.O)

Clearwire Corporation (Clearwire) is a provider of fourth generation (4G), wireless broadband services. The Company builds and operates next generation mobile broadband networks, which provide high-speed mobile Internet and residential Internet access services in communities throughout the country. The Company’s 4G mobile broadband network provides a connection anywhere within its coverage area. The Company’s 4G mobile broadband network operates on the Worldwide Interoperability of Microwave Access technology 802.16e standard (WiMAX). As of December 31, 2011, the Company offered its services in 88 markets in the United States covering an estimated 134.2 million people, including an estimated 131.9 million people covered by its 4G mobile broadband networks in 71 markets. As of December 31, 2011, its 4G mobile broadband markets included metropolitan areas, such as Atlanta, Baltimore, Boston, Chicago, Cincinnati, Cleveland, Columbus, Dallas, Honolulu, Houston, Kansas City, Las Vegas, Los Angeles, Miami, New York, Philadelphia, Pittsburgh, Orlando, Salt Lake City, San Antonio, San Francisco, Seattle, St. Louis and Washington D.C. On October 30, 2011 it ceased sales activity in the 17 markets where it had offered Clearwire branded Pre-4G service. As of October 19, 2012, Sprint Nextel Corp controls 50.8% interest in Clearwire.

In the Company’s 4G mobile broadband markets in the United States, it offers its services through retail channels and through its wholesale partners. Sprint Nextel Corporation (Sprint) offers services in each of its 4G markets. The Company conducts its operations through its domestic and international subsidiaries. Clearwire Communications has one primary domestic operating subsidiary: Clear Wireless LLC, which operates all of its 4G mobile markets. The Company’s spectrum leases and licenses in the United States are held by separate holding companies. Internationally, its operations are conducted through Clearwire International, LLC, an indirect, wholly owned subsidiary of Clearwire Communications, which also indirectly holds investments in Europe and Mexico.

As of December 31, 2011, the Company offered its services in 88 markets throughout the United States covering an estimated 134.2 million people. Its services consist of providing wireless broadband connectivity. As of December 31, 2011, it also supported fixed Voice over Internet Protocol (VoIP), telephony services for existing retail subscribers in its markets. Its retail services are offered under its CLEAR brand in its 4G markets and under the Clearwire brand in its legacy markets, and it offers 4G mobile broadband services in each of its 71 4G markets through at least one of its wholesale partners. It offers its subscribers a range of Internet services, including mobile Internet access, as its primary service offering. Its 4G mobile broadband network is 100% Internet Protocol-based, which it refers to as Internet protocol (IP)-based, and provides open and transparent access to the Internet without any device restrictions or constraints imposed by a specific operating system or application-based interface.

Wholesale Services

The Company offers 4G mobile broadband services through its wholesale partners in each of its 71 4G markets. As of December 31, 2011, approximately 23% of its wholesale subscribers were users of multi-mode third generation (3G)/4G devices residing in areas. Its wholesale partners offer its services as part of their branded offerings. Under existing commercial agreements, some of its wholesale partners are able to offer the same types of services as Clearwire in its 4G markets. In addition, its wholesale partners may offer customized services over its network. Its wholesale partners market their branded version of its services to both existing and new subscribers, through a range of sales and marketing channels. Sprint offers their branded version of its service in all 71 of its domestic 4G markets. The services are sold in connection with multi-mode devices. Comcast Corporation (Comcast) and Time Warner Cable Inc. (Time Warner Cable) resell its services in approximately 56 markets.

Retail Services

As of December 31, 2011, the Company offered its CLEAR branded retail services over its 4G mobile broadband network in 71 markets in the United States covering an estimated 131.9 million people. Of these 131.9 million people, approximately 22.5 million are covered by its Broadband Radio Service (BRS), and Educational Broadband Service (EBS). During the year ended December 31, 2011, it rolled out streamlined service offering, which is exclusively no-contract, discontinues the equipment lease option in favor of a purchase-only model, and does not impose any usage caps or overage charges. These new plans are available for fixed home, mobile Universal Serial Bus (USB), and mobile hotspot devices and offer two monthly recurring price points based on download speed limitations. It also offers short term access plans in two hour, daily, or weekly increments.

The Company competes with AT&T Inc., Verizon Wireless Inc., T-Mobile USA Inc., Time Warner Cable, Comcast, CenturyLink, Inc., LightSquared, Verizon Communications, Inc. and Dish Network Corporation.