and Locus Telecommunications Announce New 4G Wholesale Agreement
to Expand Prepaid Mobile Broadband Options for
Commercial Service to be Available
Later this Year
4G Network Now Serves Wholesale Partners in Cable,
Retail, Business Services, and Prepaid Segments
KIRKLAND, Wash., – April 7, 2011 – Clearwire (NASDAQ:
CLWR), a leading provider of 4G wireless broadband services in
the U.S., and Locus Telecommunications, one of the largest prepaid
wireless MVNOs and a leading provider of long distance, wireless
point-of-sale and carrier services, today announced a new wholesale
agreement that will enable Locus to add prepaid 4G mobile broadband
service, via Clearwire’s 4G network, to the company’s wide array
of telecommunications products.
Locus Telecommunications currently
offers wireless and calling card products in more than 70,000
locations nationwide, serving more than 300,000 prepaid wireless
customers. The prepaid 4G service via Clearwire’s 4G network
is slated to be available to consumers later this year. “A compelling
mobile broadband product offering is a competitive necessity
in our business and Clearwire’s 4G network will allow us to quickly
and easily add products that deliver a competitive advantage
today,” said Jason Chon, president and CEO of Locus Telecommunications.
“Clearwire’s 4G mobile broadband network offers the scale, capacity
and national reach that will meet our customers’ demands well
into the future.”
“Locus has long been a leader in offering a
wide array of branded telecommunications services to their customers
and we are delighted to help them add mobile broadband services
to their product line-up,” said Teresa Elder, president of strategic
partnerships and wholesale at Clearwire. “The Clearwire 4G mobile
broadband network offers benefits to numerous businesses in a
range of industries. Soon, Locus customers will have the freedom
to connect with the people, information and services that matter
most while on the go anywhere within the Clearwire coverage area.”
Telecommunications 4G Experience
The 4G customer experience using
Clearwire's network will be similar to Wi-Fi but without the
short-range limitations. Clearwire's network uses a wireless
4G technology that differs from Wi-Fi because it provides service
areas measured in miles, not feet. Locus’ prepaid 4G service
will offer average mobile download speeds of 3 to 6 mbps, with
bursts over 10 mbps*, using the Clearwire network. Clearwire's
4G network is currently available in 71 cities across the U.S.
where approximately 120 million people live.
about Locus Telecommunications can be found at www.LocusTelecom.com.
Detailed company information about Clearwire is available at
About Locus Telecommunications
Locus Telecommunications is a leading provider in long distance, wireless,
point-of-sale, and carrier services. With more than 300,000 wireless customers
who generate over 400 million network minutes per month, Locus Telecommunications
is one of the largest prepaid wireless MVNOs in the United States. Their
prepaid wireless and calling card products are currently offered in more
than 70,000 locations nationwide. Over one thousand activations occur on
a daily basis. More information is available at www.LocusTelecom.com.
Clearwire Corporation (NASDAQ: CLWR),
through its operating subsidiaries, is a leading provider of
wireless broadband services. Clearwire's 4G network is currently
available in areas of the U.S. where 120 million people live.
Clearwire's open all-IP network, combined with significant spectrum
holdings, provides an unprecedented combination of speed and
mobility to deliver next generation broadband access. The company
markets its 4G service through its own brand called CLEAR® as
well as through its wholesale relationships with companies such
as Sprint, Comcast, Time Warner Cable, and Best Buy. Strategic
investors include Intel Capital, Comcast, Sprint, Google, Time
Warner Cable, and Bright House Networks. Clearwire is headquartered
in Kirkland, Wash. Additional information is available at www.clearwire.com.
Speed claims based on download speeds only. Actual performance
may vary and is not guaranteed. CLEAR performance claim is based
on average download user speeds achieved during tests performed
on the CLEAR commercial network by CLEAR. Other carrier performance
based on their advertised claims.
Clearwire, CLEAR, and the CLEAR
logo are trademarks or registered trademarks of Clearwire Communications
LLC in the United States and/or other countries. All other company
or product names are trademarks of their respective owners.
This release, and
other written and oral statements made by Clearwire from time
to time, contains forward-looking statements which are based
on management's current expectations and beliefs, as well as
on a number of assumptions concerning future events made with
information that is currently available. Forward-looking statements
may include, without limitation, management's expectations regarding
future financial and operating performance and financial condition;
proposed transactions; network development and market launch
plans; strategic plans and objectives; industry conditions; the
strength of the balance sheet; and liquidity and financing needs.
The words "will," "would," "may," "should," "estimate," "project," "forecast," "intend," "expect," "believe," "target," "designed," "plan" and
similar expressions are intended to identify forward-looking
statements. Readers are cautioned not to put undue reliance
on such forward- looking statements, which are not a guarantee
of performance and are subject to a number of uncertainties
and other factors, many of which are outside of Clearwire's
control, which could cause actual results to differ materially
and adversely from such statements. Some factors that could
cause actual results to differ are:
a more detailed description of the factors that could cause
such a difference, please refer to Clearwire's filings with
the Securities and Exchange Commission, including the information
under the heading "Risk Factors" in our Annual Report
on Form 10-K filed on February 22, 2011. Clearwire assumes
no obligation to update or supplement such forward-looking
- We have a history of
operating losses and we expect to continue to realize significant
net losses for the foreseeable future.
- If our business fails
to perform as we expect, we may require substantial additional
capital, which may not be available on acceptable terms or
- Our current plans, and our expectations about becoming
EBITDA and cash flow positive, are based on a number of assumptions
about our future performance, which may prove to be inaccurate,
such as our ability to substantially expand our wholesale business
and implement various cost savings initiatives.
- We regularly
evaluate our plans, and we may elect to pursue new or alternative
strategies which we believe would be beneficial to our business,
including among other things, expanding our network coverage
to new markets, augmenting our network coverage in existing
markets, changing our sales and marketing strategy and or acquiring
additional spectrum. Such modifications to our plans could
significantly change our capital requirements.
- There are
unresolved issues with Sprint relating to the application of
existing wholesale pricing provisions under our commercial
agreements. If we are unable to reach a resolution on these
issues, or we end up receiving amounts that are less than expected,
it could require us to revise our current business plans and
projections and could also adversely affect our results of
operations and financial condition.
- We have deployed a wireless
broadband network based on mobile WiMAX technology, and would
incur significant costs to deploy alternative technologies.
Additionally, such alternative technologies may not perform
as we expect on our network and deploying such technologies
would result in additional risks to the company, including
uncertainty regarding our ability to successfully transition
from the current technology to the new technology without disruptions
to customer service.
- We may experience difficulties in maintaining
and upgrading our networks, which could adversely affect customer
satisfaction, increase subscriber churn and costs incurred,
and decrease our revenues.
- We currently depend on our commercial
partners to develop and deliver the equipment for our legacy
and mobile WiMAX networks.
- Many of our competitors are better
established and have significantly greater resources, and may
subsidize their competitive offerings with other products and
- Our substantial indebtedness and restrictive debt
covenants could limit our financing options and liquidity position
and may limit our ability to grow our business.
- Sprint Nextel
Corporation owns a majority of our shares, resulting in Sprint
holding a majority voting interest in the Company, and Sprint
may have, or may develop in the future, interests that may
diverge from other stockholders.
- Future sales of large blocks
of our common stock may adversely impact our stock price.
Grace Hahn - 201-585-3654
Johnston - 425-216-7913
JLM Partners for Clearwire
Mike DiGioia or Jeremy Pemble - 206-381-3600
email@example.com or firstname.lastname@example.org