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CLEARWIRE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Description of Business
We are a leading provider of 4G wireless broadband services. We build and operate next generation mobile broadband
networks that provide high-speed mobile Internet and residential access services, as well as residential voice services, in
communities throughout the country. Our 4G mobile broadband network provides a connection anywhere within our coverage
area.
In 2010, we focused on building out and augmenting our networks, increasing our retail and wholesale subscriber bases,
expanding our wholesale partnerships, and obtaining additional capital. We increased the number of people covered by our
networks by over 72.4 million in 2010, and increased our total subscriber base by almost 3.7 million subscribers. As of
December 31, 2010, we offered our services in 88 markets in the United States covering an estimated 114.2 million people,
including an estimated 112.0 million people covered by our 4G mobile broadband network in 71 markets. We ended the year
with approximately 1.1 million retail and 3.3 million wholesale subscribers. We have deployed our mobile Worldwide
Interoperability of Microwave Access, which we refer to as WiMAX, technology, based on the IEEE 802.16e standard, in our
launched markets using 2.5 GHz Federal Communications Commission, which we refer to as FCC, licenses. As of
December 31, 2010, the remaining 17 markets in the United States continue to operate with a legacy network technology.
Internationally, as of December 31, 2010, our networks covered an estimated 2.9 million people. We offer 4G mobile
broadband services in Seville and Malaga, Spain and a pre-4G network in Brussels and Ghent, Belgium.
In 2011, we will focus on improving the operating performance of our business while seeking to raise additional capital
to continue the operation and expansion of our business and the development of our 4G mobile broadband network.
Company Background
We started operations on January 1, 2007 as a developmental stage company representing a collection of assets, related
liabilities and activities accounted for in various legal entities that were wholly-owned subsidiaries of Sprint Nextel
Corporation, which we refer to as Sprint or the Parent. The nature of the assets held by the Sprint legal entities was primarily
2.5 GHz Federal FCC licenses and certain property, plant and equipment related to the WiMAX network. The acquisition of the
assets was funded by the Parent. As Sprint had acquired significant amounts of FCC licenses on our behalf in the past, these
purchases have been presented as part of the opening business equity as principal operations did not commence until January 1,
2007, at which time the operations qualified as a business pursuant to Rule 11-01(d) of Regulation S-X. From January 1, 2007
through November 28, 2008, we conducted our business as the WiMAX Operations of Sprint, which we refer to as the Sprint
WiMAX Business, with the objective of developing a next generation wireless broadband network.
On May 7, 2008, Sprint announced that it had entered into a definitive agreement with the legacy Clearwire Corporation,
which we refer to as Old Clearwire, to combine both of their next generation wireless broadband businesses to form a new
independent company to be called Clearwire Corporation, which we refer to as Clearwire. In addition, five independent
partners, including Intel Corporation, Google Inc., Comcast Corporation, Time Warner Cable Inc. and Bright House Networks
LLC, collectively, whom we refer to as the Investors, agreed to invest $3.2 billion in Clearwire and its subsidiary Clearwire
Communications LLC, which we refer to as Clearwire Communications. On November 28, 2008, which we refer to as the
Closing, Old Clearwire and the Sprint WiMAX Business completed the combination to form Clearwire, and the Investors
contributed a total of $3.2 billion of new equity to Clearwire and Clearwire Communications. Prior to the Closing, the activities
and certain assets of the Sprint WiMAX Business were transferred to a single legal entity that was contributed to Clearwire
Communications at close in exchange for an equity interest in Clearwire. The transactions described above are collectively
referred to as the Transactions. Immediately after the Transactions, we owned 100% of the voting interests and 27% of the
economic interests in Clearwire Communications, which we consolidate as a controlled subsidiary. Clearwire holds no assets
other than its interests in Clearwire Communications.
Table of Contents
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