Monday, August 10, 2009

Clearwire Maintains Business Outlook for 2010, Confirms 4G Customer Uptake

Clearwire confirmed its business outlook for 2009 and 2010, expecting ARPU to be generally sustained at current levels over this period of significant development and expansion of its wireless 4G network. The company continues to anticipate that churn will increase in its pre-WiMAX markets as the company transitions these networks to mobile WiMAX technology and that CPGA will increase as new markets are launched, consistent with Clear wire's past operating experience. As of June 30, Clearwire had 511,000 total subscribers.

Without giving 4G customer addition figures, the company said it has attracted good customer interest in its newly launched 4G markets and is very pleased with the 4G customer additions. It anticipates new customer additions in Q4 will outpace the preceding three quarters combined.

Clearwire expects to offer 4G service in markets covering 30 million people at the end of this year including in the following markets: Atlanta; Baltimore; Boise; Chicago; Las Vegas; Philadelphia; Charlotte, Raleigh, and Greensboro, NC; Honolulu and Maui, HI; Seattle and Bellingham, WA; Portland and Salem, OR; and Dallas/Ft. Worth, San Antonio, Austin, Abilene, Amarillo, Corpus Christi, Killeen/Temple, Lubbock, Midland/Odessa, Waco and Wichita Falls, Texas.

Clearwire continues to target total net cash spend, which represents the change in cash and short-term investment balances, in the range of $1.5 to $1.9 billion for the full year 2009. Year-to-date net cash spend through June 30, 2009 was $646 million. The company has introduced a 2009 consolidated network coverage target of more than 40 million people, including over 30 million people targeted to be covered by the Company's CLEAR 4G service in more than 25 markets by year end. As announced in March, Clearwire is currently engaged in the development and construction of mobile WiMAX networks, as well as the long lead time cell site development work, to give the Company the ability to cover as many as 120 million people by the end of 2010. The ultimate scope and timing of Clearwire's network build-out will largely be driven by the Company's market by market success and the availability of additional capital.

"The strides we have made in the past two months, including the launch of CLEAR in Atlanta and Las Vegas, nationwide roaming with the CLEAR 4G+ dual-mode modem and wholesale distribution with Comcast in Portland and Atlanta clearly demonstrate Clearwire's ability to build on early momentum and begin to successfully execute against our aggressive growth plans," said Bill Morrow, chief executive officer of Clearwire. "As we saw with Portland, we are experiencing strong early consumer adoption in our Atlanta market, and, true to the growing marketplace trends in wireless data, a significant portion of our 4G customers are taking advantage of a mobile product as part of their CLEAR service."

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