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Press Release -- January 17th, 2012
Source: Clearwire
Tags: Equipment, Exchange

China Mobile and Clearwire Announce Agreement on TD-LTE Device Test Specifications and Joint Interoperability Testing Plan

  • Joint Testing Platform and Testing Environment for Global TD-LTE Configuration to Accelerate Development of Global 4G Standard in Conjunction with Other GTI Operators
  • TD-LTE’s Broad Global Reach to Billions of Potential Customers Provides Significant Economies of Scale

HONG KONG and BELLEVUE, Wash., Jan. 17, 2012 (GLOBE NEWSWIRE) — China Mobile, the world’s largest mobile network and customer base in the world, and Clearwire Corporation (NASDAQ:CLWR, news, filings), a leading provider of 4G wireless broadband services in the United States, today announced, in conjunction with the Global TD-LTE Initiative (GTI), an agreement on common test specifications and joint interoperability testing (IOT) for TD-LTE devices in the global band configurations, including 2.3GHz to 2.7GHz. This important step forward will enable the companies to further accelerate development of the TD-LTE device ecosystem, especially in multi-mode, multi-band LTE devices.

Beginning this month, China Mobile, Clearwire and other GTI operators will establish 4G mobile broadband labs featuring a joint test platform and IOT environment for TD-LTE devices. The expected availability of the Quad-Band LTE 2.3-2.7 GHz spectrum range, in addition to certain other bands like 1.9GHz, as well as FDD and TD-LTE mobility interactions, makes it an ideal global configuration for mass 4G marketing worldwide. The labs will allow for the evaluation and qualification of commercial TD-LTE devices simultaneously in the U.S., China, and other promising markets, using common testing methodology, equipment, and infrastructure.

“The unmatched spectrum portfolio underlying Clearwire’s planned LTE network has the potential to deliver faster speeds and with greater capacity than any current or proposed 4G network in the United States,” said Dr. John Saw, chief technology officer of Clearwire. “Close collaboration with global wireless leader China Mobile accelerates the development of multi-mode multi-band TD-LTE and LTE FDD devices and provides the common test specifications OEMs, ODMs, chipset vendors and other critical component manufacturers need to rapidly develop and commercialize products to serve this massive global marketplace.”

“Converged with LTE FDD, TD-LTE has become the major global 4G technology for unpaired spectrum,” said Mr. Li Zhengmao, Vice President of China Mobile. “Our goal is to build efficient, low cost common infrastructure and terminal for different global markets with different spectrum to support mobile internet. By closely working with global operators such as Clearwire, we could leverage the experience, expertise, and scale to achieve this goal. This is also the reason why we create GTI and promote it jointly.”

Clearwire plans to conduct its TD-LTE common IOT in Phoenix, AZ and Herndon, VA. China Mobile’s testing will be carried out in Beijing and other TD-LTE trial cities. The joint test platforms will be open for device IOT by key participants in early 2012.

About China Mobile

China Mobile Communications Corporation (“China Mobile”) was founded on April 20, 2000, with a registered capital of RMB 51.8 billion, and assets of more than RMB 1000 billion, possessing the largest mobile network and customer base in the world.

China Mobile (Hong Kong) Group Limited is wholly-owned by China Mobile. China Mobile (Hong Kong) Group Limited, as of 31 December 2010, holds 74.21% equity interest in China Mobile Limited (“listed company” for short). The listed company has wholly owned subsidiary companies in 31 provinces (autonomous regions and municipalities) as well as Hong Kong SAR. China Mobile Limited was listed on the New York Stock Exchange and The Stock Exchange of Hong Kong. Currently, China Mobile Limited is the world’s largest telecommunications company by market value.

China Mobile has been selected in the world’s top 500 by the U.S. “Fortune” magazine for 11 consecutive years, and the latest ranking is 87th. With its brand value rising, it has been named as one of the world’s most powerful brands by the “Financial Times” for 6 consecutive years. In addition, it was recognized on the Dow Jones Sustainability Index for 4 consecutive years, being the only company selected in Mainland China. Additional information is available at http://www.chinamobile.com.

About Clearwire

Clearwire Corporation (NASDAQ:CLWR), through its operating subsidiaries, is a leading provider of mobile broadband services. Clearwire’s 4G network currently provides coverage in areas of the U.S. where more than 130 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, Locus Telecommunications, Cbeyond, Mitel, Best Buy and United Online. Strategic investors include Intel Capital, Comcast, Sprint, Google, Time Warner Cable, and Bright House Networks. Clearwire is headquartered in Bellevue, Wash. Additional information is available at http://www.clearwire.com.

Forward-Looking Statements

This release, and other written and oral statements made by Clearwire from time to time, contain 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:

  • 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 or if we incur unforeseen expenses in the near term, we will require additional capital to fund our current business. Also, we will need substantial additional capital over the intermediate and long-term. Such additional capital may not be available on acceptable terms or at all. If we fail to obtain additional capital, our business prospects, financial condition and results of operations will likely be materially and adversely affected, and we will be forced to consider all available alternatives.
  • Our current plans and projections 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.
  • Our business has become increasingly dependent on our wholesale partners, and Sprint in particular. If we do not receive the amount of revenues we expect from existing wholesale partners or if we are unable to enter into new agreements with additional wholesale partners for new wholesale commitments, our business prospects, results of operations and financial condition could be adversely affected, or we could be forced to consider all available alternatives.
  • 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.
  • We believe we will need to deploy LTE on our wireless broadband network, alongside mobile WiMAX, to be able to continue to operate in the long term. We will incur significant costs to deploy such technology, and will need to raise substantial additional capital to cover such costs. Additionally, LTE technology, or other alternative technologies that we may consider, 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 add a new technology to our current network and to operate dual technology networks without disruptions to customer service, as well as our ability to generate new wholesale customers for the new network.
  • We currently depend on our commercial partners to develop and deliver the equipment for our legacy and mobile WiMAX networks.
  • Many of our competitors for our retail business are better established and have significantly greater resources, and may subsidize their competitive offerings with other products and services.
  • 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 owns just less than a majority of our common shares, is our largest shareholder, and has the contractual ability to obtain enough shares to hold the 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.

For 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 and subsequent Form 10-Q filings. Clearwire assumes no obligation to update or supplement such forward-looking statements.

CONTACT: CHINA MOBILE CONTACTS:

         Press enquiries:

         China Mobile Limited

         Ms. Rainie Lei

         Telephone: 852-31218888

         Fax: 852-31218809

         Clearwire Contacts

         Investor Relations:

         Alice Ryder, 425-636-5828

         alice.ryder@clearwire.com

         Media Relations:

         Susan Johnston, 425-216-7913

         susan.johnston@clearwire.com

         JLM Partners for Clearwire:

         Mike DiGioia or Jeremy Pemble, 206-381-3600

         mike@jlmpartners.com or jeremy@jlmpartners.com

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