- IT and Communications Provider Cbeyond Partners with Clearwire to Expand Broadband Options for Small Businesses with 4G Mobile Broadband Service
- Cbeyond to Bundle 4G Mobile Internet Offering with Existing Solutions Enabling Maximum Productivity for Small Businesses
- Clearwire's 4G "Network of Networks" Continues to Expand Beyond Original Strategic Investor Group
- Service to be Available in Early 2011
KIRKLAND, Wash. & ATLANTA, Aug 04, 2010 (BUSINESS WIRE) -- Clearwire Corporation (NASDAQ:CLWR, news, filings), a leading provider of wireless broadband services and operator of the largest 4G network in the country, and Cbeyond (NASDAQ: CBEY), a leading provider of voice, broadband, mobile and IT applications to more than 52,000 small businesses across the country, today announced a new wholesale agreement whereby Cbeyond will offer bundled 4G mobile Internet services to small businesses in early 2011 using Clearwire's 4G mobile broadband network. This partnership will give small businesses the ability to leverage faster Internet speeds in the office or on the go.
The agreement will enable Cbeyond to offer mobile broadband services as part of its existing voice and broadband Internet product suite for small businesses, using Clearwire's 4G network. Cbeyond's integrated suite of IT and communications tools and applications are available in 14 major U.S. cities with solutions serving 5 to 250 employees. Clearwire currently offers its 4G service under its own brand, called CLEAR(R), and through the brands of other major wholesalers.
"We are dedicated to providing technology solutions to our small business customers that maximize their productivity and growth," said Jim Geiger, CEO and Founder of Cbeyond. "Clearwire's 4G network provides small businesses with a reliable, always-on, high capacity Internet service whether in the office or on the go enabling small businesses to focus on what they do best - run their business."
"We welcome Cbeyond as our newest wholesale partner. This new partnership not only expands our wholesale business, but it also extends true broadband mobility with 4G further into the small business market," said Teresa Elder, president of strategic partnerships and wholesale at Clearwire. "Our relationship with Cbeyond is further validation of Clearwire's 'network of networks' approach, which allows us, together with our wholesale customers, to extend the unique value of mobile broadband to a more diverse and broader spectrum of consumers."
Cbeyond 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. Cbeyond's new mobile 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 dozens of cities, in areas of the United States where approximately 56 million people live, and is expected to expand throughout the country this year.
Cbeyond, Inc. (NASDAQ: CBEY) is a leading provider of IT and communications services to more than 52,000 small businesses throughout the United States. Recently named as the sixth fastest growing technology company by Forbes magazine, and added to Standard & Poor's Small Cap S&P 600 Index, Cbeyond offers more than 30 productivity-enhancing applications including local and long-distance voice, broadband Internet, mobile, BlackBerry(R), broadband laptop access, voicemail, email, web hosting, fax-to-email, data backup, file-sharing and virtual private networking. Cbeyond delivers these services over a 100 percent private all IP network. For more information on Cbeyond, visit http://www.cbeyond.net/smb.
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 approximately 56 million people live and the company plans to continue to expand its 4G coverage. 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(R) as well as through its wholesale relationships with Sprint, Comcast and Time Warner Cable. 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 http:///mail.jlmpartners.com/exchweb/bin/redir.asp?URL=http://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, the CLEAR logo and super fast mobile internet 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:
- We are an early-stage company with a history of operating losses and we expect to continue to realize significant net losses for the foreseeable future.
- Our current and future plans are subject to a number of conditions and uncertainties, including among others, our ability to manage ongoing market development activities (including the development of over 10,000 sites), our performance in launched markets and our access to additional funding.
- 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, modifying the pace at which we build our 4G mobile broadband networks, augmenting our network coverage in markets we launch, changing our sales and marketing strategy and or acquiring additional spectrum. Such modifications to our plans could significantly change our capital requirements.
- We believe that we may require substantial additional financing to maintain our current business plans, and if we are unable to raise such financing on acceptable terms we will need to modify our plans accordingly.
- We may fail to realize all of the anticipated benefits of the transactions with Sprint and the strategic investors.
- 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 risk to the company.
- 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 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 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.
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 24, 2010 and our Quarterly Report on Form 10-Q filed on May 6, 2010. Clearwire assumes no obligation to update or supplement such forward-looking statements.
Clearwire Media Relations:
Susan Johnston, 425-216-7913
JLM Partners for Clearwire
Mike DiGioia or Jeremy Pemble, 206-381-3600
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Shana Keith, 678-522-3559