Locus to Expand Prepaid Mobile Broadband Options for Consumers Nationwide
Kirkland, Wash., April 7, 2011 (GLOBE NEWSWIRE) -- Clearwire (NASDAQ:CLWR, news, filings), 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."
Locus 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
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:
- 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 at all.
- 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 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 22, 2011. Clearwire assumes no obligation to update or supplement such forward-looking statements.
CONTACT: Clearwire Contact
Susan Johnston, 425-216-7913
Locus Telecommunications Contact
Grace Hahn, 201-585-3654