- Clearwire Adds 4G Mobile Broadband to Simplexity's Product Line-Up
- Simplexity MVNO Services Becomes Clearwire's Preferred Provider of Third-party Branded Services
- Simplexity MVNE Capabilities to be Offered to Clearwire's Wholesale Customer Base
RESTON, Va. and BELLEVUE, Wash., Jan. 23, 2012 (GLOBE NEWSWIRE) -- Clearwire Corporation (NASDAQ:CLWR, news, filings), a leading provider of 4G wireless broadband services in the U.S., and Simplexity MVNO Services, a fully integrated Mobile Virtual Network Enabler (MVNE), today announced the formation of a strategic wholesale relationship whereby Simplexity will become an authorized reseller of Clearwire's 4G mobile broadband service, Clearwire's preferred MVNE and Clearwire's preferred provider for Third-party Branded Services. Commercial service is slated to be available later this year.
As Clearwire's preferred provider of Third-party Branded Services, Simplexity will become a wholesale customer on Clearwire's 4G network for the purpose of offering private-branded mobile broadband services. Simplexity's MVNO support services will allow organizations to offer their customers private branded and customized wireless plans with a turnkey approach that reduces time to market, effort and cost needed to reach the more than 130 million potential customers covered by the Clearwire 4G network. By leveraging Simplexity's customizable MVNO platform, its partners can realize the benefits of having unique wireless offers and rate plans without the need to become an MVNO.
Furthermore, Simplexity will become Clearwire's preferred MVNE and an authorized reseller in support of Clearwire's growing 4G wholesale business. Under the agreement, Simplexity will deliver its comprehensive services platform to the wide range of existing Clearwire MVNOs to enable rapid deployment and ongoing management of their wireless programs. A Clearwire MVNO has the flexibility of choosing between Simplexity's end-to-end turnkey solution and a customized solution tailored to their specific needs. In either case, Simplexity's extensive industry experience provides the expertise, while its scale and proven systems provide the cost savings, both of which are critical for an MVNO to succeed.
Simplexity's services include sales and order acquisition, activation and provisioning, distribution and logistics, billing and subscriber lifecycle management, customer care and management analytics. Simplexity currently provides services for national retailers, online retailers, telecommunications providers, OEMs, direct marketing organizations and affinity groups.
"We are very excited about our agreement with Clearwire. Their proven 4G track record, deep spectrum portfolio and broad portfolio of existing and potential MVNO partners creates a tremendous opportunity to expand our offerings to a wide range of current and potential 4G wholesale customers," said Terry Hsu, president of Simplexity MVNO Services. "By allowing our partners the choice to become a direct wholesale customer of Clearwire or to leverage our customizable private branded platform, Simplexity will make it easy for any organization to offer Clearwire's 4G service to its customers. With the rapidly growing demand for mobile broadband service, now is the perfect time for companies to create incremental revenue opportunities and cultivate customer loyalty with branded wireless service offerings."
"The reach and unparalleled scalability of Clearwire's 4G mobile broadband network offers a very competitive platform to carriers and businesses across a wide range of industries seeking to grow rapidly in an increasingly mobile-centric world," said Don Stroberg, president of strategic partnerships and wholesale at Clearwire. "Simplexity's ability to offer MVNE services adds a new level of choice and flexibility that will make it even easier for potential wholesale partners seeking a simple back office solution to support their 4G product offerings."
Simplexity 4G Experience
The 4G customer experience using Clearwire's mobile broadband 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. Simplexity's 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 more than 70 cities across the U.S. where approximately 133 million people live.
About Simplexity MVNO Services
Simplexity MVNO Services is a subsidiary of Simplexity, the leading provider of solutions for the wireless industry. Using its proprietary integrated technology platform, Simplexity MVNO provides both turnkey and customized Mobile Virtual Network Enabler (MVNE) solutions for MVNOs. Our services include User Experience, Order Processing, Activation and Provisioning, Equipment Procurement and Logistics, Billing, Customer Service, and Management Analytics. Simplexity MVNO also provides its partners the ability to offer customized, private branded wireless services to their customers for a fraction of the time and cost usually associated with launching an MVNO. For more information about Simplexity MVNO, please go towww.Simplexity.com.
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, United Online and Best Buy. 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.
*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.
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: Clearwire Susan Johnston, 425-216-7913 firstname.lastname@example.org JLM Partners for Clearwire Mike DiGioia or Jeremy Pemble, 206-381-3600 email@example.com or firstname.lastname@example.org Simplexity Contact: Megan Murray 703-657-4102 email@example.com