- Clearwire 4G Mobile Broadband Capability to Power FreedomPop Business
- FreedomPop Guarantees Launch of Its Free 4G Mobile Broadband Service in the Second Half of 2012
BELLEVUE, Wash. and LOS ANGELES, Feb. 15, 2012 (GLOBE NEWSWIRE) — Clearwire Corporation(NASDAQ:CLWR, news, filings), a leading provider of 4G mobile broadband services in the U.S., and FreedomPop, the disruptive wireless broadband company backed by Niklas Zennstrom, today announced the formation of a strategic wholesale relationship that will support FreedomPop’s innovative and disruptive 4G mobile broadband service in the U.S.
“FreedomPop’s ultimate goal of providing our customers with a free mobile broadband alternative will soon be realized thanks to Clearwire’s proven 4G network services,” said Tony Miller, FreedomPop’s VP of Marketing. “This agreement enables FreedomPop to offer a disruptive retail service, providing free, flexible, high-speed internet access to millions of Americans.”
Clearwire currently offers a fast, reliable 4G mobile broadband network covering more than 130 million people in the U.S. As Clearwire’s planned 4G LTE Advanced-ready network comes online, FreedomPop expects to be able to offer users even faster speeds.
“Enabling innovative 4G business models with our mobile broadband network is a key part of Clearwire’s wholesale business strategy,” said Don Stroberg, Clearwire’s Senior Vice President of Wholesale. “FreedomPop represents the kind of disruptive service model that will shake up the exploding wireless broadband market.”
FreedomPop will pay wholesale rates for access to Clearwire’s 4G network but specific terms of the agreement are not being disclosed.
About Clearwire
Clearwire Corporation (NASDAQ:CLWR), through its operating subsidiaries, is a leading provider of 4G wireless broadband services covering more than 130 million people in the U.S. The company holds the deepest portfolio of wireless spectrum available for data services in the US. Clearwire serves retail customers through its own CLEAR® brand as well as through wholesale relationships with some of the leading companies in the retail, technology, and telecommunications industries. Strategic investors include Intel Capital, Comcast, Sprint, Google, Time Warner Cable, and Bright House Networks. The company plans to launch a next-generation 4G LTE Advanced-ready network to address the capacity needs of the market, working closely with the Global TDD-LTE Initiative and China Mobile. Clearwire is headquartered in Bellevue, Wash. Additional information is available athttp://www.clearwire.com.
About FreedomPop
Founded in 2011, FreedomPop is building a new wave telecom company. Its aim is to provide disruptive voice and internet services to all Americans and ensure that no one is left off the “connected grid.” FreedomPop’s initial service will launch in 2012. Visit www.FreedomPop.com for more information.
The FreedomPop logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=11649
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 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 plan to deploy LTE on our wireless broadband network, alongside mobile WiMAX and we will incur significant costs to deploy such technology. 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, and will be dependent on commercial partners to deliver equipment and devices for our planned LTE network as well.
- 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
susan.johnston@clearwire.com
JLM Partners for Clearwire
Mike DiGioia or Jeremy Pemble, 206-381-3600
mike@jlmpartners.com or jeremy@jlmpartners.com
FreedomPop:
Tony Miller
tmiller@freedompop.com
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