- Memorandum of Understanding Lays Foundation for TD-LTE Roaming Between China and U.S.
- Companies Continue to Build on Strong TD-LTE Working Relationship
HONG KONG and BELLEVUE, Wash., July 18, 2012 (GLOBE NEWSWIRE) — China Mobile International Limited, a subsidiary of China Mobile, the world’s largest mobile telecommunications company in terms of subscribers, and Clearwire (NASDAQ:CLWR, news, filings), a leading provider of wireless broadband services, today announced that the two companies have signed a non-binding memorandum of understanding (MOU) that lays the foundation for international roaming between China and the United States using TD-LTE.
Under the MOU, China Mobile International Limited and Clearwire plan to collaborate on business and technical aspects of their respective operations to define and institute the process necessary to support international roaming and to ensure the operators’ systems and devices are able to support roaming. The companies also expect this agreement to serve as a blueprint for future roaming agreements with other members of the Global TD-LTE Initiative (GTI) of which China Mobile and Clearwire are founding members.
“We recently demonstrated the roaming capability between Hong Kong FDD LTE and Hang Zhou TD-LTE. With the commercial launches of TD-LTE networks in major markets, these networks shall enable international roaming to create a ubiquitous user experience and a unified market,” said Dr. Tiger Lin, Chairman of China Mobile International. “Our goal is to make a converged LTE TDD/FDD market in which our subscribers roam between a TD-LTE network and a LTE FDD network at affordable cost and enjoy the benefit of LTE service globally.”
“Today’s new agreement with China Mobile will add substantial momentum to our own LTE network deployment and to the development of the TD-LTE ecosystem around the world,” said Dr. John Saw, Senior Vice President and Chief Technology Officer for Clearwire. “The global nature of the TD-LTE ecosystem and interoperability will be an important achievement for both companies. We are pleased that our position as a leading 4G operator has allowed us to develop a strong working relationship with a key global counterpart like China Mobile.”
China Mobile and Clearwire are developing TD-LTE networks in their respective domestic markets. Through mutual collaboration, the companies will provide their customers with 4G roaming capability and help 4G services to follow the same global pattern towards international accessibility as other wireless technology. The companies expect the spectrum in the 2.3GHz to 2.7GHz range which will be used in their TD-LTE network deployment will make up one of the most widely deployed 4G configurations in the world.
About China Mobile International Limited
China Mobile International Limited (CMI) is a wholly owned subsidiary of China Mobile Limited (HKEX:0941).
As the world’s largest telecommunications operator in terms of network scale, customer base and market value, China Mobile strives to continuously expand its global network and international business. In order to provide better services to meet the growing demand in China’s international telecommunications market, China Mobile established a subsidiary, CMI in December 2010, the Company responsible for the operation of China Mobile’s international business. Leveraging on the strong support by China Mobile, CMI provides a full range of comprehensive international telecommunications services that cover IDD, roaming, internet, MNC services and VAS, across the globe. CMI commits to provide customer with the experience of “feel at home”, wherever and whenever they are.
CMI headquartered in Hong Kong, the world’s major telecommunications hub. The Company has representative office in Beijing, China and subsidiaries in U.S.A and U.K. Additional information is available at http://www.chinamobile.com.
About Clearwire
Clearwire Corporation (NASDAQ:CLWR), through its operating subsidiaries, is a leading provider of 4G wireless broadband services offering services in areas of the U.S. where more than 130 million people live. The company holds the deepest portfolio of wireless spectrum available for data services in the U.S. 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. The company is constructing a next-generation 4G LTE Advanced-ready network to address the capacity needs of the market, and is also working closely with the Global TD-LTE Initiative and China Mobile to further the TD-LTE ecosystem. Clearwire is headquartered in Bellevue, Wash. Additional information is available at http://www.clearwire.com.
The Clearwire Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=8493
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 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 16, 2012 and subsequent Form 10-Q filings. Clearwire assumes no obligation to update or supplement such forward-looking statements.
CONTACT: Clearwire Investor Relations:
Alice Ryder, 425-636-5828
alice.ryder@clearwire.com
Clearwire 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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