Clearwire Corporation (NASDAQ:CLWR), a leading provider of 4G wireless broadband services, and Alianza, a leading provider of cloud-based VoIP solutions, today announced a four-year, hosted software licensing agreement wherein Alianza will be responsible for managing Clearwire’s voice products and services. Under the new agreement, Alianza will oversee day-to-day voice operations for Clearwire and supply all end-to-end software components of the hosted voice platform, including soft switch, application feature server, call rating, CPE provisioning, monitoring, security, and end-user self-support tools. “Alianza’s proven expertise and track record in successfully deploying voice-over 4G wireless networks makes this relationship a natural fit for Clearwire,” said Dow Draper, Clearwire Senior Vice President and General Manager of Retail. “Alianza’s one-stop shopping approach to VoIP service delivery is an ideal solution to Clearwire’s need for a turn-key, highly scalable, customizable voice platform that provides us with the opportunity to consider new consumer offerings previously unavailable to CLEAR.” Alianza’s end-to-end voice platform combines all the back-office platform management, product management, and end-user support functions into a single web-based administrative user interface. In addition, numerous administrative functions that traditionally require manual processes are automated through Alianza’s robust API and are designed to reduce Clearwire’s overall cost of management related to voice services. “We are excited to be a part of Clearwire’s strategy for delivering VoIP services bundled with 4G wireless broadband to customers across the United States,” said Brian Beutler, Chief Executive Officer, Alianza. “This is a key agreement for Alianza, and we are looking forward to providing Clearwire with the highest quality and most reliable voice services available.” “This hosted software agreement is a great move for both Clearwire and Alianza, one that will have near-term and long-term benefits for both companies,” observed Diane Myers, Directing Analyst at Infonetics Research. “In addition to providing improvements in system management, upfront costs, and overall VoIP profitability, Alianza’s cloud-based VoIP delivery platform gives operators the strategic benefit of leveraging best practices from operators across Alianza’s customer network in order to accelerate voice services deployments.”
About AlianzaAlianza’s award-winning hosted voice platform enables broadband operators to deploy feature-rich and highly scalable voice services bundled with their broadband offerings - with no capital expenditure. Alianza offers both residential and business-class features. All core platform components are unified into a single interface, providing a seamless back-office experience. Alianza’s proprietary technology provides a cost effective and customizable platform for each service provider. Alianza’s customers increase market share and margin by deploying a fully integrated, white label voice solution. For more information, visit www.alianza.com. About Clearwire Clearwire Corporation (NASDAQ: CLWR), through its operating subsidiaries, is a leading provider of wireless 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, Best Buy and United Online. 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 www.clearwire.com. 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 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 we 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.