BELLEVUE, Wash. and ATLANTA, Sept. 10, 2012 (GLOBE NEWSWIRE) -- ClearwireCorporation (NASDAQ: CLWR), a leading provider of 4Gmobile broadband services in the U.S., and EarthLink, Inc. (NASDAQ:ELNK), a leading IT services and communications provider, todayannounced a wholesale agreement that will enable EarthLink to offerits customers high-speed fixed and mobile broadband service usingClearwire's 4G network. "Clearwire's wholesale 4G services offer a wide range ofcustomer and product options for established and non-traditionalwireless entrants seeking to seize the opportunity in the hotmobile broadband market of today," said Don Stroberg, SVP ofstrategic partnerships and wholesale at Clearwire. "Clearwire's 4Gnetwork is a great extension to EarthLink's business, enabling themto add 4G fixed and mobile data plans to their diverse serviceportfolio. We're thrilled to continue building momentum for ourwholesale 4G business as the premier wholesale provider of 4Gcapacity to carriers, ISPs and other service providers in theU.S." EarthLink's wireless service will initially target consumers forin-home use, and is expected to launch in early 2013. Futureproduct offerings will include mobile devices and new services forsmall business customers. "Customers are increasingly equating broadband services withwireless services and our wholesale agreement with Clearwire willallow EarthLink to offer the wireless products and servicesnecessary to remain a leader in communications services," saidMichael Toplisek, Executive Vice President of Products &Marketing for EarthLink. "The 4G broadband speeds and urban andsuburban network focus aligns well with our long-term strategy forgrowing our customer base. We are excited to leverage Clearwire'sleadership in 4G for both WiMAX and LTE in the future." Clearwire is constructing a next-generation 4G LTEAdvanced-ready network to address the mobile broadband capacityneeds of wholesale customers in urban markets where demand forwireless data is high. As Clearwire's LTE network comes online,EarthLink and Clearwire expect to extend their agreement to offerusers even faster speeds.
About ClearwireClearwire Corporation (NASDAQ: CLWR), through its operatingsubsidiaries, is a leading provider of 4G wireless broadbandservices offering services in areas of the U.S. where more than 130million people live. The company holds the deepest portfolio ofwireless spectrum available for data services in the U.S. Clearwireserves retail customers through its own CLEAR ® brand aswell as through wholesale relationships with some of the leadingcompanies in the retail, technology and telecommunicationsindustries. The company is constructing a next-generation 4G LTEAdvanced-ready network to address the capacity needs of the market,and is also working closely with the Global TDD-LTE Initiative andChina Mobile to further the TDD-LTE ecosystem. Clearwire isheadquartered in Bellevue, Wash. Additional information isavailable at http://www.clearwire.com. About EarthLink EarthLink, Inc. (NASDAQ: ELNK) is a leading IT services and communications provider to more than 150,000 businessesand one million consumers nationwide. EarthLink empowers customerswith managed services including cloud computing, managed and private cloud, and virtualization servicessuch as managed hostingand cloud workspace. EarthLink also offers a robustportfolio of IT security, application hosting, colocation and IT support services. The companyoperates an extensive network spanning 28,800 route fiber mileswith 90 metro fiber rings and 4 secure data centers providingubiquitous nationwide data and voice IP servicecoverage across more than 90percent of the country. Founded in 1994, EarthLink's award-winningreputation for outstanding service and product innovation issupported by an experienced team of professionals focused onbest-in-class customer care. For more information, visitEarthLink's website at www.earthlink.net. Forward-Looking Statements This release, and other written and oral statements made byClearwire from time to time, contain forward-looking statementswhich are based on management's current expectations and beliefs,as well as on a number of assumptions concerning future events madewith information that is currently available. Forward-lookingstatements may include, without limitation, management'sexpectations regarding future financial and operating performanceand financial condition; proposed transactions; network developmentand market launch plans; strategic plans and objectives; industryconditions; the strength of the balance sheet; and liquidity andfinancing needs. The words "will," "would," "may," "should,""estimate," "project," "forecast," "intend," "expect," "believe,""target," "designed," "plan" and similar expressions are intendedto identify forward-looking statements. Readers are cautioned notto put undue reliance on such forward-looking statements, which arenot a guarantee of performance and are subject to a number ofuncertainties and other factors, many of which are outside ofClearwire's control, which could cause actual results to differmaterially and adversely from such statements. Some factors thatcould cause actual results to differ are:
- We have a history of operating losses and we expect tocontinue to realize significant net losses for the foreseeablefuture.
- If our business fails to perform as we expect or if weincur unforeseen expenses in the near term, we will requireadditional capital to fund our current business. Also, we will needsubstantial additional capital over the long-term. Such additionalcapital may not be available on acceptable terms or at all. If wefail to obtain additional capital, our business prospects,financial condition and results of operations will likely bematerially and adversely affected, and we will be forced toconsider all available alternatives.
- Our current plans and projections are based on a number ofassumptions about our future performance, which may prove to beinaccurate, such as our ability to substantially expand ourwholesale business and implement various cost savingsinitiatives.
- Our business has become increasingly dependent on ourwholesale partners, and Sprint in particular. If we do not receivethe amount of revenues we expect from existing wholesale partnersor if we are unable to enter into new agreements with additionalwholesale partners for new wholesale commitments, our businessprospects, results of operations and financial condition could beadversely affected, or we could be forced to consider all availablealternatives.
- We regularly evaluate our plans, and we may elect to pursuenew or alternative strategies which we believe would be beneficialto our business, including among other things, expanding ournetwork coverage to new markets, augmenting our network coverage inexisting markets, changing our sales and marketing strategy and/oracquiring additional spectrum. Such modifications to our planscould significantly change our capital requirements.
- We plan to deploy LTE on our wireless broadband network,alongside mobile WiMAX and we will incur significant costs todeploy such technology. Additionally, LTE technology, orother alternative technologies that we may consider, may notperform as we expect on our network and deploying such technologieswould result in additional risks to the company, includinguncertainty regarding our ability to successfully add a newtechnology to our current network and to operate dual technologynetworks without disruptions to customer service, as well as ourability to generate new wholesale customers for the newnetwork.
- We currently depend on our commercial partners to developand deliver the equipment for our legacy and mobile WiMAX networks,and will be dependent on commercial partners to deliver equipmentand devices for our planned LTE network as well.
- Many of our competitors for our retail business are betterestablished and have significantly greater resources, and maysubsidize their competitive offerings with other products andservices.
- Our substantial indebtedness and restrictive debt covenantscould limit our financing options and liquidity position and maylimit 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 toobtain enough shares to hold the majority voting interest in thecompany, 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 mayadversely impact our stock price.
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 EarthLink Michele Sadwick, 404-748-7255 Sadwick@corp.earthlink.com