Clearwire Reports Q3

KIRKLAND, Wash. -- Clearwire Corporation(NASDAQ:CLWR) (along with its subsidiaries, “Clearwire” or the “Company”), a leading provider of wireless broadband services, today reported its unaudited condensed consolidated financial and operating results for the third quarter ended September 30, 2009.

“Our solid third quarter operating results demonstrate our ability to execute on our plans, and address the growing demand for super fast mobile Internet by delivering 4G services to cities across the nation,” said Bill Morrow. “Through our own sales channels and those of our wholesale partners, including Sprint, Comcast and Time Warner Cable, we’re bringing consumers and businesses a new category of Internet service designed to make people’s lives more enjoyable and more productive, wherever they happen to be in our coverage area. We are very pleased to have announced reaching a definitive agreement with many of our strategic investors for$1.564 billion in additional equity funding for our planned network expansion, subject to final closing conditions. It is further evidence of the importance of 4G to our strategic stakeholders who are relying on our network to bring new services to their customers.”

“With the widespread adoption of laptops, netbooks, and smart phones, we’re seeing a fundamental shift in data consumption patterns, and we know that a device is only as strong as the network upon which it runs. Our open network, all-IP infrastructure, and spectrum holdings enable us to deliver multi-megabit download speeds to meet the demands of today and tomorrow.”

2009 Market Launches

Clearwire expects to offer 4G service in markets covering 30 million people at the end of this year including the following markets: Atlanta, GA; Baltimore, MD; Boise, ID; Chicago, IL; Las Vegas, NV; Philadelphia, PA; Charlotte, Raleigh, and Greensboro, NC; Honolulu and Maui, HI; Seattle and Bellingham, WA; Portland and Salem, OR; andDallas/Ft. Worth, San Antonio, Austin, Abilene, Amarillo, Corpus Christi,Killeen/Temple, Lubbock, Midland/Odessa, Waco and Wichita Falls, TX.

Business Outlook

Clearwire maintained its business outlook for 2009 and 2010, expecting consolidated average revenue per user ("ARPU") to be generally sustained at current levels over this period of significant development and expansion of its wireless 4G network. The Company continues to anticipate that Churn will increase in its pre-WiMAX markets as the Company transitions these networks to mobile WiMAX technology and that cost per gross addition ("CPGA") will increase, particularly in the fourth quarter of 2009, as new markets are launched.

Clearwire is now targeting total net cash spend, which represents the change in cash and short-term investment balances, of approximately $750 million in the fourth quarter of 2009, or approximately $1.9 billion for the full year 2009 which is at the high end of the $1.5 billion to $1.9 billion range originally targeted for the year. The Company ended the third quarter of 2009 with total cash and short-term investment balances of approximately $2.0 billion. The Company has announced new equity and debt funding commitments which collectively total $1.8 billion from a group of its strategic investors, assuming the new debt offering is fully subscribed and completed as planned.

Specifically, the Company announced a new $1.564 billion round of equity financing which is expected to be received as follows: approximately $1.057 billion within five business days, $440 million at a closing targeted to be completed by year end 2009, and $66 million at a closing targeted to be completed during the first quarter of 2010. The closing dates are subject to customary closing conditions. Additionally, approximately $240 million in debt funding has been committed to Clearwire by existing equity investors, which are also holders of notes under Clearwire's current credit facility, that have agreed to receive replacement notes on the same terms as the new high yield bond offering the Company is launching today.

The Company reaffirmed its 2009 consolidated network coverage target of more than 40 million people, including over 30 million people targeted to be covered by the Company’s CLEAR 4G service in more than 25 markets by the end of 2009.Clearwire continues to target expanding its CLEAR 4G network coverage to as many as 120 million people by the end of 2010, assuming the Company completes the announced financing transactions and raises the remaining additional capital necessary. The ultimate scope and timing of Clearwire’s network expansion plans also remain subject to refinement as the Company continues to evaluate and further optimize its expansion strategy.

Clearwire LLC (Nasdaq: CLWR)