Clearwire
18.05.2011 15:00
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-- Clearwire to Leverage Ericsson's Global Best Practices, State-of-the-Art
Tools and Processes to Maximize Efficiencies, Provide Continued Network
Quality and Reduce Operating Costs
-- Clearwire Retains Ownership of All Network Assets and Full Responsibility
for Future Network Technology and Strategy Decisions
-- Ericsson Responsible for Network Engineering, Operations and Maintenance
-- Ericsson to Add Approximately 700 Clearwire Employees
KIRKLAND, Wash. and STOCKHOLM, Sweden, 2011-05-18 15:00 CEST (GLOBE NEWSWIRE)
-- Clearwire Corporation (Nasdaq:CLWR), a leading provider of 4G wireless
broadband services in the U.S., and Ericsson (Nasdaq:ERIC) today announced a
seven-year, managed services partnership that will transfer the day-to-day
management of Clearwire's 4G network to Ericsson and allow Clearwire to realize
operational efficiencies and reduce operating costs.
'Clearwire's effort to reduce costs and maximize efficiency while delivering a
high quality mobile broadband service to our customers extends to all parts of
our business,' said Erik Prusch, Clearwire's chief operating officer. 'By
engaging Ericsson, a proven leader in managed network services, we can achieve
those objectives, and benefit from their extensive global expertise and
best-practices developed while serving clients around the world.'
'We greatly appreciate the tireless contributions the talented people on our
network services team have made in building Clearwire's 4G network and laying
the foundation for our success,' Prusch continued. 'We are pleased they will
have new opportunities within Ericsson to support our customers, and further
position Clearwire as the leader in mobile broadband.'
Key aspects of the partnership include:
-- Clearwire retains ownership of all network assets and full responsibility
for future technology and strategy decisions.
-- Ericsson will be responsible for network engineering, operations and
maintenance, including field services, 24X7 network monitoring, end-to-end
engineering, provisioning and routine maintenance.
-- Clearwire will remain the primary point of contact for all interactions
with customers, wholesale partners and equipment vendors.
-- Approximately 700 Clearwire employees are expected to begin performing
their network functions as Ericsson employees in locations around the
United States before mid-year 2011.
'The responsibility for network engineering, operations and maintenance of one
of the leading mobile broadband networks in North America is one that Ericsson
takes very seriously,' said Angel Ruiz, head of Ericsson's North American
operations. 'We look forward to welcoming the Clearwire employees to Ericsson
and appreciate the unique skills and expertise they bring to our company.'
'This managed services partnership is the next logical step for both Clearwire
and Ericsson, one that will have significant near-term and long-term benefits
for Clearwire's employees, customers, retail distributors and investors,'
observed Berge Ayvazian, Senior Consultant with Heavy Reading. 'It also
represents Ericsson's second managed services contract in the U.S., building on
the Network Advantage agreement that has already delivered major operational
and economic benefits for Sprint.'
In 2009, Ericsson entered into a similar network management partnership with
Sprint, Clearwire's largest shareholder and wholesale partner. Ericsson's
experience and track record for success in Managed Services will also offer
Clearwire an efficient, cost-effective way to manage its network. Ericsson has
invested more than $1 billion in state-of-the-art tools, processes and global
best practices. The networks that Ericsson manages for operators serve over 800
million subscribers worldwide. In addition, Ericsson provides 24/7 tech support
to operators for well over two billion subscribers.
About Clearwire
Clearwire Corporation (Nasdaq:CLWR), through its operating subsidiaries, is a
leading provider of mobile broadband services. Clearwire's 4G network is
currently available in areas of the U.S. where 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 service through its own
brand called CLEAR(r) as well as through its wholesale relationships with
Sprint,
Comcast, Time Warner Cable, Locus Telecommunications, Cbeyond, Mitel and Best
Buy. Strategic investors include Intel Capital, Comcast, Sprint, Google, Time
Warner Cable, and Bright House Networks. Clearwire is headquartered in
Kirkland, Wash., additional information is available at
http://www.clearwire.com.
About Ericsson
Ericsson is the world's leading provider of technology and services to telecom
operators. Ericsson is the leader in 2G, 3G and 4G mobile technologies, and
provides support for networks with over 2 billion subscribers and has the
leading position in managed services. The company's portfolio comprises mobile
and fixed network infrastructure, telecom services, software, broadband and
multimedia solutions for operators, enterprises and the media industry. The
Sony Ericsson and ST-Ericsson joint ventures provide consumers with
feature-rich personal mobile devices.
Ericsson is advancing its vision of being the 'prime driver in an
all-communicating world' through innovation, technology, and sustainable
business solutions. Working in 180 countries, more than 90,000 employees
generated revenue of SEK 203.3 billion (USD 28.2 billion) in 2010. Founded in
1876 with the headquarters in Stockholm, Sweden, Ericsson is listed on NASDAQ
OMX, Stockholm and NASDAQ New York.
www.ericsson.com
www.twitter.com/ericssonpress
www.facebook.com/technologyforgood
www.youtube.com/ericssonpress
Forward-Looking Statements
This release, and other written and oral statements made by Clearwire from time
to time, contains 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, we may require substantial
additional capital, which may not be available on acceptable terms or at
all, to be able to continue to operate.
-- Our current plans, and our expectations about becoming EBITDA and cash flow
positive, 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.
-- We expect that our business will 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 agreements with additional wholesale partners our
business prospects, results of operations and financial condition could be
adversely affected, or we could be required to revise our current business
plans.
-- 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 have deployed a wireless broadband network based on mobile WiMAX
technology, may need to deploy other 4G technologies such as LTE to remain
competitive, and would incur significant costs to deploy alternative
technologies. Additionally, such alternative technologies 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 transition from the current technology to the new
technology without disruptions to customer service.
-- We may experience difficulties in maintaining and upgrading our networks,
which could adversely affect customer satisfaction, increase subscriber
churn and costs incurred, and decrease our revenues.
-- We currently depend on our commercial partners to develop and deliver the
equipment for our legacy and mobile WiMAX networks.
-- Many of our competitors 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 Nextel Corporation owns a majority of our shares, resulting in
Sprint holding a 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 our Quarterly
Report on Form 10-Q filed on May 4, 2011. Clearwire assumes no obligation to
update or supplement such forward-looking statements.
CONTACT: Clearwire
Investor Relations:
Paul Blalock, 425-636-5828
paul.blalock@clearwire.com
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
Ericsson
Ericsson Media Relations (USA)
Kathy Egan
Phone: +1 212 843 8422
E-mail: kathy.egan@ericsson.com
Corporate Public & Media Relations
Phone: +46 10 719 69 92
E-mail: media.relations@ericsson.com
Investor Relations
Phone: +46 10 719 00 00
E-mail: investor.relations@ericsson.com
News Source: NASDAQ OMX
18.05.2011 Dissemination of a Corporate News, transmitted by DGAP -
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Language: English
Company: Clearwire
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ISIN: US18538Q1058
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DGAP-News: Clearwire Selects Ericsson for Managed Services
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