1285551--3/13/2008--CLEARWIRE

related topics

{product, market, service}

{system, service, information}

{property, intellectual, protect}

{stock, price, share}

{competitive, industry, competition}

{debt, indebtedness, cash}

{acquisition, growth, future}

{personnel, key, retain}

{condition, economic, financial}

{capital, credit, financial}

{regulation, government, change}

{investment, property, distribution}

Our substantial indebtedness and restrictive debt covenants could limit our financing options and liquidity position and may limit our ability to grow our business. We have committed to deploy a wireless broadband network using mobile WiMAX technologies under certain circumstances, even if there are alternative technologies available in the future that would be technologically superior or more cost effective. If third parties fail to develop and deliver the equipment that we need for both our existing and future networks, we may be unable to execute our business strategy or operate our business. Many of our competitors are better established and have significantly greater resources than we have, which may make it difficult to attract and retain subscribers. We may experience difficulties in constructing, upgrading and maintaining our network, which could adversely affect customer satisfaction, increase subscriber churn and reduce our revenues. If we do not obtain and maintain rights to use licensed spectrum in one or more markets, we may be unable to operate in these markets, which could adversely affect our ability to execute our business strategy. Interruption or failure of our information technology and communications systems could impair our ability to provide our services, which could damage our reputation and harm our operating results. Acquisitions, investments and other strategic transactions could result in operating difficulties, dilution and distractions from our core business. A number of our significant business arrangements are between us and parties that have an investment in or a fiduciary duty to our company, and the terms of those arrangements may not be beneficial to us. The industries in which we operate are continually evolving, which makes it difficult to evaluate our future prospects and increases the risk of your investment. Our products and services may become obsolete, and we may not be able to develop competitive products or services on a timely basis or at all. We rely on highly skilled executives and other personnel. If we cannot retain and motivate key personnel, we may be unable to implement our business strategy. Certain aspects of our VoIP telephony services differ from traditional telephone service, which may limit the attractiveness of our services. Our activities outside the United States operate in a competitive environment different than the environment within the United States. Any difficulties in managing these businesses could occupy a disproportionate amount of our management s attention and disrupt our operations. We may be unable to protect our intellectual property, which could reduce the value of our services and our brand. We could be subject to claims that we have infringed on the proprietary rights of others, which claims would likely be costly to defend, could require us to pay damages and could limit our ability to use necessary technologies in the future. If our data security measures are breached, subscribers may perceive our network and services as not secure. Our business depends on a strong brand, and if we do not maintain and enhance our brand, our ability to attract and retain subscribers may be impaired and our business and operating results adversely affected. We are subject to extensive regulation that could limit or restrict our activities and adversely affect our ability to achieve our business objectives. If we fail to comply with these regulations, we may be subject to penalties, including fines and suspensions, which may adversely affect our financial condition and results of operations. We are a controlled company within the meaning of the Nasdaq Marketplace Rules and, as a result, rely on exemptions from certain corporate governance requirements. Mr. McCaw and Intel Capital are our largest stockholders, and as a result they can exert control over us and may have actual or potential interests that may diverge from yours. Since our initial public offering in March 2007, the market price of our common stock has been and may continue to be volatile.

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1285551--3/13/2008--CLEARWIRE_CORP