News Release

Clearwire and Cisco Form Alliance to Deliver 4G Mobile Internet Services for Consumers and Businesses

  • Clearwire Selects Cisco as Internet Protocol Next- Generation Network Core Infrastructure Provider
  • Mobile Broadband Network Designed Specifically for High-Bandwidth Data Services
  • Cisco Aims to Build Mobile WiMAX-enabled Devices for the Home, including Linksys by Cisco Routers
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May 13, 2009

KIRKLAND, Wash., and SAN JOSE, Calif., May 13, 2009 – Clearwire Corporation (NASDAQ: CLWR) and Cisco (NASDAQ: CSCO) announced today an alliance designed to enhance and expand CLEARTM 4G mobile WiMAX services throughout the United States. Under terms of the agreement, Clearwire has selected Cisco as its national Internet Protocol Next-Generation Network (IP NGN) core infrastructure provider, and Cisco has announced plans to build new mobile WiMAX devices for the CLEAR 4G mobile WiMAX service for the consumer, small office or home office (SOHO), and small and medium-sized business (SMB) markets.

As part of a multiyear network build-out plan with Cisco, the CLEAR 4G mobile WiMAX service will be available in major metropolitan areas across the United States. Clearwire's open all-IP network, combined with significant spectrum holdings, provides substantive network capacity to deliver next-generation broadband access. In addition, Cisco is aiming to introduce its first mobile WiMAX device later this year. Clearwire currently provides mobile WiMAX services in Baltimore, Md., and in Portland, Ore., and plans to bring its CLEAR 4G service to more than 80 markets across the United States by the end of 2010.

"By teaming with Cisco, one of the world's most forward-looking IP network infrastructure providers, we're building a robust and cost-efficient next-generation network that's designed specifically for delivering rich broadband services," said Scott Richardson, Chief Strategy Officer of Clearwire. "In addition, Cisco plans to develop WiMAX technology for end-user devices, which will give consumers and businesses more compelling ways to stay connected through our CLEAR 4G service."

"Around the globe, mobile WiMAX providers continue to make great strides bringing 4G mobile Internet services to market, and we are pleased that Clearwire has selected Cisco to help untether its Internet customers across the United States while delivering high performance," said Brett Galloway, senior vice president, wireless and security technology group of Cisco.

"Clearwire's ecosystem of partners, coupled with our all-IP next-generation network, will deliver a true mobile broadband experience," said Ned Hooper, senior vice president, corporate development and consumer of Cisco. "In addition, incorporating WiMAX into our products will help enable people to move freely throughout the United States, while maintaining continuous connectivity to personalized applications and services."

The CLEAR 4G Network

The Cisco® Visual Networking Index (VNI) Mobile Forecast for 2008-2013 noted that a single high-end data phone today generates more data traffic than 30 basic-feature cell phones, while a single laptop air card generates more data traffic than 450 basic-feature cell phones. Cisco projects that mobile data traffic will increase a thousand-fold over the seven years from 2005 through 2012, with video being a significant component. This rapid growth provides the primary reason why Clearwire, enabled by Cisco, is building a data-centric 4G network across the United States.

Cisco will be the primary IP network solution provider for Clearwire's 4G network, enabling consumers and businesses in the United States to access Internet applications and enjoy a Connected Life at home, at work and on the move. Clearwire has selected and is in the process of testing and certification of a Cisco IP NGN architecture that includes Cisco 7600 Series Internet routers, Cisco ONS 15454 and Cisco ONS 15310 platforms, Cisco ASA Firewalls, and the Cisco Service and Application Module for IP (SAMI) Home Agent.

With more than 80,000 nodes installed, the Cisco 7600 Series Routers are high-performance, intelligent and service rich routers designed for deployment at the network edge where performance, IP-enabled services, redundancy and fault resiliency are critical requirements. Cisco's powerful combination of intelligence and performance brings Clearwire closer to their customers by enabling a tailored experience with personalized services to their end users.

Cisco also recently announced that it is supplying mobile WiMAX infrastructure to Russian wireless ISP Scartel, Georgian mobile operator MagtiCom, and AsiaBell's mobile WiMAX service in central Kazakhstan.

CLEAR 4G Devices for a Connected Life

Future Cisco converged WiMAX and Wi-Fi enabled devices are targeted to include products from Cisco's world-class Linksys® by Cisco line of consumer routers. Cisco will also look to expand its WiMAX portfolio with the growth of the CLEAR 4G network across the United States. Cisco and Clearwire will jointly develop and implement go-to-market plans that will benefit from Cisco's extensive distribution channels and presence with consumers and businesses of any size, which will assist to enhance and expand CLEAR mobile WiMAX services throughout the United States.

WiMAX Innovation Network in Silicon Valley

In addition, Clearwire and Cisco recently announced their involvement in forming the WiMAX Innovation Network for developers, which will initially cover more than 20 square miles in Silicon Valley. This developers' network will bring 4G wireless service to campuses of some of the world's leading technology innovators including early participants Google Inc. and Intel Corporation. Cisco will provide core Internet Protocol Next-Generation Network (IP NGN) core infrastructure equipment in support of the WiMAX Innovation Network. Service is expected to be available to developers by late summer of this year, giving them a head start on the Bay Area's commercial service launch which is planned for 2010. Service will be provided free to a limited number of qualified developers for one year. Clearwire will provide WiMAX USB Modems for $49.99. To qualify, developers must register for Clearwire's developer program and describe the products or business ideas they wish to pursue. Interested developers can pre-register at http://innovation.clear.com.

Clearwire and Cisco are founding members of the Open Patent Alliance (OPA). The OPA is a consortium of companies formed in June 2008 to advance a competitive, open intellectual property rights model, thus stimulating a larger WiMAX industry that supports innovation through broader choice and lower equipment and service costs globally. WiMAX, an IEEE 802.16e standard, is an IP-based broadband wireless technology that provides low-cost, multimegabit speed and greater throughput for the mobile Internet era of video-rich content, collaborative services and bandwidth-intensive applications.

Clearwire First Quarter 2009 Earnings

In addition, Clearwire will announce its first quarter 2009 financial results later today at approximately 4 p.m. Eastern Time. The financial release will be posted at http://newsroom.clearwire.com. Clearwire executives will host a conference call and webcast following the release at 4:30 p.m. Eastern Time. A live broadcast of the conference call will be available online on the company's Investor Relations website located at: http://investors.clearwire.com. Interested parties can access the conference call by dialing 800-798-2801, or outside the United States 617-614-6205, five minutes prior to the start time. The passcode for the call is 87239806.

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Clearwire to Launch WiMAX Innovation Network to Silicon Valley Developers

Tags / Keywords:

Clearwire, Clear, Cisco, Cisco IP NGN, Cisco IP Next-Generation Network, IP NGN, Cisco 7600 Series routers, Cisco Service and Application Model for IP, Cisco Home Agent Service Manager, 4G, Mobile WiMAX, WiMAX, WiMAX Devices, WiMAX Services, Broadband, Mobility, Connected Life, Linksys by Cisco.

About Clearwire

Clearwire Communications, LLC, an operating subsidiary of Clearwire Corporation, (NASDAQ: CLWR), offers a robust suite of advanced high-speed Internet services to consumers and businesses. As part of a multi-year network build-out plan, Clearwire's 4G service, called CLEARTM will be available in major metropolitan areas across the U.S, and bring together an unprecedented combination of speed and mobility. Clearwire's open all-IP network, combined with significant spectrum holdings, provides unmatched network capacity to deliver next generation broadband access. Strategic investors include Intel Capital, Comcast, Sprint, Google, Time Warner Cable, and Bright House Networks. Clearwire currently provides 4G service, utilizing WiMAX technology in two markets and provides pre-WiMAX communications services in 50 markets across the U.S. and Europe. Headquartered in Kirkland, Wash., additional information about Clearwire is available at www.clearwire.com.

About Cisco

Cisco, (NASDAQ: CSCO), is the worldwide leader in networking that transforms how people connect, communicate and collaborate. Information about Cisco can be found at http://www.cisco.com. For ongoing news, please go to http://newsroom.cisco.com.

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Cautionary Statement Regarding Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the securities laws. The words "will," "would," "may," "should," "estimate," "project," "forecast," "intend," "expect," "believe," "target," "designed" and similar expressions are intended to identify forward-looking statements. Forward-looking statements may include, without limitation, Clearwire's expectations regarding: future financial and operating performance and financial condition; network deployment and market launch plans; other plans, objectives and strategies; product development; and industry conditions. Forward-looking statements are projections reflecting management's judgment and assumptions based on currently available information and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements.

Future performance cannot be assured. Actual results may differ materially from those in the forward-looking statements due to a variety of factors, including, but not limited to the risks referenced in the Form 10-K for the year ended December 31, 2008, in Part I, Item 1A, "Risk Factors."

Clearwire believes the forward-looking statements in this release are reasonable; however, you should not place undue reliance on forward-looking statements, which are based on current expectations and speak only as of the date of this release. Clearwire is not obligated to publicly release any revisions to forward-looking statements to reflect events after the date of this release.