Clearwire Technologies Sees Opportunities Following FCC Ruling on 3G Spectrum Allocation.

Business Editors & High Tech Writers

DALLAS--(BUSINESS WIRE)--Sept. 26, 2001

Clearwire Technologies executives applauded Monday's landmark Federal Communications Commission (FCC) decision not to reallocate 2.5-2.7 GHz (ITFS/MMDS) licensed spectrum, saying that the ruling removes a cloud of uncertainty and opens new options for Clearwire and other wireless carriers.

The FCC ruling also added a "mobile" allocation to the 2500-2690 MHz (2.5-2.7 GHz) band, making it possible for service providers using this band, such as Clearwire, to deploy portable data services along with fixed-wireless broadband services. The ruling also takes the first step toward allowing existing license holders in this band to provide third generation (3G) and future generations of portable and mobile wireless services.

"The FCC made the right decision to protect the ability of Clearwire, and our spectrum partners to provide new and innovative wireless services." Clearwire President and COO Leo Cyr said. "The ruling provides multiple paths of growth for Clearwire, and we have already begun to explore the new opportunities that have presented themselves. But this isn't something that's going to take place overnight. It will take a substantial amount of time before the technical and regulatory issues are sorted through."

Clearwire has a strategic partnership with the ITFS Spectrum Development Alliance (ITFS Alliance), whose members hold licenses for 2.5-2.7 GHz spectrum in more than 75 markets nationwide, translating into a market potential of 10 million businesses and 40 million households in the United States.

Even before the FCC ruling, Clearwire had announced plans that in October it will begin testing fixed wireless broadband equipment from several vendors in the 2.5-2.7 GHz licensed spectrum. Existing mobile service providers have sought additional allocations of spectrum to provide 3G services, and had asked that the FCC consider reallocation of the 2.5-27 GHz band for this purpose.

As a result, there was speculation that the FCC might relocate or modify the license of current licensees. Now that the FCC has removed that cloud of uncertainty, Clearwire has the green light to move forward with its plans to provide broadband services using this service as planned.

According to the ruling, the allocation will allow certain portable data applications to be provided under existing service rules and could provide flexibility for introducing other advanced fixed and mobile applications in the future.

The FCC originally allocated the 2.5-2.7 GHz band to non-profit and educational organizations for one-way analog broadcast of educational TV programming. ITFS licenses provide exclusive use of that spectrum within a defined geographic area, referred to as a Protected Service Area (PSA), with a 35-mile radius. This reduces the probability of interference. The ITFS Alliance relationship gives Clearwire the right to use the ITFS spectrum as it becomes available.

About Clearwire Technologies

Clearwire Technologies provides high-speed Internet and data services to small and mid-sized businesses Utilizing proven wireless access technology, Clearwire delivers reliable, cost effective services with a quick, easy and customer-friendly installation process, usually in less than five business days. Through a relationship with the ITFS Alliance, Clearwire has access to one of the largest licensed 2.5 GHz footprints in the country. Clearwire, which has secured $97 million in funding, has assembled an experienced management team to profitably expand into new, previously underserved markets using a smart-build strategy. The Dallas-based company was founded in 1998.

www.clearwire.com