Clearwire’s total subscribers increased to approximately 555,000 at the end of the third quarter of 2009, up from approximately 469,000 on a pro forma basis at the end of the third quarter 2008. Total subscribers in the Company’s 13 CLEAR 4G markets (both new markets and legacy markets recently upgraded to CLEAR 4G service) were approximately 173,000 at the end of September. On a consolidated basis Clearwire added approximately 44,000 net new subscribers during the third quarter of 2009. This third quarter increase included the addition of approximately 49,000 net new subscribers in the company’s 13 CLEAR 4G markets, which were partially offset by a modest net decline in subscribers in domestic and international pre-WiMAX markets for the quarter.
ARPU for the third quarter of 2009 was $39.71, a decrease of $0.72 from the $40.43 pro forma ARPU level from the prior year third quarter and a sequential quarter increase of $0.24 compared to $39.47 reported in second quarter of 2009. ARPU declined year-over-year on a pro forma basis due to increased promotional discounts as a result of higher gross subscriber additions during the third quarter of 2009 than in the same quarter of 2008
Financially, Clearwire maintained its business outlook for 2009 and 2010, expecting consolidated 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. Consolidated revenue increased by 13 percent to $68.8 million in the third quarter 2009, versus pro forma revenue of $60.8 million for the same quarter of 2008.
Clearwire also confirmed its new $1.564 billion round of equity financing from Sprint Nextel Corporation, Comcast Corporation, Time Warner Cable Inc., Intel Corporation, Eagle River Holdings, LLC and Bright House Networks, LLC in exchange for newly issued shares priced at $7.33 per share. This was divided as follows: Sprint Nextel for $1.176 billion, Comcast for $196 million, Time Warner Cable for $103 million, Intel for $50 million, Eagle River for $20 million and Bright House Networks for $19 million.
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