Clarity Communication Systems and CellularOne Bermuda Announce Push-to-Talk Agreement.

AURORA, Ill. -- Clarity Communication Systems Inc. and CellularOne Bermuda, a subsidiary of carrier Bermuda Digital Communications, today announced an exclusive multi-year agreement under which CellularOne Bermuda will license and retail Clarity's hosted push-to-talk (PTT) service. This represents another Clarity carrier win for hosted PTT this month; a similar agreement with Jamaican carrier MiPhone was announced on March 6.

Clarity's PTT service is designed to enable tier-two and tier-three carriers to offer the same push-to-talk functionality made popular by Nextel and Motorola, without a corresponding capital expense or investment risk. Under Clarity's business model, licensing to the carrier is charged on a "pay as you grow" basis, giving Clarity and its carrier customer an equal stake in the offering's success. Without having to build, install or maintain a platform, CellularOne Bermuda was able to quickly deploy the PTT service and price it attractively for existing and new subscribers.

PTT will drive new revenue for CellularOne Bermuda. It will also leverage the carrier's prior investment in a CDMA 1X data network by using VoIP (Voice over IP) and SIP (Session Initiation Protocol) technology. A managed data pipe from Bermuda CellularOne to Clarity's secure data center in Naperville, Illinois (U.S.), carries the packetized voice traffic as instant calls between the subscriber handsets and the SIP routing server.

While Clarity's hosting center is 2,575 km (1,600 miles) from Bermuda, call setup time averages only one half second, according to Bill Jenkins, Clarity's vice president of product management. This compares very favorably with dialed, circuit-switched phone calling and even other widely deployed PTT offerings. Voice quality also compares favorably with traditional wireless and even wire-line telephony.

The PTT service is a natural fit for field-service teams, work crews, fleet management, emergency response and dispatching environments, as well as family members who need to keep in close and instant touch. Bermuda-based Arctic Climate Control, an air conditioning and heating company, has been a beta customer for the past three months.

"Our field technicians have been using the push-to-talk service with great success," says William Rowse, general manager of Arctic Climate Control. "The group paging is really useful when our installation technicians need to locate a specialized tool for the work that they do, or when our service technicians need to determine part availability. It allows us to make instant calls since we are connected through the touch of a button."

Online "presence" and availability information, made familiar through the wide use of instant messaging (IM) buddy lists, appears on the push-to-talk phone display and is enabled through the service's use of SIP. Similarly, PTT contact groups and individuals can be added or deleted through the handset, much like buddies are added or deleted on IM clients. "If your co-worker shows up as 'present' on your phone display, that's a pretty good indicator that you're going to be able to have an immediate conversation with him or her," explains Jenkins.

CellularOne Bermuda's PTT customers will use PTT-capable handsets from Kyocera Wireless. The SIP telephony client software, developed using QUALCOMM Inc.'s BREW platform, can be downloaded to these phones.

According to Liam McKittrick, CTO and operations manager of CellularOne Bermuda, "Trials reveal that the system is very stable and flexible, as well as easy to deploy. Utilizing a 'hosted system' business model allowed us to offer PTT with minimum capital outlay. Voice quality is very good and connection speed is good, as our data network is clean." He notes that the carrier had considered other PTT partners but found them prohibitively expensive.

Tom Carter, Clarity's vice president of sales marketing and business development, echoes the affordability factor. He also describes the new service as a sought-after differentiator in regions where tier-two and tier-three carriers compete fiercely for new subscribers. "A push-to-talk service like the one that drew millions of subscribers to Nextel just hasn't been financially feasible to tier-two carriers before," he says. "Small and medium-sized carriers can't spend millions on licensing, infrastructure, building a new platform and training before earning the first dollar of payback.

"The structure of our hosted PTT model removes that risk," adds Carter. "Our advantage to carriers is to host the service, implement it and allow them to brand and introduce it, all at a cost that fits their business. They view PTT as a unique and differentiated service. They see a workforce demographic just like Nextel has in its footprint, and they see a chance to reach that market at very low risk. That's why carriers like CellularOne Bermuda have jumped on the opportunity."

About CellularOne Bermuda

CellularOne Bermuda is owned and managed by Bermuda Digital Communications. BDC provides Bermudians with advanced telecommunications services as well as a choice of carriers, enhancing the island's reputation as a leading international business center. For more information, visit CellularOne Bermuda's Web site at www.CellularOne.bm.

About Clarity Communication Systems Inc.

Clarity Communication Systems specializes in the design, development and deployment of solutions for mobile devices and wireless networks. Clarity also provides network infrastructure solutions and works with major telecommunications carriers and equipment providers to deliver a wide range of custom-built products. Founded in 1998, Clarity is headquartered in Aurora, Illinois, a Chicago suburb. For more information, visit Clarity's Web site at www.claritycsi.com.