Clearnet Communications - Industry Canada Announces Conditions of Clearnet's 30 MHz National PCS Licence.

PICKERING, Ontario--(BUSINESS WIRE)--April 17, 1996--CLEARNET CORP.(TSE, ME:NET.A NASDAQ:CLNTF) Clearnet Communications Inc. reported that today Industry Canada released the conditions for the Canadian national Personal Communications Services ("PCS") licences previously announced in December 1995. Notable amongst the conditions are various requirements imposed on the cellular incumbents including the obligation, subject to certain conditions, to resell their analogue cellular services to the new PCS entrants (including Clearnet). Clearnet PCS Inc., one of the Company's wholly- owned operating subsidiaries, was awarded one of two national 30 MHz licences. The two national cellular operators were each awarded a national 10 MHz licence.

Basic Conditions

The PCS licences have a term of five years commencing April 15, 1996 at the end of which they are considered for renewal in the normal course. At the time of renewal, the conditions attaching to the licences will be reviewed. The initial licence conditions, as expected, require each licensee to honour substantially the commitments made in its application for the licence and impose some performance minimums. Basic conditions include obligations regarding coverage and build-out, research and development, annual reporting, the provision of lawful interception, compliance with the microwave transition rules and a requirement that all PCS licensees including Clearnet resell their PCS on a non-discriminatory basis to other PCS licensees. Clearnet intends to comply fully with all of these conditions. Restrictions on Cellular Operators

Importantly, for the benefit of the two new entrants including Clearnet, Industry Canada has imposed, in the licence conditions, restrictions on the cellular incumbents and their wireline affiliates (if any) that prevent them from offering PCS service in any of Canada's 25 census metropolitan centres until a number of pre-conditions have been met. These include:

1. the cellular operator must offer analogue cellular resale on handsets capable of both PCS and cellular services ("dual-mode / dual-band handsets") throughout the cellular service area on a non-discriminatory basis to the two new entrants (including Clearnet) on terms acceptable to at least one of such new entrants or as set out by the regulator;

2. the cellular operator must offer roaming arrangements for analogue cellular (on such dual-mode / dual-band handsets) using such operator's standard for intersystem roaming (typically IS-41) on a non-discriminatory basis to the two new entrants (including Clearnet) on terms acceptable to at least one of such new entrants or a set out by the regulator;

3. interconnection to the wireline PSTN is made available to all PCS licensees in that market area; and

4. the cellular operator must relocate its microwave links to ensure that sufficient spectrum is available for any other PCS licensee to operate within that same market area.

Once these four pre-conditions have been met, the cellular operator may not offer PCS in a given metropolitan area until the earlier of (i) the offering of PCS in that area by a new entrant and (ii) the passage of one year from that operator's compliance with such pre-conditions. PCS Carrier Resale of Cellular Service

Clearnet expects to benefit from these cellular resale and roaming provisions. Upon entering into a resale arrangement with a cellular operator, through the use of handsets capable of both PCS and cellular services, Clearnet will be able to offer its PCS clients the extended footprint (coverage area) of the cellular operators so that such PCS clients will be able to enjoy geographically extended cellular coverage in less populated areas where Clearnet has not yet built-out its PCS system.

The licence conditions do not specify the commercial terms under which cellular services or PCS would be resold or roaming occur. These are to be negotiated between the parties. The regulator may intervene if the parties are unable or unwilling to negotiate acceptable cellular (but not PCS) resale and roaming arrangements.

Licence Fees

Industry Canada has confirmed that, as announced at the end of March 1996, annual PCS system licence fees will be Cdn. $900/MHz/base station for wide area systems (and Cdn. $9/MHz/base station for limited area systems). Clearnet understands that the annual licence fees will approximate Cdn. $27,000 (US $19,500) per cell site and thereby the dollar amount of Clearnet's annual PCS licence fees will increase proportionately to the rate of Clearnet's cell-site build-out.

Clearnet is encouraged by the licence conditions announced by Industry Canada in that they reinforce the government's stated policy of fostering the entry of new service providers to compete with Canada's existing cellular duopoly and the ability of new entrants, such as Clearnet, to provide new digital wireless services to Canadians.

Clearnet is a Canadian wireless company which provides dispatch communications services in over 40 cities across Canada and is building new wireless Business Communications Services (BCS, ESMR) and PCS networks for future introduction.

CONTACT: Clearnet Communications Inc.

Robert McFarlane, 905/837-3007

[e-mail]