Clearnet Participates in fONOROLA'S LMCS Licence Application.PICKERING, Ontario--(BUSINESS WIRE)--June 19, 1996--CLEARNET (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CLNTF)(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). , ME:NET.A) Clearnet Communications Inc. today announces that it has participated in an application for a national Canadian Local Multipoint Communication Systems ("LMCS LMCS Local Multipoint Communication Systems LMCS Lockheed Martin Control Systems LMCS Light Modular Causeway System LMCS Loan Management and Control System LMCS Lake Michigan Carferry Service, Inc. LMCS Logical Methods in Computer Science ") licence. The LMCS application is a joint effort being led by long distance provider, fONOROLA Inc. and also includes the participation of iSTAR internet inc., a leading provider of internet services in Canada. The application is for one of the first two LMCS licences in each of 367 cities, suburbs and towns which are expected to be awarded by the Minister of Industry this fall in using comparative evaluation process. Another four licences will be awarded by auction within the next 18-36 months according to Industry Canada. LMCS spectrum is at the 28 GHz range. Since it first offered services in 1989, fONOROLA has grown into a significant facilities-based provider of services to the Canadian long distance telecommunications market. According to Robert C. Simmonds, Clearnet's Chairman and Vice President, Regulatory & Technology, "We are pleased to support the LMCS licence application being led by fONOROLA. Clearnet's participation in the LMCS application is consistent with Clearnet's strategic objective to become the third major wireless communications company in Canada. LMCS technology can be viewed as "wireless fibre" and has the potential to become an effective and economical carrier of backhaul traffic for both Clearnet's Business Communications Services ("BCS (1) (The British Computer Society, Swindon, Wiltshire, England, www.bcs.org) The chartered body for information technology professionals in the U.K., founded in 1957. ") and Personal Communications Services See PCS. ("PCS (1) (Personal Communications Services) Refers to wireless services that emerged after the U.S. government auctioned commercial licenses in 1994 and 1995. This radio spectrum in the 1. ") digital wireless networks. Backhaul expenses are the largest network operating cost for Clearnet's digital wireless networks. In the future, LMCS may also be utilized to provide a number of other wireless services, including wireless cable service and wireless internet access, which would complement Clearnet's BCS and PCS services." According to Robert McFarlane, Clearnet's Vice President and Chief Financial Officer, "Clearnet's participation in the application includes the possible utilization for LMCS of many of Clearnet's over 1,000 radio transmission towers which either already exist or are expected to be deployed by the end of 1998. In addition, Clearnet's participation includes a seven year backhaul usage commitment of several million dollars per annum Per annum Yearly. subject to certain performance and cost conditions. Clearnet may convert a usage commitment or contribute capital at the sole option of Clearnet to obtain a minority ownership position in the entity which would hold the LMCS licence in the event of successfully being awarded a licence. Under certain conditions, Clearnet's minority ownership position could be increased at the sole option of Clearnet to up to an approximate 40% interest." 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 ESMR Enhanced Specialized Mobile Radio ESMR Extended Specialized Mobile Radio (Nextel) ESMR Expert Systems Message Router ESMR Electrically/Electronically Scanned/ing Microwave Radiometer ESMR Engine Starter Motor Relay ) and PCS networks for future introduction. CONTACT: Clearnet Communications Inc. Robert McFarlane, 905/837-3007 INTERNET: http://www.clearnet.com EMAIL See e-mail. : investorrelations@clearnet.com |
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