Clearnet applies for Canadian National 30 MHZ PCS licence 'The Choice is Clear'.

PICKERING, Ontario--(BUSINESS WIRE)--Sept. 15, 1995--Clearnet Communications Inc. ("Clearnet") through its wholly owned subsidiary, Clearnet PCS Inc., Friday submitted its comprehensive application with Industry Canada for a Canadian national 30 MHz Personal Communications Services ("PCS") licence in the 2 GHz range.

Clearnet is applying for one of up to three 30 MHz PCS licences which are expected to be awarded by the end of 1995 pursuant to Industry Canada's comparative licensing process.

Most Qualified Applicant Eligible for 30 MHz Licence

Robert C. Simmonds, Clearnet's chairman and vice president, Regulatory/Technology said that: "Clearnet believes it is uniquely positioned to satisfy best the goals, principles and objectives set out in the Policy and Call for Applications issued by Industry Canada on June 15, 1995.

"Clearnet recognizes that the award of 2 GHz PCS licences will have a profound impact on the competitive telecommunications landscape, not just in its wireless segment but across the full width and breadth of the entire industry. Clearnet has carefully assessed each of these potential impacts and has planned accordingly.

"The decisions Industry Canada must make upon the review of each application received are many, varied and complex. As such, Clearnet's comprehensive application submission includes a thorough and detailed analysis of the issues as it perceives them.

"In our view, no other candidate eligible for 30 MHz can match Clearnet's low costs; marketing, financial and wireless expertise; existing customer base, strategic partners, distribution strengths, job creation, and R&D commitments. For these reasons we believe we are the most qualified applicant for a 30 MHz licence."

Clearnet's PCS Vision

Simmonds commented that: "Clearnet's vision of 2 GHz Personal Communications Services consists of:

-- A vast array of new, innovative services which deliver value, choice, and personal control in wireless telecommunications services for the greatest number of Canadians;

-- An interconnected and interoperable network of networks by which Clearnet's PCS consumer clients conveniently access all new and existing telecommunications networks seamlessly and effortlessly to reach people, ideas, images and information in Canada, North America and around the world; and

-- A vehicle for the expansion of Canadian high knowledge - high value jobs in telecommunications and information technology, including product and service development, manufacturing, export and research and development."

Simmonds also said, "Clearnet expects that its PCS vision will drive competition in basic services, both wireless and wireline. It will also drive innovation and the integration of communication and information technologies inherent in the development of Canada's Information Highway.

"Ultimately, PCS is a service concept focused on individuals - their freedom to choose products and services, service providers, and the means by which they use the provided services to benefit their personal lifestyles through increased productivity, convenience, and personal safety and security."

George Cope, Clearnet's president and chief executive officer said, "Certainly in the PCS environment, execution excellence, financial strength, and low cost capital and operational structures will be required. Clearnet brings to bear over a decade of responsible spectrum management, competitive operational experience, and an existing employee base in excess of 300.

"In addition, in the past year alone Clearnet has raised over $250 million in capital, clearly demonstrating its ability to attract the funding necessary to compete with today's cellular giants. Importantly, much of this funding was raised outside of Canada in global markets, but will be expended on infrastructure and systems deployed entirely in Canada for the benefit of Canadians."

Significant Incremental Investment And Job Creation

Cope also said: "Clearnet plans to invest $700 Million in its PCS Network over the next decade in addition to the $395 million investment in Clearnet's Business Communications Network to the end of 1997.

"Clearnet's PCS investment is projected to create approximately 1,200 jobs directly and another 3,600 jobs indirectly throughout Canada if it is awarded a 30 MHz PCS licence. Importantly, each of these positions is incremental to its Business Communications Network business plan."

Clearnet's Research and Development Commitment

Eros Spadatto, Clearnet's vice president Engineering & Network Services said, "As part of its Friends of Clearnet" initiative, Clearnet has entered into agreements with over 30 Canadian high technology firms from all regions of Canada for the express purpose of research, design and, if appropriate, manufacture of a variety of innovative, value-added PCS related products and services."

PCS To Focus on Mass Consumer Market

Wade Oosterman, Clearnet's vice president of Marketing and Sales commented: "Clearnet's PCS offerings will focus on consumers and small office - home office clients, making wireless services more useable and more affordable for these markets.

"Clearnet's PCS service portfolio will offer, amongst other things, local loop replacement services ultimately to bring competition and innovation to local loop products and services. Clearnet's PCS service offerings will also include high speed mobility, messaging, information and data services, and a variety of other innovative, value-added services.

"Clearnet views PCS as complementary to its iDEN-based Business Communications Network, which is uniquely positioned to deliver services to the industrial and commercial segments."

Canadians Desire PCS

Oosterman also said, "Clearnet has conducted extensive primary market research in Canada. This research conclusively revealed that local loop replacement services are desired by Canadians. Fifty percent of the population is interested in PCS services which act as an extension to their existing residential land line service.

"Moreover, there is broad appeal for PCS across the wide variety of demographic, income, occupation, geographic, and gender segments represented in Canada."

Clearnet is a Canadian controlled wireless communications company servicing over 40 cities across Canada. Clearnet believes it is the largest non-cellular voice wireless network in Canada in terms of number of subscribers. Clearnet is currently building-out a new and innovative all-digital Business Communications Network ("BCN") utilizing Motorola's iDEN technology.

Clearnet intends to complete full digital coverage of the Windsor through Quebec City corridor in the spring of 1996. Once completed, the Clearnet network will, for the first time in Canada, integrate enhanced dispatch (group calling), mobile telephone, text messaging with acknowledgment (paging) and mobile data all on one network, all accessible to users through just one handset.

Clearnet plans to augment its BCN services with other innovative wireless products and applications, including PCS. Clearnet will be addressing PCS to the Canadian mass consumer market.

CONTACT: Clearnet Communications Inc., Pickering

Robert McFarlane, VP/CFO, 905/831-6222

Internet - [e-mail]

INDUSTRY KEYWORD: TELECOMMUNICATIONS COMED COMPUTERS/ELECTRONICS REPEATS: New York 212-575-8822 or 800-221-2462; Boston 617-330-5311 or

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