Clearnet to Apply for National PCS Licence ESMR Build-Out Underway.

PICKERING, Ontario--(BUSINESS WIRE)--June 15, 1995--Earlier today, Canada's Industry Minister John Manley announced a Canadian policy for the introduction of Personal Communications Services (PCS), which he referred to as "new generation of wireless, digital communication services and an important development for Canada's information highway". Also today, Industry Canada, which is the federal government ministry responsible for the regulation of radio spectrum, issued a call for licence applications from parties interested in providing public PCS at the 2 GHz frequency range. Clearnet Communications Inc. ("Clearnet") (NASDAQ:CLNTF) (TSE,ME:NET.A) today announced that it will be applying for one of up to three national 30 MHz (PCS) licences which are expected to be awarded by the end of 1995 pursuant to Industry Canada's comparative licensing process. Industry Canada may also issue up to three smaller 10 MHz licences.

Industry Canada today said "initially PCS will offer a range of services similar to that provided by cellular telephony." PCS is therefore expected to initially consist primarily of low-cost enhanced voice, two-way data and text messaging services, primarily directed at the mass consumer wireless communications market. Such PCS applications are expected to be followed over time by innovative services offering integrated voice, data, image and eventually even video capability. The Canadian wireless market potential is generally considered to be in its early stages of growth and development. On June 13, 1995 at the First Marathon Wireless Conference in Toronto, Steve Garmaise, First Marathon's wireless communications analyst, projected that wireless cellular, PCS and ESMR mobile telephone subscribers in Canada would increase by a factor of over three times to about 6.5 million by the year 2000 as compared to the approximate 2.0 million cellular subscribers today.

In announcing the PCS licensing process, Industry Canada said that "the policy encourages new Canadian firms to enter this exciting high-growth market". Existing cellular operators will be ineligible to apply for a 30 MHz licence because under Industry Canada's policy announcement today the established cellular carriers who already hold 25 MHz licences will be restricted to a spectrum cap of 40 MHz. Accordingly, established cellular carriers will be precluded from applying for a larger 30 MHz licence for which Clearnet is applying.

Robert C. Simmonds, Clearnet's Chairman and Vice President Regulatory/Technology said that "Industry Canada is to be complimented on their PCS policy announced today. Industry Canada has astutely balanced the interests of the existing cellular operators with the compelling public policy objectives of promoting enhanced market competition. It is imperative that Canadians enjoy the many benefits that the competitive provisioning of wireless services will provide. The two operator duopoly industry structure which spawned the Canadian cellular industry is no longer appropriate for a wireless industry with millions of subscribers whose numbers are increasing at a rate of nearly 40% per annum. Industry Canada has recognized that Canadians deserve the choice, innovation and competitive pricing which are only optimally provided in a competitive marketplace."

Clearnet currently is the largest provider of public dispatch wireless communications services in Canada and is in the midst of a $240 million build-out of its new and innovative iDEN digital mobile network in the Ontario-Quebec region. Clearnet believes it is the largest non-cellular voice wireless network in Canada in terms of number of subscribers.

In January of this year, Clearnet submitted its public comments to Industry Canada concerning various PCS licensing issues. Clearnet's submission recommended a balanced approach to achieving spectrum parity between the established cellular carriers and other emerging wireless operators such as Clearnet. Another important element of Clearnet's January submission was to establish identical block alignments with the three 30 MHz and three 10 MHz allocation structure recently established in the United States. Today's PCS policy announcement by Industry Canada ensures compatibility with that adopted by the United States. Robert Simmonds commented that "this decision is very important in that it allows prospective Canadian PCS operators such as Clearnet to tap into North American manufacturing economies of scale and helps ensure user friendly north-south cross border roaming."

Robert Simmonds also commented that "by successfully being granted a 30 MHz PCS licence, Clearnet will augment its current specialized mobile radio (SMR) spectrum position of about 10 MHz in Canada's largest markets and therefore have an aggregate spectrum position of 40 MHz which would then be the same as the spectrum limit announced today for the established cellular carriers."

"Today's announcement is an important development for the Canadian consumer and for the Canadian wireless communications industry" said George Cope, Clearnet's President and Chief Executive Officer. "PCS would complement Clearnet's iDEN network service offering which will be aimed at the corporate, commercial and industrial segments with new technologies which will focus primarily on Canada's consumer market segment. By successfully obtaining a PCS licence, Clearnet will accelerate its penetration of the mass consumer wireless market segment."

Clearnet recently announced that it will be trialing the two leading technology contenders to provide PCS services through tests in a common environment in the Kitchener- Waterloo area of Ontario. As part of a multiple vendor strategy, Clearnet will be conducting field testing of Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA) PCS technology platforms, with equipment provided by Northern Telecom (Nortel) and Motorola respectively. Clearnet is currently deploying Motorola iDEN technology utilizing Nortel digital switches in its current network build- out. Recently, Clearnet concluded a successful live demonstration of Motorola GSM PCS equipment and handsets in Toronto, Ontario at Radiocomm 95, Canada's annual wireless industry conference and trade show.

Clearnet is a Canadian controlled wireless communications company servicing over 40 cities across Canada. Clearnet recently commenced building-out Canada's first fully integrated digital wireless network. 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 mobile telephone, text messaging (paging), dispatch (group calling) and mobile data all on one network, all accessible to users through just one handset.

CONTACT: Clearnet Communications Inc.

Robert McFarlane, [phone]

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