Motorola sells nationwide license and network to ProNet.
EMBARC INC., a wholly-owned subsidiary of Motorola Inc., intends to continue in the business of offering information services and content packaging to the wireless industry through wireless carriers. ProNet would be the first nationwide carrier to offer as a reseller the EMBARC services, such as ESPNET To.Go(TM) and CNBC Market Page(TM), integrated with traditional paging services. EMBARC has already sublicensed information services to another paging carrier and plans to distribute the services through other carriers.
Motorola is selling the network as part of EMBARC's strategy to move rapidly into the growing information services market and leverage the network capabilities and distribution of major paging carriers. Motorola's intent was to develop and nurture the technologies employed by the EMBARC network. Given EMBARC's strategy, owning a network was no longer necessary to continue the market development for its current and future services.
ProNet can expand the network more rapidly through integration with ProNet's existing network and expansion plans, including ProNet's recently announced merger with Teletouch. This major expansion of the EMBARC network through the ProNet transaction will offer better coverage to the marketplace for EMBARC's customers in line with ProNet's current position. Also, ProNet can further enhance the EMBARC network for current and future subscribers who want traditional paging services combined with information services.
ProNet, based in Dallas, Texas, provides wireless communications services through its paging and security operations to over a million subscribers in five distinct regions of the United States.
Motorola is one of the world's leading providers of wireless communications, semiconductors and advanced electronic systems, components and services. Major equipment businesses include cellular telephone, two-way radio, paging and data communications, personal communications, automotive, defense and space electronics and computers. Motorola's 1995 sales were $27.0 billion.
CONTACT: Motorola Inc., Schaumburg
Albert Lopez, 847/538-2080
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|Date:||Apr 23, 1996|
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