May 20, 1997
Hangs Up on Telemac
CANCALL CELLULAR COMMUNICATIONS ("CLE-V;CCCAF-L")
- Hangs Up on Telemac
Robert Kamyszek, Chief Administrative Officer, Director of Cancall Cellular Communications announces that the Company has introduced a new rental system in all locations and has suspended use of Telemac Cellular Corporation's TRACPLUS cellular phone rental system.
The Company has identified another provider, Sims Communications Inc. a NASDAQ (SIMC) listed company offering similar rental technology with a proven product. The Company has been in extended negotiations with Sims regarding a joint venture relationship utilizing the Sims technology and Cancall airtime and distribution. If successful,
this Sims/Cancall relationship will develop into a national distribution network, providing long-term and short-term rentals.
Cancall initially upgraded, all rental equipment in October 1996, to the newly introduced Telemac TRACPLUS rental system. The TRACPLUS was designed to speed up processing and institute a "networking" system which would allow Cancall to reduce personnel expense and offer a more efficient customer service oriented product to the consumer.
The Company has experienced a continuing series of software problems with the Telemac TRACPLUS which has seriously hampered the company's efforts to increase its number of operating locations and the volume of business conducted. TRACPLUS failures have caused "Breakdowns" in the checks and balances of the system, regarding revenue and inventory control.
The Company will be returning all TRACPLUS equipment for a full refund and compensation for losses occurred by the Company. The Company will be mitigating its damages by reducing the number of cellular lines, as well as terminating any employees rendered redundant by such reductions.
At this time, the Company does not have the ability to support a rental program in Hawaii, generating $150,000 per month as previously announced with TMP of Tokyo. Cancall will seek to extend the ramp-up period under the contract by an additional 90 days.
TEL: (604) 685-6465 Robert Kamyszek, Chief Administrative Officer FAX: (604) 688-4881
TEL: (702) 895-9141 FAX: (702) 895-9132 |
