Below is a press release (note: 1 U.S.A. dollar = 1.37 Canadian dollars):
Clearnet and Lucent Technologies sign PCS supply contract and $475
million credit facility
Business Wire - December 20, 1996 10:22
TORONTO--(BUSINESS WIRE)--Dec. 20, 1996--Clearnet Communications Inc. (NASDAQ/TSE, ME:CLNTF;NET.A) Friday announced that its wholly owned subsidiary Clearnet PCS Inc. (collectively "Clearnet" or "the Company") has entered into binding contracts for the purchase and financing of CDMA (Code Division Multiple Access) PCS (Personal Communications Services) infrastructure and subscriber equipment from Lucent Technologies Canada Inc. ("Lucent").
Clearnet's credit facility with a Lucent affiliate provides for Cdn. $475 million in financing (the "Lucent Credit Facilitent and Clearnet.
Lucent and CDMA - The Best Choice
Recently, major CDMA PCS systems have successfully commenced service in the United States.
Both PrimeCo Personal Communications L.P. (a consortium whose shareholders are affiliates of the regional Bell operating companies Bell-Atlantic Nynex, Airtouch Communications and U.S. West) as well as Sprint PCS launched CDMA PCS service utilizing Lucent infrastructure equipment in numerous major urban markets in the United States.
According to George A. Cope, Clearnet's president and chief executive officer, "We have no doubt that Clearnet has chosen the best possible PCS partner. Lucent is a world-class leader in communications technologies and, as their Canadian PCS partner, "Clearnet is eager to bring the benefits of their products and expertise to Canadian wireless users. Recent developments in the United States confirm that Clearnet was correct in selecting CDMA as its technology choice and Lucent as its main supplier."
"The signing of these agreements is a major milestone for Lucent as it represents the largest contract ever for Lucent in Canada," said Jim Schram, president and CEO of Lucent Technologies Canada.
Gerald Butters, Lucent's president for North America, commented that, "CDMA technology not only has an outstanding long term future but is now fully operational with over 1,000 cell-sites now active in the United States. Preliminary performance metrics from our CDMA carrier customers indicate voice quality approaching landline quality and very competitive dropped call rates.
"Clearnet has made the right decision in choosing CDMA and Lucent looks forward to contributing to the growth of Clearnet as it develops into becoming a major Canadian wireless service provider."
Clearnet PCS Build-out Update
Clearnet has already installed the firsant and amortization structure which is perfectly tailored to the nature of Clearnet's growth business which entails the investment of significant capital into its network and operations over the next few years.
"Moreover, the Luding the Lucent Credit Facility, Clearnet has now raised over $1.1 billion in financing for the build-out and
implementation of the Company's MiKE(TM) and PCS networks since completing its initial public offering in October 1994.
Clearnet does not expect any material cash interest payments on any debt obligations to be required until after the completion of the build-out and commercialization of both its MiKE(TM) and PCS digital networks.
Lucent Technologies (formerly the systems and technology arm of AT&T) designs, builds and delivers a wide range of public and private networks, communications systems and software and consumer and business telephone systems. The company employs 125,000 people worldwide and had 1995 revenues of U.S. $21.4 billion.
Clearnet Communications Inc. (TSE, ME - NET.A - NASDAQ - CLNTF) is a Canadian wireless communications company which operates the MiKE digital network in Ontario and Quebec as well as analog dispatch communication services in over 40 cities across Canada.
Awarded a national 30 MHz PCS (Personal Communications Services) licence last year, Clearnet also plans to launch PCS
service in Canada's largest urban centres in mid-1997.
CONTACT: Clearnet Communications Inc.
Robert McFarlane, 905/837-3007
investorrelations@clearnet.com (internet) |
