Clearnet Communications Forms Strategic Alliance with COM DEV International and Research in Motion

Strategic Insights -

Clearnet Communications Inc. ("Clearnet") has announced a strategic alliance with COM DEV International Ltd. ("COM DEV") and Research in Motion Limited ("RIM") to support Clearnet's application for a Canadian national 30 MHz Personal Communications Services ("PCS") licence in the 2 GHz range. The alliance marks a significant development in the Canadian wireless communications industry, bringing together three industry leaders to develop innovative PCS products and services.

Key Takeaways:

  • Clearnet has entered into a strategic alliance with COM DEV and RIM to support its application for a Canadian national 30 MHz PCS licence in the 2 GHz range.
  • COM DEV and RIM have agreed to discontinue their joint application for a PCS licence and to formally support Clearnet's PCS application.
  • COM DEV and RIM have actively participated in the preparation of Clearnet's comprehensive formal licence application, which will be submitted to Industry Canada.
  • The alliance will enable Clearnet, COM DEV, and RIM to develop new and innovative PCS products and services to benefit all Canadians.
  • COM DEV and RIM will make a total equity investment of up to $10 million in Clearnet.
  • Clearnet will issue options having an exercise price of Cdn. $20.00 for 250,000 Class A Non-voting Shares to each of COM DEV and RIM.

Statistics:

  • COM DEV has annual sales of approximately $75 million and more than 500 employees.
  • RIM is a growing entrepreneurial high technology company with approximately 80 percent of its staff performing research and development and approximately 90 percent of its employees having technical backgrounds.
  • RIM's sales are approximately 95 percent export-oriented.
  • Clearnet plans to complete full digital coverage of the Windsor through Quebec City corridor in the spring of 1996.
  • Once completed, the Clearnet network will incorporate enhanced dispatch, mobile telephone, text messaging with acknowledgment, and mobile data on one network, accessible through one handset.

Sources:

  • "Clearnet Communications Inc. Enters into Strategic Alliance with COM DEV International Ltd. and Research in Motion Limited". Business Wire. 14 September 1995.
  • "Canada's COM DEV, RIM Form Joint Venture for PCS Bid". The Canadian Press. May 1995.
  • "Clearnet Communications Inc. Commences Building All-Digital Business Communications Network with iDEN Technology". Business Wire. February 1995.