ProNet Inc. paid Motorola Inc.’s Messaging Information and Media Sector $43 million cash for its 931.9 MHz nationwide one-way paging license and associated Embarc system equipment, announced the companies.
“This nationwide license provides us a great deal of flexibility for expansion purposes as well as the ability to custom design networks for strategic marketing alliances,” said ProNet Chairman Jackie Kimzey in a prepared statement.
Motorola used the network, on which it launched the Electronic Mail Broadcast to a Roaming Computer system in 1992, primarily to develop information services technology, said Motorola spokesman Albert Lopez. The system can disseminate stock quotes, sports scores, news and other information to paging users. Once the company achieved its technology goal, it had no need for the network, explained Lopez. The company did not want to stay in the market as a service provider, but rather “a packager of (information) services,” Lopez added.
Motorola acquired the nationwide paging license from Contemporary Communications about five years ago. Contemporary, Mobile Telecommunication Technologies Corp. (then National Satellite Paging) and CyberTel Beep USA each were granted construction permits by the Federal Communications Commission in 1985 to provide nationwide paging service. Only Mtel was successful launching nationwide 900 MHz service.
The Jackson, Miss., company’s SkyTel Corp. subsidiary uses Motorola’s information services technology as well as FLEX and ReFLEX one-way and two-way paging platforms.
Dallas-based ProNet funded the license and equipment using proceeds from its recent equity offering and bank credit facility. The network includes about 400 base stations and sites in more than 220 U.S. cities, said Dallas-based ProNet.
ProNet provides paging and security services to more than one million people in five regions throughout the United States.
