Pocket Communications Inc. has completed $646 million in financing agreements with three equipment vendors to build network clusters that will make Pocket the nation’s sixth largest personal communications services operator in terms of population.
Washington, D.C.-based Pocket received its 43 C-block licenses last month after they were held up due to a petition of objection.
That hurdle cleared, Pocket is prepared to build systems that will cover 35 million people. Pocket will use Global System for Mobile communications technology. The vendors will be Ericsson Inc., Siemens Stromberg-Carlson and Northern Telecom Ltd.
Ericsson has agreed to provide $422 million in financing for equipment and services. The Texas division of Sweden-based Ericsson will build Pocket’s Chicago, Dallas-Fort Worth and Honolulu market clusters.
Pocket faces three large PCS competitors in each of those markets. In Chicago, Pocket goes against an already-activated PrimeCo Personal Communications L.P. system. AT&T Wireless Services Inc. is expected to launch service during the first quarter of 1997. In Dallas, Pocket will compete with PrimeCo, whose system is operating, and Sprint Spectrum L.P., which is expected to launch a system there the first half of 1997. Pocket’s competitors in Honolulu both are already in service-Western Wireless Corp. and PrimeCo.
Siemens Stromberg-Carlson of Boca Raton, Fla., will be the primary vendor for the buildout of networks in Ohio, Detroit and other Michigan markets. Siemens has committed up to $165 million, Pocket said.
Pocket’s competitors in Detroit will be AT&T Wireless and Sprint, neither of which will launch systems until 1997.
Nortel will build the Las Vegas market for Pocket, and has promised $59 million for that project. Competitors in Las Vegas are Pacific Bell Mobile Services and Cox Communications Inc.
Pocket said it also is the second largest company in terms of population that is using GSM technology.
