-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, A4GpinkP5F9Vbn/01/rBN9aeB9bx2t8AUXM48yx0352ScuHFLNbyWJ+KewuFg7qs QGgyTNtX8QJfSTiVf5jIDQ== 0000897101-96-000748.txt : 19960829 0000897101-96-000748.hdr.sgml : 19960829 ACCESSION NUMBER: 0000897101-96-000748 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960823 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19960828 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: RURAL CELLULAR CORP CENTRAL INDEX KEY: 0000869561 STANDARD INDUSTRIAL CLASSIFICATION: RADIO TELEPHONE COMMUNICATIONS [4812] IRS NUMBER: 411693295 STATE OF INCORPORATION: MN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-27416 FILM NUMBER: 96622327 BUSINESS ADDRESS: STREET 1: 2819 HIGHWAY 29 SOUTH MIDWAY MALL CITY: ALEXANDRIA STATE: MN ZIP: 56308 BUSINESS PHONE: 2182835101 8-K 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K Current Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): August 23, 1996 RURAL CELLULAR CORPORATION (Exact name of Registrant as Specified in its Charter) Minnesota (State or Other Jurisdiction of Incorporation) 0-27416 41-1693295 (Commission File Number) (IRS Employer Identification No. 2819 Highway 29 South, Alexandria, Minnesota 56308 (Address of Principal Executive Offices) (Zip Code) Registrant's Telephone number, Including Area Code (320) 762-2000 Not Applicable Former Name or Former Address, if Changed Since Last Report Item 5. Other Events. On August 23, 1996, the Registrant and American Portable Telecom Inc. ("APT"), a subsidiary of Telephone & Data Systems, Inc., filed with the Federal Communications Commission to obtain appropriate approvals for the formation of a joint venture named Wireless Alliance LLC ("Wireless Alliance") to construct and operate Personal Communications Service ("PCS") networks in Duluth, Minnesota, Fargo and Grand Forks, North Dakota, and Superior, Wisconsin. Wireless Alliance will use 20 MHz of APT's 30 MHz broadband spectrum within the Duluth-Superior, Fargo and Grand Forks portions of APT's Minneapolis Major Trading Area PCS license. The Registrant will be responsible for managing the network. Consummation of the joint venture is contingent upon the negotiation and execution of definitive agreements and regulatory approvals. A press release providing additional information is filed herewith as Exhibit 99. Item 7. Financial Statements and Exhibits. (c) Exhibits 99 -- Press release dated August 26, 1996, announcing joint venture SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. RURAL CELLULAR CORPORATION. By /s/ Richard Ekstrand Richard Ekstrand Its President Dated: August 28,1996 EX-99 2 PRESS RELEASE EXHIBIT 99 FOR IMMEDIATE RELEASE RURAL CELLULAR CORP. & AMERICAN PORTABLE TELECOM PLAN JOINT VENTURE TO PROVIDE WIRELESS PCS SERVICE IN RURAL MINNESOTA, NORTH DAKOTA AND WISCONSIN PCS SYSTEMS IN DULUTH-SUPERIOR, FARGO AND GRAND FORKS WILL BE AMONG NATION'S FIRST IN RURAL MARKETS AUGUST 26, 1996, ALEXANDRIA, MINNESOTA -- Rural Cellular Corporation -- RCC -- (Nasdaq National Market: RCCC] and American Portable Telecom, Inc. -- APT -- (Nasdaq National Market: APTI] today announced the signing of a letter of intent (LOI) to establish a joint venture named Wireless Alliance, LLC. The Wireless Alliance will construct and operate Personal Communications Service (PCS) networks in Duluth, Minnesota, Fargo and Grand Forks, North Dakota and Superior, Wisconsin. The agreement is expected to open important new PCS markets for the companies, adding significant value to both, and will more than double the population base currently served by RCC's operations. Subject to a definitive agreement requiring regulatory approvals, Wireless Alliance will be 51 percent owned by RCC and 49 percent owned by APT. Under terms of the LOI, the Wireless Alliance will use 20 megahertz of APT's 30 MHz broadband spectrum within the Duluth-Superior, Fargo and Grand Forks portions of the company's Minneapolis Major Trading Area License. RCC will be responsible for managing Wireless Alliance. Designed for business, residential and mobile applications, the new rural PCS systems will be among the first of their kind in the nation. Seen as the next generation of digital wireless communications service, PCS is currently operational in several major cities in the U.S. and worldwide. Like APT's other PCS networks, the new rural networks will use GSM (Global System for Mobile communications) technology. In commercial service since 1992, GSM is the most widely accepted PCS standard, used around the world by more than 162 PCS carriers. The Wireless Alliance network for Duluth-Superior is expected to be fully operational late in 1997, followed by system roll-outs in Fargo and Grand Forks. "By allowing RCC to expand its current coverage into new markets where we do not hold cellular licenses, the joint venture will enable us to fulfill the expectations of our customers and shareholders," said Richard Ekstrand, RCC's president and chief executive officer. "As a result, we expect to realize significant economies of scale by leveraging our sales and marketing team and extensive infrastructure over a much larger base of potential subscribers." "Moreover, we're delighted to be aligned with APT in this venture. Like RCC, they are an aggressive, innovative, entrepreneurial company dedicated to the customer. This will be an exciting partnership." Said Don Warkentin, APT's president and CEO, "This is definitely a win-win agreement for both companies. RCC will expand its market, while APT rapidly expands its GSM footprint, by providing state-of-the-art wireless communications service to several rural markets much sooner than would otherwise have been possible." "RCC is a great marketing partner; the very best partner to be working with in these areas. They've been tremendously successful in their markets and we see wonderful synergy's between our companies." GSM networks such as the ones planned under the joint venture offer greatly enhanced functionality over conventional wireless systems. In addition to voice service, GSM's advanced features include high-speed data, fax and two-way text messaging, as well as Smart Card capabilities. Digital GSM networks also offer calling features such as Caller ID, call-forwarding and call waiting, among others. Like cellular, PCS provides great mobility and compatibility with other telephone networks. RCC said long-term financing to support construction of the PCS network has received preliminary approval. Interest and operating expenses related to this financing will have minimal impact on RCC's 1996 operating results. American Portable Telecom is a majority owned subsidiary of Telephone and Data Systems, Inc. (TDS), a $1 billion-a-year telecommunications company based in Chicago. In April 1996, TDS [AMEX:TDS] sold 17.2 percent of APT in an initial public offering. The company has licenses to provide PCS service in major trading areas covering 27.3 million of the U.S. population. APT's markets include Columbus, Houston, Minneapolis-St. Paul, Pittsburgh and Tampa-St. Petersburg-Orlando. APT also plans to construct networks for its PCS markets using GSM technology, and intends to launch commercial service by early 1997. Rural Cellular Corporation (RCC) was formed in 1990 when 40 independent telephone companies in northern Minnesota merged their cellular interests. RCC became a publicly-traded company in February 1996 through an initial public offering. RCC provides cellular communication services throughout most of northern Minnesota and a paging service in northern Minnesota and eastern North Dakota. RCC markets its cellular services under "Cellular 2000 (R)" and its paging services under "KEYPAGE(R)." # # # Contacts: RCC: Richard Ekstrand APT: J. Clarke Smith President/CEO Vice President, Finance and Admin. 320-762-2000 312-399-4367 Also: Ann Elliott Also: Arianne Venuso Manager, Corporate Communications Public Relations 320-762-2000 312-399-4184 -----END PRIVACY-ENHANCED MESSAGE-----