The new company will be renamed OZ Canada and will become OZ.COM’s main research lab in North America, focusing on Internet application development for GPRS and 3G wireless networks.

The acquisition gives Microcell a nine percent share in OZ.COM and enhances Ericsson’s total share to 20 percent on a fully diluted bases, the company said.

OZ Canada will be built on the combined expertise of Ericsson, Microcell and OZ.COM.

• A $9-million contract with OZ Canada, via Microcell Labs, Ltd., will provide Microcell with value-added services that will be integrated with its PCS services using OZ.COM’s mPresence™ solution for the next three years.
• Products and services will be used to advance wireless Internet applications for its Microcell i5, Microcell’s wireless Internet subsidiary.
• Advance the evolution of the GSM standard.

• A $6-million agreement with Ericsson will focus on the development of 3G mobile and Internet communication applications.
• OZ Canada will access Ericsson’s North American 3G development center and professional staff to test these applications.
• The first products will be based on iPulse™, the IP based communications framework co-developed by OZ.COM and Ericsson.

• Expertise in building services that enable users to wirelessly communicate across networks and devices.
• Services will be built on its mPresence, featuring intelligent routing to deliver applications, such as voice, text, data, SMS and video, and services over converged Internet and mobile networks.

OZ Canada will be developing products and services to enable wireless carriers, wireless service providers, and Internet businesses to offer their subscribers non-proprietary, wireless Internet services and applications over initially GSM networks and then 2.5G and 3G networks.