AppleInsider Staff
Leap wireless on Friday announced that it has entered into an agreement to have AT&T purchase all of the telecom's stock and wireless properties for $15 per share in cash, a move that will net America's second-largest carrier more spectrum, subscribers and retail outlets.
While AT&T has yet to comment on the matter, Leap issued a statement on its website stating the terms of the deal worth $1.19 billion, which is scheduled to close within six to nine months pending on regulatory approval.
As part of the agreement, AT&T will take over all of Leap's stock and wireless properties, including licenses, network assets, retail stores and about 5 million subscribers. Leap, which operates under the Cricket Wireless brand, has a 3G CDMA network covering approximately 96 million people across 35 states, as well as a 4G LTE network in the same areas serving 21 million people.
AT&T will reportedly retain the Cricket name, and will move customers over to its 4G LTE network, while leveraging the company's distribution network to expand its reach to more cities.
Importantly, the acquisition grants AT&T spectrum in the PCS and AWS bands, which are "largely complementary" to AT&T's existing licenses. The telecom plans to use the extra spectrum to extend its 4G LTE service as soon as the deal goes through.
Leap's Cricket was the first prepaid carrier to offer Apple's iPhone in June 2012, selling the 16GB iPhone 4S contract-free for $500 alongside an unlimited plan priced at $55. At the time, the company was seen as paying a $150 subsidy to Apple.
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12 Comments
Cricket have some very competitive plans and if they keep the pricing and get to use AT&T's network that would be a good deal. I wonder what the catch will be to keep people on the standard AT&T plans. Probably older and low end phones only and small data allowances I am guessing. Current customers would also need to switch their CDMA phones to GSM ones but the deal probably won't be complete for around a year so no changes anytime soon.
That's a sure way to eliminate the competition of pre-paid carriers, just buy them out. I only see this as bad for the consumer.
Sad.
That's a sure way to eliminate the competition of pre-paid carriers, just buy them out. I only see this as bad for the consumer.
Sad.
Agreed. many of them are just MVNO's that lease from the big 4. Cricket was one of the last few remaining that had their own network. Who else is even left? U.S. Cellular is the only one that comes to mind that isn't an MVNO with any significant amount of customers. It also sucked that Verizon bought out Alltel.
That's a sure way to eliminate the competition of pre-paid carriers, just buy them out. I only see this as bad for the consumer.
Sad.
Agreed! The fastest growing segment of the cell phone industry in the US is prepaid. It's also the least profitable for the cell phone companies.
I'm all for free enterprise, but this stinks for the consumer. If big business doesn't want Gov. intervention they need to stop behaving like such sh*theels! :)
The unregulated monopolizing continues to grow in monolithic...ness.