Leap Wireless International and Lucent Technologies Expand
Relationship for Equipment Sales and Finance
biz.yahoo.com
- Leap Expects to Launch Innovative Cricket Service In 35 Markets
by End of 2001 -
SAN DIEGO, July 5 /PRNewswire/ -- Wireless communications carrier Leap Wireless
International, Inc. (Nasdaq: LWIN - news) and Lucent Technologies (NYSE: LU - news) today announced that they have almost tripled their existing agreement relating to the purchase and sale of network equipment to Leap's Cricket subsidiary. Under the agreement, Leap will purchase approximately $900 million in Lucent's wireless infrastructure equipment and a full array of Lucent's Net Care deployment services. In addition, the two companies have substantially expanded the financing available to Cricket for these purchases and for additional related network costs. This builds on the deal covering $330 million in equipment and services that the two companies announced in September 1999. Under the agreements, Lucent will support the expansion of Leap's innovative local wireless Cricket service. Cricket service lets customers make and receive virtually unlimited phone calls in their local service area and is priced competitively with traditional home phone service. It is designed to make wireless simple,
affordable and worry-free. Leap plans to launch Cricket service in eight more markets by the end of this year and to offer service in a total of 35 markets by the end of 2001.
``Cricket service has met its cost goals while achieving industry-leading penetration and brand awareness in its first two markets,'' said Harvey P. White, Leap's chairman and CEO. ``The expansion of our agreement with a premier vendor like Lucent enables us to deliver expeditiously
on our goal of transforming wireless into a mass consumer product in cities across the United States. With this agreement, Cricket service will help create a world in which people can cut the cord and go completely mobile.''
``Lucent is proud of this latest contract with Leap and views it as a strong vote of confidence from a sophisticated, fast-growing customer,'' said Chuck Many, Lucent Technologies vice president -- Emerging Wireless Carriers. ``Lucent Technologies is delighted to continue working with Leap as it expands its service areas to offer Cricket service. This expansion of our relationship
demonstrates Lucent's support of Leap and a service that we think is capturing a new market segment for wireless communications.''
Under the terms of the expanded agreements, Lucent will continue to supply and install Code Division Multiple Access (CDMA) network wireless infrastructure equipment and services, including base stations and switches, that will enable Leap to expand coverage and increase network capacity to meet rapidly growing customer demand. Leap will also use Lucent Technologies Network Care® professional and network support services for the additional network buildout.
``Lucent has a reputation of bringing high quality products and performance to the marketplace,'' said Susan G. Swenson, Leap's president and chief operating officer. ``By working with a vendor like Lucent, we expect to meet the rapid growth requirements across the country created by the high levels of consumer acceptance of the Cricket concept.''
Leap currently offers Cricket service in Chattanooga and Nashville, Tenn. The company owns or has rights to purchase wireless operating licenses in select markets across the country, including Charlotte, N.C.; Denver, Colo.; Phoenix, Ariz.; and Salt Lake City, Utah. Leap continues to pursue additional spectrum acquisitions to support its plans for growth. As part of its aggressive rollout plan, Leap has ordered more than 1,100 base stations and 12 MSCs (Mobile Switching Centers) and is in the process of deploying them in markets across the country.
About Lucent Technologies
Lucent Technologies, headquartered in Murray Hill, N.J., USA, designs and delivers the systems, software, silicon and services for next-generation communications networks for service providers and enterprises. Backed by the research and development of Bell Labs, Lucent focuses on high-growth areas such as optical and wireless networks; Internet infrastructure; communications software; communications semiconductors and optoelectronics; Web-based
enterprise solutions that link private and public networks; and professional network design and consulting services. For more information on Lucent Technologies, visit its Web site at lucent.com.
About Leap Wireless International, Inc.
Leap Wireless International, Inc., headquartered in San Diego, Calif., is dedicated to playing a leading role in transforming wireless communications for the mass consumer market. As a different kind of wireless company, Leap is designing solutions to make the wireless future a reality. Domestically, Leap has launched the ``Comfortable Wireless'' service called Cricket that lets customers make all their local calls and receive calls from anywhere for one low, flat rate. Leap seeks to spark the wireless revolution by offering innovative voice, mobile Internet and
next-generation services that deliver value to customers. For more information, please visit www.leapwireless.com.
This news release contains ``forward-looking statements,'' including statements regarding the rollout plans and financing of Leap and its operating companies. Forward-looking statements, which are based upon certain assumptions and describe future plans, strategies and expectations of the Company, are generally identifiable by use of the words ``believe,'' ``expect,'' ``intend,'' ``plan,'' ``anticipate,'' ``estimate,'' ``project'' or similar expressions. The ability of the Company to predict actual results and other future events is inherently uncertain. Important factors which may cause actual results to differ materially from the forward-looking statements contained herein or in other public statements by the Company are described in the section entitled ``Risk Factors'' in the Company's Annual Report on Form 10-K for the fiscal year ended August 31, 1999 and other documents filed with the Securities and Exchange Commission. Those factors most likely to cause actual results to differ include but are not limited to: uncertainties regarding the ability of Leap and its operating companies to achieve a time-to-market advantage, launch networks according to plan, raise sufficient capital for continued expansion and operation, performance uncertainties and potential delays relating to the deployment of large scale construction projects and uncertainties relating to negotiating and executing definitive agreements and the closing of transactions described herein.
SOURCE: Leap Wireless International, Inc. |
