Leap Wireless International and Lucent Technologies Expand
Relationship for Equipment Sales and Finance
PR Newswire - July 05, 2000 08:45
- 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) and Lucent Technologies (NYSE: LU) 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(R) 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.
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