Leap Wireless International Launches Cricket Service Introducing 'Comfortable Wireless' for all Users
Chattanooga, Tenn. Is Initial Market for Refreshingly Simple Wireless Concept
SAN DIEGO, March 17 /PRNewswire/ -- Wireless communications carrier Leap Wireless International, Inc. (Nasdaq: LWIN) today unveiled the service for its U.S. subsidiary, Cricket Communications(TM), that is designed to make wireless communications simple, worry-free and affordable for all users. Today Cricket launched its new concept in its initial market, Chattanooga, Tenn. Called "comfortable wireless," Cricket's revolutionary new service lets customers make all the local calls they want for one low, flat rate of $29.95 a month. Cricket customers have the comfort of knowing their service always costs the same, no matter how long they talk -- or how many calls they receive.
"We believe Cricket will change the way people communicate by telephone," said Harvey P. White, chairman and CEO of Leap. "Until now, many people have been afraid they couldn't afford a wireless phone. Cricket eliminates worry and stress with a no-surprises monthly bill. Cricket gives people the freedom to stay connected with unlimited local calling where they live, work and play." After successfully launching Cricket, Leap plans to roll it out to other markets in Tennessee and beyond.
Cricket's service is designed for the vast majority of people who want to use their wireless phones for local calls within their metropolitan area. The low monthly rate, payable in advance, covers all-you-can-talk local calls, a voice mailbox and caller ID. Cricket's all-digital phones retail for $99.95. Cricket customers don't have to sign a contract or pass a credit check.
"Our target customers want to use their wireless phones to make local calls every day, without worrying about complicated, out-of-control bills," White said. "Cricket makes wireless communications simple, easy to understand, and affordable." Cricket customers can make long-distance calls by purchasing prepaid calling cards at Cricket stores. Cricket does not include roaming onto other networks outside the Chattanooga area.
In conjunction with its launch, Cricket will kick off a campaign of television, radio, print and outdoor advertising in Chattanooga designed by the award-winning Chattanooga agency, The Johnson Group. In one TV spot, two mothers agree they like the simplicity of Crickets affordable monthly rate -- especially because they don't have to sort through complicated pricing plans to find the best deal. In another, a father gets his teenage daughter a Cricket phone so he knows where she is, while she's sold on the all-you-can- talk local calling.
"The ad campaign is as simple, friendly and approachable as the Cricket name," said Paul Argay, Cricket's vice president of marketing. "Millions of people are interested in wireless service but are anxious, even skeptical, about what it will cost them each month. Now Cricket lets 'around town' people stay in touch throughout their day at a predictable, affordable price."
In January 1999, Leap announced its planned acquisition of Chase Telecommunications Holdings, Inc. (ChaseTel), which launched service in Chattanooga last fall. Leap is launching Cricket together with ChaseTel under an agreement stipulating that control of the business is under ChaseTel management. Leap currently owns 7.2% of ChaseTel. Pending approval from the Federal Communications Commission (FCC), Cricket will acquire ChaseTel licenses that will enable it to offer service to potential customers in Tennessee markets such as Chattanooga, Nashville, Knoxville, and Memphis. Leap is using the ChaseTel infrastructure for the launch of its Cricket service and conventional PCS service is no longer being sold under the ChaseTel brand name.
About Cricket Communications
Cricket Communications, a subsidiary of Leap Wireless International, plans to change the way people communicate by bringing wireless communications to the U.S. mass consumer market.
About Leap Wireless International
Leap Wireless International, Inc., headquartered in San Diego, California, is a wireless communications carrier that deploys, owns and operates wireless networks in domestic and international markets with strong growth potential. In conjunction with its strategic partners, Leap has launched all-digital wireless networks in Mexico and Chile, and plans to offer service in Russia, Australia, and the United States through its operating companies. Leap is dedicated to bringing the benefits of reliable, cost-effective and high-quality voice and data services to domestic and emerging markets. For more information, please visit www.leapwireless.com.
This news release contains certain "forward-looking statements," including statements regarding the future scope of Crickets network. 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 1998 10-K, most recent 10-Q and other documents on file with the Securities and Exchange Commission. Those factors most likely to cause actual results to differ include but are not limited to: delay in or failure to receive FCC approval for the license transfer, uncertainties regarding Leap's ability to access capital markets, the delayed build-out of the system in Tennessee, failure of the system to perform according to expectations, increased competitive pressures that could affect market demand for the new Cricket service, uncertainties relating to costs and profitability of development stage companies, and the substantial leverage of Leap Wireless and its operating companies.
SOURCE Leap Wireless International, Inc.
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