News: Leap Wireless Agrees to Pay $18.7 Million for 36 Markets Won in U.S. Government's PCS Reauction
Thursday April 15, 5:23 pm Eastern Time
Company Press Release
SOURCE: Leap Wireless International, Inc.
Leap Wireless International Agrees to Pay $18.7 Million for 36 Markets Won in U.S. Government's PCS Reauction
- Low Price per POP to Facilitate Deployment of Leap's Unique Cricket Concept -
SAN DIEGO, April 15 /PRNewswire/ -- Wireless communications carrier Leap Wireless International, Inc. (Nasdaq: LWIN - news) today announced that it was the highest bidder on 36 licenses covering 11.2 million potential customers (POPs) for $18.7 million, or $1.66 per POP, in the U.S. government's reauction of PCS spectrum. The low price per potential customer is expected to facilitate Leap's deployment of its unique Cricket service, which brings wireless to an untapped consumer market by offering unlimited local wireless calls for a low, flat monthly rate. Leap is awaiting a ruling from the Federal Communications Commission (FCC) on whether it qualifies as a designated entity, a status that would enable Leap to acquire licenses for PCS spectrum in the C and F blocks. The licenses can transfer to Leap only if it qualifies as a designated entity and obtains approval of its long form application with respect to the auction.
''These acquisitions of spectrum in mid-sized markets will enable Leap to roll out our new Cricket concept bringing affordable, simple wireless communications to people in select markets across the United States,'' said Harvey P. White, chairman and CEO of Leap. In March, Leap and Chase Telecommunications Inc. launched the Cricket wireless service in Chattanooga, Tenn. under an agreement that provides ChaseTel's management controls the business until Leap's proposed acquisition of ChaseTel is complete.
The largest markets in which Leap agreed to acquire spectrum are Salt Lake City, Utah (1.3 million POPs), Little Rock, Ark. (852,000 POPs), Tulsa, Okla. (836,000 POPs), Albuquerque, N.M. (688,000 POPs), Tucson, Ariz. (666,000 POPs), Spokane, Wash. (612,000 POPs) and Wichita, Kans. (597,000 POPs). The complete list of Leap's acquisitions includes: Anchorage, Alaska; Blytheville, Fayetteville, Fort Smith, Hot Springs, Little Rock, Pine Bluff and Russellville, Ark.; Nogales and Tucson, Ariz.; Merced, Modesto and Redding, Calif.; Pueblo, Colo.; Boise, Idaho Falls, Lewiston and Twin Falls, Idaho; Coffeyville and Wichita, Kan.; Bozeman, Mont.; Fargo and Grand Forks, N.D.; Grand Island and North Platte, Neb.; Albuquerque, Gallup and Santa Fe, N.M.; Tulsa, Okla.; Salem, Ore.; Provo and Salt Lake City, Utah; Kenewick, Spokane and Yakima, Wash.; and Casper, Wyo. Note: These POPs are 1990 figures.
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 service in the United States, Mexico and Chile, and plans to offer service in Russia and Australia 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 Cricket's 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: continuing uncertainties regarding the FCC application process, 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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