Ericsson and Leap Wireless International Sign USD 330 Million Mobile
Infrastructure Agreement (See my addendum at bottom re: LU ...Tim)
Ericsson and wireless communications carrier Leap Wireless International, Inc.
today announced a signed agreement to provide USD 330 million in mobile
network equipment for Leap's U.S. subsidiary, Cricket Communications.
Ericsson will supply and install state-of-the-art digital mobile systems that
will provide next-generation voice and multimedia data services based on the
phase one cdma2000 standard, known as 1XRTT. Ericsson will provide Radio Base
Stations (RBS), CMS 11 Base Station Controllers (BSC), switching equipment,
and a full portfolio of services including network design, deployment and
training.
In connection with sales of equipment, Ericsson will provide Leap with vendor
financing that will be used for equipment, services and operations needed to
expand its wireless network in various markets across the United States. The
Ericsson agreement is part of Leap's strategy to work with multiple world-
class infrastructure vendors.
"We're proud to have the opportunity to contribute to the success of
Cricket's innovative service offering," said Åke Persson, president of
Ericsson's CDMA Systems business unit. "As a leading supplier of CDMA
solutions, Ericsson is committed to providing high quality networks to Leap
Wireless International and all of its operations, and we look forward to a
strong relationship over the long term."
"We are pleased to be working closely with Ericsson as it continues to
develop state-of-the-art CDMA infrastructure equipment," said Harvey P.
White, chairman and CEO of Leap. "We believe that our relationship with a
world-renowned vendor like Ericsson will allow us to provide the highest-
quality wireless service to Cricket and Leap customers."
"We believe that Ericsson's expertise in designing and supporting premier
communications solutions will be important to Cricket's success as it rolls
out across the United States," said Susan G. Swenson, president of Leap and
CEO of Cricket.
cdmaOne is one of the fastest growing wireless technologies in the world,
currently serving close to 35 million subscribers. Ericsson's cdmaOne networks
deliver the full advantages of CDMA technology for strong performance in
mobile, fixed and data applications. cdmaOne networks offer a clear migration
path to cdma2000, enabling operators to evolve their networks to provide the
full range of third generation services.
The financing agreement described above is subject to Ericsson obtaining the
approval of its Board of Directors.
This news release contains certain forward-looking statements, which are based
upon certain assumptions and describe future plans, strategies and
expectations of Leap Wireless International, are generally identifiable by use
of the words "believe," "expect," "intend," "anticipate," "estimate,"
"project" or similar expressions. The ability of Leap 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 Leap are
described in the section entitled "Risk Factors" in Leap's Information
Statement filed with the Securities and Exchange Commission on September 14,
1998. Those risk factors include the uncertainties relating to costs and
profitability and the ability to raise sufficient capital for continued
expansion and operation.
Ericsson is the leading provider in the new telecoms world, with
communications solutions that combine telecom and datacom technologies with
freedom of mobility for the user. With more than 100,000 employees in 140
countries, Ericsson simplifies communications for its customers - network
operators, service providers, enterprises and consumers - the world over.
Please visit Ericsson's Press Room at: ericsson.se
FOR FURTHER INFORMATION, PLEASE CONTACT
Ericsson Contacts:
Michelle French, Media Relations
Phone: 1-858-332-5241; Fax: 1-858-332-7203
Email: m.french@ericsson.com
Eric Österberg, Communications Director
Ericsson Corporate Communications
Phone: +46 70 590 05 99
Email: eric.osterberg@lme.ericsson.se
Leap Wireless International Contacts:
Sarah Thailing, Media Relations
Phone: 1-858-882-6018; Fax:1-858-882-6030
Email: sthailing@leapwireless.com
Jim Seines, Investor Relations
Phone: 1-858-882-6084 Fax: 1-858-882-6030
Email: jseines@leapwireless.com
COMPANY INFORMATION
About Cricket Communications, Inc.
Cricket Communications, Inc., a subsidiary of Leap Wireless International;
plans to change the way people communicate by bringing wireless communications
to the U.S. mass consumer market. Cricket's service, called "Comfortable
SM SM
Wireless" and the "around-town phone," has been operating in
Chattanooga, Tennessee since early 1999 using Chase Telecommunications'
infrastructure and licenses under an agreement that provides that ChaseTel
controls the business until Leap's proposed acquisition of ChaseTel is
complete. Cricket's service lets customers make and receive unlimited calls
within their local service area for one low, flat rate. Cricket's service also
allows customers to make long distance calls by paying for these calls in
advance. While roaming is not available, the local service area provides
coverage where people live, work, and play. Leap has rights to acquire
licenses to offer the Cricket service to approximately 24 million potential
subscribers (1998 POPs) in markets across the country such as Albuquerque,
N.M., Charlotte, N.C., Dayton, Ohio, Little Rock, Ark., Memphis and Nashville,
Tenn., Salt Lake City, Utah, Spokane, Wash., Tucson, Ariz., Tulsa, Okla., and
Wichita, Kans.
About Leap Wireless International, Inc.
Leap Wireless International, Inc., headquartered in San Diego, Calif., is a
wireless communications carrier that deploys, owns and operates wireless
networks in domestic and international markets with strong growth potential.
Through its operating companies, Leap has launched all-digital wireless
service in the United States, Mexico, Chile and Russia. 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.
Looks like two deals:
Tue Sep 21 LWIN Ericsson signs $330 mln U.S. wireless deal - Reuters Securities
Tue Sep 21 LU
LWIN Alert: Lucent Says Gets $330 Mln Pact From Leap Wireless - Reuters Securities
...snip!...Lucent will provide infrastructure equipment and financing for Leap's U.S. subsidiary, Cricket Communications. Cricket will work with Lucent to expand its wireless network in key markets across the country. Under the terms of the agreement, Lucent will supply and install CDMA (Code Division Multiple Access) network wireless infrastructure equipment and services, including base stations and switches. Cricket will also use Lucent Technologies NetCare (R) professional and network support services for the network buildout....snip!...
...snip!...Ericsson will supply and install state-of-the-art digital mobile systems that
will provide next-generation voice and multimedia data services based on the
phase one cdma2000 standard, known as 1XRTT. Ericsson will provide Radio Base
Stations (RBS), CMS 11 Base Station Controllers (BSC), switching equipment,
and a full portfolio of services including network design, deployment and
training....snip!... |
