Leap Wireless International Announces $200 Million Sprint PCS Investment In Mexican Joint Venture PEGASO
- Leap Continues to Play Active Role in PEGASO Operations -
SAN DIEGO, MEXICO CITY and KANSAS CITY, Mo., March 16 /PRNewswire/ -- Wireless communications carrier Leap Wireless International, Inc. (Nasdaq: LWIN - news) today announced that a definitive agreement has been reached between PEGASO, a company co-founded by Leap, and Sprint PCS (NYSE: FON - news, PCS - news), that will allow the introduction of new cross border services and a close alignment between two of the largest all-digital, all-CDMA, nationwide PCS networks in the world. The agreement, the first international affiliation for Sprint PCS, includes a governance role for Sprint PCS on PEGASO's governing board and an investment of $200 million by Sprint PCS in the Mexican carrier.
PEGASO offers PCS service in Mexico City, Guadalajara, Monterrey and Tijuana. In December 1999, the company launched service in the Mexican capital, bringing the clarity of 100-percent digital CDMA wireless service to the largest city in the world. Sprint PCS and PEGASO will provide cross-border roaming services that allow Sprint PCS and PEGASO customers to use their PCS phones simply and conveniently in major cities in both countries.
``Sprint PCS' extensive experience in providing all-digital CDMA service combined with Leap's expertise in Latin American markets and PEGASO's knowledge of the local market enable the Mexican carrier to provide its customers with superior PCS service,' said Harvey P. White, Leap's chairman and CEO. ``We are pleased to have Sprint PCS as a partner in this growing marketplace.'
Alejandro Burillo Azcarraga, chairman of PEGASO, said, ``We're delighted to become the first Mexican company to offer its customers access to top quality 100-percent digital wireless service in major North American cities. Sprint PCS' technological and operational expertise, together with PEGASO's profound knowledge of the market and experience in the Mexican telecom sector will enable us, together, to offer our customers seamless access to the most advanced wireless voice and data services in North America.'
``This agreement establishes the first international affiliate for Sprint PCS and is an important step in offering a ubiquitous CDMA network in North America with a strong Mexican partner in PEGASO PCS,' said Andrew Sukawaty, Sprint PCS president. ``Together with PEGASO, we will offer customers on both sides of the border the superior clarity, nationwide coverage and value of our national PCS networks and unique offerings for both of our customer bases who demand cross-border services.'
About Sprint PCS
Sprint PCS operates the largest 100 percent digital, 100 percent PCS nationwide wireless network in the United States, already serving the majority of the nation's metropolitan areas including more than 4,000 cities and communities across the country. Sprint PCS has licensed PCS coverage of nearly 270 million people in all 50 states, Puerto Rico and the U.S. Virgin Islands. For more information, visit the Sprint PCS web site at sprintpcs.com. Sprint PCS is a wholly-owned tracking group of Sprint Corporation trading on the NYSE under the symbol ``PCS'.
Sprint is a global communications company at the forefront of integrating long- distance, local and wireless communications services, and one of the largest carriers of Internet traffic. Sprint built and operates the United States' first nationwide all-digital, fiber-optic network and is a leader in advanced data communications services. Sprint has $20 billion in annual revenues and serves more than 20 million business and residential customers.
About PEGASO
PEGASO is a telecommunications company in Mexico composed of Grupo Pegaso, Grupo Televisa, Citicorp, LAIF and Nissho Iwai, in addition to Leap. With a planned initial investment greater than $1.3 billion, PEGASO is deploying the first 100 percent digital network in Mexico. PEGASO has launched PCS service in the country's four largest cities. Throughout 2000, PEGASO will offer service in 14 more cities completing national coverage by the end of 2001. Having acquired the necessary licenses to offer mobile and wireless local loop services, PEGASO expects to offer top-quality service to a significant share of the Mexican market in the coming years.
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 and Chile. 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 call investor relations at (858) 882-6111 or visit www.leapwireless.com.
This news release contains certain ``forward-looking statements.' 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,' ``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 filed with the Securities and Exchange Commission. Those risk factors include the uncertainties relating to negotiating and executing definitive agreements and closing the transaction described herein, and costs, profitability and the ability to raise sufficient capital for continued expansion and operation.
SOURCE: Leap Wireless International, Inc. |
