Leap is High Bidder on Wireless Operating Licenses Covering 22.4 Million
Potential Customers in FCC Auction - Leap Achieves Favorable Price of $15.62 per
POP -
SAN DIEGO, Jan 26, 2001 /PRNewswire via COMTEX/ -- Leap Wireless International,
Inc. (Nasdaq: LWIN), an innovator of wireless communications services, announced
today that it was the high bidder on 22 wireless operating licenses covering
approximately 22.4 million potential customers (1998 POPs) in the recent
broadband PCS auction held by the Federal Communications Commission (FCC).
leap's high bids totaled $350 million, or $15.62 per POP.
"Our success in the auction has increased the portfolio of licenses we own or
have rights to acquire by 46 percent, to a total of approximately 70.7 million
potential customers in 36 states," said Harvey P. White, Leap's chairman and
CEO. "We used the auction as an efficient, selective way to target the right
markets at the right price. Because of our disciplined bidding, we achieved the
lowest average price per POP among the ten most active bidders in the auction.
This supports our goal to be a wireless carrier with one of the most efficient
cost structures in the country."
"For us, a designated entity bringing innovation to the wireless marketplace,
this auction provided us with the opportunity to acquire more affordable
individual markets that fit our business model, rather than filling out a
national or regional footprint," said Susan G. Swenson, Leap's president and
chief operating officer. "We were successful in achieving our goal of being able
to expand our Cricket service to new markets and regions of the United States."
The largest markets in which Leap agreed to acquire spectrum are Columbus, Ohio;
Providence, R.I.; and Houston and San Antonio, Tex. The complete list of Leap's
acquisitions includes: New London, Conn.; Jacksonville and Melbourne, Fla.;
Columbus and Indianapolis, Ind.; Lexington and Louisville, Ky.; Worcester,
Mass.; Asheville, N.C.; Las Cruces, N.M.; Albany and Poughkeepsie, N.Y.;
Scranton, Pa.; and Austin, Brownsville, Bryan, El Paso and McAllen, Tex. The
transfer of the licenses to Leap remains subject to FCC approval of an
application to transfer the licenses, which will be filed shortly.
"We were particularly pleased with the way the FCC conducted the auction," said
Robert Anselmo, Leap's vice president of business development who managed the
auction process for the company. "The FCC deserves high marks for the efficiency
and relative speed with which the auction was concluded."
As previously announced, Leap tripled its customer base in the fourth quarter of
2000, ending the year with more than 190,000 Cricket customers, thereby
exceeding analyst forecasts and company goals for year-end 2000. Leap expects to
offer its Cricket service -- a flat-rate, all-you-can-talk local wireless
service -- to approximately a million customers by the end of 2001. Leap also
expects to launch its first wireless data services in the first half of this
year.
About Leap
Leap, headquartered in San Diego, Calif., is a customer-focused company
providing innovative communications services for the mass market. Leap pioneered
the Cricket Comfortable Wireless service that lets customers make all their
local calls and receive calls from anywhere for one low, flat rate. Leap
currently has several new services in development, including data services
designed to further transform wireless communications for consumers. For more
information, please visit www.leapwireless.com.
This news release contains "forward-looking statements" reflecting management's
current forecast of certain aspects of Leap's future. Some forward-looking
statements can be identified by forward-looking words such as "believe," "may,"
"could," "will," "estimate," "continue," "anticipate," "intend," "seek," "plan,"
"expect," "should," "would" and similar expressions in this release. The
forward-looking statements are based on current information, which Leap has
assessed but which by its nature is dynamic and subject to rapid and even abrupt
changes. Leap's actual results could differ materially from those stated or
implied by such forward looking statements due to risks and uncertainties
associated with Leap's business. 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 Transition Report on Form 10-K for the
transition period from September 1, 1999 to December 31, 1999 and other
documents filed with the Securities and Exchange Commission. Factors that could
cause actual results to differ include but are not limited to: changes in the
economic conditions of the various markets the operating companies serve which
could adversely affect the market for wireless services; the ability of Leap or
its operating companies to access capital markets; Leap's ability to rollout
networks in accordance with its plans; failure of the systems to perform
according to expectations; the effect of competition; the acceptance of the
product offering by the Company's target customers; its ability to retain
customers; its ability to maintain its cost, market penetration and pricing
structure in the face of competition; uncertainties relating to negotiating and
executing definitive agreements, including the closing of pending transactions;
technological challenges in developing wireless data services and customer
acceptance of such services if developed; and rulings by courts or the FCC
adversely affecting its rights to own and/or operate certain wireless licenses.
We disclaim any obligation to update the forward-looking statements contained
herein to reflect future events or developments. Cricket is a registered
trademark and Comfortable Wireless and the Around-Town Phone are service marks
of Cricket Communications, Inc.
SOURCE Leap Wireless International, Inc.
CONTACT: Jessica Levy, Media Relations, of Bock Communications, Inc.,
714-540-1030, jlevy@bockpr.com, for Leap Wireless; or Sarah Thailing, Media
Relations, 858-882-6018, sthailing@leapwireless.com, or Jim Seines, Investor
Relations, 858-882-6084, jseines@leapwireless.com, both of Leap Wireless
International, Inc.
/Company News On-Call: prnewswire.com or fax,
800-758-5804, ext. 132891
URL: leapwireless.com
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