All, LEAP NEWS:
Leap Wireless International Files Application with FCC to
Make $19.45 Million Spectrum Acquisition in the United
States
PRNewswire
SAN DIEGO, Oct. 13 /PRNewswire/ --
Wireless communications carrier Leap Wireless
International, Inc. (Nasdaq: LWIN) today
announced that a wholly owned subsidiary of the
company has filed an assignment application with
the Federal Communications Commission (FCC) to make a spectrum
acquisition in the United States. Leap Wireless has agreed to pay AirGate
Wireless, L.L.C. $19.45 million for a 10 MHz F Block license covering
3.27 million potential customers (POPs) in the cities of Charlotte,
Greensboro and Hickory, N.C., and Greenwood, S.C. As part of the
application process, Leap Wireless has applied to qualify for "designated
entity" status, which entitles small businesses to preferential pricing and
payment terms when acquiring PCS frequency in the C and F blocks. Leap
Wireless signed its agreement with AirGate on September 24, 1998, and
submitted its license agreement to the FCC on October 5, 1998. Leap
Wireless expects the license to be transferred during the next 120 days.
"In the United States and selected other parts of the world, we believe there
is a strong potential for a combined Wireless Local Loop (WLL) limited
mobility service targeted to the mass consumer market," said Harvey P.
White, chairman and CEO of Leap Wireless. "This is the first step towards
determining the potential of this market, and we will continue to look at
opportunities to acquire additional spectrum in the future."
AirGate Wireless is a telecommunications company founded by a group of
wireless industry professionals and entrepreneurs. AirGate Wireless
acquired F block licenses for the Charlotte, Greensboro, Hickory-Lenoir
and Greenwood Basic Trading Areas (BTAs) in the FCC's D, E, and F
block PCS auction. On July 22, 1998, AirGate Wireless entered into a
long-term agreement to be the exclusive Sprint PCS affiliate manager in 20
BTAs that include Rocky Mount, Greenville-Washington, Roanoke Rapids,
Goldsboro-Kinston, Jacksonville, New Bern, Wilmington, Hickory,
Asheville and the Outer Banks, N.C.; Columbia, Charleston, Myrtle Beach,
Greenville-Spartanburg, Anderson, Sumter, Florence, Orangeburg,
Greenwood, S.C.; and Augusta and Savannah, Ga. AirGate Wireless'
strategic financial partners are the San Francisco-based venture capital firms
of Weiss, Peck & Greer Venture Partners and JAFCO America Ventures.
Headquartered in San Diego, California, Leap Wireless is a wireless
communications carrier that deploys CDMA networks in domestic and
international markets with strong growth potential. Leap Wireless was spun
off from [ Qualcomm Incorporated ] on September 23, 1998. In
conjunction with its strategic partners, Leap Wireless is building or
anticipates building a combination of fixed and mobile wireless solutions in
Mexico, Chile, Australia, Russia and the United States. The world is going
wireless, and Leap believes CDMA is the technology of choice to increase
the teledensity that is critical to economic growth. For each of its ventures,
Leap Wireless expects to be actively involved in the management of the
networks, combining its experience in international markets with its wireless
technical expertise in CDMA. Leap Wireless 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 about Leap Wireless,
call Leap Wireless investor relations at 1-619-882-6111 or visit the
company's web site at .
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 Information Statement filed with the Securities and Exchange
Commission on September 14, 1998. Those risk factors include the
uncertainties relating to costs and profitability of development stage
companies, the substantial leverage of Leap Wireless and its operating
companies, the uncertainties regarding Leap Wireless ability to access
capital markets, and the risks associated with international emerging
markets. SOURCE Leap Wireless International, Inc.
(Copyright 1998)
_____via IntellX_____
Publication Date: October 13, 1998
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