Leap Wireless International Co-Sponsors Luncheon Showcasing Binational Cooperation Between Mexican President Zedillo and California Governor Davis
- PEGASO PCS, Leap's Mexican Operating Company, Pioneers 'Phone in a Box' Distribution Strategy, Adds Second Store in Tijuana -
May 20, 1999 07:30 AM
SAN DIEGO, May 20 /PRNewswire/ -- Wireless communications carrier Leap Wireless International, Inc. LWIN announced that it will co-sponsor a luncheon in San Diego today showcasing binational cooperation between Mexican President Ernesto Zedillo and California Gov. Gray Davis. Leap is the largest shareholder in PEGASO PCS, which is building Mexico's first 100% digital wireless network. Since launching commercial service in its first market, the Tijuana region, in February, PEGASO's customer growth has far surpassed expectations. PEGASO has pioneered a unique "phone in the box" distribution strategy in Mexico that allows customers to buy pre-activated mobile phones from supermarket chains such as Calimax, Oxxo and Gigante. In addition, the wireless carrier recently opened a second PEGASO retail location, in Tijuana's premier shopping district on Paseo de los Heroes, to meet the demand for its high-quality wireless service. PEGASO plans to roll out service in Mexico's three other leading economic centers -- Monterrey, Guadalajara and Mexico City -- by the end of 1999.
"PEGASO is a Mexican company that is bringing state-of-the-art wireless service to the Mexican people by forming international relationships with shareholders around the world," said Alejandro Diez Barroso, president of PEGASO PCS. "By bringing Mexican communications into the 21st century, we are enabling binational economic progress on both sides of the border." PEGASO's shareholders are Grupo Pegaso, a privately held conglomerate, and Grupo Televisa, the world's largest Spanish-language media company, from Mexico; Leap, Citicorp Equity Capital Latin America, AIG-GE Capital Latin America Infrastructure Fund from the United States; and Nissho Iwai Corporation from Japan.
"When binational government, business and cultural ties are strong, everyone benefits because the economies of Mexico and the United States are so closely intertwined," said Harvey P. White, chairman and CEO of Leap. "The cooperation between Leap and PEGASO is an example of the economic benefits and technological advances that businesses can achieve when they choose the right partners on either side of the U.S.-Mexico border."
Teledensity -- the number of phone lines per 100 people -- is only 9.7% in Mexico -- compared to 64% in the United States. The Mexican government has pledged to add 9.5 million phone lines in the next five years. While more than a quarter of Americans use wireless phones, in Mexico, a country of nearly 100 million people, only 3.5% have wireless phones.
About PEGASO PCS
With a planned initial investment of more than $1.3 billion, Pegaso is deploying the first 100% digital network in Mexico. Pegaso plans to offer nationwide PCS service, launching in the country's four largest cities in 1999, starting with Tijuana and moving on to Monterrey, Guadalajara and Mexico City. The Pegaso network will be one of the largest in the Americas. Having acquired the necessary licenses to offer mobile and wireless local loop services nationwide, Pegaso expects to offer top-quality service to a significant share of the Mexican market in the coming years.
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. Through its operating companies, Leap has launched all-digital wireless service in the United States, Mexico, Chile and Russia, and plans to offer service in Australia. 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 PEGASO's wireless 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: the currency exchange and economic risks associated with Mexico, uncertainties regarding Leap or PEGASO's ability to access the capital markets, the delayed build out of the PEGASO network, failure of the PEGASO network to perform according to expectations, and competitive pressure that could affect market demand for PEGASO's services.
SOURCE Leap Wireless International
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