Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
UCS Invicta: Integrated Flash
Deploy flash memory technology to
deliver peak workload performance.

Find out more>>
Apple/Mac
Gartner's #1 for endpoint backup
Average Rating:
Rate this article:  
AT&T Snaps Up Leap to Challenge Low-Cost Carriers

AT&T Snaps Up Leap to Challenge Low-Cost Carriers
By Jennifer LeClaire

Share
Share on Facebook Share on Twitter Share on Linkedin Share on Google Plus

"I expect to see another wave of consolidation just like this AT&T Leap Wireless deal. Expect to see more deals with Verizon, Sprint and others," said Jeff Kagan, an independent wireless industry analyst.
 

Related Topics

AT&T
Acquisition
3G
LTE



After a failed attempt at acquiring T-Mobile -- and in the face of industry consolidation -- AT&T cut a deal to snap up prepaid wireless provider Leap Wireless. AT&T is willing to hand over $15 million per share in cash.

Under the terms of the acquisition agreement, AT&T will acquire all of Leap's stock and wireless properties, including licenses, network assets, retail stores and about 5 million subscribers.

With the Leap buy, AT&T is indeed adding strategic assets to its brand. Leap's network covers about 96 million people in 35 U.S. states. Under the Cricket brand, the carrier operates a 3G CDMA network, as well as a 4G LTE network covering 21 million people in these areas, and has 3,400 employees.

The acquisition includes spectrum in the PCS and AWS bands covering 137 million people and is largely complementary to AT&T's existing spectrum licenses. As soon as the ink dries, AT&T plans to put Leap's unutilized spectrum -- which covers 41 million people -- to use in furthering its 4G LTE deployment and providing additional capacity and enhanced network performance for customers' growing mobile Internet usage.

Leveraging Cricket

AT&T also plans to keep the Cricket brand name, provide Cricket customers with access to AT&T's 4G LTE mobile network, tap into Cricket's distribution channels, and expand Cricket's presence to additional U.S. cities.

Through these initiatives, the second-largest wireless carrier expects to compete more effectively, offer better device choices, improve customer care, and enhance its mobile Internet experience for consumers seeking low-cost, prepaid wireless plans.

AT&T expects Cricket's employees, operations and distribution will jump start AT&T's expansion into the highly competitive prepaid segment. After the merger, AT&T said it will have the financial resources, scale and spectrum to go head to head with other major national providers for customers interested in low-cost prepaid service.

Of course, the transaction is subject to review by the Federal Communications Commission and the Department of Justice. AT&T expects the transaction to close in six to nine months.

Will the Deal Go Through?

We caught up with Jeff Kagan, an independent wireless industry analyst, to get his thoughts on the deal. He told us the increasing pressure caused by limited spectrum will be helpful if there are fewer competitors in the space.

"I expect to see another wave of consolidation just like this AT&T Leap Wireless deal," he said. "Expect to see more deals with Verizon, Sprint and others. There are many other carriers that are ready for acquisition."

Kagan is also quick to point out that the U.S. government said no to the AT&T/T-Mobile tie up because it was two of the top four players. He expects this deal to go through since Leap is a smaller brand.

"Regulators will always take a close look at approval now that there are fewer players, but I don't see any problems with this AT&T Leap Wireless deal at this point," Kagan said. "Leap Wireless will be helpful to AT&T, however it won't upset the competitive apple cart so it should be a quick approval."
 

Tell Us What You Think
Comment:

Name:



Get Powerful App Acceleration with Cisco. In a world where time is money, you need to accelerate the speed at which data moves through your data center. Cisco UCS Invicta delivers powerful, easy-to-manage application acceleration for data-intensive workloads. So you can make decisions faster and outpace the competition. Learn More.


 Apple/Mac
1.   Screen Troubles Briefly Slow iPhone 6
2.   Apple Stock Soars Ahead of iPhone 6
3.   Popular Mailbox App Comes to Mac
4.   Apple Opens China iCloud Data Center
5.   Android Crushing Smartphone Rivals


advertisement
New App To Manage Time Better
Helping to organize your busy life.
Average Rating:
Apple Stock Soars Ahead of iPhone 6
New products generating lots of buzz.
Average Rating:
Popular Mailbox App Comes to Mac
Takes to-do list approach to the inbox.
Average Rating:


advertisement
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Researchers Find Malicious Android Apps Can Hack Gmail
A new study shows that a weakness in the Android mobile operating system can be used to steal sensitive, personal info from unwitting users. Gmail proved to be the easiest app to attack; Amazon, the hardest.
 
UPS Stores in 24 States Hit by Data Breach
Big Brown has been breached. UPS said that about 105,000 customer transactions at 51 of its UPS Store locations in 24 states could have been compromised between January and August.
 
Cost of Target Data Breach: $148 Million Plus Loss of Trust
The now infamous Target data breach is still costing the company -- and its shareholders -- plenty. In fact, the retailing giant forecast the December 2013 incident cost shareholders $148 million.
 

Enterprise Hardware Spotlight
Acer's New Desktop Box Rides the Chrome OS Wave
Filling out its Chrome OS line, Acer is following the introduction of a larger Chromebook line earlier this month with a new tiny $180 desktop Chromebox and also a smaller Chromebook.
 
Feds OK $2.3 Billion IBM-Lenovo x86 Server Deal
IBM and Lenovo are celebrating U.S. approval of their x86-based server deal, having cleared some major security hurdles. The deal makes Lenovo a major player for enterprise data centers.
 
Three New Lenovo PCs Aimed at Business Users
With businesses wanting computing solutions that do more for less money, Lenovo has unveiled three new desktop PCs that it says offer solid computing at a budget-minded price.
 

Mobile Technology Spotlight
Screen Shortage Briefly Puts Brakes on iPhone 6
RAM? Check. Antenna switch? Check. Screen? Oops. Parts suppliers for Apple have found themselves facing a shortage of screens for the new iPhone 6 as next month's release date for the new smartphone looms.
 
Bounty Offered to Coders for Oculus Rift Bugs
Coders who find bugs in software for the Oculus Rift VR immersive headset could receive a reward of at least $500 under Facebook's White Hat bounty program. Facebook acquired Oculus in March.
 
Google Glass Adds Voice Access to Phone Contacts
The latest update to Google Glass will let users access their top 20 phone contacts with voice commands alone. A user can then choose a phone call, Google hangouts, e-mail or text messaging.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.