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...
APC Free White Paper
Optimize your network investment &
Enter to win a Samsung Galaxy Note

www.apc.com
Apple/Mac
Next Generation Data Center Is Here!
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
July 15, 2013 1:35PM

    Bookmark and Share
"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:



APC has an established a reputation for solid products that virtually pay for themselves upon installation. Who has time to spend worrying about system downtime? APC makes it easy for you to focus on business growth instead of business downtime with reliable data center systems and IT solutions. Learn more here.


 Apple/Mac
1.   MacBook Pros Get Update, Price Cut
2.   U.S. Firms Fish for Growth Overseas
3.   Will Next OS X Bring New Apple Grief?
4.   Apple and Samsung Feel the Heat
5.   Apple Faces Suit Over Work Breaks


advertisement
Apple Digital Book Settlement Set
But company still appealing decision.
Average Rating:
U.S. Firms Fish for Growth Overseas
Tech trendsetters are going abroad.
Average Rating:
Earnings, Excitement Grow for Apple
Momentum mounts as rumors swirl.
Average Rating:


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

Network Security Spotlight
New 'Backoff' Malware Slips Undetected into Retail Systems
'Malicious actors' are using a new variety of malware to access consumer payment data remotely through point-of-sale systems, according to a report from the Department of Homeland Security.
 
IBM Beefs Up Identity Intelligence Security Solutions
Big Blue is betting big on identity intelligence. IBM just acquired a private firm with security software to govern user access to apps and data across cloud and on-premise environments.
 
USB Security Flaw Lets Hackers Hijack PCs
Hackers can use the firmware that controls USB functions to take control of computers, say security experts. That means there may be a new class of attack for which there are no defenses.
 

Enterprise Hardware Spotlight
AMD's ARM-Based Opteron Out in $3K Dev Kit
It's dubbed "Seattle" and it's AMD's first 64-bit ARM-based Opteron processor. The low-power chip is being released as part of AMD’s Opteron A1100-series developer kit, and aimed at high-end data center needs.
 
Apple Updates MacBook Pros, Cuts Prices Up to $100
The popular MacBook Pro laptop line just got an update and a price cut of as much as $100. The MacBook Pro with Retina display now includes faster processors and double the memory.
 
Dell, BlackBerry Not Sweating Apple-IBM Alliance
IBM's recent move to partner with Apple to sell iPhones and iPads loaded with corporate applications has excited investors in both companies, but two rivals say they are unperturbed for now.
 

Mobile Technology Spotlight
Virgin Mobile Offers Custom Smartphone Plans
As the wireless carrier wars continue heating up, Virgin Mobile just threw the customization coal onto the fire. The firm has debuted a no-annual-contract plan with rates based on individual use.
 
Collaboration Provider Asana Revamps Mobile App
Asana, a collaboration software provider started by a Facebook founder, is now out with a rebuilt native iOS mobile app. It replaces one that even the company admits was not up to par.
 
FTC Wants Fix for 'Perfect Scam' of Mobile Cramming
The U.S. Federal Trade Commission has issued new guidelines to curb “mobile cramming,” a troublesome practice that adds unauthorized third-party charges to mobile phone bills.
 

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.