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AT&T to acquire prepaid carrier Leap Wireless for $15 per share

post #1 of 13
Thread Starter 
Leap wireless on Friday announced that it has entered into an agreement to have AT&T purchase all of the telecom's stock and wireless properties for $15 per share in cash, a move that will net America's second-largest carrier more spectrum, subscribers and retail outlets.

Cricket


While AT&T has yet to comment on the matter, Leap issued a statement on its website stating the terms of the deal worth $1.19 billion, which is scheduled to close within six to nine months pending on regulatory approval.


As part of the agreement, AT&T will take over all of Leap's stock and wireless properties, including licenses, network assets, retail stores and about 5 million subscribers. Leap, which operates under the Cricket Wireless brand, has a 3G CDMA network covering approximately 96 million people across 35 states, as well as a 4G LTE network in the same areas serving 21 million people.x

AT&T will reportedly retain the Cricket name, and will move customers over to its 4G LTE network, while leveraging the company's distribution network to expand its reach to more cities.

Importantly, the acquisition grants AT&T spectrum in the PCS and AWS bands, which are "largely complementary" to AT&T's existing licenses. The telecom plans to use the extra spectrum to extend its 4G LTE service as soon as the deal goes through.

Leap's Cricket was the first prepaid carrier to offer Apple's iPhone in June 2012, selling the 16GB iPhone 4S contract-free for $500 alongside an unlimited plan priced at $55. At the time, the company was seen as paying a $150 subsidy to Apple.r
post #2 of 13
Cricket have some very competitive plans and if they keep the pricing and get to use AT&T's network that would be a good deal. I wonder what the catch will be to keep people on the standard AT&T plans. Probably older and low end phones only and small data allowances I am guessing. Current customers would also need to switch their CDMA phones to GSM ones but the deal probably won't be complete for around a year so no changes anytime soon.
Edited by gwmac - 7/12/13 at 2:57pm

 

Never argue with an idiot. They will only bring you down to their level and beat you with experience. 

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Never argue with an idiot. They will only bring you down to their level and beat you with experience. 

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post #3 of 13

That's a sure way to eliminate the competition of pre-paid carriers, just buy them out.  I only see this as bad for the consumer.

Sad.

post #4 of 13
Quote:
Originally Posted by antkm1 View Post

That's a sure way to eliminate the competition of pre-paid carriers, just buy them out.  I only see this as bad for the consumer.

Sad.

Agreed. many of them are just MVNO's that lease from the big 4. Cricket was one of the last few remaining that had their own network. Who else is even left? U.S. Cellular is the only one that comes to mind that isn't an MVNO with any significant amount of customers. It also sucked that Verizon bought out Alltel. 

 

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Never argue with an idiot. They will only bring you down to their level and beat you with experience. 

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post #5 of 13
Quote:
Originally Posted by antkm1 View Post

That's a sure way to eliminate the competition of pre-paid carriers, just buy them out.  I only see this as bad for the consumer.

Sad.

Agreed! The fastest growing segment of the cell phone industry in the US is prepaid. It's also the least profitable for the cell phone companies.

 

I'm all for free enterprise, but this stinks for the consumer. If big business doesn't want Gov. intervention they need to stop behaving like such sh*theels! :)

post #6 of 13
The unregulated monopolizing continues to grow in monolithic...ness.
post #7 of 13
Would like to se AT&T & Verizon compete against each other a little harder for my business
post #8 of 13
Quote:
Originally Posted by Everett Ruess View Post

Would like to se AT&T & Verizon compete against each other a little harder for my business

The truth is that they don't want you.
post #9 of 13
I like this move. It probably means a temporary hit to AT&T stock, in which case I can get more, removes a small competitor, and gains spectrum for future growth. To those that complain about it being bad for the consumer--you are way too simple minded.
post #10 of 13
They compete like they are the 2 only gas stations in town, pennies difference.
Wish the 2 big telecoms competed like Walmart & Target. Or at least would cut a good discount on a data plan if I paid for my own $650.00 phone upfront
post #11 of 13
Quote:
Originally Posted by dysamoria View Post

The unregulated monopolizing continues to grow in monolithic...ness.

That's not how monopolies work. In a true open, competitive system monopolies cannot form. Because large, moneyed corporate interests can currently have laws written in their favor, they use their Washington connections to suppress competition. That's corporatism, not a free market. This is the same reason we have entrenched corruption and high costs in medicine, insurance and health care. Too much regulation, too much pocket money driving the direction of new laws.

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Proud AAPL stock owner.

 

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Get the lowdown on the coming collapse:  http://www.cbo.gov/publication/45010

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post #12 of 13
With the AT&T acquisition of Cricket and the Sprint (Softbank) acquisition of U.S. Cellular there are truly only four actual carriers in the United States.
post #13 of 13
Interesting that At&T was going to shuffle some subscribers to Leap when they were trying to buy T-mobile http://www.theverge.com/2011/11/28/2595131/at-t-trying-to-save-t-mobile-merger-by-selling-customers-and-spectrum. What happens to the CDMA technology of Leap when acquired by AT&T 's GSM network??
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