ATT Buys Cricket
Jul 19, 2013 by
AT&T Purchases CricketAuthor: Jordan Hafford
In the coming six to nine months, a transaction is expected to close which is currently under review by the FCC and the Department of Justice involving AT&T and Leap Wireless (a flat rate, unlimited wireless service provider currently operating under the Cricket brand). The agreement states that AT&T will acquire all of Leap's stock and wireless properties, which includes about 5 million subscribers. Leap's vast 3G CDMA and 4G LTE networks cover roughly 96 million people throughout 35 states.
The agreement also states that Leap shareholders (who have agreed to vote in favor of the transaction) will be entitled to the net proceeds on the sale of Leap's 700 Mhz "A Block" spectrum.
AT&T will be preserving Cricket's brand name, providing those Cricket customers with their 4GLTE mobile network, and extending Cricket's presence to additional U.S. cities. Results will include increased competition and improved customer care. These factors, among others, will contribute to an overall enhanced mobile Internet experience for consumers.
Pending approval of the transaction, the merged company will then have the profuse means to better compete with other national providers in prepaid service. Cricket's 3,400 employees and resources will beneficially spur AT&T's prepaid segment.
The acquisition includes spectrum in the PCS and AWS bands, and AT&T plans to also utilize Leap's dormant spectrum. The dormant spectrum, which currently reaches 41 million people, will further its 4G LTE movement, provide additional capacity and enhance network performance.