April 4, 2005

Leap Wireless has expanded its make-over with the launch of new rate plans and service offerings, supported by a re-branding campaign that replaces its long-time green couch icon.

The changes follow the recent launch of its Jump prepaid offering as well as a deal signed with Verizon Wireless that will allow Leap to offer nationwide roaming for its Cricket customers.

"The prepaid launch was big for us, but this is a major change of brand, of offerings and of the company's direction," said Al Moschner, executive vice president and chief marketing officer for Leap.

The new service offerings are a trio of plans dubbed Unlimited Access, Unlimited Plus and Unlimited Classic, which will replace Cricket's existing four rate plans.

Unlimited Access will cost $45 per month and include unlimited local and long-distance calling from a customer's home service area, unlimited access to its newly launched MMS offering, text messaging and AOL Instant Messaging, as well as voicemail, caller identification, call waiting and two free directory-assistance calls per billing cycle.

Customers can also add 100 long-distance calling minutes to Mexico or Canada for $5 per month and a Flex Bucket recurring charge that can be used to access the carrier's BREW-based Cricket Clicks downloadable content.

Moschner noted the Unlimited Access plan offers the same services as its previously available Cricket Unlimited rate plan for about $10 less.

Unlimited Plus will run $40 per month and include unlimited local and long-distance calling plus the ability to add additional feature packs for $5. The available feature packs include voicemail, caller ID, call waiting plus two directory-assistance calls; unlimited MMS, text messaging and AOL IM; international calling; or the Flex Bucket.

Leap will also offer Unlimited Classic for $35, which includes the carrier's original unlimited local calling and the ability to add feature packs for $5. Leap previously offered its unlimited local calling option for $30 per month.

Moschner said the new plans compress the previously offered rate plans at both the high end and low end and that with the increasing use of data services, he expects the new offerings to grow the carrier's approximately $37 in average revenue per user results.

Leap previously stated that it would introduce its roaming option made available through its deal with Verizon Wireless sometime during the second quarter. The offering is expected to be either a per-minute or prepaid option and not intended for heavy roamers.

As part of the new rate plans, Leap's MMS service will include unlimited incoming and outgoing picture and video messaging for $5 per month. The price is well below what is offered by many of Leap's larger competitors and is the same as its previously offered unlimited SMS offering.

"We think the flat-rate nature of the offering is a big value benefit for users," Moschner said, "We are very excited about the launch of MMS and believe that it will have great traction in our markets."

Source: RCR News