Dec. 15, 2006

Leap Wireless Inc. has completed its acquisition of 13 spectrum licenses that will enable it to extend the reach of its wireless service brands in both North and South Carolina.

The spectrum license acquisition came with a reported price tag of $31.8 million.

The licenses were acquired from Urban Comm-North Carolina for $31.8 million in cash, according to Leap.

Today, Leap offers wireless services under its Cricket and Jump Mobile brands in Charlotte and the Triad area of North Carolina.

The breakdown of the sale involves 10 MHz of spectrum in each of the following markets:

North Carolina:
Asheville-Hendersonville, Burlington, Goldsboro-Kinston, Greenville-Washington, New Bern, Raleigh-Durham, Roanoke Rapids and Rocky Mount-Wilson.

South Carolina:
Florence, Myrtle Beach, Orangeburg, Sumter and Charleston.

Leap Wireless estimates that it now owns wireless licenses covering roughly 9 million potential customers in the Carolinas.

The company hopes to launch its services in these new markets in 2007.

A Citigroup analyst said yesterday that he is optimistic about Leap's growth prospects. The analyst maintained his buy rating on Leap.

Source: Wireless Week