July 19, 2006

Leap Wireless International has just filed a lawsuit against T-Mobile USA, claiming the national carrier has been undermining competition.

In addition, Leap Wireless says T-Mobile USA has been interfering with the launch of Leap’s Cricket brand in Houston, Texas.

Leap filed the suit July 10 in Harris County, Texas, and accuses T-Mobile USA of interfering with Leap’s contracts with indirect dealers in the Houston area.

According to the complaint, Leap accused T-Mobile USA of devising “a strategy designed to hinder Cricket’s launch and to protect T-Mobile’s position in the Houston marketplace.

This strategy included strong-arm tactics and intimidation towards any indirect dealers who conducted business with Cricket.”

Leap went on to say that T-Mobile USA had flown in about 40 additional managers from around the country to help police independent dealers in the Houston area.

Leap also alleged that T-Mobile USA had cancelled dealer codes, stopped paying commissions and pulled its wares from the stores of independent dealers who sold Cricket’s phones and service.

The complaint also referenced a T-shirt that was allegedly distributed by T-Mobile USA, which featured a dead cricket and the words “Silence the Chirp,” as evidence of the larger carrier’s malicious intent.

T-Mobile USA representatives have said that the company had nothing to do with producing or distributing the T-shirts.

Leap also alleged that T-Mobile USA is putting the same pressure on dealers in Austin, where Cricket service is slated to launch on Aug. 1.

T-Mobile USA did not immediately respond to a request for comment.

Source: RCR News