May 16, 2006

Leap Wireless International reported plans to swap 10 megahertz of 1.9 GHz spectrum covering Grand Rapids, Mich., for 10 megahertz in Rochester, N.Y., currently held by Cingular Wireless.

The move plays into Leap’s market-cluster strategy, adding to its upstate New York holdings in the Buffalo-Niagara Falls and Syracuse markets. Each of the licenses covers about 1.1 million potential customers.

“This transaction is consistent with our market clustering strategy and disciplined approach for acquiring spectrum,” said Doug Hutcheson, president and chief executive officer of Leap.

“It will improve our footprint in the Northeast sector, enabling us to provide upstate New York customers with a larger local calling area covering the Buffalo, Rochester and Syracuse markets.”

The transaction must receive regulatory approval.

Source: RCR