September 12, 2005

Leap Wireless International said it has signed an agreement to sell its 30-megahertz C-block license covering Anchorage, Ala., and 10-megahertz E-block license covering Duluth, Minn., to subsidiaries of Dobson Communications for $10 million.

Dobson Cellular Systems Inc. picked up the Alaska license, while American Cellular Corp. acquired the Minnesota license.

Doug Hutcheson, Leap's president and chief executive officer, said the sale was part of the carrier's plan to "optimize the value" of its current spectrum portfolio, and it expects to use proceeds from the sale to support its future growth initiatives.

Leap, which offers wireless service through its Cricket brand in more than 35 markets, recently won 13 spectrum licenses covering nearly 20 million potential customers for $235 million during the Federal Communications Commission's Auction 58.

The deal also strengthens Dobson's presence in Alaska, where the carrier claims it's currently the state's largest operator, providing service to 92 percent of Alaska's population.

Dobson now will have access to 85 megahertz of spectrum in the Anchorage market through its previous acquisition of AT&T Wireless Services Inc.'s cellular holdings, a deal signed last year to lease up to 30 megahertz of spectrum in the 1.9 GHz spectrum band from GCI and the acquisition of Leap's C-block license.

Dobson's American Cellular subsidiary also will control 35 megahertz of spectrum in the Duluth market following the sale.

Source: RCR News