Leap Wireless, which operates the Cricket CDMA network in the USA has announced two transactions that involve selling and exchanging surplus licenses for cash and a license in Rochester, N.Y. Last week the company also announced a renegotiation of its vendor financing loans.
Leap has signed a definitive agreement with AT&T Wireless to exchange six surplus licenses, including Lakeland, Florida, and portions of other spectrum in Pueblo, Colorado and Salem, Oregon, covering 1.6 million potential customers (2001 POPS) in five states for a 10-MHz license in Rochester, New York. The agreement provides that the Rochester license will be transferred to Leap with the telecoms regulator's five-year minimum build-out requirement satisfied. The pending transaction is subject to certain conditions, including approval by the FCC.
In an unrelated transaction, Leap has also signed a definitive agreement with Skagit Wireless to sell four surplus licenses covering approximately 633,000 potential customers (2001 POPs) for an undisclosed amount of cash. This pending transaction is subject to certain conditions, including approval by the regulator.
"The exchange agreement is a cost-effective way to acquire a strong market in the Northeast that can be launched in the future," said Harvey P. White, Leap's chairman and CEO. "With these pending transactions, we are selling and exchanging surplus spectrum in markets that we have already launched or, like Rochester, are not included in our 40 market plan."'"
Posted to the site on 3rd April 2002
Posted to: www.cellular-news.com/story/6319.php