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Leap Wireless
Leap Wireless
Leap Wireless
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Leap Wireless International, Inc. was a telecommunications operator that provided wireless services to approximately 4.6 million subscribers, the 5th largest, through its subsidiary, Cricket Communications, Inc. (Cricket Wireless). It was headquartered in San Diego, California. Leap Wireless and Cricket Wireless are now subsidiaries of AT&T.

Key Information

Leap was founded in 1999 and was built on the premise of unlimited services with no contracts and no credit checks, providing access to wireless services to customers who couldn’t otherwise afford it, didn't want the long-term commitment of a one- or two-year contract, or had a moral or religious objection to a credit check. A credit check is normally required for contract plans offered by telecommunications companies.

Leap has all-digital CDMA 1X, EV-DO and LTE networks that have expanded significantly in the past few years.[1]

On July 12, 2013, AT&T agreed to acquire Leap Wireless for $1.2 billion.[2] On March 13, 2014, the Federal Communications Commission approved the merger between AT&T and Leap Wireless.[3] On the same day, Leap announced the completion of the acquisition by AT&T.[4]

Cricket Wireless

[edit]
Main article: Cricket Wireless

Cricket Communications, Inc. d.b.a. Cricket Wireless or simply Cricket, founded in 1999, was a subsidiary of Leap Wireless International, Inc. prior to Leap's acquisition by AT&T. It provides prepaid wireless services in the United States.

Jump Mobile

[edit]
Jump Mobile
Company typePrivate
IndustryTelecommunications
Founded2005; 21 years ago (2005)
DefunctFebruary 26, 2010 (2010-02-26)
Headquarters
San Diego, California
,
United States
ParentLeap Wireless
Websitejumpmobile.com

Jump Mobile was a subsidiary of Leap Wireless International, Inc. The pre-paid wireless service was not an MVNO, as it used its parent company’s CDMA 1xEV-DO network to provide pre-paid wireless services to its customers. Jump Mobile launched in its first market in 2005, and discontinued services and operations in 2010.

Jump Mobile offered prepaid mobile phone services to customers in 25 U.S. states. Leap Wireless retired the Jump Mobile brand on February 26, 2010, and migrated all customers to its Cricket Wireless "Pay Go" service. Leap Wireless was subsequently acquired by AT&T.

Jump Mobile's features allowed customers unlimited incoming calls from any country, and outgoing calls within the coverage area for a per-minute charge, and unlimited text messaging service within the United States. International text messages and calls were available for additional charges.[5] Through the Cricket/Leap Wireless Network, coverage was about half of the continental United States, with broadband coverage in several metropolitan areas.[6]

The pre-paid service included voicemail, caller ID, call waiting, three-way calling, directory assistance, ringtones, games, and wallpapers.

The terms and conditions for Jump Mobile[7] required customers to maintain paid credit on their accounts. If all funds and minutes expired, after a sixty-day grace period service lapsed and customers lost their telephone numbers.[7] The company offered both "service credit" and "Airtime To Go"; the former expired within a fixed period that began when the credit was applied and that varied based on the amount. "Airtime to Go" had the same range of expiration periods (from 15 to 100 days) but the countdown to expiration didn't begin until the airtime was activated.[7]

History

[edit]
  • Leap Wireless was founded in 1999, spun off as an independently traded company from San Diego–based Qualcomm. Leap was started with the idea to provide affordable wireless services to a wide range of customers, without credit checks or long-term commitments. Under that principle, it founded Cricket Communications in 1999 and launched in Chattanooga, Tennessee that year. During this time, Leap also operated all-digital wireless service in Mexico and Chile under partnership with other companies. In May 2000 Leap Wireless sold its Chilean wireless operator Smartcom PCS to Endesa.
  • In March 2002, Leap sold its 20 percent stake in Mexican Wireless carrier Pegaso PCS to Telefónica Moviles.
  • On September 4, 2007, MetroPCS announced a proposal that MetroPCS and Leap Wireless could merge into a single wireless company.[8] The proposal was withdrawn less than two months later on November 1, 2007. However, due to LEAP's current financial situation, some analysts still believe that a merger will take place.[9][10]
  • On September 10, 2007, Leap's Chief Financial Officer Amin Khalifa, resigned.[11] On November 9, 2007 Leap announced that it would restate its financial statements for fiscal years 2004, 2005 and 2006 and for the first and second quarters of 2007.[12]
  • On December 28, 2007, filed restatements of its earnings with the Securities and Exchange Commission. Leap reported that it had overstated its income by $22.5 million and service revenue by $7.5 million between 2004 and 2007. During the period, Leap had reported an operating profit of $102.2 million and $3.09 billion in service revenue.[13]
  • On February 1, 2010, it was reported that Leap was exploring a sale of the company to a larger rival. Media reports indicated that talks had been held with Verizon Wireless and AT&T Mobility.[14]
  • In August 2010, Leap Wireless entered into a 5-year wholesale agreement MVNO with Sprint Nextel, which allows Cricket to offer its products and services over Sprint's 3G network throughout the United States.
  • On March 31, 2012 Cricket Wireless, part of Leap Wireless International Inc., announced that it plans to become the first pre-paid provider with an iPhone 4 and iPhone 4S in its month-to-month service offer on June 22, 2012.
  • On July 12, 2013, AT&T agreed to buy Leap Wireless for $1.2 billion.[2]
  • On March 13, 2014, the Federal Communications Commission approved the merger between AT&T and Leap Wireless.[3]

Executive Team prior to AT&T acquisition

[edit]
  • S. Douglas (Doug) Hutcheson President, Chief Executive Officer and Director
  • Jerry V. Elliott Executive Vice President and Chief Financial Officer
  • Rob Strickland Executive Vice President and Chief Technical Officer
  • Robert Irving, Jr. Senior Vice President and General Counsel
  • Leonard Stephens Senior Vice President, Human Resources

Coverage Areas

[edit]

Cricket subscribers, prior to the AT&T acquisition, were previously covered by Cricket's own network, along with that of Sprint for native CDMA coverage with voice, text, and data available on these networks. When outside the Cricket or Sprint coverage areas, customers roamed on the Verizon Wireless network and had voice and text services only.

Following the AT&T acquisition, in 2015, the CDMA network was decommissioned and CDMA devices ceased functioning. Presently, customers are covered by AT&T's national LTE/NR network. This network supports LTE on bands 2, 4, 5, 12, 14, 17, 29, 30, 46, and 66; and NR on bands 2, 5, 77, 258, and 260.

References

[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia

Leap Wireless

View on Grokipedia
from Grokipedia
Leap Wireless International, Inc. was an American wireless telecommunications carrier that provided prepaid digital mobile services under the Cricket brand, offering unlimited nationwide voice, text, and data plans without fixed-term contracts or credit checks. Formed as a Delaware corporation in 1998 through a spin-off from Qualcomm Incorporated, the company began publicly trading its shares that September and launched its initial Cricket service in Chattanooga, Tennessee, in March 1999. Headquartered in , , Leap Wireless operated in 48 states and the District of Columbia, covering approximately 292 million people (POPs) through personal communications services (PCS), Advanced Wireless Services (AWS), and 700 MHz spectrum licenses, with a network footprint serving about 96.2 million POPs as of December 31, 2012. By the end of 2012, it served roughly 5.3 million customers via its wholly owned subsidiary Cricket Communications, Inc., and a 75.75% interest in STX Wireless Operations, LLC for markets, generating $3.14 billion in annual revenue primarily from service fees. The company faced financial challenges, including a Chapter 11 bankruptcy filing in 2003 from which it emerged in 2004, but expanded through license acquisitions and wholesale partnerships with national retailers. In July 2013, agreed to acquire Leap Wireless for $1.2 billion in cash, a deal that added about five million prepaid subscribers, extensive spectrum holdings, and retail assets to 's portfolio; the transaction closed on March 13, 2014, following approval.

History

Founding and Spin-Off from Qualcomm

Leap Wireless International, Inc. was incorporated in June 1998 as a corporation and established as a separate entity by Incorporated to consolidate and focus on the development of services, leveraging Qualcomm's CDMA expertise. The spin-off from Qualcomm was completed on September 23, 1998, following a record date of September 11, 1998, through which Qualcomm shareholders received one share of Leap Wireless for every four shares of Qualcomm they owned; Leap's shares began trading on under the LWIN the next day. Upon completion of the spin-off, Leap retained equity interests and operational involvement in several international ventures, including Pegaso Telecomunicaciones in and Metrosvyaz in , as well as stakes in entities in , , and other regions, while Qualcomm held no ongoing ownership in the new company. These international holdings were part of Leap's initial strategy to deploy CDMA-based fixed and mobile networks in emerging markets. Leap's founding operations became effective in 1999, with an initial centered on no-contract, prepaid services aimed at underserved urban and suburban markets , emphasizing affordability and simplicity without credit checks or long-term commitments. The company launched its flagship Communications brand in March 1999, starting with service in , where customers could access unlimited local calling for a flat monthly fee of $29.95, with no roaming charges or activation fees. This marked Leap's first-year milestone, as quickly expanded to select additional U.S. markets that year, establishing a value-oriented prepaid model that differentiated it from traditional postpaid carriers. To streamline its focus on domestic growth, Leap divested its early international equity stakes and joint ventures by 2002, including exiting its investment in Metrosvyaz in in 1999 by ceasing funding and support, selling its Australian subsidiary OzPhone in 1999, divesting its Chilean interest in Chilesat PCS in May 2000, and offloading its 20% stake in to Telefonica Moviles for approximately $17.4 million as part of a larger $87 million transaction in 2002. These sales allowed Leap to redirect resources toward expanding its U.S.-based operations.

Expansion and Financial Challenges

Following its emergence from bankruptcy on August 17, 2004, Leap Wireless pursued aggressive market expansion within the United States, focusing on underserved urban areas through its Cricket brand's no-contract, prepaid wireless model. By the end of 2004, the company had grown its subscriber base to approximately 1.6 million customers, reflecting steady net additions of about 97,000 during the year. This growth continued into 2005, with Leap providing service in 39 markets across the country as of March 31 and over 1.6 million subscribers. To streamline operations and divest non-core assets, Leap sold its 20 percent stake in the Mexican wireless carrier Pegaso PCS to Telefónica Móviles in 2002 for part of an $87 million transaction, allowing the company to refocus resources on domestic expansion. The telecommunications industry downturn, often referred to as the telecom bust of the early 2000s, severely impacted Leap, exacerbating its high debt load from rapid buildout and leading to a Chapter 11 bankruptcy filing on April 13, 2003, with liabilities exceeding $2.4 billion. The company emerged from bankruptcy after restructuring its debt to approximately $400 million, but financial pressures persisted. In November 2007, Leap announced a restatement of its for fiscal years through and the first two quarters of 2007, correcting errors in accounting for vendor incentives and other issues, which reduced previously reported earnings by about $20 million cumulatively. This disclosure triggered a 37 percent drop in Leap's stock price, shareholder class action lawsuits, and an informal inquiry by the U.S. Securities and Exchange Commission into the accounting practices, along with threats of delisting from due to delayed filings. To address these challenges, Leap implemented recovery strategies emphasizing , including debt refinancing and cost reductions in , such as entering caps to manage $450 million in variable-rate term loans and optimizing its low-cost prepaid service model to minimize customer acquisition expenses. These efforts, combined with a focus on high-margin unlimited calling plans, helped stabilize the company by prioritizing underserved markets and reducing overhead, achieving the lowest per in the industry. By the end of , subscriber numbers peaked at approximately 5.5 million, reflecting robust growth in prepaid adoption. reached $3.14 billion in , underscoring the effectiveness of these strategies amid a recovering market, though churn pressures began to emerge later that year.

Acquisition by AT&T

On July 12, 2013, AT&T Inc. announced an agreement to acquire Leap Wireless International Inc. for $1.2 billion in cash, equivalent to $15 per share for all outstanding shares, in addition to assuming approximately $2.8 billion in Leap's net debt. This deal followed Leap's exploration of strategic alternatives amid ongoing financial challenges, including substantial debt and competitive pressures in the wireless market. The acquisition provided with entry into the growing prepaid segment through Leap's Communications brand, which served about 5 million customers, while bolstering 's spectrum holdings with Leap's AWS and PCS licenses covering roughly 138 million people and select 700 MHz assets. However, the transaction excluded Leap's 700 MHz A-block license in the , which remained with a Leap ; net proceeds from its future sale were to be distributed to Leap shareholders via a contingent value right. The deal underwent review by the U.S. Department of Justice (DOJ) and the (FCC) for antitrust and spectrum concentration concerns. The DOJ cleared the transaction without conditions following the expiration of the extended Hart-Scott-Rodino (HSR) Act waiting period in late 2013, after issuing a second in September. The FCC granted approval on March 13, 2014, conditioned on divesting specific PCS and AWS spectrum licenses in 12 cellular market areas (CMAs) where the combined holdings would exceed screen limits, placing them into a divestiture trust for sale to third parties to preserve competition. The acquisition closed on , , making Leap a wholly owned subsidiary of and ending its operations as an independent .

Brands and Services

Cricket Communications

Cricket Communications was launched in March 1999 by Leap Wireless International as its flagship prepaid wireless brand, offering no-contract service plans designed to appeal to underserved urban markets. The service emphasized flexible, unlimited voice and text options without long-term commitments or checks, positioning it as an accessible alternative for customers seeking straightforward mobile connectivity. From its inception, Cricket targeted densely populated urban areas, focusing on ethnic and diverse communities where traditional postpaid carriers often overlooked affordability and simplicity needs. The pay-as-you-go model, known as , allowed users to activate service on a daily or monthly basis, providing unlimited talk and text for a flat fee while avoiding activation or overage charges common in other plans. In 2009, Cricket introduced services supporting speeds, enabling access through devices like USB modems and early smartphones, which expanded its offerings to include basic browsing and . By 2013, the subscriber base had grown to approximately 4.5 million, driven by bundled voice, text, and packages that prioritized affordability for budget-conscious users. These features catered to a core demographic of younger individuals from diverse ethnic backgrounds, as of 2010 with Hispanics and comprising 55% of customers. Marketing efforts for highlighted low-cost, no-hidden-fee plans as a direct counter to expensive postpaid services, using localized campaigns to resonate with young, urban, and ethnically diverse audiences who valued control over their spending. The brand positioned itself through community-focused advertising and partnerships that emphasized reliability and value, appealing to median- to below-median-income households. A key pre-acquisition innovation was the 2011 launch of Muve Music, a bundled streaming service integrated into select plans, offering unlimited music downloads and playback for feature phones at no extra cost, which catered to music-loving demographics and differentiated in the prepaid space.

Jump Mobile

Jump Mobile was Leap Wireless' secondary prepaid brand, launched in 2005 as a per-minute prepaid service utilizing the Cricket Communications network infrastructure. The service was designed to extend Cricket's to price-sensitive customers seeking active control over their spending, particularly in the urban youth and low-income segments who preferred no fixed monthly commitments. By offering ultra-affordable options, Jump Mobile served as an experiment to capture in the prepaid sector from competitors such as TracFone, focusing on basic voice and messaging needs without data capabilities. The pricing model emphasized flexibility for extreme low-income users, with outgoing calls billed at 10 cents per minute for local and long-distance, alongside unlimited incoming calls from any phone and unlimited . Customers could purchase airtime in denominations or opt for bucket plans, such as $15 for 150 anytime minutes of outbound calls, up to $50 for 500 minutes, catering to basic communication without long-term contracts or credit checks. This structure targeted mobile-dependent individuals in urban areas, providing essential connectivity at minimal cost while relying on Cricket's CDMA-based network for coverage in select markets across approximately 20 U.S. states. Operationally, Jump Mobile maintained a limited scope compared to the primary Cricket brand, serving a niche audience with a smaller subscriber base amid Leap's overall growth to over 1.8 million total customers by mid-2006. The brand operated briefly as a for ultra-low-cost prepaid models, emphasizing and for underserved ethnic minority and youth demographics. In 2010, Leap Wireless discontinued Jump Mobile, migrating existing users to the Cricket platform to streamline its prepaid offerings and focus on the core brand.

Operations

Coverage Areas

Leap Wireless initially launched its Cricket service in March 1999, focusing on a limited set of urban markets to test its prepaid, flat-rate model. The first market was , followed by rapid expansion to nine additional cities by the end of 2000, including ; ; , Utah; and . This early emphasis on mid-sized urban areas allowed the company to build a customer base of over 190,000 subscribers in these 10 markets within the first two years of operation. By 2013, Leap had significantly broadened its footprint, offering Cricket services across 48 states and the District of Columbia, with a network covering approximately 97.1 million people of potential (POPs) and licenses spanning 137.7 million POPs. The company operated in numerous metropolitan areas, with a strong presence in over 90 urban and suburban markets nationwide. Primary regions of operation included the Western and , such as (e.g., and ), (e.g., and ), and (e.g., and Orlando), where urban density supported efficient network deployment and customer acquisition. This urban-centric strategy emphasized high-population centers to maximize prepaid service adoption without extensive rural infrastructure. Leap's spectrum holdings played a crucial role in enabling this coverage, particularly through acquisitions of lower-frequency bands for broad urban reach and higher-capacity spectrum for data-intensive areas. The company held licenses in the 700 MHz Lower A and B blocks, including a notable 12 MHz A-block acquisition in the market in 2012, which improved indoor penetration and coverage efficiency in dense environments. Complementing this were Advanced Wireless Services (AWS) licenses in major markets like , , and , providing an average of 23 MHz of capacity per market for handling voice and emerging data traffic. These holdings covered approximately 137.7 million POPs overall, supporting both legacy CDMA networks and the ongoing LTE rollout. In terms of , Leap achieved strong adoption among prepaid customers in diverse urban communities, particularly and African American populations in cities like , , and , Georgia. Cricket's affordable, no-contract plans resonated in these demographics, where prepaid represented a significant share of usage due to economic factors and cultural preferences for flexible services. By December 2013, this contributed to a total subscriber base of about 4.6 million, concentrated in urban areas with high minority representation. A key limitation of Leap's coverage was its absence in rural areas, as the company prioritized cost-effective urban deployments over expansive, low-density networks. Services relied on a CDMA-based for voice and basic data until the pre-acquisition LTE transition, which covered about 21 million POPs by but remained urban-focused. Roaming agreements with other carriers provided limited extension beyond core markets, but no dedicated rural buildout occurred.

Network Technology

Leap Wireless primarily utilized CDMA2000 technology as the foundation of its wireless network infrastructure. The company deployed CDMA2000 1xRTT for voice services and basic data capabilities starting in late 2001, enabling initial 2G-to-3G transition features such as improved call capacity and circuit-switched data rates up to 144 kbps. This was followed by the rollout of EV-DO (Evolution-Data Optimized) for 3G high-speed packet data services, which supported downlink speeds up to 2.4 Mbps and was integrated into Leap's network to enhance mobile broadband access beginning around 2005, though initial planning and trials aligned with broader industry deployments from 2002 onward. In terms of spectrum assets, Leap acquired significant holdings in the 1.9 GHz PCS band, including approximately 10 MHz of nationwide coverage through various transactions and auctions culminating around 2004, which formed the backbone for its CDMA-based operations in urban markets. Complementing this, in 2012, Leap acquired 12 MHz in the Lower 700 MHz A Block in the market via a spectrum swap with Verizon Wireless, providing improved propagation for broader coverage. Network upgrades transitioned to with the LTE rollout commencing in 2011 and expanding in 2012 using AWS (Advanced Wireless Services) bands (primarily 1.7/2.1 GHz), initially in select metropolitan areas like , and eventually covering 11 markets serving about 21 million people with configurations of 3x3 to 5x5 MHz. These deployments achieved peak download speeds up to 12 Mbps in optimized areas, supporting enhanced mobile data experiences. To extend coverage beyond its native footprint, Leap maintained roaming agreements with Sprint, allowing subscribers access to Sprint's nationwide CDMA and EV-DO networks for voice and data, which was crucial for rural and non-core urban reach. Additionally, Leap pursued infrastructure sharing with LightSquared through a 2011 roaming and spectrum hosting pact aimed at accelerating LTE buildout, but the partnership failed due to LightSquared's in 2012 and regulatory issues, leaving no operational impact. Pre-acquisition, Leap's network capacity was optimized for 4G data handling, particularly supporting Muve Music—a Cricket-branded unlimited streaming service—and fixed broadband offerings via LTE modems, managing peak loads in its 4 million-subscriber base through the limited but efficient AWS spectrum allocations.

Leadership

Executive Team Pre-Acquisition

S. Douglas Hutcheson served as the Chief Executive Officer of Leap Wireless International, Inc. from February 2005 until the acquisition by AT&T closed in March 2014. He joined the company in 1998 as part of the founding management team following its spin-off from Qualcomm and held prior roles as President (2005-2012) and Chief Financial Officer (2002-2005 and 2007-2008). Before Leap, Hutcheson was vice president of marketing in Qualcomm's Wireless Infrastructure Division from 1995 to 1998. Under his leadership, Leap shifted its focus to the prepaid wireless market via its Cricket Communications subsidiary, which enabled the company to achieve profitability after emerging from Chapter 11 bankruptcy in 2004 and supported subscriber growth to approximately 5 million by mid-2013. Jerry V. Elliott joined Leap as Executive Vice President and in May 2012 and served in that role until December 2012, managing financial reporting, liquidity, and debt restructuring efforts during a period of spectrum acquisitions and network expansions. In November 2012, he was promoted to President and , a position he held through the acquisition process, overseeing day-to-day operations and strategic initiatives like LTE deployments. Prior to Leap, Elliott was and chief administrative officer at Companies (2009-2012) and held finance leadership roles at and . R. Perley McBride succeeded Elliott as Executive Vice President and in December 2012, leading financial operations up to the 2013 acquisition announcement. McBride focused on capital resources and reporting amid ongoing financial pressures from high debt levels exceeding $2.5 billion. His background included executive vice president of finance at and roles at . The executive team emphasized experienced professionals, many with roots in major industry players. Hutcheson brought expertise from , while others like marketing executive Don McGuire contributed prior experience from Sprint PCS as and . This composition of veterans supported Leap's operational focus on cost-efficient prepaid services and regulatory navigation in competitive markets.

Key Management Decisions

One of the pivotal strategic choices by Leap Wireless' leadership was the adoption of a prepaid, no-contract service model through its brand, launched in 1999 with a flat-rate plan offering unlimited local calling for $29.95 per month without roaming fees. This approach, refined and expanded in 2000 to 10 markets, emphasized accessibility for price-sensitive customers seeking an alternative to traditional postpaid plans, resulting in rapid customer growth to 190,000 subscribers by year's end and positioning the company as a disruptor in the wireless market. To build out network coverage, Leap's management aggressively pursued spectrum through FCC auctions, including significant bids in Auction 66 for Advanced Wireless Services (AWS-1) in 2006, where it secured licenses in major markets such as , , and , enabling entry into urban areas despite the auction's high costs totaling over $13 billion overall. These acquisitions, combined with secondary market purchases like 12 MHz of low-band 700 MHz A-block spectrum from Verizon Wireless in 2011 for $204 million in , were aimed at enhancing low-band propagation for better indoor coverage and rural reach, though they strained finances amid competitive bidding. In a move to streamline branding and reduce operational complexity, leadership discontinued the Jump Mobile per-minute prepaid service in early , migrating all customers to the core Cricket "Pay Go" offering to consolidate marketing efforts and improve under a unified no-contract umbrella. This decision followed the recognition that multiple brands diluted focus in a competitive prepaid segment, allowing resources to concentrate on Cricket's flat-rate model. Facing mounting debt pressures exceeding $2 billion and operational challenges, the Leap board in December 2009 authorized a formal exploration of strategic alternatives, including potential sales or mergers, to stabilize finances and capitalize on the growing prepaid market. This process, initiated amid high leverage from prior spectrum investments and network builds, culminated in substantive talks with starting in 2010, reflecting a pragmatic response to industry consolidation trends.

Legacy

Post-Acquisition Integration

Following the closure of AT&T's $1.19 billion acquisition of Leap Wireless on March 13, 2014, immediate integration efforts focused on Cricket Communications as part of AT&T Mobility's prepaid offerings. AT&T merged its own prepaid brand, Aio Wireless, into Cricket, launching the "new Cricket" on May 16, 2014, which emphasized access to AT&T's nationwide 4G LTE network instead of Leap's legacy infrastructure. This aimed to streamline operations and expand Cricket's service footprint while preserving the name for familiarity among existing customers. A key operational step involved the phased shutdown of Leap's CDMA network, which began on March 15, 2015, and concluded by September 15, 2015, to fully transition customers to 's GSM-based LTE infrastructure. This migration required compatible devices for seamless service, with offering incentives such as free or discounted smartphones to facilitate the switch and minimize service interruptions. The process covered all markets, ensuring that by the end of 2015, operated exclusively on 's network. Asset transfers included the integration of Leap's spectrum holdings into AT&T's portfolio, notably enhancing its Advanced Wireless Services (AWS) and low-band assets. Leap contributed significant AWS spectrum across various markets, which AT&T repurposed to bolster LTE capacity and future deployments, excluding divested portions. This acquisition diversified AT&T's spectrum resources, particularly in urban and suburban areas where had strong presence. For subscriber handling, AT&T migrated Leap's approximately 4.5 million Cricket customers to its plans over an 18-month period, aligning with the network transition and resulting in sustained growth rather than significant losses. Retention efforts, including promotional pricing and device upgrades, contributed to low churn, as evidenced by Cricket's subscriber base expanding to over 5 million by late 2015. Regulatory compliance required AT&T to divest overlapping spectrum in 12 markets—primarily in and —to adhere to FCC spectrum concentration limits and DOJ antitrust conditions. These divestitures, involving 10-20 MHz of AWS spectrum in select markets, were largely directed to through a swap agreement finalized in July 2014, with additional assets going to other carriers like MetroPCS. This ensured competitive balance while allowing AT&T to retain the bulk of Leap's spectrum for integration. The overall timeline culminated in full integration by , at which point Cricket operated entirely as AT&T Prepaid, with unified billing, customer service, and network access under . By then, Cricket had adopted AT&T's operational systems, enabling expanded retail presence and new unlimited plans, marking the complete merger of Leap's assets and operations.

Impact on the Prepaid Wireless Market

Leap Wireless, operating primarily through its Cricket Communications brand, pioneered affordable unlimited prepaid plans in the U.S. wireless market, introducing the "comfortable wireless" model with unlimited local calling for $29.95 per month in the early . This approach emphasized no-contract, flat-rate services that appealed to budget-conscious consumers, setting a benchmark for value-driven offerings and compelling competitors like to develop similar unlimited plans. By 2009, Cricket expanded this innovation with a $40 monthly plan including unlimited talk, text, and data access in over 4,600 cities, further solidifying its role in reshaping prepaid service expectations. The company's model contributed to the broader growth of the prepaid segment, which expanded from approximately 5 million subscribers (about 5% of the total market) in to around 73 million (over 21% share) by late 2013. This surge reflected increasing adoption of no-contract plans among cost-sensitive users, with Cricket's focus on urban and ethnic markets driving competitive pressure on traditional postpaid carriers to lower prices and enhance prepaid options. As a result, prepaid services transitioned from a niche offering to a significant portion of the industry, influencing overall market dynamics during Leap's independent operations. Following AT&T's 2014 acquisition of Leap, bolstered the carrier's prepaid portfolio, integrating its subscriber base and assets to serve over 12.4 million customers by 2021, reaching 13 million as of 2022. This integration strengthened AT&T's position in the low-end prepaid market, enabling expanded nationwide 4G LTE coverage and sustained growth in no-contract services. By 2025, continued to innovate with new affordable unlimited plans starting at $30 per month, maintaining its legacy in supporting AT&T's competitive edge in the prepaid segment, where it captures a substantial share of the market's expansion. Leap's innovations accelerated industry shifts toward MVNO proliferation and widespread no-contract adoption, as its holdings facilitated faster rollouts for affordable providers post-acquisition. By demonstrating viable prepaid , Cricket's model encouraged virtual operators to target niche segments, contributing to the overall rise in flexible, contract-free plans across the market. Additionally, through targeted pricing and focus on underserved urban demographics, Leap helped narrow the by providing accessible wireless services to low-income and minority communities previously overlooked by major carriers.

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  29. https://www.cnet.com/tech/mobile/leap-wireless-gets-its-day-in-the-sun/
  30. https://www.sec.gov/Archives/edgar/data/1065049/000093639206000814/a20369a2sv1za.htm
  31. https://www.phonescoop.com/articles/article.php?a=7167
  32. https://br.advfn.com/bolsa-de-valores/nasdaq/LEAP/share-news/13664265/leaps-jump-mobile-turns-prepaid-wireless-upside-down-jump-says-its-the-best-pre
  33. https://www.cspdailynews.com/technologyservices/valero-rolls-out-jump-mobile
  34. https://androidcommunity.com/att-takes-charge-of-cricket-buys-leap-wireless-for-1-19-billion-20130712/
  35. https://www.wirelessnetworksonline.com/doc/leaps-cricket-customers-triple-to-more-than-1-0001
  36. https://www.rcrwireless.com/20001030/archived-articles/cricket-launched-in-knoxville
  37. https://www.edn.com/leaps-cricket-service-begins-network-transition-to-4g-lte-with-first-commercial-market-launch-in-tucson-arizona/
  38. https://techblog.comsoc.org/2013/07/16/analysis-of-atts-bid-to-acquire-leap-wireless/
  39. https://www.rcrwireless.com/20060925/archived-articles/leap-metropcs-break-into-major-markets-with-aws-spectrum
  40. https://www.forbes.com/sites/glennllopis/2013/07/29/telecom-industry-depends-on-the-hispanic-market-for-future-growth-of-wireless-technology-and-mobile-apps/
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  42. https://www.prnewswire.com/news-releases/leap-announces-closing-of-spectrum-transactions-with-verizon-wireless-167732065.html
  43. https://www.rcrwireless.com/20111221/carriers/leap-launches-first-lte-network-in-tucson
  44. https://www.eeworldonline.com/leaps-1st-lte-takes-off-in-tucson/
  45. https://www.fcc.gov/document/attleap-transaction-order
  46. https://www.reuters.com/article/us-leapwireless/leap-wireless-sets-roaming-pact-with-lightsquared-idUSTRE72L5E720110322/
  47. https://www.bloomberg.com/profile/person/3837364
  48. https://www.linkedin.com/in/s-douglas-hutcheson-991550164
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  51. https://www.reuters.com/article/business/leap-wireless-moves-cfo-to-coo-role-names-new-cfo-idUSL1E8MF1J7/
  52. https://brand-innovators.com/speakers/don-mcguire-2/
  53. https://www.qualcomm.com/company/about/leadership/don-mcguire
  54. https://www.prnewswire.com/news-releases/leap-enters-into-spectrum-transactions-with-verizon-wireless-135050128.html
  55. https://www.sec.gov/Archives/edgar/data/1065049/000119312510076638/dex991.htm
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  58. https://www.fierce-network.com/wireless/at-t-s-cricket-few-cdma-customers-remain-ahead-network-shutdown-including-california
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  65. https://www.rcrwireless.com/20000403/archived-articles/prepaid-faces-its-conundrum-its-more-expensive
  66. https://www.statista.com/statistics/186122/number-of-mobile-cellular-subscriptions-in-the-united-states-since-2000/
  67. https://docs.fcc.gov/public/attachments/DOC-346595A1.txt
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  69. https://www.statista.com/statistics/199359/market-share-of-wireless-carriers-in-the-us-by-subscriptions/
  70. https://www.cricketwireless.com/the-cricket-connection/2025-new-plans.html
  71. https://www.washingtoninformer.com/the-new-cricket-to-deliver-no-annual-contract-wireless-on-reliable-nationwide-4g-lte-network/
  72. https://www.bizjournals.com/houston/stories/2006/06/12/story4.html
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