AT&T reportedly in talks to buy Leap Wireless
The Cricket carrier is small, but could have spectrum AT&T needs
Computerworld - AT&T has recently been in talks to buy Leap Wireless, a carrier operating in 35 states with 6 million customers, according to three unnamed sources cited in a report from Reuters.
According to Reuters, Leap hired bankers to advise it on a possible deal, but it wasn't clear whether the talks are ongoing.
Leap is small compared to AT&T, which has 101 million wireless subscribers. Also, Leap operates over a CDMA network, different from AT&T's GSM and LTE networks. Leap's market value is about $400 million.
Leap's primary revenue comes from its Cricket wireless service, a pre-paid, no contract offer.
The talks make sense because AT&T is on a wireless spectrum hunt like many carriers who sell smartphones and tablets. Those devices are expected to dramatically increase demand for bandwidth as video and other data-rich applications roll out over the next few years.
AT&T and Leap declined to comment.
AT&T tried to buy T-Mobile USA for $39 billion last year, but federal regulators blocked the merger.
Deutsche Telekom, which owns T-Mobile USA, has been reported to be trying to merge with another smaller carrier, MetroPCS, although neither company will comment. Sprint reportedly tried to buy MetroPCS in February.
Verizon Wireless recently sought FCC approval to buy $3.9 billion in wireless spectrum from cable companies in two separate deals.
Matt Hamblen covers mobile and wireless, smartphones and other handhelds, and wireless networking for Computerworld. Follow Matt on Twitter at @matthamblen or subscribe to Matt's RSS feed. His email address is email@example.com.
Read more about Mobile/Wireless in Computerworld's Mobile/Wireless Topic Center.
- The Apple-ization of the Enterprise: Understanding IT's New World Read this paper for how to tackle Apple-ization (and the related consumerization of IT and Bring Your Own Device/BYOD).
- A Practical Introduction to Enterprise Mobility Management Read the white paper to better understand the basic concepts within mobility management and to learn how you can apply EMM technology to...
- Enterprise Mobility: A Checklist for Secure Containerization The advantages and disadvantages of the multiple approaches to containerization. Learn More>>
- Enterprise Endpoint Backup Checklist Read this checklist to learn how to create a back up strategy to quickly and easily protect your endpoint data.
- On-demand webinar: "Mobility Mayhem: Balancing BYOD with Enterprise Security" Check out this on-demand webinar to hear Sophos senior security expert John Shier deep dive into how BYOD impacts your enterprise security strategy...
- Mobile Security: Containerizing Enterprise Data In this on-demand webinar, Fixmo's Lee Cocking, VP of corporate strategy, explains why Apple-ization trends like mobility and "bring-your-own-device" (BYOD) are driving the... All Mobile/Wireless White Papers | Webcasts