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MacRumors
Jul 12, 2013, 04:31 PM
http://images.macrumors.com/im/macrumorsthreadlogo.gif (http://www.macrumors.com/2013/07/12/att-to-acquire-prepaid-carrier-leap-wirelesscricket-for-15share/)


http://images.macrumors.com/article-new/2013/07/NewImage5.pngAT&T has agreed to acquire (http://www.businesswire.com/news/home/20130712005729/en/ATT-Acquire-Leap-Wireless) Leap Wireless, the parent company of prepaid U.S. wireless carrier Cricket, for $15/share -- roughly $1.2 billion in cash, plus the $2.8 billion in net debt that the company holds.

The company has 5 million subscribers, and AT&T will keep the Cricket brand and retail stores operating. Last year, Leap engaged in a three-year agreement (http://www.macrumors.com/2013/04/30/leap-wireless-reports-improved-iphone-sales-amid-customer-losses/) with Apple to sell iPhones.
AT&T Inc. and prepaid wireless provider Leap Wireless International Inc. have entered into an agreement for AT&T to acquire Leap for $15 per share in cash. Under the terms of the agreement, AT&T will acquire all of Leap's stock and wireless properties, including licenses, network assets, retail stores and approximately 5 million subscribers. As of April 15, 2013, Leap had $2.8 billion of net debt. Leap shareholders will also receive a contingent right entitling them to the net proceeds received on the sale of Leap's 700 Mhz "A Block" spectrum in Chicago, which Leap purchased for $204 million in August 2012.

Leap's network covers approximately 96 million people in 35 U.S. states. Leap currently operates -- under the Cricket brand -- a 3G CDMA network, as well as a 4G LTE network covering 21 million people in these areas, and has 3,400 employees.The transaction is expected to be closed within six to nine months.

Article Link: AT&T to Acquire Prepaid Carrier Leap Wireless/Cricket for $15/Share (http://www.macrumors.com/2013/07/12/att-to-acquire-prepaid-carrier-leap-wirelesscricket-for-15share/)



AHDuke99
Jul 12, 2013, 04:34 PM
Congrats to those stock holders... :P

Small White Car
Jul 12, 2013, 04:45 PM
I'm sure cynics will disagree, but I suspect AT&T won't change much about Cricket. This gives them the ability to gain price-sensitive customers without diluting the AT&T brand with lower-priced plans. Absorbing or altering Cricket would destroy that opportunity.

lolkthxbai
Jul 12, 2013, 04:47 PM
Excuse my ignorance but, why would AT&T, a GSM carrier, want Leap/Cricket, a CDMA carrier?

UnfetteredMind
Jul 12, 2013, 04:48 PM
I'm sure cynics will disagree, but I suspect AT&T won't change much about Cricket. This gives them the ability to gain price-sensitive customers without diluting the AT&T brand with lower-priced plans. Absorbing or altering Cricket would destroy that opportunity.

I was just wondering myself what ATT will do with them. I guess time will tell.

osofast240sx
Jul 12, 2013, 05:03 PM
Excuse my ignorance but, why would AT&T, a GSM carrier, want Leap/Cricket, a CDMA carrier?

Spectrum for LTE

smithrh
Jul 12, 2013, 05:03 PM
Excuse my ignorance but, why would AT&T, a GSM carrier, want Leap/Cricket, a CDMA carrier?

Most likely spectrum. The customer base isn't the greatest, and as you mention, they use different voice technologies.

hirshnoc
Jul 12, 2013, 05:07 PM
I wonder if AT&T will use this to improve their network...no, no probably not.

shanmugam
Jul 12, 2013, 05:41 PM
t-mobile - they are left out distant fourth (with sprint bought with clearwire and cash from softbank take over)

t-mobiles does not have lower frequency and no more spectrum ...

and poor citizens us - we have one less choice!

Xenomorph
Jul 12, 2013, 05:52 PM
Cool. Just keep inching closer to a monopoly...

osofast240sx
Jul 12, 2013, 06:26 PM
t-mobile - they are left out distant fourth (with sprint bought with clearwire and cash from softbank take over)

t-mobiles does not have lower frequency and no more spectrum ...

and poor citizens us - we have one less choice!

T-Mobile has more LTE up than Sprint. Cash was not Sprints problem.

goobot
Jul 12, 2013, 07:05 PM
Cool. Just keep inching closer to a monopoly...

The company was deep in bankruptcy, buying them is a lot better in many ways rather letting them fall apart.

zin
Jul 12, 2013, 07:26 PM
Cool. Just keep inching closer to a monopoly...

AT&T still remains a monopoly from the old days, albeit a smaller one.

brianFL
Jul 12, 2013, 08:01 PM
Less competition, higher prices. What isn't to like?

theBB
Jul 12, 2013, 08:01 PM
Leap shareholders will also receive a contingent right entitling them to the net proceeds received on the sale of Leap's 700 Mhz "A Block" spectrum in Chicago, which Leap purchased for $204 million in August 2012.
Does that mean AT&T is planning to sell this "A Block" spectrum to another company? I wonder if that is because of an expected FCC requirement for approving the merger, as AT&T probably owns "B Block" spectrum in that area.

winston1236
Jul 12, 2013, 09:05 PM
Excuse my ignorance but, why would AT&T, a GSM carrier, want Leap/Cricket, a CDMA carrier?

So they can eliminate all competition. One day there will be one american phone company

Codyak
Jul 12, 2013, 10:18 PM
So they can eliminate all competition. One day there will be one american phone company

Until they get broken up, again. :rolleyes:

Prodo123
Jul 13, 2013, 12:10 AM
rY0WxgSXdEE

Breaking Good
Jul 13, 2013, 06:42 AM
Until they get broken up, again. :rolleyes:

And the cycle repeats itself.

Somewhere along the way I'm sure we will have a massive government bailout at taxpayer expense because these monopolies will be deemed "too big to fail."

mschmalenbach
Jul 13, 2013, 08:02 AM
Paying effectively $4Bn ($1.2Bn in cash and taking on $2.8Bn in debt) for 5 million customers - that's $800 per PRICE SENSITIVE customer - did AT&T have some kind of mental flip-out?

CEmajr
Jul 13, 2013, 08:18 AM
Paying effectively $4Bn ($1.2Bn in cash and taking on $2.8Bn in debt) for 5 million customers - that's $800 per PRICE SENSITIVE customer - did AT&T have some kind of mental flip-out?

It's a about the spectrum. AT&T couldn't care less about their customer base. They were rapidly losing customers anyway.

maxosx
Jul 13, 2013, 08:37 AM
It's a about the spectrum. AT&T couldn't care less about their customer base. They were rapidly losing customers anyway.

Actually the fact is smartphones are near saturation as seen by both Apple & Samsungs sales numbers. Therefore any loss of contract subscribers is a reflection of the current market conditions. While there's always room for improvement, AT&T is very adept at customer retention. They didn't grow to their present size without providing good customer service.

alent1234
Jul 13, 2013, 09:20 AM
Excuse my ignorance but, why would AT&T, a GSM carrier, want Leap/Cricket, a CDMA carrier?


Hspa and lte are just newer versions of CDMA anyway

krravi
Jul 13, 2013, 12:02 PM
Actually the fact is smartphones are near saturation as seen by both Apple & Samsungs sales numbers. Therefore any loss of contract subscribers is a reflection of the current market conditions. While there's always room for improvement, AT&T is very adept at customer retention. They didn't grow to their present size without providing good customer service.

ATT is very bad at customer retention.

They just charged a 70 cent fee for no reason but to get their balance sheet up by $775 million. I quit out of spite. Was paying $140/month on my service. So I have negated 200 customers worth of 70 cent fee.

The only reason ATT has a reputation is because of their coverage along with Verizon. Customers are just fodder for their balance sheets.

AutoUnion39
Jul 13, 2013, 01:35 PM
ATT is very bad at customer retention.

They just charged a 70 cent fee for no reason but to get their balance sheet up by $775 million. I quit out of spite. Was paying $140/month on my service. So I have negated 200 customers worth of 70 cent fee.

The only reason ATT has a reputation is because of their coverage along with Verizon. Customers are just fodder for their balance sheets.
If AT&T and VZW are so bad, why have they been the only carriers having a net gain of subscribers quarter after quarter? Customer retention is so bad that they keep adding customers right?

Why have TMobile and Sprint been loosing customers during the same period? Because they have terrible customer retention. Uncarrier just makes that worse because they have no incentive to stay, ever.

If 70 cents is too much to pay, I hear not eating saves money in the long run too.

AT&T and VZW have fantastic customer service. The opposite of your beloved TMobile, who has the worst customer service in the business.

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Paying effectively $4Bn ($1.2Bn in cash and taking on $2.8Bn in debt) for 5 million customers - that's $800 per PRICE SENSITIVE customer - did AT&T have some kind of mental flip-out?

Spectrum and they have the money.

Leap will probably be shut down eventually and the spectrum will be used for LTE and HSPA. Very similar to TMobile's MetroPCS merger.

Spectrum Abuser
Jul 13, 2013, 01:45 PM
There are way too many people misusing the word monopoly.

Definition (http://www.investopedia.com/terms/m/monopoly.asp) of 'Monopoly'
A situation in which a single company or group owns all or nearly all of the market for a given type of product or service. By definition, monopoly is characterized by an absence of competition, which often results in high prices and inferior products.

According to a strict academic definition, a monopoly is a market containing a single firm. In such instances where a single firm holds monopoly power, the company will typically be forced to divest its assets. Antimonopoly regulation protects free markets from being dominated by a single entity.

Hspa and lte are just newer versions of CDMA anyway

I hope you were being sarcastic because that's completely wrong.

egoistaxx9
Jul 13, 2013, 03:41 PM
i hope they dont destroy the carrier by offering stupid deals.

maxosx
Jul 13, 2013, 05:43 PM
ATT is very bad at customer retention.

They just charged a 70 cent fee for no reason but to get their balance sheet up by $775 million. I quit out of spite. Was paying $140/month on my service. So I have negated 200 customers worth of 70 cent fee.

The only reason ATT has a reputation is because of their coverage along with Verizon. Customers are just fodder for their balance sheets.

The post above reveals very negative emotional feelings around AT&T. While no carrier can keep all their customers happy, in the decade plus that I've used them my personal experience with a five line plan & many phones has been exemplary.

While their business practices are easily debated, Apples no angel either. It's simply big business circa 2013.

briankwest77
Jul 13, 2013, 07:43 PM
T-Mobile has more LTE up than Sprint. Cash was not Sprints problem.

This is a fairly large lie. Sprint has way more LTE up than T-Mobile right now.

krravi
Jul 13, 2013, 08:28 PM
If AT&T and VZW are so bad, why have they been the only carriers having a net gain of subscribers quarter after quarter? Customer retention is so bad that they keep adding customers right?

Why have TMobile and Sprint been loosing customers during the same period? Because they have terrible customer retention. Uncarrier just makes that worse because they have no incentive to stay, ever.

If 70 cents is too much to pay, I hear not eating saves money in the long run too.

AT&T and VZW have fantastic customer service. The opposite of your beloved TMobile, who has the worst customer service in the business.

----------



Spectrum and they have the money.

Leap will probably be shut down eventually and the spectrum will be used for LTE and HSPA. Very similar to TMobile's MetroPCS merger.

How much does ATT pay you to post these messages? I see that you have been going to every thread you can and bashing TMobile.

BTW who said T-Mobile was my beloved carrier? See? You got outed!

If you read my post carefully you will see that ATT has the best network coverage and people are sometimes forced to choose ATT because no one else has coverage in the area. I am talking about suburban to rural areas.I personally know many people who are having to do that!

There is a difference between a customer having no choice and retaining a customer in spite of his/her options to choose!

Regarding 70 cents? So why stop at 70? Why not just donate like 70 dollars a month to ATT and call it "I love you so much so here is the money" fund?

Talking of which, ATT CEO once said that he is having sleepless nights and wondering if he did the right thing by signing up with Apple in bringing out the first iPhone. He said he is afraid that he will lose revenue for the smartphone could change the industry and destroy traditional revenue channels....

In other words, he would be very happy to charge you an arm and leg for the following screen

1.Browser
2.Email
3.Buy Wall Paper for $1.99
4.Buy Ring tones for $0.99
5.News

Remember those days? That's what ATT would have loved to give YOU the customer!

osofast240sx
Jul 13, 2013, 08:33 PM
This is a fairly large lie. Sprint has way more LTE up than T-Mobile right now.

What are sprints numbers?

krravi
Jul 13, 2013, 08:36 PM
The post above reveals very negative emotional feelings around AT&T. While no carrier can keep all their customers happy, in the decade plus that I've used them my personal experience with a five line plan & many phones has been exemplary.

While their business practices are easily debated, Apples no angel either. It's simply big business circa 2013.

Its based on personal experience.

gluckett
Jul 14, 2013, 03:04 PM
Cool. Just keep inching closer to a monopoly...

You might see it that way. I'm sure everyone reading this forum was seriously considering dumping AT&T for Leap... :rolleyes: