AT&T to Acquire Prepaid Carrier Leap Wireless/Cricket for $15/Share

Discussion in 'iOS Blog Discussion' started by MacRumors, Jul 12, 2013.

  1. macrumors bot

    MacRumors

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    AT&T has agreed to acquire 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 with Apple to sell iPhones.
    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
     
  2. macrumors 68020

    AHDuke99

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    #2
    Congrats to those stock holders... :p
     
  3. macrumors G4

    Small White Car

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    #3
    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.
     
  4. macrumors 6502a

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    Excuse my ignorance but, why would AT&T, a GSM carrier, want Leap/Cricket, a CDMA carrier?
     
  5. macrumors 6502

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    #5
    I was just wondering myself what ATT will do with them. I guess time will tell.
     
  6. macrumors 68030

    osofast240sx

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    #6
    Spectrum for LTE
     
  7. macrumors 68020

    smithrh

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

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    I wonder if AT&T will use this to improve their network...no, no probably not.
     
  9. macrumors 68020

    shanmugam

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    #9
    poor t-mobile

    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!
     
  10. macrumors 65816

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    #10
    Cool. Just keep inching closer to a monopoly...
     
  11. macrumors 68030

    osofast240sx

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    T-Mobile has more LTE up than Sprint. Cash was not Sprints problem.
     
  12. macrumors 601

    goobot

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    #12
    The company was deep in bankruptcy, buying them is a lot better in many ways rather letting them fall apart.
     
  13. zin
    macrumors 6502

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    #13
    AT&T still remains a monopoly from the old days, albeit a smaller one.
     
  14. macrumors newbie

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    #14
    Less competition, higher prices. What isn't to like?
     
  15. macrumors 68020

    theBB

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    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.
     
  16. macrumors 68000

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    So they can eliminate all competition. One day there will be one american phone company
     
  17. macrumors 6502

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    #17
    Until they get broken up, again. :rolleyes:
     
  18. macrumors 68020

    Prodo123

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    #18
     
  19. macrumors 6502

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    #19
    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."
     
  20. macrumors member

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    #20
    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?
     
  21. macrumors 68040

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    #21
    It's a about the spectrum. AT&T couldn't care less about their customer base. They were rapidly losing customers anyway.
     
  22. macrumors 68020

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    #22
    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.
     
  23. macrumors 603

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    #23

    Hspa and lte are just newer versions of CDMA anyway
     
  24. macrumors 65816

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    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.
     
  25. macrumors 68040

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    #25
    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.
     

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