Leap, MetroPCS sign multi-pronged deal covering roaming, litigation, spectrum
Deal hints at closer relationship between flat-rate carriers
September 29 2008 - 11:41 am ET | Dan Meyer | RCR Wireless News
Flat-rate, unlimited wireless carriers Leap Wireless International Inc. and MetroPCS Communications Inc. have thrown aside years of animosity and legal entanglements with a new roaming agreement, plans for a spectrum swap and a decision to resolve pending litigation between the two companies.
The companies said the new, 10-year roaming agreement will cover existing and future markets and allow their respective customers to access wireless services in each other’s markets at “a more attractive and competitive price.” Both operators, which rely on CDMA network technology, continue to have issues securing nationwide roaming agreements with nationwide operators at terms they consider fair.
Leap and MetroPCS also announced a spectrum deal that will see Leap acquire an additional 10 megahertz of spectrum in San Diego and Fresno, Calif., Seattle, and portions of Washington and Oregon. As for MetroPCS, the carrier will get an additional 10 megahertz of spectrum in Dallas/Ft Worth and other portions of Texas, as well as in Shreveport-Bossier City, La. and Lakeland-Winter Haven, Fla. Financial terms of the deal were not released.
Both carriers have begun rolling out more spectrum-intensive data services, and their need for more spectrum may be linked to such activities.
Finally, Leap and MetroPCS announced a settlement in their legal battle, which comes in the form of a cross-license agreement for intellectual property “held or applied for by either company.” While details of the settlement are sparse, it’s likely the detente is related to court action brought by MetroPCS against Leap claiming Leap was using business practices it gleaned when the two companies were discussing merger possibilities. The merger talks eventually faltered.
Analysts still expect Leap and MetroPCS to form some sort of stronger alliance — up to and including a merger. The last go-round ended in November when MetroPCS dropped its $5.1 billion public bid for Leap.
October 4, 2008 06:11 am
They need to do what is best for the stock holders and customers considering the economic situation we are in. Merge the companies and end up with a stonger and larger organization.
September 30, 2008 06:05 am
Its about time we Metro Pcs customers been waiting for something like this
September 30, 2008 06:05 am
I can only speak for Cricket service when saying that it would actually be a good thing if the phones would receive calls in the markets they are supposed to before forging roaming agreements.Cricket phones in Oklahoma City frequently don't ring when someone tries to call you, and you only know that they tried to call if they leave a voicemail.
September 29, 2008 11:46 am
I'm keeping a close eye on Leap Mobile because they have been suggested as a strong front-runner to purchase some or all of the Alltel territories required to be divested by Verizon should the merger go through. This is good news - anything that makes them a stronger company is good for us - one of those Alltel Authorized Agents who are waiting with bated breath like a prize wench in a street fight, to see who we end up with.
September 29, 2008 11:46 am
Way to go Metro & Leap! Now I can use my $50 a month unlimited everything phone everywhere I am or am planning to go, for no addtitional cost. Now, there is NO WAY I would ever go back to AT&T & their $99 waste of money.
September 29, 2008 11:46 am
Very good.I have long maintained that in the market's love affair with various forms of investment vehicles, companies that lived in a cash world like Metro were underappreciated. Now that we're fiscally falling back to earth, the Time is Now for prepaid carriers. I encourage them to provide ever more services which their credit-challenged but increasingly communications-literate customer base will value ever more, giving those carriers even more customer lock-in, more services revenue, and more loyal customers. Let AT&T & Comcast fight over multiple-play for those with a high credit score, Metro+Leap can have the relatively poorer and more numerous cash-based crowd and make a reliable, cash-based income from it.BLHayes@gmail.comMobile Tech Analyst
September 29, 2008 11:46 am
Let's hope Leap's CEO has finally realized that the two companies together are stonger than each by itself.
September 29, 2008 11:46 am
This is very interesting. I also have heard rumors that Leap had offered to buy some of Verisign's billing system assets - for which Leap and Metro were two of the largest customers.