Leap completes JV acquisition, launches Android device

Leap Wireless International Inc. (LEAP) said its Cricket subsidiary completed the acquisition of the remaining interest in its former joint venture LCW Wireless L.L.C. for $3.2 million. The venture was formed in July 2006 with partners CSM Wireless L.L.C. and WLPCS Management L.L.C.
The JV, originally announced in late 2005, resulted in Leap selling wireless assets and 15 megahertz of spectrum in Toledo and Sandusky, Ohio to regional carrier Cleveland Unlimited Inc., which operates under the Revol brand in Ohio and Indiana. The licenses covered nearly 930,000 potential customers and almost 600,000 covered pops. Leap reaped $28.5 million and an equity interest in LCW Wireless, which owned a wireless license in the Portland market.
Leap then put $25 million toward the formation of the joint venture in Oregon, along with two spectrum licenses and operating assets in Eugene and Salem. Leap originally owned a 73%, non-controlling equity interest in LCW Wireless. CSM Wireless, joined the venture by contributing a Portland spectrum license to the pot, and WLPCS Management bought in with cash.
Earlier this year Leap purchased CSM’s 24% membership interest for $21 million, with the Federal Communications Commission granting approval of the transfer of control of LCW from WLPCS to Leap last month.
Leap (finally) gets Android device
Leap also announced that it has launched Kyocera Communications Inc.’s Zio smartphone, which is powered by Google Inc.’s Android operating system. The device is available for $250 in retail locations or $230 through the carrier’s online channel, and requires customers to sign up for a $55 per month plan that includes unlimited calling, messaging and data services.
The Zio was originally shown earlier this year at the CTIA trade show in Las Vegas, and follows the recent launch of Research In Motion Ltd.’s BlackBerry Curve device by the carrier.