Verizon Wireless and Leap Wireless (parent company of Cricket) has announced a successful spectrum swap with approval from the FCC. This is part of a larger deal between Verizon Wireless, SpectrumCo, and Cox. Leap will be divesting itself of excess AWS and PCS spectrum across the U.S. Verizon will pay $120 million to Leap and will provide it with 12MHz of A Block 700MHz spectrum in Chicago. Leap will use the cash to build up their LTE infrastructure across the U.S. Check out the press release below:
Leap Announces Closing of Spectrum Transactions with Verizon Wireless
SAN DIEGO, Aug. 28, 2012 /PRNewswire/ — Leap Wireless International, Inc. (NASDAQ: LEAP), a leading provider of innovative and value-driven wireless communications services, today announced that it has completed the previously announced transactions to sell Verizon Wireless excess PCS and AWS spectrum in various markets across the U.S. and to acquire from Verizon Wireless 12 MHz of 700 MHz A block spectrum in Chicago. Upon the resolution of interference issues related to 700 MHz A block licenses, the additional spectrum Leap is acquiring will supplement the 10 MHz of spectrum Leap currently owns and operates in Chicago.
Leap’s non-controlled, majority-owned venture, Savary Island Wireless, LLC (Savary Island), has also completed the sale of AWS spectrum in various markets to Verizon Wireless. In connection with this transaction, Leap also repaid the balance of a promissory note which was secured by a portion of the spectrum Savary Island sold to Verizon Wireless.
“These transactions generated net cash proceeds of more than $120 million that we plan to use to support our ongoing deployment of next-generation LTE network technology,” said Doug Hutcheson, Leap’s president and chief executive officer. “We expect to offer LTE services to at least two-thirds of our current network footprint over the next two to three years.”
The sale of spectrum in these transactions will not impact Leap’s operations in its existing operating markets.