Leap Wireless and T-Mobile Agree to Exchange Spectrum

Leap Wireless announced license exchange agreements with T-Mobile USA, Cook Inlet/VS GSM VII PCS LLC, a joint venture between T-Mobile and Cook Inlet in which T-Mobile has a non-controlling majority interest (Cook Inlet), and Leap's non-controlled, majority-owned venture Savary Island Wireless, LLC (Savary Island).


Under the swap, Leap will acquire 10 MHz of additional AWS spectrum in Phoenix, AZ and Houston, Galveston and Bryan-College Station, TX to supplement the spectrum Leap currently operates in those markets, among others. Leap and Savary Island have agreed to assign T-Mobile and Cook Inlet spectrum in various markets in Alabama, Illinois, Missouri, Minnesota and Wisconsin. The transactions also include intra-market exchanges between Leap, T-Mobile and Cook Inlet, in Philadelphia, Wilmington, Atlantic City and various markets in Texas and New Mexico, and between Leap and Cook Inlet in certain markets in Texas. Completion of the transaction is subject to regulatory approvals and other customary closing conditions. Financial terms were not disclosed.

"These transactions will enhance our spectrum depth in these markets and provide us longer term flexibility to offer a larger LTE channel. As we have previously announced, we plan to cover approximately two-thirds of our current network footprint with LTE technology over the next two to three years," said Doug Hutcheson, Leap's president and chief executive officer. "In addition the transactions will allow us to re-align spectrum in key markets into contiguous channels thereby optimizing our delivery of wireless services."

Financial details were not disclosed.
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