It is confirmed that the number two carrier, AT&T, will buy Leap Wireless International Inc for $1.3 billion. After this acquisition, AT&T will have five million more customers and more airwaves or spectrum to expand its network. Leap operates under the brand “Cricket” and AT&T will continue to use this name. It is reported that AT&T will now have access to Leap’s unused spectrum which covers 41 million people in different parts of the country. Leap has been struggling and looking for a way out. Leap has a debt of $2.8 billion and only in the Q1 2013, its loss amounted to $110 as it lost 93,000 of its wireless customers.
This AT&T-Leap deal will be sealed only after the approval of Department of Justice and Federal Communication Commission. We are looking at six to nine months. Back in 2011, AT&T proposed to buy T-mobile USA for $39 billion but it was declined by the Justice department.on grounds that the deal would lessen competition, increase prices and give fewer choices to consumers .