SAN DIEGO & DALLAS, Sep 29, 2008 (BUSINESS WIRE) -- Leap Wireless International, Inc. (NASDAQ: LEAP) and MetroPCS
Communications, Inc. (NYSE: PCS) announced today that they have entered
into a national roaming agreement and an agreement to exchange wireless
spectrum, and have settled all outstanding litigation between them.
The new nationwide roaming agreement, which has an initial term of 10
years, covers the companies' existing and
future markets, which the parties expect could ultimately encompass
virtually all of the top 200 markets in the nation. This agreement will
enable wireless subscribers from each company to utilize their wireless
services in both companies' markets at a more
attractive and competitive price.
Additionally, the companies entered into a spectrum exchange agreement
covering licenses in certain markets, with Leap acquiring an additional
10 MHz of spectrum in San Diego, Fresno, Seattle and certain other
Washington and Oregon markets, and MetroPCS acquiring an additional 10
MHz of spectrum in Dallas-Ft. Worth, Shreveport-Bossier City,
Lakeland-Winter Haven, Florida and certain other North Texas markets.
Completion of the spectrum exchange is subject to customary closing
conditions, including the consent of Federal Communications Commission
The settlement resolves litigation relating to the companies'
intellectual property. The companies have entered into a cross-license
agreement for intellectual property related to the litigation and for
other intellectual property that is held or applied for by either
company. All pending litigation between the parties will be dismissed.
"We appreciate the manner in which both
companies seized the opportunity to work together to achieve these
mutually positive results," said Doug
Hutcheson, President and Chief Executive Officer of Leap. "Both
companies are pleased to have enhanced their spectrum portfolio in
several key markets as we seek to provide our customers with the best
wireless products and services. These agreements provide opportunities
for both MetroPCS and Leap to deliver greater value to our customers
across the country."
"We are very pleased to have entered into the
nationwide roaming agreement with Leap. The expanded coverage which
MetroPCS and Leap can offer as a result of this agreement will be a
major benefit to our customers," said Roger
Linquist, Chairman, President and Chief Executive Officer of MetroPCS. "These
agreements benefit both parties and allow each of us to focus on the
growth of our respective businesses."
Further terms of the agreements and settlement were not disclosed.
Leap provides innovative, high-value wireless services to a
fast-growing, young and ethnically diverse customer base. With the value
of unlimited wireless services as the foundation of its business, Leap
pioneered its Cricket(R)
service. The Company and its joint ventures operate in 29 states and
hold licenses in 35 of the top 50 U.S. markets. Through its affordable,
flat-rate service plans, Cricket offers customers a choice of unlimited
voice, text, data and mobile Web services. Headquartered in San Diego,
Calif., Leap is traded on the NASDAQ Global Select Market under the
ticker symbol "LEAP."
For more information, please visit www.leapwireless.com.
About MetroPCS Communications, Inc.
Dallas-based MetroPCS Communications, Inc. (NYSE: PCS) is a provider of
unlimited wireless communications service for a flat-rate with no signed
contract. MetroPCS owns or has access to licenses covering a population
of approximately 149 million people in 14 of the top 25 largest
metropolitan areas in the United States, including New York City, Los
Angeles, San Francisco, Dallas, Philadelphia, Atlanta, Detroit, Boston,
Miami, Tampa, and Sacramento. MetroPCS ranked "Highest In Customer
Satisfaction With Wireless Prepaid Service" in the J.D. Power and
Associates third annual Prepaid Customer Satisfaction Study in July of
2008. As of June 30, 2008, MetroPCS had approximately 4.6 million
subscribers and currently offers service in the Atlanta, Dallas,
Detroit, Jacksonville, Las Vegas, Los Angeles, Miami, Orlando,
Philadelphia, Sacramento, San Francisco, Sarasota and Tampa metropolitan
areas. For more information please visit www.metropcs.com.
This news release includes "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995, as
amended. Any statements made in this news release that are not
statements of historical fact, including statements about the companies'
beliefs and expectations, are forward-looking statements and should be
evaluated as such. Forward-looking statements include information
concerning the parties' plans, objectives,
strategies, goals, future events, future performance and other
information that is not historical information. These forward-looking
statements often include words such as "anticipate," "expect,"
"suggests," "plan," "believe," "intend," "estimates," "targets,"
"projects," "should," "would," "could," "may," "will," "forecast," and
other similar expressions.
These forward-looking statements are based on reasonable assumptions at
the time they are made, including the parties'
current expectations, plans and assumptions that have been made in light
of our experiences in the industry, as well as our perceptions of
historical trends, current conditions, expected future developments and
other factors the companies believe are appropriate under the
circumstances. Forward-looking statements are not guarantees of future
performance or results. Actual financial results, performance or results
of operations may differ materially from those expressed in the
forward-looking statements and projections. Factors that may materially
affect such forward-looking statements include the factors described or
referenced from time to time in each company's
filings with the Securities and Exchange Commission, including its
Annual Report on Form 10-K for the year ended December 31, 2007 and
Quarterly Reports on Form 10-Q, in Part I, Item 1A, "Risk Factors."
SOURCE: MetroPCS Communications, Inc. and Leap Wireless International, Inc.
Greg Lund, 858-882-9105
Amy Wakeham, 858-882-6084
Keith Terreri, 214-570-4641
Vice President - Finance & Treasurer
Jim Mathias, 214-570-4641
Manager - Investor Relations