Cricket and MetroPCS Enter into Roaming Agreement

Posted by at 10:14 am on September 29, 2008

Leap Wireless International, Inc. (Cricket  Wireless)  and MetroPCS Communications, Inc. 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 (FCC).

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.”

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