FCC Approves AT&T’s Purchase of Cricket with Conditions

Posted by at 11:21 am on March 14, 2014

fcc-logoThe Federal Communications Commission today approved AT&T’s proposed purchase of Leap Wireless and its assets, including Cricket Wireless.

The acquisition includes 4.6 million customers, as well as spectrum, network equipment, and other assets, all of which will be transferred from Leap to AT&T. However, based on the FCC’s analysis of the proposal, AT&T has to agree to a handful of conditions. First, AT&T has to divest some spectrum in select markets in southern Texas. Second, AT&T has to deploy LTE on Leap’s unused spectrum within three to 12 months after the deal closes. Third, AT&T has to deploy LTE in six Texas markets within 18 months. Fourth, AT&T has to offer certain low-cost rate plans. Fifth, AT&T has to offer a device trade-in program for both smartphones and feature phones.

Further, AT&T has to maintain Cricket’s current CDMA-based roaming agreements for as long as it continues to operate the CDMA network. Last, AT&T has to divest ownership that Leap has in a competitive wireless telecommunications provider (if Leap doesn’t divest them before the deal closes). As long as AT&T does all these things, the FCC believes the proposal will have minimal impact on the competitive nature of the market and will be a net benefit to customers who will eventually gain access to AT&T’s LTE 4G network.

Neither AT&T nor Cricket has said exactly when they expect the deal to close.

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