SAN DIEGO-Leap Wireless International Inc. and its joint-venture partner Alaska Native Broadband 1 License L.L.C. reported a pair of contracts with Lucent Technologies Inc. and Nortel Networks Ltd. to supply CDMA2000 1x EV-DO infrastructure in existing markets and new markets that Leap and ANB acquired during the Federal Communications Commission’s Auction 58 earlier this year.
The Lucent deal is for three years and valued at $125 million, with Leap’s Cricket Communications Inc. subsidiary picking up $119 million of the tab and ANB the other $6 million. As part of the agreement, Lucent will deploy its Flexent CDMA2000 base stations and its Flexent Packet Switch.
Lucent said the equipment would be deployed in Colorado Springs, Colo.; El Paso, Texas; and Las Cruces, N.M. beginning next year.
The Nortel deal is also for three years and valued at $130 million, with Cricket responsible for $90.5 million and ANB committed to $39.5 million. The agreement calls for Nortel to provide 1x and EV-DO radio base stations, base station controllers, CDMA Packet MSC switching and other related equipment.
Nortel said it will deploy the equipment in San Diego; and Houston and Temple/Killeen, Texas for Leap, and in San Antonio, Austin and Bryan/College Station, Texas; Cincinnati; and Lexington and Louisville, Ken., for ANB beginning next year. Nortel noted the new markets will expand its network presence from the current 5 million potential customers to 11 million pops for Leap and to 10 million pops for ANB.
Leap announced last month that it planned to spend $475 million to build out new markets and upgrade existing markets with EV-DO capabilities beginning next year. The carrier currently offers service in 37 markets and with ANB was the high bidder for spectrum licenses during Auction 58 covering 13 new markets.
