SAN DIEGO, Calif.—Leap Wireless International Inc. offered insight into its plans for the spectrum it won in the FCC’s advanced wireless services auction, outlining a buildout that should start next year and ultimately cover about 24 million potential customers at a cost of about $28 per covered pop.
According to a Leap filing with the Securities and Exchange Commission, the carrier will continue its strategy of building out metropolitan areas, and will look at other options for the rural areas covered by the licenses it acquired. The buildout will be done in phases, and is expected to be “substantially completed” by the end of 2009, the company said.
“Based on our preliminary analysis of the auction 66 licenses … that are located in new markets, we believe that a significant portion of the pops included within such new licenses may not be well-suited for Cricket service,” Leap said in the filing. “Therefore, we may seek to partner with other, sell spectrum or pursue alternative products or services to utilize or benefit from the spectrum not otherwise used for Cricket service.”
Leap noted that the 99 licenses it won in the auction cover 121.2 million potential customers, after eliminating license overlaps. Denali Spectrum License L.L.C., in which Leap owns an 82.5-percent, non-controlling interest, covers another 53.6 million after subtracting overlaps. This brings Leap’s total covered pops to 181.7 million, when including its partnerships with Alaska Native Broadband 1 License L.L.C. and LCW Wireless L.L.C.
Leap said it currently has enough funds to complete its phase one buildout.
