Leap Wireless International and Lucent Technologies Sign US$330 Million Contract to Expand Cricket Communications Network Across the United States - Company Business and Marketing

Cambridge Telcom Report, Sept 27, 1999

Wireless communications carrier Leap Wireless International, Inc. and Lucent Technologies Tuesday announced an agreement totaling at least $330 million in which Lucent will provide infrastructure equipment and financing for Leap's U.S. subsidiary, Cricket Communications. Cricket will work with Lucent to expand its wireless network in key markets across the country. Under the terms of the agreement, Lucent will supply and install CDMA (Code Division Multiple Access) network wireless infrastructure equipment and services, including base stations and switches. Cricket will also use Lucent Technologies NetCare (R) professional and network support services for the network buildout.

"We appreciate the confidence Cricket has in Lucent to be a key technology provider as it enters new markets," said Chuck Many, Lucent Technologies vice president--Emerging Wireless Carriers. "Lucent Technologies is delighted to be working with Cricket as it continues to offer an innovative service that makes wireless technology available to entirely new market segments."

Cricket Communications seeks to make wireless communications simple, worry-free and affordable for all users, said Susan G. Swenson, president of Leap and CEO of Cricket. The Cricket service is targeted to the mass consumer market, enabling customers to make and receive all their local calls for one low, flat monthly rate. Cricket's service is currently offered in Tennessee, and Cricket Communications plans to deploy the service in additional markets across the United States. Leap has rights to acquire licenses to offer the Cricket service to approximately 24 million potential subscribers (1998 POPs) in markets across the country such as Albuquerque, N.M., Charlotte, N.C., Dayton, Ohio, Little Rock, Ark., Memphis and Nashville, Tenn., Salt Lake City, Utah, Spokane, Wash., Tucson, Ariz., Tulsa, Okla., and Wichita, Kans.

"The Lucent agreement is a significant step forward in Leap's efforts to work with world-class infrastructure vendors," Swenson said. "Lucent's reputation, experience and quality products will enable us to accelerate our plans to bring the Cricket offering to new markets across the country. By working with Lucent, we believe we can meet the rapid growth requirements created by the extraordinary acceptance of Cricket's truly unique concept."

Lucent Technologies is a leading provider of wireless infrastructure equipment utilizing all of the major interfaces available in the market today -- AMPS, TDMA, CDMA and GSM. An industry leader in CDMA technology, Lucent has more than 160 CDMA networks either in commercial operation or under construction for network operators worldwide. Lucent's CDMA networks manage approximately 16 million calls around the world each day. Lucent Technologies supplies mobile and fixed wireless communications systems that offer global service providers standards-based solutions for serving the information needs of consumers and enterprises. The company designs, builds and delivers a wide range of public and private networks, communications systems and software, data networking systems, business telephone systems and microelectronics components. Bell Labs is the research and development arm of the company. Further information about Lucent Technologies is available on the worldwide Web at (http://www.lucent.com).

Cricket Communications, Inc., a subsidiary of Leap Wireless International; plans to change the way people communicate by bringing wireless communications to the U.S. mass consumer market. Cricket's service, called "Comfortable Wireless" and the "around town phone," has been operating in Chattanooga, Tennessee since early 1999 using Chase Telecommunications' infrastructure and licenses under an agreement that provides that ChaseTel controls the business until Leap's proposed acquisition of ChaseTel is complete. Cricket's service lets customers make and receive all the calls they want within their local service area for one low, flat rate. The service also allows customers to make long distance calls by paying for these calls in advance. While roaming is not available, the local service area provides coverage where people live, work, and play.

Leap Wireless International, Inc., headquartered in San Diego, Calif., is a wireless communications carrier that deploys, owns and operates wireless networks in domestic and international markets with strong growth potential. Through its operating companies, Leap has launched all-digital wireless service in the United States, Mexico, Chile and Russia. Leap is dedicated to bringing the benefits of reliable, cost-effective and high-quality voice and data services to domestic and emerging markets. For more information, please visit www.leapwireless.com .