Leap Wireless Pays $18.7 Million for 36 Markets Won in PCS Reauction

With a $18.7 million bid, Leap Wireless International Inc. (San Diego) was the highest bidder on 36 licenses in the reauction of PCS spectrum. The licenses cover 11.2 million potential people, averaging $1.66 per customer. The low price per potential customer is expected to facilitate Leap's deployment of its Cricket service, which offers unlimited local wireless calls for a flat monthly rate.

The company is waiting for a ruling from the Federal Communications Commission (FCC) on whether it qualifies as a designated entity, a status that would enable Leap to acquire licenses for PCS spectrum in the C and F blocks. The licenses can transfer to Leap only if it qualifies as a designated entity and obtains approval of its long form application with respect to the auction.

The largest markets in which Leap will acquire are Salt Lake City, UT; Little Rock, AR; Tulsa, OK; Albuquerque, NM; Tucson, AZ, Spokane, WA; and Wichita, KS.