T-Mobile and Leap Wireless Partner Up

Leap Wireless, parent company of pay-as-you-go cell phone provider Cricket, as agreed to a new deal with T-Mobile. The deal is a license-exchange agreement with T-Mobile that will allow Leap to expand their broadband reach in markets such as Phoenix and large parts of Texas.

Leap has long been a company you don’t hear a whole lot about because more people know of Cricket than the company that owns it. Leap might actually like the fact that they have less notoriety than some of their competitors. That doesn’t mean the company isn’t doing brisk business. In fact the company has been successful enough that AT&T briefly considered purchasing the company back in 2009. 

Now the company, still operating all on its own has managed to expand its reach thanks to its partnership with one of AT&T’s chief rivals. For its part, T-Mobile will achieve a broader spectrum in markets across the Midwest which includes Illinois, Missouri, Minnesota and Wisconsin. The cell phone provider will also see better market share in southern states like Alabama.

While financial terms of the deal have not been released yet, it is known that the agreement also involves Leap Wireless’ noncontrolled majority-owned venture company Savary Island Wireless Inc. T-Mobile’s joint venture company Cook Inlet is also reportedly involved. This particular agreement is expected to support both company’s long term plans for 4G rollout. 

Most cell phone companies are running around trying to get these networks set up across the country as fast as they possibly can.  More and more people across the country are using their smartphones to browse the web and the company that can offer the best browser speed will see significant growth in adoption rates.

Leap says that it hopes to have about 70 percent of its current network covered with LTE and 4G technology over the next couple of years. T-Mobile has spent millions and will spend a total of $4 billion over the next years upgrading its wireless network. The company expects to roll out their 4G LTE network in 2013.