The mad dash for wireless spectrum seems to have hit a fever pitch as it seems all of the major U.S. wireless carriers are making acquisitions expressly in order to further their wireless reach. AT&T is the latest to do so with the acquisition of Leap Wireless International.
The deal cost AT&T about $1.2 billion in cash, but the price is apparently more than worth it as the carrier needs the spectrum acquired in the deal in order to facilitate an expansion of its prepaid service.
As for Leap, its Cricket brand will apparently live on if and when the acquisition is approved, providing Cricket customers with access to the AT&T network. Meanwhile, Cricket will be rolled out to more cities.
The general consensus at the moment seems to be that the acquisition will be approved by regulators, but only after "close scrutiny," according to The Wall Street Journal, as regulators are concerned that U.S. wireless spectrum is becoming over-concentrated in the hands of AT&T and Verizon Wireless. If the merger is approved, the U.S. will still have four national wireless companies.
Last week, Sprint made a similar acquisition, paying about $14 billion for Clearwire after a fierce bidding battle with DISH. Sprint needed to buy Clearwire or it would have lost access to its 4G spectrum, which would have been a potentially fatal blow for the nation's third-largest wireless carrier, while DISH wanted the spectrum to roll out its own nationwide wireless service.
Verizon, meanwhile, has apparently been considering taking its money up north to Canada where buying small carriers Wind Mobile and Mobilicity would give it the spectrum needed to compete with Telus, Bell and Rogers.
AT&T's acquisition of Leap marks the removal of yet another smaller, cheaper option for U.S. consumers — which many contend is a definitively bad situation. Still, Leap's five million or so subscribers will soon enjoy expanded coverage and improved service.
Edited by
Alisen Downey 
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