Leap Wireless International, Inc. | Introduction
Introduction
10307 Pacific Center Court
San Diego, California 92121
U.S.A.
Telephone: (858) 882-6000
Fax: (858) 882-6010
Web site: http://www.leapwireless.com
Public Company
Incorporated: 1998
Employees: 1,400
Sales: $751.3 million (2003)
Stock Exchanges: Over the Counter (OTC)
Ticker Symbol: LEAP
NAIC: 425110 Business to Business Electronic Markets
Leap Wireless International, Inc. is a QUALCOMM Incorporated spinoff that started off quickly, fizzled with the meltdown of the telecom industry, filed for Chapter 11 bankruptcy protection, and is struggling to find its place in an industry that appears to have rendered its business model obsolete. The San Diego company, whose stock trades on an over-the-counter basis, markets Cricket, which originated as a flat-rate wireless telephone service for local calls only (no roaming) with no long-term commitment, essentially sold as an alternative to traditional landline service. Relying on an all-digital CDMA (code division multiple access) network, Cricket is offered in 39 markets in 20 states. The idea of no-frills, flatrate wireless service was appealing at first, and many people turned to it because they did little traveling and did not require roaming capabilities. With major wireless companies now offering cheaper plans, Cricket has begun adding new services, such as the addition of long-distance calling capabilities, unlimited text messaging, voicemail, caller ID, call waiting, three-way calling, and family plans. As a result, there is now little distinction between Cricket and other wireless providers, aside from price, making the company highly dependent on its cost-effective CDMA system.