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Soon to be AT&T's problem, Leap Wireless reports a higher Q4 loss thanks to MetroPCS

Posted: , by Alan F.

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Soon to be AT&T's problem, Leap Wireless reports a higher Q4 loss thanks to MetroPCS
Customers of a certain pre-paid carrier are taking a giant leap away from this mobile operator. Care to guess which company is dropping subscribers like water through a sieve? Leap Wireless lost 91,992 subscribers in the fourth quarter, according to recent SEC filings. That brings the total number of customers of the pre-paid carrier to 4.55 million. The carrier blamed competition from T-Mobile's MetroPCS pre-paid unit for the drop in subscribers. During the third quarter, Leap announced that it had lost 196,000 customers.

Last July, AT&T agreed to buy Leap for $1.2 billion and that deal was approved by Leap shareholders in October. AT&T plans on merging the operations of Leap with those of its pre-paid Aio Wireless division. Eventually, Aio stores will be rebranded using Leap's Cricket Wireless brand. The deal is expected to close on March 14th.

"Competition in the wireless industry has increased and intensified in recent quarters, particularly from carriers and their affiliated brands with robust nationwide networks and significantly greater deployment of 4G LTE technology. In particular, we have been experiencing increased competition in many of our core Cricket markets from nationwide carriers increasingly targeting the prepaid segment, including from T-Mobile's nationwide expansion of the MetroPCS prepaid brand utilizing the T-Mobile 4G LTE network."-Leap Wireless

For the fourth quarter, Leap suffered a net loss of $177 million compared with $73.8 million the previous year. Revenue declined from $756 million to $682.7 million. Churn in the period was 3.5%, an improvement from the third quarter's 4% and the 4.6% reported a year ago. ARPU, at $45.30, was down sequentially from the $45.45 seen in Q3, but up from the $42.73 seen last year. 2.3 million Cricket subscribers now have access to Muve Music and Leap says that it is among the "largest on-demand music subscription services in the U.S. as measured by the number of paid users."

For the entire year, Leap lost 745,297 total net customers, compared to the prior year's loss of 637,229 subscribers.

source: SEC via FierceWireless

8 Comments
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posted on 06 Mar 2014, 12:35 4

1. PapaSmurf (Posts: 8225; Member since: 14 May 2012)


Holy hell I didn't think T-Mobile would cause hat much damage.

posted on 06 Mar 2014, 13:28 3

2. corporateJP (Posts: 1555; Member since: 28 Nov 2009)


As of now, MetroPCS/T-Mobile trumps Cricket's footprint based off the lousy Sprint backbone it rides on currently.

Once AT&T takes over and Cricket is on their network, with the same plans and the aggressive pricing structure, there will be a change of fortune.

posted on 06 Mar 2014, 13:40 3

3. Kishin (Posts: 598; Member since: 30 May 2013)


T-mobile is evolving...

posted on 06 Mar 2014, 14:20 3

4. jroc74 (Posts: 4720; Member since: 30 Dec 2010)


Cricket and MetroPCS are about to be the pre paid services to beat. Using Boost now and the 3G is ugly indoors.

Right now GSM 3G is 10 times better than CDMA 3G.

posted on 07 Mar 2014, 05:16

6. reckless562 (Posts: 702; Member since: 09 Sep 2013)


is it really that much better? ive had vzw 1st n now sprint, n ive Always experienced shltty 3G speeds. like Dial up slow. bareley get a DSL type of connection, i usually get the dialup speed out of 3G CDMA. 4G is diff so ima leave it out, but what do u get on GSM for 3G? NOT counting HSPA or HSPA+, since its been mostly upgraded to deliver 4G speeds.

posted on 07 Mar 2014, 13:27

7. jroc74 (Posts: 4720; Member since: 30 Dec 2010)


"but what do u get on GSM for 3G? NOT counting HSPA or HSPA+, since its been mostly upgraded to deliver 4G speeds."

Ahhh...but thats the secret to GSM 3G now...thats why I say its 10 times better than CDMA 3G.

posted on 07 Mar 2014, 18:02

8. reckless562 (Posts: 702; Member since: 09 Sep 2013)


uhuh.....go figure..... i guess that IS the secret..... i mean we all know that the GSM of today, Shoulda been the GSM of yesterday, they jus didnt wana spend the damn money....... like wit home phone lines. the land carriers jus didnt wana upgrade the homephone network to deliver DSL speed through the Phone lines. freakin bastards are keeping us down technologicly at every turn, till the have no choice to improve for company survival.
i wonder if its the same for the CDMA network?? or is it just dead since it can only b used in north america anyway?

posted on 06 Mar 2014, 20:17

5. Landmarkcm (Posts: 426; Member since: 11 Aug 2009)


To bad they have to change the name to Cricket. I hope they really launch a good marketing campaign when they do! explaining it's new & on GSM etc. I really like Tmobile but wanted to save few more dollars per month. So I switched to Aio wireless. Moto G works great. I do notice a slightly stronger and steadier signal on Aio as well.

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