Leap Wireless loses 196,000 subscribers in Q3
Leap said that 76% of the phones it sold in the third quarter were smartphones, up from the 57% it recorded last year. Thanks to subscribers reaching for higher priced plans, ARPU rose to $45.45 in the third quarter, up from $41.94 in the 2012 third quarter. Overall, the company reported a net loss of $185.4 million for the period, up from a $25 million profit in 2012. Total revenue fell 10% to 694 million.
AT&T is hoping to close the acquisition in the first quarter. Leap's shareholders have already approved the deal which still requires FCC and DOJ approval. The nation's second largest carrier is looking to take Cricket nationwide. To that end it will change the name of its Aio service to Cricket and convert Aio stores as well. In addition, AT&T will take the spectrum it acquires from Leap and strip out AWS and other airwaves.