San Diego-based Leap Wireless International, Inc. has received the green light from the Federal Communications Commission to sell licenses and operating assets to Verizon Wireless to the tune of $102.5 million.
Leap is selling Verizon a total of 23 spectrum licenses and operating assets, 19 of which are not yet in commercial operation. The licenses and assets cover approximately 8 million potential customers in Alabama, Arkansas, Mississippi, Wisconsin, Michigan and New York.
The FCC approval to complete the sales transaction, which was first announced in March, came Aug. 3.
“We are pleased to have completed this transaction and generate significant net cash for the business,” said Doug Hutcheson, the chief executive officer and president of Leap. “As a result of this asset sale, we have garnered additional liquidity to contribute to our business strategy and future growth, including the development of new products and the expansion of our Cricket service into new markets across the country.”
Leap’s Cricket service is touted as an affordable wireless alternative to traditional land-line service and offers customers unlimited anytime minutes within the Cricket calling area over a high-quality, all-digital network.
After selling these 23 spectrum licenses and operating assets to Verizon, Leap’s leftover total wireless license ownership covers approximately 60.2 million potential customers.