Leap, ANB select Nortel to provide 3G network

October 12, 2005

Leap Wireless International and Alaska Native Broadband 1 License (ANB), a Leap joint venture, announced the signing of three-year agreements collectively estimated at US$130 million with Nortel for 3G wireless network equipment.

The agreements include Nortel CDMA2000 1X and 1xEV-DO wireless technology, which are expected to help enhance the experience of Leap and ANB subscribers by supporting delivery of feature-rich services like Web browsing, streaming audio and video, multimedia messaging, wireless gaming, and VPNs.

Under terms of the agreements, Leap's operating subsidiary, Cricket Communications, has committed to purchase US$90.5 million of equipment, while ANB has committed to US$39.5 million.

"As we progress into the future, we expect to maintain our focus on operating efficient networks while we introduce new, customer-driven products and services that will enhance the value of our wireless service," said Glenn Umetsu, chief technical officer for Leap.

The agreements with Leap and ANB call for Nortel to deploy CDMA2000 1X and EV-DO radio base stations, base station controllers, CDMA Packet MSC switching and other related equipment in various Leap markets and in additional markets that Leap and ANB obtained through the FCC's Auction 58 earlier in 2005. These markets include: San Diego, Houston and Temple/Killeen, Texas for Leap; and San Antonio, Austin, Cincinnati, Lexington, Louisville and Bryan/College Station, Texas for ANB.

Nortel recently replaced existing Leap infrastructure equipment in Modesto, Merced and Visalia, Calif., and was selected as the CDMA infrastructure supplier for Leap's new market build in Fresno, Calif.

Leap and ANB plan to begin the launch of their commercial EV-DO networks in 2006, enabling subscribers to download data on their mobile devices at speeds up to 2.4 megabits per second, which is approximately up to 10 times faster than today's 1X network.