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Leap Wireless

Former American telecommunications operator and parent of Cricket Wireless.

Last updated October 14, 2026

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Overview

Leap Wireless International was an American telecommunications operator established in 1999 after being spun off from San Diego-based Qualcomm. The company was created around a relatively distinctive proposition for the U.S. wireless market: provide affordable mobile service without the long-term contracts and credit checks commonly associated with traditional postpaid plans. Its operating model targeted customers who wanted predictable prepaid pricing, could not easily qualify for contract service, or preferred not to submit to a credit assessment. Leap’s principal consumer business was Cricket Communications, which operated under the Cricket Wireless brand. Cricket launched in Chattanooga, Tennessee, in 1999 and expanded as a prepaid wireless provider. Leap built and operated digital CDMA networks, including CDMA 1X and EV-DO systems, and later expanded into LTE. At different points, Cricket service relied on Leap’s own network, roaming arrangements, and wholesale network access. The company’s strategy combined network ownership in selected markets with prepaid distribution and simplified monthly plans. Before its acquisition by AT&T, Leap served approximately 4.6 million subscribers and was described as the fifth-largest U.S. wireless operator by subscriber scale at that time. Leap also pursued activities outside the United States during its earlier development. It operated or held interests in wireless businesses in Mexico and Chile through partnerships and investments. In May 2000, the company sold its Chilean operator, Smartcom PCS, to Endesa. In March 2002, it sold its 20 percent interest in Mexican carrier Pegaso PCS to Telefónica Móviles. These transactions reflected a shift toward concentrating resources on the U.S. prepaid wireless business. The company operated additional prepaid brands and services. Jump Mobile launched its first market in 2005 and used Leap’s own CDMA 1xEV-DO network rather than functioning as a conventional mobile virtual network operator. It eventually served customers in 25 U.S. states, but Leap retired the brand on February 26, 2010, moving customers to Cricket’s Pay Go service. Jump Mobile offered prepaid voice and messaging, international calling and texting options, voicemail, caller identification, call waiting, three-way calling, directory assistance, ringtones, games, and wallpapers. Its account-credit rules required customers to maintain paid balances and included expiration and grace-period provisions. Leap faced strategic and financial pressure as competition intensified among prepaid carriers. A proposed combination with MetroPCS was announced in September 2007 but withdrawn in November of that year. In the same period, the company disclosed that it would restate several years of financial statements after identifying overstatements in reported income and service revenue. Leap later explored a possible sale to a larger carrier, with Verizon Wireless and AT&T Mobility reported as potential discussion partners. In August 2010, it entered a five-year wholesale agreement with Sprint Nextel, allowing Cricket to offer service over Sprint’s nationwide 3G network. Cricket also expanded its device portfolio, announcing in 2012 that it would offer the iPhone 4 and iPhone 4S on month-to-month prepaid plans. AT&T agreed to acquire Leap Wireless on July 12, 2013, for approximately $1.2 billion. The Federal Communications Commission approved the transaction on March 13, 2014, and Leap announced completion of the acquisition the same day. Following the transaction, Cricket became part of AT&T’s prepaid portfolio, while Leap Wireless ceased to operate as an independent company. AT&T subsequently retired the legacy CDMA network in 2015, requiring remaining CDMA devices to be replaced as customers transitioned to AT&T network technology. Leap Wireless therefore survives primarily as a historical corporate entity and as part of the ownership history of Cricket Wireless rather than as a standalon…

History

Leap Wireless International emerged in 1999 as an independent company spun off from Qualcomm in San Diego. Its founding concept was to make mobile communications accessible to customers who might be excluded by conventional postpaid wireless practices. Rather than requiring a long contract or a credit check, Leap emphasized prepaid and month-to-month plans with straightforward pricing. The company established Cricket Communications in 1999 and launched Cricket service in Chattanooga, Tennessee. The company initially combined U.S. operations with international investments. It provided or held interests in wireless businesses in Mexico and Chile, but later divested those positions. Smartcom PCS, its Chilean wireless operator, was sold to Endesa in May 2000. In March 2002, Leap sold its 20 percent stake in Mexican operator Pegaso PCS to Telefónica Móviles. The disposals helped focus the company on its U.S. wireless platform. Cricket became Leap’s central operating business. It offered prepaid voice, messaging, and data services through digital CDMA networks. Leap’s network technologies included CDMA 1X and EV-DO, with later LTE development. Cricket’s coverage combined Leap-owned facilities with roaming and wholesale arrangements. Jump Mobile, another Leap prepaid brand, launched in 2005 and used Leap’s own CDMA 1xEV-DO network. It expanded to 25 states and offered prepaid calling, texting, data-related features, international options, and common mobile calling functions. Leap discontinued Jump Mobile on February 26, 2010, transferring customers to Cricket’s Pay Go service. Leap encountered financial and competitive challenges during the late 2000s. MetroPCS proposed a combination with Leap in September 2007, but the proposal was withdrawn in November. Also in 2007, Chief Financial Officer Amin Khalifa resigned, and Leap disclosed that it would restate financial statements for several prior periods. The restatement filed in December identified overstatements of income and service revenue between 2004 and 2007. These events added to uncertainty about the company’s financial position and future structure. In 2010, Leap was reportedly considering a sale to a larger carrier. It also entered a five-year wholesale agreement with Sprint Nextel, allowing Cricket to extend service over Sprint’s 3G network. Cricket continued to pursue a value-oriented prepaid strategy while broadening its handset selection. In 2012, it announced plans to sell the iPhone 4 and iPhone 4S through month-to-month prepaid offerings, an important step in making premium smartphones available without traditional postpaid contracts. AT&T agreed to acquire Leap Wireless on July 12, 2013, in a transaction valued at approximately $1.2 billion. The FCC approved the deal on March 13, 2014, and the acquisition was completed that day. Cricket became part of AT&T’s prepaid wireless portfolio, and Leap no longer operated as an independent public telecommunications company. AT&T later decommissioned the legacy CDMA network in 2015, requiring affected customers to move from older CDMA devices to AT&T-compatible network technology. Leap Wireless is consequently a defunct corporate operator whose most important continuing legacy is Cricket Wireless and its role in the development of U.S. prepaid mobile service.

  • 2015

    Legacy CDMA network is decommissioned

    [1]

    Following the AT&T integration, the legacy CDMA network is shut down and affected devices cease functioning.

  • 2014

    Acquisition by AT&T closes

    [1]

    The FCC approves the transaction and Leap announces completion of the acquisition by AT&T.

  • 2013

    AT&T agrees to acquire Leap Wireless

    [1]

    AT&T announces an agreement to acquire Leap Wireless for approximately $1.2 billion.

  • 2012

    Cricket adds the iPhone to its prepaid portfolio

    [1]

    Cricket announces month-to-month prepaid availability for the iPhone 4 and iPhone 4S.

  • 2010

    Jump Mobile is retired

    [1]

    Leap retires the Jump Mobile brand and migrates its customers to Cricket’s Pay Go service.

  • 2010

    Sprint wholesale agreement is signed

    [1]

    Leap signs a five-year wholesale agreement allowing Cricket to use Sprint Nextel’s 3G network.

  • 2007

    MetroPCS merger proposal is withdrawn

    [1]

    A proposed combination between MetroPCS and Leap Wireless is announced and withdrawn within the same year.

  • 2007

    Leap restates prior financial statements

    [1]

    The company discloses and files restatements covering several prior reporting periods after identifying overstatements in income and service revenue.

  • 2005

    Jump Mobile launches

    [1]

    Leap introduces Jump Mobile as an additional prepaid wireless brand using its CDMA 1xEV-DO network.

  • 2002

    Pegaso PCS stake is divested

    [1]

    Leap sells its 20 percent interest in Mexican carrier Pegaso PCS to Telefónica Móviles.

Products and positioning

Affordable, contract-free and credit-check-free wireless service for value-conscious and underserved customers.

  • Prepaid wireless service · 1999

    Cricket Wireless

    Cricket Wireless was Leap’s principal consumer telecommunications business. It provided prepaid mobile voice, text messaging, and data services in the United States, emphasizing month-to-month access, simplified pricing, and no conventional long-term contract or credit-check requirement. Before AT&T’s acquisition, Cricket used Leap’s CDMA network alongside roaming and wholesale access arrangements. The brand later became part of AT&T’s prepaid portfolio.

  • Prepaid wireless service · 2005

    Jump Mobile

    Jump Mobile was a prepaid wireless brand operated by Leap Wireless. Unlike an MVNO that depended entirely on another carrier’s radio network, it used Leap’s CDMA 1xEV-DO infrastructure. The service offered prepaid calling, text messaging, international options, voicemail, caller ID, call waiting, three-way calling, directory assistance, ringtones, games, and wallpapers. It served customers in 25 U.S. states before being retired in February 2010 and migrated to Cricket’s Pay Go service.

  • Mobile network infrastructure

    Leap CDMA wireless network

    Leap operated an all-digital CDMA network supporting CDMA 1X and EV-DO technologies, with later expansion toward LTE. The network supplied native coverage for Cricket and Jump Mobile in selected markets and was supplemented by roaming and wholesale arrangements. After the AT&T acquisition, the legacy CDMA system was decommissioned in 2015 as customers moved to AT&T-compatible network technologies.

Controversies

  • 2007

    Financial-statement restatement

    Leap Wireless announced and filed restatements for fiscal years 2004 through 2006 and the first two quarters of 2007. The company reported that income had been overstated by $22.5 million and service revenue by $7.5 million over the affected period.

Read more

Brand decisions

  • 2013

    Agreement to sell Leap Wireless to AT&TM&A

    Background

    Leap faced a competitive U.S. wireless market in which scale, spectrum, network investment, and prepaid distribution were increasingly important.

    Action taken

    Leap agreed to be acquired by AT&T for approximately $1.2 billion.

    Aftermath

    The transaction received FCC approval and closed in March 2014, ending Leap’s independent operation.

    Transaction value. $1.2 billion (Announced July 12, 2013)

  • 2012

    Prepaid iPhone introductionProduct launch

    Background

    Premium smartphones were becoming increasingly important to prepaid customers and carrier differentiation.

    Action taken

    Cricket announced month-to-month prepaid offerings for the iPhone 4 and iPhone 4S.

    Aftermath

    The announcement expanded Cricket’s device proposition beyond lower-cost handsets.

  • 2010

    Sprint wholesale network agreementStrategy

    Background

    Leap sought to broaden Cricket’s national service reach beyond its own network footprint.

    Action taken

    Leap entered a five-year wholesale agreement with Sprint Nextel for Cricket access to Sprint’s 3G network.

    Aftermath

    Cricket could extend its service proposition using wholesale network capacity in areas beyond Leap’s native coverage.

  • 2010

    Retirement of Jump MobileStrategy

    Background

    Leap maintained multiple prepaid brands while seeking a simpler operating structure.

    Action taken

    Leap retired Jump Mobile and migrated its customers to Cricket Wireless Pay Go.

    Aftermath

    Cricket became Leap’s principal consumer prepaid brand.

  • 2007

    MetroPCS combination proposalM&A

    Background

    MetroPCS proposed combining with Leap Wireless amid consolidation pressure in the U.S. prepaid wireless sector.

    Action taken

    The proposal was announced in September and withdrawn in November.

    Aftermath

    Leap continued operating independently until its later acquisition by AT&T.

  • 2002

    Sale of Pegaso PCS interestStrategy

    Background

    Leap held a minority investment in Mexican wireless carrier Pegaso PCS.

    Action taken

    Leap sold its 20 percent stake to Telefónica Móviles.

    Aftermath

    Leap further concentrated its corporate focus on U.S. wireless operations.

  • 2000

    Divestment of Smartcom PCSStrategy

    Background

    Leap held wireless operations outside the United States while developing its core business.

    Action taken

    The company sold its Chilean operator, Smartcom PCS, to Endesa.

    Aftermath

    The transaction reduced Leap’s direct exposure to the Chilean wireless market.

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