AT&T this week disclosed a deal to acquire prepaid wireless provider Leap Wireless in a move AT&T said will help grow its 4G LTE deployments and better support the growing number of Internet-enabled devices tapping into its network.
AT&T is paying $15 a share, or roughly $1.2 billion, for the San Diego-based Leap Wireless. AT&T will acquire all of Leap's wireless properties, including its 3G and 4G LTE network assets and its retail stores.
The acquisition will jump-start AT&T's expansion into the highly competitive prepaid wireless service segment. It also gives the telecommunications giant access to Leap's unused wireless spectrum, the radio frequency or airwaves that mobile operators need to transmit their wireless signals.