Cricket Cell Phones

Cricket cell phones are a product of Leap Wireless. Leap, headquartered in San Diego, CA, is a customer-focused company providing innovative mobile wireless services targeted to meet the needs of customers under-served by traditional communications companies.

With the value of unlimited wireless services as the foundation of its business, Leap pioneered both Cricket(R) and Jump(TM) Mobile. Through its affordable, flat-rate service plans, Cricket offers customers a choice of unlimited local voice minutes, unlimited domestic long distance voice minutes, unlimited text, instant and picture messaging and additional value-added services over a high-quality, all-digital CDMA network.

Cricket cell phone customers use their wireless service differently than the average mobile phone user. Based on company surveys, Cricket customers talk an average of 1,500 minutes per month — more than double the wireless industry average.  And 52 percent of Cricket customers have “cut the cord” and rely solely on Cricket for their phone service. By comparison, six percent of all other U.S. wireless subscribers rely solely on their mobile phone (Yankee Group survey). In addition, 93 percent of Cricket customers reported their Cricket phone was their primary phone, compared to only 49 percent of traditional wireless customers.

Designed for the mobile-dependent, urban youth market, Jump Mobile is a unique prepaid wireless service that offers customers free unlimited incoming calls from anywhere with outgoing calls at an affordable 10 cents per minute and free incoming and outgoing text messaging. Both Cricket and Jump Mobile services are offered without long-term commitments or credit checks.

Market Opportunity

Contract-based wireless plans are rapidly reaching market saturation. Wall Street analysts predict U.S. wireless penetration will reach 80 percent by 2010. Additional penetration is expected to come from the market segments Cricket currently serves. Cricket delivers adjusted EBITDA margins similar to other leading wireless telecommunications companies, but from an average rate per user that is one-third less than the industry average. As the face of wireless changes, Cricket is well positioned to capture this opportunity and increase its market share.

Growth Potential

In February 2005, the company’s subsidiary, Cricket Licensee (Reauction), Inc. was named the winning bidder in the FCC’s Auction #58 for four wireless licenses covering approximately 11.1 million potential customers.  The company acquired these licenses in May 2005. In addition, a subsidiary of Alaska Native Broadband 1, LLC, a business in which Cricket owns a 75 percent non-controlling interest, was named the winning bidder in Auction #58 for nine wireless licenses covering approximately 10.1 million potential customers.  The transfers of these wireless licenses to the subsidiary of Alaska Native Broadband I, LLC, are subject to FCC approval.

Product & Service Overview

Cricket cell phones service is a simple and affordable wireless service offering unlimited minutes over a high-quality, all-digital CDMA network. Cricket cell phone service is not a traditional contract-based service. Its key differentiators include: no long-term contract requirement, predictable flat monthly rates, unlimited calling and affordable, feature-rich rate plans.

Cricket cell phone service continues to evolve and keep its product line exciting, and valuable: Cricket Clicks™, a BREW®-based wireless data services; unlimited picture messaging; Travel Time™ roaming and Jump™ by Cricket®, a prepaid wireless service for those customers who prefer a pay-as-they-go service and the latest handsets.

You can buy a Cricket cell phone in nearly 40 markets in 20 states stretching from New York to California. Cricket is a business of Leap Wireless International, Inc.