Looks like there's another consolidation in the wireless industry headed this year. Leap Wireless, who owns the pre-paid service, Cricket is has hired Goldman Sachs to help them merge with another carrier. In the past, fellow pre-paid provider, MetroPCS has expressed interest in a possible merger. The company has also spoken with AT&T and Verizon Wireless.
It seems doubtful that AT&T would make a bid to buy the company as they would have to make an investment in switching their towers over from CDMA to GSM technology. AT&T is already struggling with their current inability to handle their service traffic thanks to the popularity of the Iphone. However, this move can't be ruled out since it would bring in more customers that could help bridge the gap made by the Verizon/Altell merger. On the flip side, Verizon is still in the process of working out the knicks in their merger with Altell. Their only interest acquiring Leap would most likely be acquring more customers as well. Either way, both companies would have to divest a significant portion of their share because of regulatory actions. It seems unlikely that either company would want to go through the effort.
The most likely scenerio remains a merger with MetroPCS. These two rivals do not have a very good history however. They have been known for their pot shots at each other. It would be great to see a company such as U.S. Cellular acquire the company as well. An acquistition could give them a huge boost in markets such as St. Louis, where the brand has had opportunities for growth. Time will tell.
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