Cricket leaps into Chattanooga

Leap Wireless International, the Qualcomm operator spin-off, launched its first service in the U.S. last week, in Chattanooga, Tenn.

"We'll break the mold for the way people view telephone communications," said Dan Pegg, senior vice president of public affairs for Leap.

Called Cricket, Leap's U.S. operating company and service brand should attract first-time wireless users. For $29.95 a month, Chattanooga customers receive unlimited local calling. The service does not include roaming and offers long-distance only with a calling card. Customers don't sign a contract, aren't required to pass a credit check and pay in advance. "If they like it, they pay again next month," Pegg said.

Research from a March 1 soft launch revealed that roaming isn't that important to many customers, Pegg said.

Typically 15% to 20% of wireless users are heavy roamers, said Crispin Vicars, program manager for The Yankee Group. "There is a large enough market opportunity to sidestep those users," he said. "But it depends on if Chattanooga is large enough." Cricket's success may hinge on the number of non-roamers who live in the second and third tier markets it's targeting.

Cricket doesn't view wireline or wireless operators as competitors, but the service could replace both, Pegg said. University students that move often and don't want to switch phone numbers or incur new line setup fees might be attracted to Cricket, he noted.

Leap also plans to participate in the C block re-auction and is waiting for approval on a deal with AirGate over licenses in the Carolinas.