Leap’s Cricket service spurs first-quarter growth

(Telephony) Leap Wireless International’s customer base grew from over 190,000 at the end of December to over 339,000 at the end of the first quarter 2001. Despite a downturn in the economy, the company believes the predictable and value-priced nature of its Cricket service has kept it on the right track.

“We had a strong first quarter on top of a strong fourth quarter. We are dedicated to meeting our commitment, and we believe our results show that we have done this,” said Harvey White, chairman and CEO of Leap Wireless. “We are different from a typical wireless or PCS company, and these differences attribute to our ability to achieve good results even during these economic times.”

During the quarter, Leap launched in Pueblo, Colo., Wichita, Kan., and Albuquerque and Santa Fe, N.M. The company expects to reach about 450,000 customers by the end of the second quarter and about one million by the end of the year.

“We believe we will continue to see solid customer growth even in this slower economic environment, because Cricket may be more predictable,” said Sue Swenson, president and chief operating officer for the company.

Total operating revenues for Leap’s U.S. operations were $36.8 million for the first quarter, which was more than a 150% increase compared to the previous quarter. The company noted that EBITDA was negative $48.1 million, better than the negative $60.5 million posted in the previous quarter.

In the company’s Chattanooga and Nashville, Tenn. markets--both more than a year old--the combined churn rate was 3.4% for the month of March, Swenson said.

“Our improved network quality has helped us to win and retain customers. We believe what we did in our first markets will help us in our new markets,” she said.

White anticipates future market buildouts.

“Cricket is working in each of our new markets, and, therefore, we believe what we have done is repeatable,” he said. The company plans to launch service in Phoenix, Ariz., this year.

On May 10, Leap will announce the details of its first new data service. The carrier plans to introduce location-based information that can be delivered via voice or text to selected markets during the second quarter.

“We believe people in a fast-moving world want to hear things delivered to them in voice,” White said. “We don’t want…customers always to have to sit down and punch through [data].”