Leap chooses EV-DO vendors

Leap Wireless said today it has selected Nortel Networks and Lucent Technologies to supply CDMA infrastructure and suppliers for its planned expansion in five states and its migration to 3G. Working through a partnership with Alaska Native Broadband, Leap plans to rollout new service in at least nine new markets and upgrade base stations with CDMA EV-DO networks throughout its network.

Nortel won a contract valued at $130 million over three years to supply its EV-DO upgrade in existing Leap markets and build out new networks in San Diego; Cincinnati; Lexington; Louisville; Houston; San Antonio; Austin; Temple and Killeen, Texas; and Bryan and College Station, Texas. Lucent’s contract is valued at about $125 million over the same three years for EV-DO upgrades on existing Lucent-built markets and new build outs in Colorado Springs, El Paso, Texas, and Las Cruces, N.M.

Missing from the announcement was Ericsson, Leap’s third infrastructure supplier. Ericsson announced earlier this year it is exiting the U.S. CDMA business, but it said it would continue to support its existing CDMA customers. Leap has not yet announced any plans to upgrade its Ericsson built networks with EV-DO.

Leap and Alaska Native Broadband acquired new operating licenses in the FCC’s Auction 58 earlier this year. While both companies will supply the capital to build the networks, the service will operate under Leap’s Cricket Wireless subsidiary.

The expansion represents Leap’s first major expansion since long before its bankruptcy. Facing financial pressures from all sides, Leap halted its ambitious expansion plans in 2002 to concentrate on its existing 40 mid-sized markets spread throughout the U.S. But Leap recently began growing again, adding Fresno to its footprint, and last month launching a youth-oriented wireless brand, Jump Mobile. At the end of the second quarter, Leap reported 1.6 million customers.