Leap Wireless Left Out of the Telecom Consolidation, For Now

In the recent flurry of deal activity in the U.S. wireless industry, Leap Wireless has been left hanging -- for now.

With potential acquirers preoccupied with other deals, any move involving Leap isn’t expected soon. But the pay-as-you-go wireless provider, which offers service under the Cricket brand, is expected to sell eventually because -- in an industry that increasingly relies on size and scale -- the company will find it harder to compete against larger competitors and its spectrum will become more attractive to possible buyers. Leap has remained on the outside, so far, because its spectrum is located in more rural areas and, thus, is deemed less desirable than others. Also, the company has high debt levels, a sluggish core business and a majority shareholder who has appeared unwilling to make a deal in the past.