AT&T Hunts Spectrum

The collapse of a $39 billion acquisition isn't stopping AT&T Inc. from exploring other wireless deals. Barely two months after the phone giant's offer to buy T-Mobile USA fell apart amid objections from regulators, AT&T is already studying new deals that could increase its access to the airwaves, including potential transactions with Leap Wireless International, Dish Network or MetroPCS Communications. The talks between AT&T and other wireless providers show the pressure AT&T is under to line up spectrum. Its larger competitor, Verizon Wireless, said in December it would pay $3.6 billion to buy one of the last large swaths of unused airwaves in the U.S. from several cable companies. That deal still needs approval from the Federal Communications Commission.

Acquiring Leap Wireless, which operates the Cricket brand of prepaid service and is the nation's sixth-largest wireless carrier, is one possibility AT&T is studying. The two sides have been engaged in talks about a potential deal, which could give AT&T access to spectrum in dozens of markets valued by J.P. Morgan Chase & Co. analysts at about $2.1 billion. Leap's market capitalization is $686 million. The two parties had positive talks last year when AT&T was looking to sell off some assets to try to gain regulatory approval for the T-Mobile transaction. As a result, AT&T sees a Leap deal as more possible than some of its other options, the people said. However, Leap's spectrum holdings are relatively small and don't cover the whole country, meaning AT&T would likely need more to satisfy its long-term needs.