March 03, 2005
Cricket Blows Away Industry Average for Landline Displacement; 52 Percent of Its Customers Say They Do Not Have Landline Phone Service at Home
San Diego - Proving once again that it's not your typical wireless carrier, Cricket Communications, Inc., a leading provider of unlimited local and long distance wireless services, today announced that 52 percent of its customers have "cut the cord" and no longer have traditional landline phone service at home, which compares to the industry average of six percent, according to the 2004 Yankee Mobile User Survey. The percentage of Cricket customers who have cut the cord has continued to rise since Cricket's inception in 1999 and is up from 43 percent in 2004.
"In most instances, it is cost prohibitive for many consumers to drop their landline service and rely solely on their wireless service because the overwhelming majority of carriers do not offer unlimited, flat-rate calling plans," said Al Moschner, executive vice president and chief marketing officer for Cricket. "We believe our overall value proposition - unlimited wireless calling at low, predictable, flat rates - is driving these record-setting, cord-cutting numbers since more and more of our customers report they do not have a landline home phone."
Cricket's survey was conducted by an independent research firm via phone that polled approximately 5,000 current Cricket® customers, as well as 500 customers of competitive wireless carriers. The survey results have a margin of error of plus or minus 1.4 percent and all respondents included in the study are the primary user of their wireless phone.
The Yankee Group reports the growing reliance on wireless phones and projects that by 2005, 39 percent of U.S. landline phone minutes will be replaced by wireless minutes.
In addition to examining landline displacement patterns, Cricket's independent study evaluated Cricket® customer demographics and behavior and discovered that:Cricket® customers talk an average of 1,500 minutes per month, which is more than double the industry average of 600 minutes per month.
93 percent of Cricket customers say they use Cricket as their primary phone.
About Cricket
Cricket is a simple and affordable wireless solution offering unlimited anytime minutes within a Cricket® calling area over its high-quality, all-digital network. Cricket® service is an affordable wireless alternative to traditional landline service. With a commitment to predictability, simplicity and value as the foundation of its business, Cricket designs and markets wireless products to meet the needs of everyday people. Cricket offers unlimited anytime minutes starting at $29.99 a month (plus taxes and fees) with no long-term agreements required. Cricket® customers can also make long distance calls on an unlimited basis through several packaged offerings or on a per-minute basis. Operating in 39 markets in 20 states stretching from New York to California, Cricket® service is available to customers in more than 840 different municipalities. For more information, please visit www.mycricket.com. Cricket is a business of Leap Wireless International, Inc. [OTCBB: LEAP], headquartered in San Diego, Calif. Leap is a customer-focused company providing innovative mobile wireless services targeted to meet the needs of customers who are under-served by traditional communications companies. For more information visit www.leapwireless.com.
Except for the historical information contained herein, this news release contains "forward-looking statements" reflecting management's current forecast of certain aspects of Leap's future. Some forward-looking statements can be identified by forward-looking words such as "believe," "think," "may," "could," "will," "estimate," "continue," "anticipate," "intend," "seek," "plan," "expect," "should," "would" and similar expressions. This news release is based on current information, which we have assessed but which by its nature is dynamic and subject to rapid and even abrupt changes. Our actual results could differ materially from those stated or implied by such forward-looking statements due to risks and uncertainties associated with our business. Factors that could cause actual results to differ include, but are not limited to:
our ability to attract and retain customers in an extremely competitive marketplace;
our ability to attract, motivate and retain an experienced workforce;
changes in economic conditions that could adversely affect the market for wireless services;
our ability to successfully acquire additional spectrum;
the impact of competitors' initiatives;
our ability to successfully execute service expansion plans;
failure of network systems to perform according to expectations;
our ability to comply with the covenants in our senior secured credit facilities;
failure of the Federal Communications Commission to approve the transfers of the licenses covered by our sale agreement with Verizon Wireless, or to approve the transfers to Cricket Licensee (Reauction), Inc. or to Alaska Native Broadband 1 License, LLC of the respective licenses for which each entity was the winning bidder in the FCC's Auction #58;
global political unrest, including the threat or occurrence of war or acts of terrorism; and
other factors detailed in the section entitled "Risk Factors" included in our Quarterly Report on Form 10-Q for the three months ended September 30, 2004, and in our other SEC filings.
The forward-looking statements should be considered in the context of these risk factors. Investors and prospective investors are cautioned not to place undue reliance on such forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Leap and the Leap logo design are trademarks of Leap Wireless International, Inc. Cricket is a registered trademark of Cricket Communications, Inc. Cricket +1, Cricket +2, Cricket Unlimited, Cricket Multi Value Plan, and Cricket Clicks are trademarks of Cricket Communications, Inc.
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"In most instances, it is cost prohibitive for many consumers to drop their landline service and rely solely on their wireless service because the overwhelming majority of carriers do not offer unlimited, flat-rate calling plans," said Al Moschner, executive vice president and chief marketing officer for Cricket. "We believe our overall value proposition - unlimited wireless calling at low, predictable, flat rates - is driving these record-setting, cord-cutting numbers since more and more of our customers report they do not have a landline home phone."
Cricket's survey was conducted by an independent research firm via phone that polled approximately 5,000 current Cricket® customers, as well as 500 customers of competitive wireless carriers. The survey results have a margin of error of plus or minus 1.4 percent and all respondents included in the study are the primary user of their wireless phone.
The Yankee Group reports the growing reliance on wireless phones and projects that by 2005, 39 percent of U.S. landline phone minutes will be replaced by wireless minutes.
In addition to examining landline displacement patterns, Cricket's independent study evaluated Cricket® customer demographics and behavior and discovered that:
About Cricket
Cricket is a simple and affordable wireless solution offering unlimited anytime minutes within a Cricket® calling area over its high-quality, all-digital network. Cricket® service is an affordable wireless alternative to traditional landline service. With a commitment to predictability, simplicity and value as the foundation of its business, Cricket designs and markets wireless products to meet the needs of everyday people. Cricket offers unlimited anytime minutes starting at $29.99 a month (plus taxes and fees) with no long-term agreements required. Cricket® customers can also make long distance calls on an unlimited basis through several packaged offerings or on a per-minute basis. Operating in 39 markets in 20 states stretching from New York to California, Cricket® service is available to customers in more than 840 different municipalities. For more information, please visit www.mycricket.com. Cricket is a business of Leap Wireless International, Inc. [OTCBB: LEAP], headquartered in San Diego, Calif. Leap is a customer-focused company providing innovative mobile wireless services targeted to meet the needs of customers who are under-served by traditional communications companies. For more information visit www.leapwireless.com.
Except for the historical information contained herein, this news release contains "forward-looking statements" reflecting management's current forecast of certain aspects of Leap's future. Some forward-looking statements can be identified by forward-looking words such as "believe," "think," "may," "could," "will," "estimate," "continue," "anticipate," "intend," "seek," "plan," "expect," "should," "would" and similar expressions. This news release is based on current information, which we have assessed but which by its nature is dynamic and subject to rapid and even abrupt changes. Our actual results could differ materially from those stated or implied by such forward-looking statements due to risks and uncertainties associated with our business. Factors that could cause actual results to differ include, but are not limited to:
The forward-looking statements should be considered in the context of these risk factors. Investors and prospective investors are cautioned not to place undue reliance on such forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Leap and the Leap logo design are trademarks of Leap Wireless International, Inc. Cricket is a registered trademark of Cricket Communications, Inc. Cricket +1, Cricket +2, Cricket Unlimited, Cricket Multi Value Plan, and Cricket Clicks are trademarks of Cricket Communications, Inc.
