3 Telecom Stocks Seeing Action: Leap Jumps on AT&T Bid, Sprint’s New Modems, and Verizon’s New Edge
Leap Wireless (NASDAQ:LEAP): Shares of Leap are racing over 112 percent after AT&T’s (NYSE:T) Friday announcement that it will be acquiring the company. Under the terms, AT&T will be shelling out $1.18 billion for Leap’s equity and assuming $2.8 billion in net debt. Leap has five million prepaid subscribers on a network covering 96 million people, and AT&T says it will keep the Cricket brand alive and work to expand its reach. For AT&T though, the jewel of the deal is the amount of unused spectrum at Leap’s disposal, which could be of use in AT&T’s 4G network expansion plans.
Sprint Nextel Corp. (NYSE:S): Starting Friday, Sprint will be offering three new tri-band LTE modems, available in 800MHz, 1.9GHz, and 2.5GHz varieties. Called the Netgear Zing, the Netgear 341U, and the Novatel Wireless MiFi 500LTE, respectively, the new devices will all require a two-year carrier agreement. The Netgear 341U will be available for $19.99 after a mail-in rebate, while the other two will cost $49.99 with a mail-in rebate.
Verizon Communications (NYSE:VZ): After facing heat for extending its phone renewal policy earlier this year, Verizon’s new VZ Edge plan will allow users to upgrade their phones at full (unsubsidized) prices but with the payments spread out over a 12-month period. Verizon is promoting VZ Edge as a way for customers to avoid signing contracts and upgrade fees while remaining on the network.