According to sources, AT&T has conducted talks to purchase Leap Wireless International, its smaller rival company during recent months, as sources close to the matter reveal that big carrier companies in the United States are looking towards acquisitions to make their way to the top in a maturing market.
Sources reveal that the talks between the two companies were serious as Leap Wireless hired bankers to give it advice on a possible deal. The sources include three people close to the matter who said they wanted to remain anonymous because discussions between the two companies are private right now.
There is no actual evidence about the talks and the news hasn’t been around in the media either. However, the three people are the only sources that have brought attention to the possible acquisition of Leap Wireless by AT&T.
Moreover, the uncertainty of the news also increases as when representatives of Leap Wireless and AT&T were asked to comment on the report, they declined to comment.
The discussions between the two companies were held between different deal activities in the country’s telecommunication sector, in which smaller operators including MetroPCS Communications and Leap Wireless and four national carriers are fighting it out against one another to gain customers who already own a cell phone. The current market is dominated by bigger and larger companies such as T-Mobile USA, Sprint Nextel, Deutsche Telekom’s and Verizon Wireless. Moreover, since competition is tough and people in America are hungry for smartphones, companies are in a constant fight against each other to outdo the other company and maintain their edge in the market as the top U.S phone carrier.
The deal between AT&T and Leap Wireless may be a possibility as AT&T revealed that it is in a dire need to buy additional wireless spectrum. However, till there is no official word on the news, we cannot say anything about the deal or any other details about it.