AT&T and Leap Wireless have entered into an agreement for AT&T to acquire Leap in $1.2 billion. Leap's network covers approximately 96 million people in 35 U.S. states. Under the Cricket brand, Leap currently operates a 3G CDMA network, as well as a 4G LTE network covering 21 million people in these areas.

AT&T will retain the Cricket brand name, provide Cricket customers with access to AT&T 4G LTE mobile network, utilize Cricket's distribution channels, and expand Cricket's presence to additional U.S. cities.

Under the agreement, AT&T will acquire all of Leap's stock and wireless properties, including licenses, network assets, retail stores and approximately 5 million subscribers. 

The acquisition includes spectrum in the PCS and AWS bands covering 137 million people and is largely complementary to AT&T's existing spectrum licenses. Immediately after approval of the transaction, AT&T plans to put Leap's unutilized spectrum — which covers 41 million people — to use in furthering its 4G LTE deployment and providing additional capacity and enhanced network performance for customers' growing mobile Internet usage.