Leap Wireless Gains Subscribers, But Reports LossLeap Wireless Gains Subscribers, But Reports Loss

Despite an increase in revenue and subscribers, Leap Wireless posted a $48.8 million loss for the third quarter.

Leap is a national wireless carrier that is the parent company of mobile operator Cricket, which is mainly known for offering no-contract, flat-rate service plans. The company's loss was greater than the $43.4 million the company lost for the same period last year, but Leap attributes it to an aggressive expansion into more markets.

The expansion efforts appear to be paying off as Leap nabbed 156,000 new subscribers in the quarter, and 92,000 of those were in new markets launched in 2008. It also saw the rate of defection, or "churn rate," hit 4.2%, an improvement from its 5.2% rate last year. Overall, Leap has 3.5 million subscribers.

"Our success in operating and further expanding our business, together with our strong liquidity position and commitment to operate our business in a thoughtful and disciplined manner, give us confidence that we can continue to move successfully through uncertain economic times," said Doug Hutcheson, Leap's CEO, in a statement.

Despite the third-quarter loss, the carrier has no plans to stop expanding. It already has a wireless footprint that covers more than 61 million, and it's hoping to have nearly 100 million covered points of presence by the end of 2010. Leap also recently introduced a $40 monthly plan for prepaid broadband over 3G networks, and this netted 40,000 new subscribers for the quarter.

Leap competes with AT&T, Verizon Wireless, T-Mobile, and Sprint, but its main competitor is MetroPCS, which also offers flat-rate cell services. But the two companies are expected to soon announce a free roaming plan that would greatly expand the companies' relatively limited service areas. When both companies build out their respective networks, it would essentially amount to a fifth national carrier.