Leap Wireless and Metro PCS Agree to Share Network Traffic

Leap Wireless and MetroPCS Communications announced a national roaming agreement yesterday. Last year Leap turned down a $4.7 billion buyout offer from MetroPCS which could be one step closer to a potential merger of the two companies. The deal covers the carriers' existing and future coverage areas, and could potentially enable the carriers to offer free roaming on each other's networks.

As mobile operators continue to expand during an economic crisis deals similar to the one between Leap and MetroPCS could become more common. The deal and expanded coverage could be a valuable tool in attracting new customers. Their combined networks create a larger footprint for a fraction of what it would take if they had attempted the same coverage independently.

"The expanded coverage which MetroPCS and Leap can offer as a result of this agreement will be a major benefit to our customers," said Roger Linquist, chairman, president, and CEO of MetroPCS, in a statement. "These agreements benefit both parties and allow each of us to focus on the growth of our respective businesses."

Both wireless companies target young and often credit-challenged customers with pre-paid service that doesn't require a contract. A merger could be on the horizon but experts agree that it is unlikely to be any time soon since both companies are currently building in competing markets.