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Leap, based in San Diego, had $2.8 billion of debt. The nation's sixth-ranked carrier had been struggling. In the quarter through March, Leap's net loss expanded to $110 million as it lost a net 93,000 wireless customers. Its revenue in the same period declined 12 percent from a year ago to $685 million. "Senior management looked at (the acquisition by AT&T) as our best path forward for the company's long-term success," Leap spokesman Greg Lund said. Cricket is considered a regional carrier. Its network covers regions of the country housing 96 million people in 35 states. It also provides national coverage through a roaming agreement with Sprint, which won't be needed if its tie-up with AT&T gains regulatory approval. Cricket phones are also sold outside its own coverage area in the U.S. through Radio Shack and Walmart stores. AT&T said it expects the deal will close in six to nine months, although it requires approval from the Federal Communications Commission and Department of Justice. Federal regulators have been averse to permitting larger carriers to merge. In late 2011, AT&T abandoned its $39 billion bid to buy T-Mobile after the Justice Department raised its objection to the deal on the grounds it would raise prices and give customers fewer choices. Free Press, a media and technology watchdog organization in Washington, registered its opposition to this latest deal. "This is (a) smaller deal, but AT&T is sure to make the same false claims it tried with T-Mobile," Free Press CEO Craig Aaron said in a statement. "This takeover would result in fewer choices, higher prices and job losses."
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