AT&T Inc. (NYSE:T), the second largest wireless carrier in the United States completed its transaction to acquire Leap Wireless International, Inc. (NASDAQ:LEAP), a prepaid wireless provider for $1.2 billion after receiving approval from regulators.

AT&T Wireless

Regulatory approval

The Federal Communications Commission (FCC) announced its approval of the transaction on Thursday. The Department of Justice also gave its clearance to the deal, according to Gina Talamona, spokesperson for the agency.

AT&T Inc. (NYSE:T) gained the FCC’s approval after assuring that the customers of both companies will experience better coverage. According to the second largest wireless carrier, the deal did not ignite any additional inquiry from the regulator’s spectrum policy in most areas and in places where there are sufficient spectrums available.

Leap Wireless International, Inc. (NASDAQ:LEAP) is the sixth largest wireless carrier in the country. The company is operating under the Cricket brand. AT&T Inc. (NYSE:T) announced its intention to purchase all the stock and wireless properties including licenses, network assets, retail stores and subscribers of Leap Wireless for $15 per share in July last year.

According to AT&T Inc. (NYSE:T), the shareholders of Leap Wireless International, Inc. (NASDAQ:LEAP) will receive a contingent right that entitles then to the net proceeds from the sale of the prepaid wireless provider’s 700 MHz A Block spectrum in Chicago. Leap purchased said spectrum for $204 million in August 2012.

AT&T: New Cricket to shake up no-contract segment

AT&T Inc. (NYSE:T) will integrate Cricket with its existing operations to shake up the no-contract segment. According to the company, the new Cricket brand will offer a simple, low cost rate plan, great smartphone line-up and network experience because it will have access to its nationwide 4G LTE network.

AT&T Inc. (NYSE:T) will gain access to Cricket’s distribution channels and expand its presence in the United States. Currently, Cricket’s network is covering 97 million people across 35 states in the country.

Leap Wireless International, Inc. (NASDAQ:LEAP), which had approximately 79.8 million outstanding shares will be delisted from the stock exchange following the closing of the acquisition.