AT&T Inc.'s contract to sell some of the airwaves of Leap Wireless International Inc. clouded the real value of the deal. Selling some of the airwaves was part of the agreement so that AT&T could purchase of the wireless carrier.

A block of Leap's spectrum that could be found in Chicago was supposed to be sold by AT&T. The profits from the sale were supposed to be added to the deal's price. This was in addition to paying US$15 per stock in cash.

Wireless airwaves were described as the frequencies which enabled mobile devices to connect with networks. They were a limited resource and highly prized by carriers. Investors speculated that the spectrum would generate around US$2 per stock. This resulted to yesterday's more than doubled stock price of US$16.95. However, there was a little contract on Leap airwaves' quality. This was due to the fact that there's a chance for the airwaves to be interfered by television frequencies.

"The challenge is finding somebody who wants to buy it," Telecom, Media & Finance Associates Inc.'s analyst, Tim Farrar, said.

Last year, Leap was able to obtain the license to the spectrum from Verizon Wireless. The deal was worth US$204 million with only US$2.58 per stock. AT&T's transaction price would work out to be around U$17.58 per stock.