The US$1.2 billion worth deal made by AT&T Inc. to acquire Leap Wireless International Inc. added pressure on smaller rivals. Sprint Corp. and Dish Network Corp. were anticipated to build up by means of mergers and purchases of their own.

On July 12, AT&T, the second-largest wireless carrier in the US, announced its plans to purchase Leap for US$15 per share in cash. It offered a premium of 88% over the target's concluding stock price. The deal would give AT&T more pay-as-you-go clients as well as airwaves that would enhance its network.

The move added pressure for a joint venture between Sprint and T-Mobile US Inc, the third and fourth-biggest carriers. A wireless-industry expert from Issaquah, Washington, Chetan Sharma, said that small regional companies would also become a takeover attraction because of the deal. Cellular Corp. or NTelos Holdings Corp. would be targeted as everyone strived to keep up with AT&T and Verizon Wireless.

"Everyone below the top four is pretty much done" because of the forthcoming consolidation, Sharma stated. "I don't think they'll exist beyond the next 18 months."