Leap announces plans for Cricket MusiK service

Cricket provider Leap Wireless (NASDAQ:LEAP) announced it will unveil a new mobile music service, dubbed Cricket MusiK, sometime in October, and will commercially launch it next year.

Leap executives said the carrier has been working on the platform for the past 18 months, and that the offering will focus on young, urban customers who don't currently purchase music online. The offering, which will build off Leap's existing business selling ringtones, relies on proprietary intellectual property and represents collaboration among record companies, Leap and unnamed handset suppliers. Leap executives said the company has already inked licensing agreements with most of the music industry's major record labels for the service, and that investments in the effort have been "closely managed."

The news caps a busy day for Leap, which released sluggish earnings, unveiled an MVNO agreement with Sprint Nextel (NYSE:S), and launched refreshed voice and data pricing plans.

Leap is by no means the first wireless carrier to jump into the mobile music business. Indeed, Sprint in 2005 launched its Sprint Music Store that offered full-track music downloads to users' handsets and desktop computers. Verizon Wireless (NYSE:VZ) and others also offer mobile music services, though the hype around carrier-branded music offerings has clearly given way to the likes of Pandora, Spotify and, of course, Apple's iTunes and iPhone products.

Nonetheless, Leap executives argued the carrier's Cricket MusiK effort would result in happier customers and therefore higher revenues.

For more:
- see this Leap investor presentation (PDF)

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