Leap Wireless sues T-Mobile USA

Competition is getting nasty in Houston. Leap Wireless, which has been putting the competitive pressure on T-Mobile USA, has filed a lawsuit against T-Mobile in Texas, alleging the operator is interfering with Leap's launch of the Cricket brand in Houston. Leap is accusing T-Mobile of interfering with Leap's contracts with indirect dealers in Houston, saying that T-Mobile is using strong-arm tactics and intimidation to persuade dealers from doing any business with Leap. Leap also claims that T-Mobile flew out about 40 additional managers from around the country to monitor independent dealers in the Houston area and canceled dealer codes, halted commission payments and pulled equipment out of the stores of independent dealers who sold Cricket phones and service. And to top it off, Leap says T-Mobile allegedly distributed a T-shirt that featured a dead Cricket and the words, "Silence the Chirp." T-Mobile USA representatives have said that the company had nothing to do with producing or distributing the T-shirts.

This certainly isn't the first time we've heard about T-Mobile's strong-arm tactics when it comes to keeping competitors from independent retail stores and it probably won't be the last. Leap is beginning to put a dent into the price-conscious market T-Mobile is selling into. There are also rumors that its second-quarter subscriber numbers might not be as stellar as in the past.

To read more about Leap's suit against T-Mobile USA:
- take a look at this article from RCR Wireless News