Leap, MetroPCS: Fears Ebb On T-Mobile’s Project Dark

Leap Wireless (LEAP) and MetroPCS (PCS) shares are both trading sharply higher today, apparently on ebbing fears about a new T-Mobile pricing and marketing plan known as Project Dark.

There were worries that T-Mobile planned to launch a $50 a month plan for unlimited voice, messaging and data. But there are leaks on the Web about the new pricing scheme, and it now appears that the Deutsche Telekom (DT) unit will be less aggressive than feared. Maquarie Research analyst Phil Cusick wrote in a research note this morning that “the pricing looks interesting but rational and matches rather than ratchets down the industry’s lowest price points on voice, data and SMS pricing.” Cusick says the new pricing plan is expected to be officially unveiled Sunday, adding that if the current pricing being discussed on the Web is correct, there should be a relief rally in shares of Sprint (S), Leap and MetroPCS. Which, in fact, there already is.

According to the Web site Brighthand.com, the company will offer an unlimited everything plan at $80 a month, not $50. (There are a range of other price options, as laid out in the post.) T-Mobile will also reportedly roll out faster data service, and offer customers a range of new phone options.

In today’s trading:

• Leap Wireless is up $1.29, or 9.6%, to $14.70.


• MetroPCS is up 58 cents, or 8.8%, to $7.17.


• Sprint is up 4 cents, or 1.2%, to $3.33.


• Deutsche Telekom is up 24 cents, or 1.7%, to $14.53.