AT&T’s bid for Leap Wireless heralds the start of another round of consolidation in the US mobile sector as carriers look to bolster their spectrum holdings, according to Jeff Kagan, an independent analyst.

“The next wave of consolidation is beginning in wireless,” he told Reuters. “[The AT&T bid for Leap] is an example of such a deal that not only helps AT&T get their hands on more spectrum, customers and revenues, but also further consolidates the industry. Expect to see more deals with Verizon, Sprint and others.”

AT&T’s $1.2 billion offer for Leap – the seventh-largest mobile operator in the US according to GSMA Intelligence – follows SoftBank’s recent takeover of Sprint, as well as Sprint’s acquisition of Clearwire equity it didn’t already own. T-Mobile USA acquired MetroPCS, a smaller regional player, in April.

Other possible deal-making between US operators, speculate analysts, could involve T-Mobile US as an acquisition target. SoftBank-controlled Sprint has been mentioned as a possible buyer, although the third-largest player in the US merging with the fourth-largest would raise anti-trust concerns.

Dish Network, which made separate and unsuccessful bids for Clearwire and Sprint, is also likely to figure in any future jostling for spectrum, Charlie Ergen, chairman of the US satellite TV broadcaster, has made no secret of its desire to complement satellite TV with mobile.

Verizon Communications, too, has been looking to buy out the 45 per cent of Verizon Wireless owned by Vodafone Group.

As for AT&T’s bid for Leap, it shows the number two US operator’s continuing thirst for extra spectrum. AT&T tabled a cash offer of $15 per share for Leap – which has five million pre-paid subscribers – nearly double Leap’s trading price on Friday. When Leap’s net debt of $2.8 billion is taken into account, AT&T’s bid is worth around $4 billion.

Leap’s network covers about 96 million people across 35 US states, using spectrum in the PCS and AWS bands. Population coverage of the network is around 137 million people.

Leap shareholders, under the terms of the deal, also receive a contingent right entitling them to the net proceeds received on the sale of Leap’s 700MHz spectrum in Chicago, which Leap purchased for $204 million in August 2012.

Moreover, Leap cannot solicit rival bids but AT&T has the right to match any rival offers.

The deal is subject to both Leap shareholder and regulatory approval, although analysts say there is unlikely to be much regulatory resistance given that Leap has only around 5 million subscribers compared with AT&T’s 100 million. AT&T expects the transaction to close in six to nine months.

According to a Bloomberg report, owners of approximately 29.8 per cent of Leap’s outstanding shares have entered into an agreement to vote in favour of the AT&T transaction.