It will use roaming deals with national wireless providers so users can get service elsewhere.

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Regulatory measures are also weighing on profits in the sector, including cuts in roaming charges and mobile termination fees, which national operators charge one another to use their networks.

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Regional players MetroPCS and Leap Wireless announced a roaming pact that allows them to compete more effectively with national carriers.

WSJ: Newly Budget-Minded Turn to Prepaid Phones