MetroPCS Communications Inc. and Leap Wireless International Inc. both saw customer growth slide in the third quarter amid intensifying competitive pressure on the prepaid end of the wireless industry.

Leap and MetroPCS, which operate similar regionally based prepaid wireless services, both relied on new cities for growth in the period, but lost customers in their existing markets. Both cut their expectations for growth for the year.

The business of offering prepaid service—where customers pay ahead of time for the minutes they use and aren't required to sign a contract—has exploded over the past year as consumers seek better bargains.

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