Sprint’s Now network goes to Ericsson
In an effort to cut cost, streamline operation to be more competitive on the mobile marketplace, Sprint Nextel has decided to outsource its network operation to Ericsson in a seven-year deal valued at $4.5 billion to $5 billion.
The outsourcing of Sprint Network also includes the transfer of about 6,000 Sprint employees to Ericsson..
Steve Elfman, Sprint’s president of network operations and wholesale, said on a conference call that Sprint still owns its network and is responsible for strategic plans and investments. Elfman added that the goal is to improve the quality of the network and deploy next-generation technologies. Sprint will keep its customer service operations.
This deal has no implication on Sony-Ericsson, which is the handsets division formed a joint venture with Sony since 2001. The investors seem to welcome the new in the hope that Sprint will improve their network quality and customer experience. Sprint will have more time to focus new application, solution, offerings, etc..
Below are few principals of the deal:
- Sprint chooses technology platforms and vendors.
- Ericsson maintains Sprint’s wireless and wireline networks.
- Ericsson will optimize Sprint’s inventory of network assets.
- Ericsson and Sprint will focus on improving processes.
- No layoffs are anticipated due to the deal and Ericsson will set up shop in Overland, Kan., Sprint’s headquarters.
Ericsson in brief
Ericsson, a Swedish copny, is a provider of telecommunications equipment and related services to mobile and fixed network operators globally. Over 1,000 networks in more than 175 countries utilize our network equipment and 40 percent of all mobile calls are made through our systems. We are one of the few companies worldwide that can offer end-to-end solutions for all major mobile communication standards. [Via Reuter]
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