Sprint contracts day-to-day network operation to Ericsson

By on Jul 9, 2009 at 12:37 PM
News July 9, 2009

Big, big news from Sprint today boys and girls… Following unending rumors and speculation that Sprint is likely growing accustomed to at this point, the nation’s number three carrier made a huge announcement today that will finally put an end to the rumors. No, Sprint is not selling its network. No, Sprint is not leasing its network. No, Sprint is not being acquired. The carrier is in fact contracting Ericsson to perform day-to-day operation of its wireless and wireline networks. Key clarifications direct from Sprint:

  • Sprint is not selling or leasing our networks. We will continue to own and control them, with responsibility for network strategy, investment decisions, technology and vendor selections. The term “outsourcing” implies that we would be giving up control, and we are not — that would be a misleading characterization.
  • We are not laying off people – we’re adding the skills of more people. About 6,000 Sprint employees will become employees of Ericsson, doing primarily the exact same jobs. They’ll be augmented by the skills, tools and knowledge of 30,000 more people at Ericsson.
  • Customers will continue to work directly with Sprint employees as their primary contact, because Sprint retains full control of the customer experience, customer technical support and services review.
  • Ericsson will perform day-to-day network functions under Sprint’s direction – working at the towers, installing lines, managing the storage and movement of equipment, overseeing daily network traffic, etc.
  • The deal delivers efficiencies for Sprint, access to improved network tools and processes, and allows Sprint to focus more attention on other areas of innovation.

The seven-year $5 billion deal, which is not common practice here in the US, is a big one indeed — for both parties. Ericsson will assume responsibility for day-to-day services, provisioning and maintenance for the Sprint-owned CDMA, iDEN and wireline networks, adding to the 80 networks covering 270 million subscribers it already manages. Sprint will maintain ownership of its networks as well as responsibility for network strategy and investment decisions. Big changes for sure; but hardly the apocalypse many had been speculating.

Read

Tags:
, , , , ,
49 Comments

Related Articles

  • Ankit

    I think this is a good move if we have sprint in consideration. Let’s be honest these people are huge not sprint but their contractor. They already do the same thing for a lot of european carriers. And samething with nokia seimens.

  • Matt

    Before I make judgment, Ericsson handled some of the build out of WiMax here in Chicago after Motorola. Someone screwed the pooch. Whether it be Motorola, Ericsson or Sprint. I would like to know EXACTLY what happened in Chicago and see who’s to blame.

    We could give the benefit of the doubt to ericsson that Sprint was too blame, but who knows.

  • Castro

    This move seems to be a way that Sprint can wash their hands of WiMax and rollout LTE since the helm is being held by someone else…

  • Sprint4life

    People, don’t scare off. No one has any proof, or any solid info or research to actually back up what they claim.
    I will reiterate. Amazon uses Sprint for their Kindle. Sprint is working on the first 4G network. Sprint is cheaper and now with roaming has even better coverage.

    I don’t understand why it has to be about carriers, just be happy you have a phone — some people can’t even afford a regular phone let alone the portable computers we carry around on our hips.

    Come on people!!!

  • CoryB

    And This is why i Have Verizon!

  • hasan1

    Sprint articles have the funniest comments.

  • kp

    tmo is whorrible in new england

  • celz

    no one still can find a carrier that hasnt sold off towers yet.. lmao people really think sprint might go away.. gm went bk and they still released great cars this year.. you people jus talk out ur ass

  • Castro

    @celz, lets not go crazy and lay a blanket statement that GM “released great cars this year”! GM is going into the right direction and probably has quality cars that I can count on one hand, that being said I hope they do become a respected auto maker again…sorry for the TJ

  • VZW

    This is being done so Sprint can blame someone els for the customers they loose each year.

  • Alex

    I can see Tmo going under…I held the mytouch 3g..No offense, buts a feminine phone. Very small..As for Sprint, let’s allow the ink to dry and see where this deal takes them..You people to need to calm down with comments…

  • michael

    @ Nerdherder

    Sprint sold the towers – not their infrastructure or network. They were trying to get out of the real estate management side. Smart move. Most carriers don’t own towers any more – major tower co’s do.

  • michael

    If you read the whole release it states Sprint is retaining 2000 network engineers and 6000 become ericsson employees. Obviously they are keeping some internal people.

  • mangenius

    The majority of you people are fucking annoying.. My carrier is better, no that carrier is better. The best line was someone saying they would rather pay $20 a month more to know that their company will be around longer.. WHO THE FUCK CARES

  • Celz

    @ Castro The new camaro is a GREAT car by any and every definition of the word… They have other cars that were released in the current year that are class leading as well.. They aren’t at Honda or BMW were virtually every car could be considered great from an unbiased standpoint but they do have some nice ones under their much shrunken umbrella..

    Back to the topic.. If this isnt seen as a positive move for sprint than you have no business sense whatsoever and should not comment.

  • 2ndchance

    Of course, Celz, the techno-Fascist makes his usual condescending, arrogant statement of “If you don’t agree with me, have no business sense whatsoever and should not comment”.

    Just shut the hell up and stop showing your ignorance and arrogance. Please.

  • Matt

    How the hell can you turn something about cell phones into something about cars.

    And to the guy who said Sprint Fan boys always defend Sprint. I’m a sprint fan boy and I think this is crap.

  • TourChaser

    RIP Sprint :-(

    Between the massive customer loss the last couple years, the selling of towers (yes they did sell a bunch of their assets so they depend even more on their roaming agreements with Verizon), and now this . . . . even the Pre can’t save them . . . the beginning of the end for them.

  • Raj Sundar

    This model has been there for sometime now. Airtel, India’s largest mobile operator outsourced its business to Nokia Siemens Networks and Ericsson at start and is only focusing on the exact items outlined here

  • jake

    This model might be new in the US but is quite common in the rest of the world. Why run and administer the hardware when your core business is making money from subscribers?

  • Castro

    @ Celz, I’m a Service Manager for a Chevy dealer and have had several Camaro come back in with less than 2k miles on them for stress cracks in the grill area around the headlights. We even had one come back where the massive amount of wheel weights (due to terrible casted wheels)detached while a customer was doing freeway speed and that was not pretty. We’ve had several short out due to them not being grounded correctly! They rushed the Camaro out and should have waited. The only GM products that I would own are the G8(a rebadged Holden), the Corvette, the Buick Enclave (including the rebadged Saturn and GMC version) and the Caddy CTS. The new 2010 Chevy Equinox seems to be a pretty strong mini CUV…

  • Cell Junkie4Life

    Ericsson runs 80 networks with 270 million subscribers across the world, sounds like they know what they are doing. Outsourcing to a company that specifically deals with network maintaince is a good business model. And must be common place in many other foreign Mobile Carriers so why should Sprint & VZW be any different. Are people getting let go? No, Ericsson is taking them on.

    Again, how is a sign that Sprint is going under? Numerous carriers across world put their trust in Ericsson. So again, how is this a bad business move? All the VZW fanboys please enlighten everyone with your propaganda.

  • Don Louie Cantone

    What is all the fuss about, as long as Ericsson holds up thier end of the bargain?

  • Jimmy

    T-Mobile is looking to do a contract with Ericsson just like Sprint is going to do. Nothing like letting down your faithful employees all in the name of making a buck or two. And as for Sprint employees keeping their jobs but just working for someone else, I’m waiting to see how long it takes Ericsson to start slashing jobs with Sprint employees and T-Mobile employees once this is all said and done. Look out AT&T you’re next!

1 2
blog comments powered by Disqus