Ericsson to Take Over Operation of Sprint's CDMA and iDEN Networks
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Not Surprising
glincJul 9, 2009, 11:11 AM
First outsourcing their WiMax Build up to cable companies and now their network lol.... just let Metro PCS take over sprint already
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Really....this is a smart move on their part to free up money. TONS of money.
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MennoJul 9, 2009, 2:11 PM
Until their contracts with the companies are over and those companies decide to jack up the rates if sprint wants to continue dealing with them, or the companies working out other provider deals and give these new deals priority access to the networks.
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Well put.....I am sure the brass has covered these exact concerns. Everything I have read about this has said this is the future of network management, which makes a lot of sense for the bigger carriers to move to. The salaries saved for the network employees alone amounts to big money.
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MennoJul 9, 2009, 2:47 PM
Besides the money to pay the Ericsson employees has to come from somewhere. Yes, sprint isn't directly footing the bill anymore, so then who is?
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is everyone missing this part
The deal will last for seven years, and will see Sprint paying between $4.5 and $5 billion for Ericsson's services.
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MennoJul 9, 2009, 5:57 PM
right.. they are paying them something, but they did this deal to save money.
so either Ericsson is 1)understaffed/underpaid 2)getting the money from somewhere else. If Sprint could operate everything for 4.5-5bil why sell it off?
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vodaphone and tmobile in europe already do this. it allows sprint to not have to worry about network ops. of course they still have final say, but even if they break even and do not have save money on it, it does allow for them to focus on one less thing and focus on what is reallly making them the money.
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Sprint has cried the blues for years that it can't compete and make good profits because Verizon & ATT, the owners of the backbone (a.k.a. "backhaul") infrastructure, charge Sprint more to use the backbone than they charge themselves. Those statements alone from Sprint indicate that thay are wrong about the value of owning and maintaining the entire network youself. Sprint just sold the farm but still needs the eggs and mild to survive. Not smart.
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