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Ericsson to Take Over Operation of Sprint's CDMA and iDEN Networks

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Gadget Junky

Jul 9, 2009, 11:16 AM
Sprint is freeing up a ton of operating capital with this deal. The money saved on 6k employees alone would be worth it, plus they now don't have to pay the day-to-day costs of the networks, nor worry about them...excellent move. This will allow Sprint to transition back into an innovator in wireless, something it hasn't been in a long time.

This should allow for better handset deals, and most certainly a better customer experience on the front end. I see my stock going up soon.
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-Cash Only-

Jul 9, 2009, 2:24 PM
ha..ha.. Sprint stock isnt going anywhere... So people bought stock in a company that cant run itself?? That is, in any direction other than down??
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crackberry

Jul 9, 2009, 6:41 PM
it's not that they can't run it, but they are taking the lead of other world class carriers. 2 of which are in the top 5 carriers in the world... so it's not something they did because they had to, but because it was a smart move.
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cellphonesaretools

Jul 9, 2009, 5:41 PM
re: "Sprint is freeing up a ton of operating capital with this deal. The money saved on 6k employees alone would be worth it, plus they now don't have to pay the day-to-day costs of the networks, nor worry about them...excellent move. "

That comment makes it sound like Ericsson is giving it all to Sprint for free. Does anyone actually think that Ericsson for some magical reason doesn't have to pay those 6000 employees that are transferring over to their payroll?

Economics 101 tells you that Sprint won't really save any money in the long run, and they lose a huge amount of control in letting those employees go to Ericsson.

For your own sake, stop kidding yourself, and stop drinking the koolaid.
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kristhepope5

Jul 9, 2009, 6:30 PM
while sprint may not be saving a whole lot of money, what they will be saving is time. the fact that they won't have to worry about this anymore gives them more time to work on things like phones and additional features
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cellphonesaretools

Jul 9, 2009, 8:49 PM
True, it does free up a small amount of management time which can possibly be diverted to other areas.

That said, I know from personal experience that it takes almost as much technical management time & effort to monitor, guide, correct and in general manage outsource activities as it does to do them youself. That's a fact. If you let the outsource provider operate autonomously they get off track, and quickly.

It takes CONSTANT management to keep outsource activities heading in the right direction to reach your company's goals. Plus, Sprint-Nextel will now have an additional disconnect in the chain of command/control because Ericsson already has 275 million other customers for which to manage the network, which means Sprint's 45 millio...
(continues)
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SellPhones82

Jul 10, 2009, 9:42 AM
That makes me wonder if VZW also sees Vadafone as "just a brand" as well?

http://www.gomonews.com/vodafone-uk-signs-ericsson-f ... »

They also singed a 7 year deal signed with Ericsson in May of this year. They are only sending 350 employees to Ericsson though.

Maybe it's OK since they (Vadafone) are a top 3 if not the number 1 carrier in the world?
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crammy1

Jul 11, 2009, 7:44 AM
it is true that whatever is saved in management of the network would be used to manage and keep track of the outsourcing company...but it is also true that giving the job to somebody who has more experience would be a better idea..u dont have to do research because that company constantly does that anyways, you dont have to worry about innovations or licenses because that company already has that too...so there is basically less redundancy in the job needed to be done...and i think in this case you cant really say that erricson would lax on what they need to do to manage the network..they are an international company the handles this kind of work for other providers as well(as duly stated by you)..they afterall have a reputation to keep.
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