Sprint May Outsource Network Operations to Ericsson

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posted May 3, 2009, 9:14 PM   by Eric M. Zeman

Sprint is currently in negotiations with Ericsson over the outsourcing of its cellular network. Once a deal is struck, Ericsson would gain 5,000 to 7,000 current Sprint employees, and would then be responsible for managing and maintaining the thousands of towers that make up Sprint's cellular network. Sprint would retain ownership of the towers, and would be responsible for making capital investments in new towers. The move is meant to cut costs and free up capital for Sprint. No final announcements have been made, but the Wall Street Journal believes the deal would amount to about $2 billion, which Sprint would pay over a period of several years. It also reports that Sprint could save up to 20% of the operating costs for its network. Lay-offs would likely be involved.

more info at Wall Street Journal »

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