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

posted Jul 9, 2009, 10:44 AM by Eric M. Zeman

Today Sprint announced a new deal with Ericsson that gives day-to-day operational control of its wireless networks to the provider of that equipment. The deal, which Sprint is calling "Network Advantage," will transfer 6000 Sprint employees to Ercisson, who will then use Ericsson's networking knowledge base to operate and maintain both Sprint's CDMA and iDEN networks. Sprint says it will retain full strategic control over its networks and retains the ability to pick and choose those vendors it thinks best for the network. Ericsson will use Sprint's diverse assets to better manage the networks and provide back-end support. The deal will last for seven years, and will see Sprint paying between $4.5 and $5 billion for Ericsson's services. The move is meant to help Sprint focus better on what it calls its core competencies, including "revolutionizing the customer experience as it's done with Ready Now, its value plans, or delivering iconic, highly-sought-after products." Sprint did not provide details on how this affects its previous agreements concerning the operation of its wireless networks.

more info at Sprint »

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