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Sprint May Outsource Network Operations to Ericsson

Article Comments  36  

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.



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May 5, 2009, 1:40 PM

Sprint needs to start over

I know sprints network and customer service are light years better than when I used them Im 2001-02, but the reputation they have is beyond repair imo. CDMA is a dead end technology at this point and they have compounded that by choosing the wrong 4G upgrade path, LTE is clearly the future, but Sprint refuses to admit it and is sticking with this Wimax nonsense. The best thing to happen to them would be to sell to a Euro telecom company like Orange, or someone else and start with a new name, switch the network to LTE, offer way better phones, etc. Sprint is dying, and nothing can stop it
On some points I really must disagree. While I understand why you feel LTE is better, and honestly it might be, we won't know until it launches however Sprint's 4G will be long since launched and have a solid subscriber base using it by then, and not ...

May 3, 2009, 9:45 PM


the thousands of towers that make up Sprint's cellular network.

That's funny. 🤣
andy2373 said:

That's funny. 🤣

It's funny because it's sad.

May 3, 2009, 11:11 PM

How exactly will this save money for Sprint?

How is it that outsourcing network maintenance to Ericsson will actualy save money?

I have yet to see an outsourcing arrangement that actually saved money in the long run. A lot of rah-rah talk by the executives, which the clueless media and stockholders actually believe, but no proof of genuine savings due to outsourcing has ever been shown with legitimate accounting methods.

Might save a few bucks in the first year or two, if that, because the contract firm does a low-ball bid to get their foot in the door. A short time later it ends up costing MORE because the original company has to go back and fix all of the problems brought on by the outsourcing contractor company not knowing what they are doing. Not to mention the loss of reputa...
Ask Dan Hesse, CEO of Sprint who used to work for the old AT&T Wireless and helped to run that company under.

May 4, 2009, 6:44 AM

Didn't Sprint........

Didn't Sprint sell alot of their towers off already?
Multi-Tasker said:
Didn't Sprint sell alot of their towers off already?

Yeah, but they are in hot water, so they're doing it again.
Burger Time

May 3, 2009, 10:16 PM

Sprint should become an MVNO

and just roam off Verizon 100%. 60% of Sprint's coverage is supplied by Verizon as it is.
They should really give IQ tests before letting people post comments I swear. But then there would be 5 people on phone scoop. I'm gonna go invent a new word to properly describe how dumb you are. I'll let you know if I come up with anything.
95-92%% of there Roaming service is off of Verizon.

May 3, 2009, 9:56 PM

Wonderful place to work

It's so nice living in fear of losing your job every day. If I wouldn't have been let go a month ago, it probably would have been the next layoff, or the next, or the next. Or at the very best, keeping a job but losing all of my tenior and benefits to go contract for Ericsson.
Yeah cuz Sprint is the only company laying people off! /sarcasm (for those it wasn't obvious too) Your sir are an idiot.

May 4, 2009, 10:29 AM

Sprint has actually made some MAJOR changes

Sprint has no one to blame for its low reputation. Although they have a long way to change the perception of the consumer. Sprint has made some major changes and should be given more credit.

Ever since Dan Hesse became CEO things have been more focoused on customer satisfaction. Sprint has the lowest wait time when calling to customer service recognised by jd power and associates. Also Sprint ranked first in call quality performance in the southwest region and west region by jd. Sprint rolled out the first 4g network. Sprint was the E-Tech winner. Also phones like the instinct and the palm pre ctia best in show. The best deal in wireless with the 99.99 simply everything plan..that comes with literally everything. unlike att verizon ant t...
sprintisbetter said:
Sprint has no one to blame for its low reputation. Although they have a long way to change the perception of the consumer. Sprint has made some major changes and should be given more credit.

Ever since Dan

May 4, 2009, 9:24 AM

Everyone please read the article!

It states that Sprint retains ownership of the towers. They are not selling them! Let's say for argument that they were to sell these towers. This means nothing. Infrastructure and spectrum is what counts. You don't need to own towers. Just the antennas and spectrum. Verizon, ATT, T-Mobile, Sprint etc. all have antennas strapped to buildings,churches, water towers, Smoke stacks and so forth. Does that mean they own all of that stuff? Owning towers is costly to maintain and repair. Most carriers have already sold much of their towers. Sprint is following suit. Once again, Spectrum and infrastructure is crucial to operating a network and Sprint is NOT getting rid of any of that.

May 3, 2009, 10:17 PM

Will Sprint be getting some Sony Ericsson phones?

Will SE join the rest of the US market?
Doubtful they would waste with CDMA, and its Sony Ericsson which is a partnership company.
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