Sprint has confirmed that it would transfer the management of its network to Ericsson, in a seven-year deal valued between $4.5 billion and $5 billion. The deal involves the transfer of 6000 Sprint workers to Ericsson in the third quarter.
Steve Elfman, Sprint’s president of network operations and wholesale, believes that the deal, titled “Network Advantage,” catapults the company to elite status in wireless and wireline network effectiveness.
The US mobile service provider said that the agreement will improve its operational efficiencies and also expand Ericsson’s network services business in North America.
Under the agreement, Sprint will retain full ownership and control of its network assets, and solely own network strategy and investment decisions. It will also retain the control of the customer experience, customer technical support and services review.
As part of the agreement, Ericsson is expected to manage day-to-day services and provisioning and maintenance for the Sprint’s CDMA, iDEN and wireline networks. It is also expected to optimise Sprint’s multi-vendor inventory of assets such as spare parts and transmission equipment, and provide processes and tools for managing its network platforms and operational support systems.
Elfman added: “Taking advantage of Ericsson’s global expertise to operate the tactical functions of our networks will greatly enhance Sprint’s business. Beyond the obvious network advancements, we’re now positioned to eclipse the competition by concentrating on our legacy of innovation.”
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