Sprint and Ericsson have inked a seven-year-deal that gives Ericsson management responsibilities for Sprint's network. According to Sprint, the deal will be worth $4.5 billion to $5 billion.
Sprint, the No. 3 U.S. mobile service, will keep full ownership and control of its network assets and continue to make network investment and strategy decisions, such as those involving technology and vendor selections.
As a result, 6,000 Sprint workers in the third quarter will move to Ericsson Services Inc., a wholly owned Ericsson subsidiary, which, like Sprint, is based in Overland Park, Kan.
The deal leverages Ericsson's network services, its proprietary tools and the knowledge of more than 30,000 professionals. Called "Network Advantage," the program is aimed at delivering operational efficiencies for Sprint while further expanding Ericsson's network services business in North America.
While customers will continue to work directly with Sprint employees as their primary contact, Ericsson will take on responsibility for the day-to-day services, provisioning and maintenance for the Sprint-owned CDMA, iDEN and wireline networks.
Ericsson's Managed Services has been successful with these programs previously, Angel Ruiz, head of Ericsson's North American operations, said in a statement.
"Measures that provide operators with reduced cost and improved efficiency have become increasingly valid and attractive," he said. "This shows that the trend of full-scope managed services with tier-one global operators is now happening in the U.S."
