Sprint contracts day-to-day network operation to Ericsson

Big, big news from Sprint today boys and girls… Following unending rumors and speculation that Sprint is likely growing accustomed to at this point, the nation’s number three carrier made a huge announcement today that will finally put an end to the rumors. No, Sprint is not selling its network. No, Sprint is not leasing its network. No, Sprint is not being acquired. The carrier is in fact contracting Ericsson to perform day-to-day operation of its wireless and wireline networks. Key clarifications direct from Sprint:

  • Sprint is not selling or leasing our networks. We will continue to own and control them, with responsibility for network strategy, investment decisions, technology and vendor selections. The term “outsourcing” implies that we would be giving up control, and we are not — that would be a misleading characterization.
  • We are not laying off people – we’re adding the skills of more people. About 6,000 Sprint employees will become employees of Ericsson, doing primarily the exact same jobs. They’ll be augmented by the skills, tools and knowledge of 30,000 more people at Ericsson.
  • Customers will continue to work directly with Sprint employees as their primary contact, because Sprint retains full control of the customer experience, customer technical support and services review.
  • Ericsson will perform day-to-day network functions under Sprint’s direction – working at the towers, installing lines, managing the storage and movement of equipment, overseeing daily network traffic, etc.
  • The deal delivers efficiencies for Sprint, access to improved network tools and processes, and allows Sprint to focus more attention on other areas of innovation.

The seven-year $5 billion deal, which is not common practice here in the US, is a big one indeed — for both parties. Ericsson will assume responsibility for day-to-day services, provisioning and maintenance for the Sprint-owned CDMA, iDEN and wireline networks, adding to the 80 networks covering 270 million subscribers it already manages. Sprint will maintain ownership of its networks as well as responsibility for network strategy and investment decisions. Big changes for sure; but hardly the apocalypse many had been speculating.

Read

Tags: , , , , , , ,

49 Responses to “Sprint contracts day-to-day network operation to Ericsson”

  1. 1
    Grimace says:

    F I R S T !

    Thumb up Thumb down 0

  2. 2
    WHAT says:

    LOSER!

    Thumb up Thumb down 0

  3. 3
    3 Phones Jugglin says:

    I wonder what Sprint Haters will come up with now…..

    Thumb up Thumb down 0

  4. 4
    Jeremiah says:

    Won’t the additional hierarchy and bureaucracy just diminish the customer experience? Whereas Sprint could just easily assign their own task force, they now have to go through Ericsson? Granted, they’ll be working closely, but still–adding that extra layer just seems really counterintuitive.

    Thumb up Thumb down 0

  5. 5
    woodshed says:

    So.. Sprint is now becoming just a shell of a company, whereby it’s a brandname and that’s about it? Thanks for the clarity, Sprint!

    Last rat off the sinking ship’s a rotten egg!

    Thumb up Thumb down 0

  6. 6
    Chad says:

    So, the rocket scientists in Sprint’s management decided to contract out the one thing they do decently? Their network’s pretty decent, but the customer service sucks. Why not contract out the customer service? It’s actually kind of funny, T-Mobile’s customer service & marketing is pretty good but their network sucks, Sprint’s network is pretty good, but customer service and marketing sucks. Hmm… Why not swap services? Network management for customer service…..

    Thumb up Thumb down 0

  7. 7
    mangenius says:

    it becomes cheaper for Sprint and allows them to invest their $$ where its needed most.. take off your blinders and think about business

    Coming from a non Sprint user or employee thanks

    Thumb up Thumb down 0

  8. 8
    Luc says:

    Do you have Sprint services? I had never have a problem. Sprint 3G is top notch

    Thumb up Thumb down 0

  9. 9
    SD says:

    To all you Sprint haters out there…

    I recently switched from Verizon to Sprint and had to call customer service a few times. Not only was the customer service outstanding, they were able to resolve all my issues. No doubt Big Red has a great network, but why not save $20/mo by switching away from Verizon. Add a corp disc and save even more. When Sprint service isn’t present, you’ll roam on Verizon, Alltel, US Cellular or another CDMA carrier.

    Thumb up Thumb down 0

  10. 10
    James says:

    Tmobile network sucks? Hmm I get excellent service..all the time. Travelled to Cali, Las Vegas and West Palm with no problem. Anyway..as far as Sprint..I dunno something about this doesn’t seem right. The Pre was a move in the right direction..outsourcing your day to day to Ericsson seems like a step backwards. Ericsson seems to know operations though..

    Thumb up Thumb down 0

  11. 11
    Andy says:

    So how do you sell off virtually all towers and say that you didn’t? Enough tech sites reported the sale as a sale. Sounds like some spin control to me

    Thumb up Thumb down 0

  12. 12
    DubYa says:

    Hm…thats funny….I guess if they cant run a successful wireless business they may as well see if they cant pay someone to do it for them! How much does Dan Hesse make again? It sure is a lot for doing nothing.

    Thumb up Thumb down 0

  13. 13
    draco says:

    Is Deutche Telekom or Vodafone a “sinking ship”? They use the same system and are still two of the largest telecoms in the world.

    Marketing and Cust Service sucks? Funny Sprint was awarded a few times over the past year for their advertising (marketing) and have moved into the number two slot in Customer Service behind Verizon.

    Thumb up Thumb down 0

  14. 14
    HAHAHA says:

    C’mon man, don’t get sucked into the negative hype. Sprint’s customer service has been improving GREATLY since Dan Hesse came on board. Is it perfect? NO!

    FACT: There is no REALLY good customer service out there in wireless. Customer service at ATT sucks, at Verizon isn’t good at all either.

    So it’s all relative to situations. But at least Sprint is making it a point to enhance the experience!

    Thumb up Thumb down 0

  15. 15
    Roger A says:

    I think all this is FANTASTIC for Sprint… Provided Ericsson can push out network factors and revisions and buildouts as fast as they roll out their Sony-Ericsson phones :)

    The bad part…

    Customers will continue to work directly with Sprint employees as their primary contact, because Sprint retains full control of the customer experience, customer technical support and services review.

    DAMN!!! Id rather deal with having to talk to a tech support staff about billing errors then talk to ANYONE at Sprint about it.. PERIOD.

    Thumb up Thumb down 0

  16. 16
    Erica says:

    Sprint fanboys always defend everything Sprint does.

    They defended the “merger of equals,” to the death when Nextel came into the picture ass if it was the 2nd coming of the Messiah. They defended QChat as the tool that would crush all competitors etc. Now I’m sure they’ll find a way to make this sound rosy and beautiful as a way for Sprint so turn the boat around and destroy all rivals.

    Thumb up Thumb down 0

  17. 17
    Sprint4life says:

    lol, you guys are sick. Just enjoy your phones…

    Thumb up Thumb down 0

  18. 18
    2sikk says:

    Yeah i work for Sprint so I Guess this is good..

    Thumb up Thumb down 0

  19. 19
    tblack says:

    sprint for life u suckas

    Thumb up Thumb down 0

  20. 20
    Sam says:

    For Verizon fanboys: in our area in CA, VZW’s network is outsourced to General Dynamics. Saw their truck by a cell site once and asked. Kind of funny too since Verizon’s the wireline carrier here.

    Thumb up Thumb down 0

  21. 21
    celz says:

    Great move sprint.. My Mom works in IT for Kaiser which is basically the largest Hospital chain in the US and they outsourced part of the IT department to IBM.. Even tho sprint and kaiser are proficient in this IT type work there are companies that specialize in it and can do a better job of training and managing personel and etc.. This is a savy business move..

    Thumb up Thumb down 0

  22. 22
    celz says:

    the funny part is its the same damn workers lol sprint just pays a flat fee instead of unexpected trainings and etc.. people still talking about the towers please name the us wireless company that hasnt sold a majority of its towers we would all like to know.. lol you guys know shit about business

    Thumb up Thumb down 0

  23. 23
    StevenGlansburg says:

    As far as CDMA goes. Sprint > verizon

    Posted from BGR Mobile (iPhone) at: Cincinnati United States

    Thumb up Thumb down 0

  24. 24
    Nerdherder says:

    Wow, Sprint is really a joke now. They will certainly collapse the day that Verizon revokes and discontinues the roaming agreement between the two. Not too long ago they sold off a bunch of cell towers, and now this. What does Sprint actually own anymore, just its brand name?
    And for those of who would rather save $20 a month, I would rather pay pay $20 extra a month knowing that my service provider is competent and that they wont be in danger of going under anytime soon. Suckers.

    Thumb up Thumb down 0

  25. 25
    Sprint4life says:

    Hahahahahaha, wow, Tblack, how old are you???

    Thumb up Thumb down 0

Leave a Reply