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Sprint Outsources Network Operations to Ericsson

Sprint yesterday confirmed that it would outsource daily operations to Ericsson in a deal worth up to $5 billion over a seven-year period. Ericsson will assume responsibility for day-to-day services, provisioning and maintenance for Sprint's CDMA, iDen and wired networks.

Sprint will retain full ownership and control of its network assets as well as full control of technology and vendor selections. The carrier has said that, at the moment, there are no layoffs planned as a result of the deal but said roughly 6,000 Sprint employees will begin performing their network functions as Ericsson workers sometime in the third quarter.

The deal is an effort to cut down the cost of day to day operations and the carrier’s president of network operations, Steve Elfman, today said that the deal will free the company to focus on innovation and bringing new products and services to market.