Ericsson to Assume Responsibility for Sprint's CDMA and iDEN Wireless Networks

Sprint recently announced a wireless network services agreement with global leader Ericsson. This agreement is called the "Network Advantage" effectively allows Ericsson to take over the day-to-day services, provisioning and maintenance for the Sprint-owned CDMA, iDEN and wireline networks.

The Sprint "Network Advantage" deal is reportedly beneficial to both parties. Sprint will gain operational efficiencies while Ericsson will be able to expand its wireless network services business in North America.

The carrier believes that the “Network Advantage” deal will catapult the company to elite status in wireless and wireline network effectiveness. Sprint’s Steve Elfman, President of Network Operations and Wholesale, released this statement:

“No other U.S.-based carrier has followed through on the business-enhancing vision inherent in Network Advantage. Our best-ever network performance will become even better by leveraging Ericsson’s world-class leadership in network services, their proprietary tools, and the knowledge of more than 30,000 dedicated and highly-specialized service professionals to power Sprint’s Now Network.”

The “Network Advantage” agreement between Sprint and Ericsson will involve between $4.5 billion and $5 billion (USD) over the seven-year term of the contract. Around 6,000 Sprint employees will begin performing their network functions as Ericsson employees sometime in the 3rd quarter.

Here are the key elements of the “Network Advantage” agreement between Sprint and Ericsson:

• Sprint retains full ownership and control of its network assets, and solely owns network strategy and investment decisions.
• Customers will continue to work directly with Sprint employees as their primary contact, as Sprint retains full control of the customer experience, customer technical support and services review.
• Sprint retains technology and vendor selections.
• Ericsson assumes responsibility for the day-to-day services, provisioning and maintenance for the Sprint-owned CDMA, iDEN and wireline networks.
• Ericsson will optimize Sprint’s multi-vendor inventory of assets such as spare parts and transmission equipment, and provide processes and tools for managing the national network platforms and operational support systems.
• The transferred employees will become part of Ericsson Services Inc., a wholly-owned Ericsson subsidiary based in Overland Park, KS, a move that retains jobs in the United States. No force reductions are currently contemplated as a result of this agreement.

This is certainly interesting Let's see if the “Network Advantage” agreement between Sprint and Ericsson works well for both companies. That's it for this wireless network information. Tune in to this blog for more news and updates.