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Sprint Managed Services Deal with Ericsson for Network Operations a Smart Survival Move, says Strategy Analytics
Sprint to Focus on Network Coverage, New Services, Benefit from Ericsson Best Practices
Boston, MA - July 13, 2009 – In a first for the US, Sprint has partnered with Ericsson in a managed services deal for day-to-day operations of its wireless and wireline networks. Strategy Analytics views this seven-year, $4.5 to 5 billion deal in “Ericsson Managed Services for Sprint Network - A US First,” describing it as a win-win for both parties, but not a model that will be replicated soon by other top operators.
“Sprint will remain in the strategic driver’s seat, so it is not giving away the keys, it is just hiring an experienced pit crew to keep its network tuned up while focusing its own efforts and investments on building a better network and a more competitive service and product portfolio,” notes Susan Welsh de Grimaldo, Senior Analyst in Strategy Analytics’ Wireless Network Strategies service.
She adds, “Sprint cannot afford to lose more ground to AT&T and Verizon Wireless. By shifting the risk and responsibility for network performance and improvement of operational processes and efficiencies to Ericsson, Sprint can keep its eye on the finish line.”
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