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Sprint outsourcing its network

May 4, 2009

Analysis of:Sprint Is in Talks to Outsource Its Network | online.wsj.com

This is a positive development as far as the US operators are concerned. As a result of out-sourcing their networks , the operators could realize significant operational cost savings and they could start focusing on the impending 4G technologies as well as rapid migration from the older technologies. Its great for the vendors such as Ericsson , Nokia Siemens Networks and Alcatel-Lucent as along as some profitability is achieved. It is a major technical and operational undertaking for Ericsson because of its non-CDMA presence, especially if Nortel Wireless is acquired by Nokia Siemens networks. There may be implications on existing Sprint employees as some layoffs may take place due to synergies and cost cutting by Ericsson. Service Level agreements between vendors will be very critical as multiple technologies are involved, unlike Europe and Asia where mainly GSM is deployed.

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