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Ericsson takes over Sprint's day-to-day operations
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Ericsson will take over the day-to-day network operations from Sprint Nextel today, according to Johan Bjorklund, Ericsson's vice president of managed services.
"We're taking over engineering, deployment, provisioning and everything around operations and execution," he said in an interview with FierceWireless. "What that means is that Ericsson will essentially be the company coming to all of the [cell] sites."
The seven-year, $5 billion outsourcing deal between Sprint and Ericsson shocked the industry despite months of rumors on the topic. As part of the agreement, Sprint retains control of network decisions, customer experience and customer technical support.
Ericsson has over 100 similar network management contracts globally covering a total of 275 million subscribers. But Ericsson's deal with Sprint, announced in July, is a landmark because it is the first of its kind in North America. The region's Tier 1 wireless operators have traditionally eschewed relinquishing control of their network operations, which is regarded as both a strategic resource and source of brand identity.
Bjorklund said that Ericsson is trying to maintain stability during the transition process. Over time, he said, Ericsson will bring in new tools and processes that leverage the company's $1 billion investments in global managed services. "But this is not like flicking a switch, where all of sudden we do everything the Ericsson way," he said. Bjorklund said that Ericsson would be looking at best practices to integrate into its operations as part of a gradual evolution.
"It's a constant transformation program we're running in the background over the entire seven years," he said.
Bjorklund will be giving a keynote address at the PCIA wireless infrastructure show in Nashville on Wednesday.
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Comments
Posted by Ron Havens | September 21, 2009 - 12:44pm
When I was at Sprint in 1980 I worked on an attempt to select a second gen switch for our network. Ericsson was our selected. We were over-ruled by our senior executives who went with NEC. That was a disaster, that ultimately caused us to go to NORTEL. The lesson from this? If your in operation or engineering, don't bother if senior management has already made a decision, despite you efforts.
Posted by Anonymous | September 21, 2009 - 10:02pm
This company continues one screwup after another. If you do not own the network what do you own then.
Well I guess expect more layoffs and outsourcing. Best of luck to the customers.
Posted by Anonymous | September 21, 2009 - 10:39pm
Sprint still owns the Network design process, Ericsson owns the operational processes. Sprint owns and controls the Network. All customer facing employees remain with Sprint. It seems there is confusion over who owns the network but for now and at least the duration of the contract Sprint still owns and controls the Network. That said I would expect Ericsson to do some cost cutting after the first year as there is probably some clause that after a certain period of time lay offs will be under the Ericsson seperation plan. If Ericsson can pick up a Verizon or ATT outsourcing deal maybe they can avoid the layoffs in the out years.
Posted by Anonymous | September 23, 2009 - 8:27am
Sprint did not keep all customer facing employees. they outsourced the employees on the wireline side of the company that interface with the customers everyday. The data side that makes money
Posted by Anonymous | September 29, 2009 - 9:34am
HEY ERICSSON...Are you listening? The problem has always been management with Sprint Nextel and for us to be profitable you should start firing the management you just got from Sprint.
THE NAME HAS CHANGE BUT THE SAME MORONS THAT DROVE SPRINT INTO THE GROUND ARE NOW GOING TO RUN ERICSSON INTO THE GROUND!
As far as I am concerned (being an Ericsson Employee now) I still work for Sprint Nextel because the same managers and directors are still running the show and we once again will fail! Ericsson you took over a losing team and there is no way to make this new team a winner with the leadership that is still in place. REPLACE THEM ASAP!!!
I am not the only one that feels this way, many of us feel this way, including my own manager! Are you listening ERICSSON?
Lets be a winning team and start by getting rid of all the bloated management that has bogged us down and toss the directors and install new ones from "out side" the company! Just don't do what Sprint Nextel did which was to shuffle the managers and directors around instead of firing them like they should have done. Ericsson I beg you, do the right thing, FIRE and or REPLACE the current management and the directors starting today! If you do this we Ericsson will be number one and a winning team, if you don't, well just look at Sprint Nextel because that is where you are headed!
Sprint Nextel refused to make this hard call, step to the place Ericsson!
Posted by Anonymous | November 3, 2009 - 4:02pm
That bunch is nuts; they did the same thing
back in 76 when I was there with Ron. They chose
a Rolm pbx for a C.O. switch
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