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Report: Sprint to outsource network management to Ericsson
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Sprint Nextel may outsource some of its network operations to Ericsson, according to a report in the Kansas City Business Journal.
The carrier, the nation's third largest, would outsource, or "re-badge" 7,000 Sprint employees, a move that would probably happen over time. Analyst Patrick Comack of Zachary Investment Research & Management said that he expected the number of re-badged employees to be around 2,000, with Sprint saving $500 million.
The move would make sense for Sprint, which has been looking to cut costs as it loses subscribers. Earlier this year the company announced it would cut 8,000 jobs, or 14 percent of its workforce, to save $1.2 billion annually. Sprint has indicated in the past that it would close call centers in 2009 to cut costs.
Sprint declined to comment on the speculation, saying that it does not comment on rumors. However, when it announced the recent round of job cuts, Sprint said that Kathy Walker, the carrier's chief networking officer, would be leaving. Additionally, former Ericsson executive Sven-Christer Nilsson joined Sprint's board last November. It was first rumored in November that Sprint might consider re-badging as a cost-cutting measure.
For more:
- see this article
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Comments
Posted by Anonymous | February 9, 2009 - 3:01pm
Will Ericsson now have access to Nortel, ALU and all of Sprint's Network vendors equipment and confidential / proprietary information? This will not bode well with Sprint's other vendors who are in direct competion with Ericsson.
The lawsuits will be flying on this latest blunder from the worst wireless company with the highest paid execs, Sprint.
Posted by Anonymous | February 9, 2009 - 3:52pm
Could Sprint please outsource its boad of directors and corprate execs too? I really need some shareholder relief. Thanks.
Posted by Pete Dailey | February 11, 2009 - 4:15pm
Ericsson was the prime IMS integrator for Sprint. They already have intimacy with Sprint's multivendor environment. There is no threat to other vendors that didn't already exist. Ericsson is a professional organization that wouldn't take on the risk of litigation by doing anything inappropriate. This is a solid management move by Sprint, which is slowly turning around under Hesse.
Posted by Anonymous | February 11, 2009 - 5:42pm
Turnaround? Let's see how many more subscribers bolted in the 4th quarter. Sprint is a total joke of a company and this will be their blunder to end all blunders. They outsourced their IT department three times and that blew up in their face all three.
And some of the executives went back to the till to get more compensation before the new year.
Reminds me of when a party is over and people start grabbing silverware on their way out the door.
Friends don't let friends use Sprint Wireless
Posted by Anonymous | February 14, 2009 - 7:54am
Corporate and outsourced Sprint Call Centers continue to send employees home early due to lack of work. Fire workers for staying home with a sick child, being late for work, going to the restroom during non-break time, .... Sprint customers continue to leave Sprint for AT&T, Verizon, T-Mobile, competitors.
Posted by Anonymous | March 16, 2009 - 11:24am
Most of these comments must be coming from layed off Sprint employees.
Posted by Anonymous | March 23, 2009 - 9:13pm
I'am a Sprint Tech. in Long Island, NY. The rumors ARE true & we will be outsourced by the end of March. Afterwards we will be given a 1 yr contract with Erricson. After that year...everthing is up in the air.
Posted by sprintwife604 | April 21, 2009 - 5:20pm
Sprint WILL be outsourcing some network operations with the announcement coming on May 1. The Sprint Cleveland Network has recently had a new Erisson Headquarters built directly across the street from it's Broadview Heights office.
Sprint lies to it's employees, customers, and the news media more than anyone I've ever encountered.
If you think I am angry about this, than you are correct. My husband worked for Sprint for over 11/1/2 years and was off because of a Workers Comp Claim when his boss, Robert Klotzke, informed him his peers had surpassed him in knowledge. My husband was the number 2 go-to guy for network ops in this area, and his boss was afraid he knew more than he did.
When Eriksson takes over, I hope he looses his job the way my husband did. I feel sorry for the other guys on the network ops side, but Sprint is going down and I for one will dance on it's grave!
Posted by Anonymous | May 1, 2009 - 8:42am
I was just laid off in April, I was there for 7 1/2 years but was a legacy Nextel employee. Yes, Nextel.. a good company who cared about their people and had a good team of leads, Sprint sucks and made all the wrong decisions, many people suffered cause of them. My wife and I just had a son and I was laid off right beofre he was born, they don't care about anyone but their own! By this time next year Sprint will be runnin gout of money and will be filing chapter 11. Not that I wish them bad, it's just that they made their bed to lay in!
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