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--(Business Wire)--
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."

The Sprint managed services deal with Ericsson is part of a broader trend to
improve networks and drive efficiencies through outsourcing or pooling resources
through network sharing. "Network operators realize that customer service,
brand, and compelling service and product offerings are more essential to their
core value than basic network operations," says Phil Kendall, Director of the
Wireless Network Strategies service.

Ericsson, which has shown leadership in productizing managed services, will gain
a larger US presence. The vendor may find it hard to push profitability out of
the contract initially, but should be incentivized by credits for exceeding
service level metrics, as well as the ability to support bids for other US
network service projects and its work with Verizon Wireless on LTE using
employees skilled in CDMA networks to be transitioned from Sprint.

About Strategy Analytics

Strategy Analytics, Inc. provides timely and actionable market intelligence
focused on opportunities and disruptive forces in the areas of Automotive
Electronics and Entertainment, Broadband Connected Home, Mobile & Wireless
Intelligent Systems and Virtual Worlds. http://www.strategyanalytics.com/

Strategy Analytics
US Contact:
Susan Welsh de Grimaldo, +1 617-614-0724
swelshdegrimaldo@strategyanalytics.com
or
European Contact:
Phil Kendall, +44(0) 1908 423 620
pkendall@strategyanalytics.com

Copyright Business Wire 2009