Ericsson to manage Nextel network in USD5bn deal

Sprint Nextel is to transfer the operation of its wireless and fixed-line networks to Ericsson in a seven-year deal valued at between USD4.5bn and USD5bn. The agreement, thought to be the first of its kind for a US operator, includes the relocation of around 6,000 Sprint workers to an Ericsson-owned subsidiary in Kansas.

Sprint says it will maintain full control of its network, including future investment and strategy. Ericsson will provide maintenance and monitoring of its network with the aim of improving performance and network coverage.