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| Website about Outsourcing Development - Website Development portal. Other useful information: Updated: Sprint (s fon), the No. 3 wireless carrier, is considering outsourcing network operations and management duties to Sweden's Ericsson ..." /
I would be only curious to see structure of deal, For example whether they are outsourcing development of new product and services, I think they should not. Sprint needs to be more innovative in products and structuring contract for example two years back they came up with deal to become backbone for Amazon Kindle download, It seems unique and may be game changer deal, While they are able to increase load factor of their network I am not sure how much margin they are able to make out of this deal.
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| Can Outsourcing Its Network Stem The Bleeding At Sprint? - Updated: Sprint, the No. 3 wireless carrier, is considering outsourcing network operations and management duties to Sweden’s Ericsson, according to the Wall Street Journal. But would it stem the bleeding in what one analyst called a “gushing chest wound?” The bleeding in Overland, Kan., to which he was referring consisted of 1.25 million subscribers in the first quarter? That compares with Verizon’s 1.3 million wireless additions and AT&T’s 1.2 million new wireless customers during the latest three-month period. As Camille Mendler, VP of enterprise research at Yankee Group, was quoted as saying: “These deals shouldn’t simply be done for the costs. It can’t be a Band-Aid for a gushing chest wound.”
The deal, if agreed to, would see Sprint pay Ericsson $2 billion in return for a 20 percent reduction in network costs. Part of those cost savings would likely come from shifting between 5,000 and 7,000 service employees to Ericsson. In what has become a frequent refrain, Sprint insiders told the newspaper the move would allow the carrier to concentrate on “product development, marketing and strategic partnerships.” Earlier this year, Sprint handed off its 4G WiMAX network to Clearwire to concentrate less on the pipe and more on products. In February, we described the action as Sprint’s Dumb Pipe Dream .
Can Outsourcing Its Network Stem the Bleeding at Sprint?
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Can Outsourcing Its Network Stem the Bleeding at Sprint?
Ed Sutherland
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Monday, May 4, 2009 |
10:25 AM PT | 10 comments
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