A recent Reuters report announces that Sprint Nextel will pay Ericsson around $5 billion to manage its network under a 7-year deal in which 6,000 Sprint workers will move to Ericcson. The same report also says that Sprint share rose 4 percent.
"This is about improving our customer experience," Steve Elfman, Sprint's network operations head, said on a call with reporters. "While we get the benefit of Ericsson's expertise ... we can focus our attention on bringing great devices, great services, great applications to them."
According to analysts, the quality of Sprint’s wired or wireless network will not suffer from management handover. Additionally, the agreement will not have any consequence upon the workforce. Reuters informs that the transferred employees will become part of an Ericsson subsidiary based in Overland Park, Kansas where Sprint’s headquarters is located.