Ericsson will run Sprint’s network; Big Changes Afoot? Or Not
Posted on 10 July 2009, at 11:07 am, by Judie Lipsett
photo credit: The Consumerist
Yesterday, Sprint announced that they would be entering into a seven year, 4.5 to 5 billion dollar agreement with Ericsson. This sounds like it will basically take all of the network management pressure off of Sprint, allowing them to focus on their customer service and product offerings. Some of the major points, as outlined in their joint press releases, include:
* Sprint retains full ownership and control of its network assets, and solely owns network strategy and investment decisions.
* Customers will continue to work directly with Sprint employees as their primary contact, as Sprint retains full control of the customer experience, customer technical support and services review.
* Sprint retains technology and vendor selections.
* Ericsson assumes responsibility for the day-to-day services, provisioning and maintenance for the Sprint-owned CDMA, iDEN and wireline networks.
* Ericsson will optimize Sprint’s multi-vendor inventory of assets such as spare parts and transmission equipment, and provide processes and tools for managing the national network platforms and operational support systems.
* The transferred employees ["The transaction calls for about 6,000 Sprint employees to begin performing their network functions as Ericsson employees sometime in the 3rd quarter. "] will become part of Ericsson Services Inc., a wholly-owned Ericsson subsidiary based in Overland Park, KS, a move that retains jobs in the United States. No force reductions are currently contemplated as a result of this agreement.
That’s the press release version of what’s about to happen. My thoughts rant follows…
My first reaction upon hearing this was that it might be the best thing in the world, because Sprint has been hemorrhaging employees as well as customers for the last couple of years (including me!), and they need something that will help them stabilize. My second thought was that they are now admitting that they have no idea how to run their infrastructure, keep people happy, and still make money.
But that’s not all.
Bragging about their “legacy of innovation” in the press release while reminding people that they have “iconic, highly-sought-after products like Sprint Mobile Broadband Cards, the Palm® Pre™ and MiFi™” reeks of desperation to me, probably because I haven’t sought out any of these products, and certainly won’t if they are only available through Sprint. Why Not? Because no matter how great or exciting these products might be, unless you live in a major market the service to these products will be mediocre at best, and Sprint know this!
Wouldn’t it seem foolish for a customer to buy the latest and greatest device because it works on the Sprint network, but in the end only be able to look at it and talk about what it is supposed to help you do? There’s nothing like finding out that a product won’t work as advertised because you don’t live in an area that meets the product’s minimum requirements? I’m not only talking about 3G speeds, I am talking about good basic network coverage – in places where it is indicated on the map – with a minimum of dropped calls and dead spots.
Don’t get me wrong. I know that there are certain parts of the country (all major markets, I’m sure) which have blazing fast service and solid Sprint infrastructure, and I know that I can’t possibly expect 3G speeds or better when the largest city next to me has only 100,000 people. But! I believe that if a company is going to say that they offer coverage in a certain area, the very least they can do is make it good solid coverage! They shouldn’t half-ass their infrastructure in smaller markets, just because they can. Grrr.
I was a Sprint customer for six years, and I always felt that customer service was Sprint’s strong point, because believe me – I got to talk to my share of CS reps when service in my area (I was living smack-dab in the middle of San Angelo at the time) suddenly took a nose-dive. Ultimately, I switched to AT&T because I got tired of all of the inexplicably dropped calls I was experiencing on the Sprint network. I know this isn’t everyone’s experience with Sprint, but it was mine, and it irked me!
If Ericsson taking over Sprint’s transmission equipment, network platforms and operational support systems means that coverage and possibly speeds might be better in every market, then I am all for it. Heck, I might even be willing to give Sprint a second look!
But if all it really means is that Sprint gets to save a buck by farming out their core infrastructure to Ericsson, and all Sprint can offer is that the “network will be at least as good as it is now when Ericsson is going to run it,” then you can color me unimpressed. Granted that particular quote was by a telecom analyst with Nieslen IAG in the New York Times today, and I am taking it slightly out of context, but it certainly doesn’t inspire confidence.
I mean, why make such a drastic change if the end result is that things may only be at least as good as they are now? Shouldn’t you only make a drastic change with the understanding that at the bare minimum it will improve what is currently happening for everyone?
If this change is going to bring about mediocre results, then it sounds to me like Sprint will have bought themselves a little more time to founder around before ultimately failing. But if it works? Only time will tell…
Sprint Taps Ericsson to Run Its Network
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