Sprint Nextel signs networking deal with Ericsson

Jul 09, 2009

(AP) -- Sprint Nextel Corp. has signed a seven-year deal with LM Ericsson for the Swedish telecommunications equipment maker to take over operation of Sprint's wireless and wireline networks.

The deal, valued between $4.5 billion and $5 billion, will transfer about 6,000 Sprint employees to Ericsson. Sprint would retain ownership of its networks.

The move is seen as a way to help Sprint cut costs and make itself more competitive in the wireless market, where it has been losing subscribers.

The deal, which has been rumored for months, is expected to close in the third quarter.

Sprint shares jumped 4.9 percent to $4.50 in midday trading.

©2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Explore further: Creating the fastest outdoor wireless Internet connection in the world

add to favorites email to friend print save as pdf

Related Stories

Despite prepaid lift, Sprint Nextel loss widens

May 04, 2009

(AP) -- Despite a widening net loss, Sprint Nextel Corp. finally got some good news in its long recovery Monday, as a big surge in "prepaid" customers offset another nightmarish drop in valuable subscribers ...

Recommended for you

Impoverished North Korea falls back on cyber weapons

11 hours ago

As one of the world's most impoverished powers, North Korea would struggle to match America's military or economic might, but appears to have settled on a relatively cheap method to torment its foe.

Five ways to make your email safer in case of a hack attack

11 hours ago

The Sony hack, the latest in a wave of company security breaches, exposed months of employee emails. Other hacks have given attackers access to sensitive information about a company and its customers, such as credit-card ...

2012 movie massacre hung over 'Interview' decision

12 hours ago

When a group claiming credit for the hacking of Sony Pictures Entertainment threated violence against theaters showing "The Interview" earlier this week, the fate of the movie's big-screen life was all but ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.