Sprint signs $5 billion deal with Swedish Ericsson

US mobile network operator Sprint Nextel has announced it is to transfer operation of its networks to Swedish telecommunications giant Ericsson. The seven-year, $5 billion agreement, said to be the largest network management deal ever made, will see 6,000 Sprint employees in the US transferred to a subsidiary owned by Ericsson in Overland Park, Kansas, in the third quarter of this year.  Analysts have estimated that the network outsourcing and employee reshuffle could generate annual savings of $100 million for Sprint.  The company is expected to spend the extra money on new product development and improvements to network coverage and quality.  Angel Ruiz, head of EricssonÔÇÖs North American operations, added: ÔÇ£Ericsson is excited about the opportunity to expand our successful business model to the US, allowing Sprint to operate more efficiently while focusing even more on its customers.ÔÇØ Steve Elfman, president of Network Operations and Wholesale for Sprint, said of the deal: ÔÇ£Taking advantage of EricssonÔÇÖs global expertise to operate the tactical functions of our networks will greatly enhance SprintÔÇÖs business.ÔÇØ The Sprint network currently has 50 million users. Ericsson manages networks serving 275 million subscribers around the world.  *┬á┬á┬á┬á┬á┬á *┬á┬á┬á┬á┬á┬á *