Sprint Nextel announced yesterday that it had appointed Alcatel-Lucent, Ericsson and Samsung to integrate its multiple wireless technologies into a single network.
These appointments were made as part of Sprint’s “Network Vision” plan, which aims to…
Sprint Nextel announced yesterday that it had appointed Alcatel-Lucent, Ericsson and Samsung to integrate its multiple wireless technologies into a single network.
These appointments were made as part of Sprint’s “Network Vision” plan, which aims to enhance service, improve the network flexibility, reduce operating costs and improve environmental sustainability.
Sprint currently uses services on the 800MHz spectrum, the 1.9 GHz spectrum and (through Clearwire, a telco in which it has a 54% stake) the 2.5GHz spectrum.
Alcatel-Lucent, Ericsson and Samsung will install new network equipment that brings together these multiple spectrum bands in a single, multi-mode base station.
Sprint expects that this integration process will take three to five years.
Some analysts had expected the Chinese firm Huawei to lead the modernisation of Sprint’s network. Rethink Wireless reported that Sprint may have come under pressure from US government authorities to prefer other firms from Huawei.
Sprint confirmed to TelecomFinance that Huawei had been one of the bidders. It said that it had evaluated several factors in the selection process: technology-readiness, cost and “strategic alignment”. A spokesperson said that it chose “the partners that made the most sense for Sprint today and into the future”.
Sprint did not reply to questions on this by press deadline.
It is also part of the plan to phase out some of Sprint’s older technology, in particular the Integrated Digital Enhanced Network (iDEN), which combines walkie-talkie and mobile technology.
Sprint said it will start bringing in new Push-to-talk (PTT) technology from 2011 onwards, but the phase out of iDEN will only begin in 2013.
Sprint expects to make significant cost savings from this restructuring of the business. It estimates the total incremental cost of the Network Vision plan will be between US$4bn and US$5bn over the three-five year deployment period.
However, it also expects the total financial benefit to be between US$10bn and US$11bn over a seven-year period.
The savings may allow Sprint to offer more support to its subsidiary Clearwire, which has been struggling against fierce competition in the emerging US 4G market.
A Sprint spokesperson told TelecomFinance: “Our 4G strategy is through Clearwire and these changes do not impact our relationship.”
According to a Reuters report yesterday, Clearwire’s Chief Financial Officer Erik Prusch has said that the telco hopes to raise US$2bn through selling wireless spectrum.
Clearwire is currently rolling out its 4G WiMAX service in the US. It is believed to require billions of dollars to implement this technology.
Clearwire announced a debt offering earlier this week to raise more than US$1.1bn.
In the Reuters report yesterday, Prusch said that Clearwire expects to make another round of funding either this year or in early 2011, and that it is also looking into the possibility of equity investment from a strategic partner (like Sprint).
