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Is NV being slowed down?


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From the link below it appears that Ericsson is laying off 10% of their workforce. Is Sprint slowing the speed of NV deployment? Why would you cut back on your staffing when you're maintaining, doing 3G bandaid upgrades, and deploying a new network over 1/3 of the country at the same time? Sprint did just complete their $2b note sales and got decent interest terms (well 9.75% is decent for a company in their shape), and we know they will need at least another $4-5b to finish the initial NV rollout. Could they be putting the brakes on?

 

http://www.kansascity.com/2012/03/01/3461969/ericsson-operator-of-sprint-network.html#storylink=rss

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This is the division of Ericsson that maintains the Sprint network. Remember Sprint outsourcing all this to Ericsson a few years ago? This is not the Division that is handling NV Deployment in 1/3 of the country.

 

I recall Sprint execs touting several times how much money they were going to save in network management and maintenance post Network Vision with an all new network and new equipment. So less Ericsson employees would be needed to manage it all. These savings are mostly payroll...the largest expense of any company.

 

Although, it seems a little early to pull that trigger. It must be just inconvenient timing. Like the contract ended and a new one was negotiated with reduced cost.

 

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