Aiming to cut costs and increase operating efficiency, mobile WiMAX pioneer and broadband provider Clearwire is outsourcing day-to-day operational management of its 4G network to Ericsson, according to a press release.
Clearwire’s managed services partnership with Ericsson follows a similar 2009 agreement between Ericsson and Sprint, Clearwire’s largest shareholder.
According to Clearwire’s press release, key aspects of the partnership include:
- Clearwire retains ownership of all network assets and full responsibility for future technology and strategy decisions.Ericsson will be responsible for network engineering, operations and maintenance, including field services, 24X7 network monitoring, end-to-end engineering, provisioning and routine maintenance.
- Clearwire will remain the primary point of contact for all interactions with customers, wholesale partners and equipment vendors.
- Approximately 700 Clearwire employees are expected to begin performing their network functions as Ericsson employees in locations around the United States before mid-year 2011.
Financial terms of the agreement were not disclosed.
“This managed services partnership is the next logical step for both Clearwire and Ericsson, one that will have significant near-term and long-term benefits for Clearwire’s employees, customers, retail distributors and investors,” observed Berge Ayvazian, a senior consultant with Heavy Reading. “It also represents Ericsson’s second managed services contract in the U.S., building on the Network Advantage agreement that has already delivered major operational and economic benefits for Sprint.”