Now that Clearwire definitely isn’t producing its own smartphone, the corporate has apparently decided to focus its efforts on maintaining its WiMAX network — with the aid of Ericsson. Yesterday, the 4G operator announced that it had struck a seven-year contend with the Swedish telecom firm, only some months after fighting a short trademark lawsuit filed by Sony Ericsson. Under the arrangement, Ericsson will assume all network engineering, operations, and upkeep responsibilities, allowing Clearwire to focus on cutting costs and extending efficiency. Clearwire will retain ownership over its technology and may still handle all customer relations, but about 700 of its employees can be transferred to Ericsson. The Kirkland-based company says its decision was at the least partially influenced by new ally Sprint, which forged an identical partnership with Ericsson back in 2009. Financial details at the new deal remain fuzzy, though Clearwire says it expects to look a first-rate reduction in operating costs — which appears like the appropriate prescription . Full presser after the break.
* Clearwire to Leverage Ericsson’s Global Best Practices, State-of-the-Art Tools and Processes to maximise Efficiencies, Provide Continued Network Quality and decrease Operating Costs
* Clearwire Retains Ownership of All Network Assets and entire Responsibility for Future Network Technology and Strategy Decisions
* Ericsson Accountable for Network Engineering, Operations and Maintenance
* Ericsson so as to add Approximately 700 Clearwire Employees
KIRKLAND, Wash. and STOCKHOLM, Sweden, May 18, 2011 (GLOBE NEWSWIRE) — Clearwire Corporation (Nasdaq:CLWR), a number one provider of 4G wireless broadband services within the U.S., and Ericsson (Nasdaq:ERIC) today announced a seven-year, managed services partnership that may transfer the day-to-day management of Clearwire’s 4G network to Ericsson and permit Clearwire to achieve operational efficiencies and decrease operating costs.
“Clearwire’s effort to cut back costs and maximize efficiency while delivering a top quality mobile broadband service to our customers extends to all parts of our business,” said Erik Prusch, Clearwire’s chief operating officer. “By engaging Ericsson, a proven leader in managed network services, we are able to achieve those objectives, and profit from their extensive global expertise and best-practices developed while serving clients world wide.”
“We greatly appreciate the tireless contributions the talented people on our network services team have made in building Clearwire’s 4G network and laying the root for our success,” Prusch continued. “We’re pleased they’ll have new opportunities within Ericsson to support our customers, and additional position Clearwire because the leader in mobile broadband.”
Key aspects of the partnership include:
* Clearwire retains ownership of all network assets and entire responsibility for future technology and strategy decisions.
* Ericsson may be chargeable for network engineering, operations and upkeep, including field services, 24X7 network monitoring, end-to-end engineering, provisioning and routine maintenance.
* Clearwire will remain the principle point of contact for all interactions with customers, wholesale partners and kit vendors.
* Approximately 700 Clearwire employees are expected to start performing their network functions as Ericsson employees in locations across the U.s. before mid-year 2011.
“The responsibility for network engineering, operations and upkeep of 1 of the leading mobile broadband networks in North America is one which Ericsson takes very seriously,” said Angel Ruiz, head of Ericsson’s North American operations. “We glance forward to welcoming the Clearwire employees to Ericsson and appreciate the original skills and expertise they carry to our company.”
“This managed services partnership is a higher logical step for both Clearwire and Ericsson, person who could have significant near-term and long-term benefits for Clearwire’s employees, customers, retail distributors and investors,” observed Berge Ayvazian, Senior Consultant with Heavy Reading. “It also represents Ericsson’s second managed services contract within the U.S., building at the Network Advantage agreement that has already delivered major operational and economic benefits for Sprint.”
In 2009, Ericsson entered right into a similar network management partnership with Sprint, Clearwire’s largest shareholder and wholesale partner. Ericsson’s experience and track record for achievement in Managed Services may also offer Clearwire an effective, cost-effective approach to manage its network. Ericsson has invested greater than $1 billion in state-of-the-art tools, processes and global best practices. The networks that Ericsson manages for operators serve over 800 million subscribers worldwide. Further, Ericsson provides 24/7 tech support to operators for well over two billion subscribers.
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