Sprint Is in Talks to Outsource Its Network

Sprint Nextel is in final negotiations to outsource management of its cellular network to Ericsson and transfer 5,000 to 7,000 U.S. employees to the equipment vendor in a cost-cutting move to help offset Sprint's dwindling subscriber numbers. The two companies haven't finalized a contract and discussions could continue for a few more weeks, but Sprint could end up paying Ericsson -- the world's largest supplier of wireless-network equipment by sales -- as much as $2 billion over several years to maintain the thousands of cell sites that carry Sprint's wireless voice and data traffic. The deal is expected to slash the wireless carrier's network costs by about 20%.