Sprint Finalizes Plan to Trim Network Costs by Up to $1 Billion

Sprint has finalized plans for a radical overhaul of its cellular network that is expected to save the carrier up to $1 billion. The nation’s fourth-largest carrier has talked publicly about shaving $2 billion in overhead as it aims to revive its fortunes and end six straight years of losses. Apparently, Sprint plans to cut its network costs by relocating its radio equipment from tower space it has leased from Crown Castle and American Tower to spots on government-owned properties, which costs much less. This process could begin as soon as June or July. Tower leases are a major component of the carrier’s network cost. Some of that is the expense of buying and maintaining the cellular gear itself, while another big cost is renting the space on which it sits.

The carrier also is seeking to reduce its dependency on AT&T’s and Verizon’s high-speed, fiber-optic cables that provide links to the cellular towers and mobile switches — known in networking parlance as the “backhaul.” These network changes are the latest in a series of belt-tightening moves outlined fall 2015 that would include layoffs. Sprint CEO Marcelo Claure has said he would like to make the cuts by Jan 30 to allow employees to take advantage of a more generous severance plan that is being ended. Sources say Sprint plans to make significant numbers of the cuts on Jan 22.