Ericsson to Manage Clearwire's 4G Network for the Next 7 Years

Clearwire and Ericsson have just announced a surprisingly long seven-year partnership that will transfer the everyday management of Clearwire's 4G network to Ericsson.

In addition, 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.

According to Clearwire, the long-term partnership will allow the company to focus on operational efficiencies and it is expected to reduce its operating costs.

Although Clearwire will retain the ownership of its network assets and full responsibility for future technology and strategy decisions, Ericsson will be the main entity responsible for Clearwire's network operations and maintenance.

“The responsibility for network engineering, operations and maintenance of one of the leading mobile broadband networks in North America is one that Ericsson takes very seriously,” said Angel Ruiz, head of Ericsson's North American operations.

Such an agreement does not mark a first for Ericsson, as the company signed a similar partnership with Sprint, back in 2009.

As a side note, Sprint is Clearwire's largest shareholder and wholesale partner, so it is likely that Ericsson got a silent approval from Sprint as well.

Furthermore, the results of the previous Managed Services deals signed by Ericsson recommend the Swedish company for this partnership.

“Clearwire's effort to reduce costs and maximize efficiency while delivering a high 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 can achieve those objectives, and benefit from their extensive global expertise and best-practices developed while serving clients around the world.”

According to Ericsson, all networks managed by the company for various carriers serve over 800 million subscribers worldwide. Currently, Ericsson provides 24/7 tech support to these carriers for more than two billion subscribers.