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Clearwire Inks Deal for Ericsson to Manage 4G Network

Today, Clearwire announced on the CLEAR blog that Ericsson will take over day-to-day operations of Clearwire’s 4G network. This deal is a “seven-year, managed services partnership” with Ericsson that will allow Clearwire itself to focus on all the other aspects of the business without having to focus on managing the network infrastructure itself.

One interesting part of the deal is that approximately 700 Clearwire employees will now be Ericsson employees and continue their functions there. This seems like a smart move by Clearwire since Ericsson has a great deal of experience globally with managed services.

Interestingly, the blog post points readers to an analyst’s quote about the deal. As quoted from CLEAR’s blog:

As for the significance of this anouncement? We want to direct your attention to a third-party perspective that we found to be quite profound.

“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, 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.”

As the quote points out, Ericsson already has a managed services contract with Sprint. Since the majority of Clearwire’s customers are wholesale 4G customers from Sprint and Sprint owns part of Clearwire, this contract makes perfect sense. The full blog post is available on CLEAR’s blog.