Sprint's Bold Move Transforms the U.S. Telecom Market

The North American telecom market has finally cracked, as

Yankee Group predicted it would. Sprint's U.S.$5 billion deal to

hand off routine network functions to Ericsson is a game changer

that challenges ingrained perceptions of what is core and non-core

to telecom operators' business activity.

Until now, North American telecom operators have been unwilling

to externalize network functions on such a large scale. That said,

North American operators are well acquainted with outsourcing:

Between 2002 and 2008, operators had already extensively

contracted out functions involving business administration, IT

and customer service. But externalizing the operation of physical

network plants has largely been excluded until now.

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