Report: Verizon, AT&T in talks to outsource network management to Ericsson

Verizon Communications and AT&T are reportedly in talks with Ericsson to manage their respective wireless networks, according to the infrastructure and managed services giant.
Bloomberg reported that in an interview, Jean-Claude Geha, head of Ericsson’s managed services business, said the company was in discussions with both domestic telecommunication giants. Verizon Wireless and Ericsson have denied the report.
The move would be significant for both operators, which have a history of strictly controlling their network operations and using the strength of those operations as a core piece of their marketing strategies.
Ericsson currently runs Sprint’s network through a seven-year, $5 billion deal signed in 2009. The deal was the first of its kind for a major U.S.-based operator, and included the transfer of more than 6,000 employees from Sprint to Ericsson.
However, that deal has been under a cloud as Sprint appears to have struggled through its Network Vision program that was managed by Ericsson and worked with vendor partners Alcatel-Lucent and Samsung. Ericsson is serving in a management role in Sprint’s more recent Spark initiative, with Alcatel-Lucent, Samsung and Nokia Networks serving as vendor partners in that program.
Managed services has become an important part of Ericsson’s business, with the company last year surpassing more than one billion customers being served through its managed business.
For operators, outsourcing network operations is seen as a way to cut operating expenses and allows those operators to focus on more consumer-facing initiatives designed to grow their businesses.
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