Sprint Nextel is reportedly close to reaching a $2 billion network outsourcing deal with Ericsson.
The loss-making US carrier believes the potential deal could cut its network costs by around 20%.
The parties have yet to finalize a contract, and discussions could continue for several more weeks, insider sources told the Wall Street Journal.
Under the proposal, Sprint would transfer 5,000-7,000 of its US employees to Ericsson. Sprint would retain ownership of its mobile towers and would continue to be responsible for capital investments in its cdma1x network.
Sprint\'s board may still drop the proposal if the potential savings do not stack up, the Journal said.
Sprint yesterday posted first-quarter losses of $600 million. The company lost 1.25 million postpaid subscribers over the quarter.
If the deal goes through, the operator will be treading an increasingly well-worn path.
Greenfield carriers in particular are putting their network assets under the management of large vendors, who have the expertise and scale to deliver big cuts in operating cost and to reduce technology risk. For their part, vendors are actively pursuing the deals.
India\'s largest operator Bharti Airtel last week announced it had outsourced management of its broadband and voice networks to Alcatel-Lucent.