Ericsson wins network deal with Sprint

STOCKHOLM (BestGrowthStock) – Swedish group Ericsson (ERICb.ST: ) has won a five-year deal to supply technology and services to U.S. No. 3 mobile company Sprint Nextel (S.N: ) for an unspecified sum.

The world’s biggest mobile equipment company said on Monday it would supply Sprint with a multi-band, multi-standard radio access network, a comprehensive core network for voice and data and a complete IP/ microwave backhaul solution.

It will also be the prime network integrator, pulling together equipment supplied by other vendors – Alcatel-Lucent (ALUA.PA: ) and Samsung.

The Sweden-based company will also manage and maintain the networks for Sprint once they are up and running under a seven-year deal inked with Sprint in 2009.

The five-year contract includes Ericsson building a complete network infrastructure solution for Sprint in the central and south east regions of the country, including Atlanta, Miami, Houston, Kansas City and Dallas.

“What Sprint is doing is preparing the network for the future and it is driven by the user experience given by today’s tablets and smartphones,” said Arun Bhikshesvaran, chief technical officer and vice president of strategy for Ericsson North America.

He declined to say how much of Sprint’s $4-5 billion programme would be spent with Ericsson.

Ericsson has been enjoying a boom in the North American market while demand across much of the rest of the globe has stagnated.

North America has been Ericsson’s biggest single market over the last four quarters as operators have upgraded networks to meet the demand for mobile broadband services.

Ericsson has also been beefing up its footprint there, buying bankrupt Nortel Network’s North American CDMA and LTE businesses and the bulk of its GSM assets.

North America accounted for 12.9 billion crowns out of total third-quarter sales of 47.5 billion.

(Editing by David Cowell)

Ericsson wins network deal with Sprint