A few years ago, Sprint Corp (NYSE:S) made a 7-year contract with Telefonaktiebolaget LM Ericsson (NASDAQ:ERIC) in which the Swedish firm would manage Sprint’s wireless and wired networks. However, the duration of the contract is now coming to an end.
The contract between the two firms was valued at $5 billion, and it was signed in 2009. The deal was highly successful, and it was given the name ‘Network Advantage’. The deal was made at a time when the company was trying to revert the loss-making trend into profit. A similar situation is currently taking place. Sprint aims to generate a transformation through cost cutting and the enhancement of network service. So far there have been improvements and costs have gone down. Nonetheless, there is still a problem because the infrastructure market is currently more competitive than it previously was at the firm made the deal with Ericsson.
The relationship between the Swedish firm and Sprint has been a highly successful, perhaps because Ericsson has been a stable supplier. Analysts believe that there is a high likelihood that the contract between the two firms will be renewed. However, no official reports have been released by either party pointing to a renewal of the deal or the end of their partnership.
If a new deal is to be made, Sprint officials might attend the meeting wearing black-rimmed glasses. These are the same glasses that Paul Marcarelli, the “can you hear me now?” guy was wearing in his latest commercial. The company has been flaunting those glasses, and they were particularly noticeable during the recent leadership summit held at Duke University. They have been distributed to the company’s employees throughout the country.
Sprint has also launched a campaign which it is using to give parents advice on determining the right time to give their children their first handsets. The company is doing this through an online quiz on its website. It also offers extra information that is supposed to help parents in making the decision.