Sprint to drop a cool $1 billion on Ericsson networking gear as it builds out LTE

Sprint to drop a cool $1 billion on Ericsson networking gear as it builds out LTE
Sprint has just announced that they have secured a $1 billion dollar credit agreement that will allow them to purchase equipment from Ericsson as Sprint starts to build out their LTE network. Deutshe Bank was the lead financial institution in the consortium of lenders who are backing Sprint as they take advantage of their 800 MHz spectrum to move away from WiMAX towards LTE, dubbed the Network Vision Project.

Sprint expects to light up six markets with LTE by midyear, including Atlanta, Baltimore, Dallas, Houston, Kansas City, and San Antonio, with the full roll out of their LTE network culminating in 2013. Sprint has already acquired several billion in loans to help spread out the cost of the subsidies they must pay Apple for the privilege of carrying the iPhone, but all that could be for naught if Sprint can’t field an LTE network in time to compete for customers wanting an LTE iPhone in the next 6-18 months.

We imagine that Ericsson, freshly divorced from Sony’s handset division, is also pleased to be a supplier of so much equipment to Sprint. How about you Sprint customers out there? Are you looking forward to moving to LTE, and for those of you outside of the initial markets, are you ok waiting until next year to get it?

source: Sprint via The Verge

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13 Comments

1. Libra1985

Posts: 47; Member since: Feb 26, 2011

Sprint squanders soooo much money, not saying LTE isn't a good investment, just saying the previous choices made leading up to now haven't been the best. And if they want to be relevant in the next few years they ought to build out fast, solid and smart, before T-Mobile races ahead.

9. lsutigers

Posts: 832; Member since: Mar 08, 2009

Sprint is moving very fast with its Network Vision / 3G Advanced / LTE rollout. They are adding NEW customers with the iPhone and are growing. They already have good coverage and pretty soon their coverage will increase exponentially, slow 3G speeds will be a thing of the past and the network will be touted as one of the fastest. They should be fine if the keep unlimited data.

12. moofoodooloo

Posts: 137; Member since: Jan 04, 2011

The iPhone deal absolutely had to happen. Did they pay out the a*s for it? Yes. Was it a risky investment? Maybe. Regardless, it absolutely had to happen if Sprint wants to stay in contention with AT&T and Verizon. Now, it's the same thing with LTE. These are all investments that Sprint has to make unless they want to go the way of T-Mobile. The wireless marketplace needs Sprint, or there is no cap on what your AT&T and Verizon bills would balloon to.

2. tward291

Posts: 559; Member since: Feb 14, 2012

wow who the hell would risk lending to sprint. unless they figured if sprint fails they will get part in auctioning off its assests

3. MartyK

Posts: 1043; Member since: Apr 11, 2012

I don't know who would; but I am please they are loaning Sprint the money, we need 3 or 4 carrier with LTE, to keep ATT and Verizon from fleecing all of us.

4. ardent1

Posts: 2000; Member since: Apr 16, 2011

Sprint is broke and needs to borrow money in order to run its business. What a sad state of affairs.

6. EclipseGSX

Posts: 1777; Member since: Oct 18, 2011

It's called investing, they don't NEED it run its business. AT&T, Verizon and Wal-Mart all have over $50 billion in debt. Didn't Apple even take a bailout at one point? And look how successful they are now.

7. 14545

Posts: 1835; Member since: Nov 22, 2011

IF they did, then it was a waste. Clearly we are all getting screwed by apple now.

5. Slammer

Posts: 1515; Member since: Jun 03, 2010

The union between Clearwire and Sprint is a valuable aspect in obtaining the necessary goals here. This cash advance is a lot of money that should put both in the LTE game. While I have enjoyed WiMAX, I look forward to move onto LTE. John B.

8. scorpeyun

Posts: 27; Member since: May 18, 2012

I'm still waiting for the 4G connection that never happened in my area! I'm a 10 yr. + customer of Sprint and have been satisfied with them up till recently. Day late and a dollar short should be there motto. Get the LTE network up and don't leave your customers hanging, and paying, for services not rendered. And please improve your phone selection as well. The other carriers seem to be on the forefront of new devices and Sprint seems to pick and choose from the second hand bend half the time. One last thing...lol, contrary to popular belief, there are some of us who like the WP7 platform and it wouldn't hurt to get at least one updated phone running the OS. At least you wouldn't be paying out of the ying yang to sell the thing unlike the iPhone.

11. moofoodooloo

Posts: 137; Member since: Jan 04, 2011

Sprint never promised that everyone would get 4G or LTE. What services are you paying for that aren't being rendered? If you are going to tell me 4G, you are wrong. The additional $10 is for unlimited use of their data, 3G or 4G, LTE or WiMax. I have to diasgree about the phone lineup as well. 12 Androids, 3 Blackberrys and the under-rated and more than capable Arrive isn't enough for you? Not to mention that certain HTC that Sprint will be getting in ready inventory any day now.. Oh yeah, and the Lumia is coming soon as well. If that doesn't appease you, pay your prorated early term fee and leave.

10. inertiatic

Posts: 34; Member since: May 29, 2012

This article states that full LTE rollout will culminate in 2013. Does this mean only in major cities? A rumor that I read recently stated that Sprint would be bringing LTE to ALL customers who currently have 3G. That would be nice for me since I live in a rural area, but it doesn't seem realistic.

13. archangel9

Posts: 233; Member since: Feb 07, 2010

Sprint isn't hurting from money period.They're in the red as much as the big 2 wireless carriers but to see that Erricsson taking a chance on them... r

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