Sprint to overhaul network in an attempt to save up to $2 billion in overhead

Sprint to overhaul network in an attempt to save up to $2 billion in overhead
After six years of red ink, Sprint is looking to make changes in order to save as much as $2 billion in costs. Starting in June or July, Sprint could save some cash by relocating its equipment from towers leased from Crown Castle and American Tower. The mobile operator would move to tower space located on land owned by the government, which would save it money.

The last few years have been difficult for Sprint. Building out its 4G LTE network led to a lot of connectivity issues for customers. Many of them decided to leave for a more reliable network. As that was happening, T-Mobile started offering initiatives that helped it leapfrog Sprint to become the third largest carrier in the nation.

Speaking of Sprint's rivals, the company wants to stop paying Verizon and AT&T the $1 billion it hands over to them every year for backhaul. By switching to a microwave connection, Sprint won't be contributing as much to the financial strength of the competition.

To save money, CEO Maurice Claure is planning to announce a number of layoffs before the end of the month. That is when a favorable severance package ends. There is some speculation that the cuts will be unveiled on January 22nd.

Claure says that Sprint will have one of the top two networks in 80% of the top 100 markets in two-year's time. The carrier says that it has the necessary spectrum to make this happen, and is staying away from this year's auction of low frequency spectrum. Skipping the auction will also help save it money

At the end of the day, Sprint hopes that by cutting costs it can staunch the flow of red ink and start producing profits.

source: Re/code via FierceWireless

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24 Comments

1. engineer-1701d unregistered

If you want to save money CEO why don't you go ahead and cut your own damn salary by 20 million there for you can keep about 20 million to 40 million people working for you but that same cost how are you justify firing people and get getting paid so much money I mean these are people that have families to take care of and nice greeting motherfers are taking all of the money and doing nothing

6. engineer-1701d unregistered

sorry looks like my voice to text got as mad as i and lost its train of thought

9. Krjal

Posts: 425; Member since: Dec 19, 2013

It ended up not making much sense but at least it was entertaining to read ;)

16. g2a5b0e unregistered

Do you even read what you wrote before posting? Do you have any idea how dumb you always sound? First off, Sprint doesn't have anywhere near 20 million employees. Secondly, if it did, & the CEO cut his salary by $20 million, he would only be able to pay them all an additional $1 per year. Think before you speak...if you're capable of it.

2. Mxyzptlk unregistered

Make a better network and switch over to GSM and maybe, just maybe Sprint can stop bleeding ink. Right now they're the Blackberry of the carrier world and would need someone like Chen to turn things around.

7. tuminatr

Posts: 1120; Member since: Feb 23, 2009

Umm they have a LTE network, its true there old 3g is CDMA but all the US carriers use LTE

3. jackskellington6

Posts: 11; Member since: Mar 14, 2014

Marcelo not Maurice

4. warrenellis93

Posts: 542; Member since: Jul 21, 2011

Allow gsm phones on your network so people will have the freedom to use any device they want

12. andynaija

Posts: 1255; Member since: Sep 08, 2012

They don't use GSM technology.

18. jonathanbohner

Posts: 24; Member since: Apr 21, 2012

4G LTE uses GSM... all current sprint phones have sim cards in them. Verizons LTE also uses GSM.

20. sinfulta

Posts: 279; Member since: Dec 11, 2008

LTE does not use GSM. LTE is GSM "based": in terms of how it works, but uses a different radio interface all together. It's a standard for wireless communications for Legacy UMTS/HSPA and CDMA2000 Networks, but is not compatible with the former.

24. aikonix

Posts: 60; Member since: Apr 08, 2012

exactly correct. LTE and GSM are 2 completely different things.

5. Motionless

Posts: 12; Member since: Dec 02, 2014

It will take more then money to help sprint lmao.

13. andynaija

Posts: 1255; Member since: Sep 08, 2012

*than

8. eman99

Posts: 409; Member since: Aug 03, 2010

Sprint should change cdma to GSM first

10. Krjal

Posts: 425; Member since: Dec 19, 2013

I was hoping that's what the article was about. Ah well.

11. MartyK

Posts: 1043; Member since: Apr 11, 2012

Their problem is building penetration, the should bid for some lower spectrum. These guys don't have a clue on what there customers wants!!

14. andynaija

Posts: 1255; Member since: Sep 08, 2012

*their

15. SprintGuy26

Posts: 229; Member since: Mar 21, 2011

jesus christ, its not hard to look at ur whole network and see all the issues. first off if sprint is going be using LTE/LTE-A for VOLTE then why not just focus on building out ur LTE, fold all bands (shut down 1x and CDMA) into LTE-A...why continue to build NEW CDMA/1x areas if ur just going to shut them down later to be used for VOLTE? just do everything VOLTE now THEN u can say in 2 years sprint will be doing better...i understand theres alot of CDMA users but if sprint wants to live this is what they are going have to do....they already have 3 LTE bands that are up and running now in which they can use to switch people over to

21. downphoenix

Posts: 3165; Member since: Jun 19, 2010

1) they aren't using VOLTE yet 2) Their tower configurations have dynamic frequencies, no reason they should discontinue support for CDMA if their tower can handle that and LTE at the same time.

22. SprintGuy26

Posts: 229; Member since: Mar 21, 2011

CDMA is garbage especially Sprints, case closed!

17. geodude074

Posts: 99; Member since: Mar 05, 2013

Sprint needs to rollover and die already. As a former Sprint customer, I have all the authority to say that I hate Sprint, Sprint sucks big time, Sprint customer service is terrible, Sprint's coverage is terrible, Sprint's network speeds are like dial-up from 1995, and Sprint's pricing plans aren't even competitive considering how slow and spotty their service is.

19. jonathanbohner

Posts: 24; Member since: Apr 21, 2012

agreed, i spent 10 years on the sprint network. Sprint wasnt too bad until they flooded their network with iphones years ago!

23. SprintGuy26

Posts: 229; Member since: Mar 21, 2011

yup same here...i bet SoftBank is kicking the s**t outta it self right now lol

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