Clearwire outsources network ops to Ericsson

In what could be the first step toward a direct integration with Sprint’s (NYSE:S) networks, Clearwire (NASDAQ:CLWR) announced today that it is handing over the management of its WiMAX networks to Ericsson (NASDAQ:ERIC). Ericsson will take over the network engineering, maintenance and operations of Clearwire’s core, access and transmission networks—basically the whole WiMAX enchilada—and will bring 700 Clearwire employees into its U.S. managed services business.

Ericsson performs the exact same outsourcing role for Sprint, which would make Ericsson a common bond between the two operators if they choose to integrate their future mobile broadband networks. Sprint and Clearwire are in negotiations over network sharing deal which would allow Clearwire to deploy long-time evolution (LTE) over Sprint’s new radio technology-agnostic base station architecture using the same 2.5 GHz frequencies Clearwire uses today for WiMAX (CP: Clearwire hints at LTE build with Sprint). Such a network sharing agreement could save Clearwire billions of dollars in capital investment, while giving Sprint access to an LTE network far rivaling its competitors AT&T (NYSE:T) and Verizon Wireless (NYSE:VZ, NYSE:VOD) (CP: Are we witnessing the resurgence of Sprint?).

At a JPMorgan Chase investor conference on Tuesday, Sprint CEO Dan Hesse said that such a network sharing deal is definitely a possibility, though he added that Sprint is talking to several possible partners. Sprint has even left the option open of continuing Clearwire’s current WiMAX deployment over its network, requiring all of its network modernization vendors to support WiMAX over their equipment. But given the global momentum of LTE and the falling fortunes of WiMAX, Sprint and Clearwire are likely to use the opportunity to switch technology camps. Clearwire also has been testing LTE in several configurations.

The Ericsson deal is odd in the sense that Ericsson doesn’t offer a WiMAX product (though it has a licensing agreement with Samsung). In fact, in the early days of the 4G technology wars, Ericsson was WiMAX’s staunchest opponent, sticking exclusively to LTE. Still Ericsson has always kept a network agnostic mindset in its services and outsourcing business. When it took over the management of Sprint’s network in 2009, Ericsson didn’t have a CDMA business either (It acquired that later through its acquisition of Nortel’s radio network assets).

Still given the heavy role Ericsson plays in Sprint’s network operations and deployment (it’s one of three vendors selected for its network modernization program), it would definitely play a key role in integrating Clearwire’s network operations with Sprint’s if a hosting deal was signed.