Sprint to Upgrade Network, Shutter Nextel Network

Sprint Nextel Corp. S said it would begin shutting down its Nextel network in 2013 and selected vendors to handle the integration of its wireless technologies into a single network in a project worth as much as $5 billion. Sprint chose Alcatel-Lucent ALU, L.M. Ericsson Telephone & Co. ERIC and Samsung Electronics Co. Ltd. (SSNHY) to handle the massive overhaul of its network over the next three to five years, which the company estimates will save it $10 billion to $11 billion over the next seven years. The move represents a chance for Sprint to eliminate one of its biggest issues: the need to juggle multiple network technologies. As part of the upgrade, the company plans to start phasing out the iDEN network--known for its walkie-talkie function--long used by Nextel, which is expected to account for as much as 40% of the total cost savings. The project also positions it to make a more seamless move into fourth-generation wireless services, beyond tapping partner Clearwire Corp.'s CLWR 4G network. Sprint shares rose nearly 6% to $4.15 after the company announced the highly anticipated project. Continue reading the article.