Swedish telecom gear manufacturer, Ericsson and USA-based mobile service provider, Sprint Nextel are in advanced level of talks that may result in Ericsson bagging the outsourcing contract of the wireless operator’s network.

The move is widely perceived as a cost cutting measure by Sprint and is on the lines of a similar deal entered into between India’s Bharti Airtel and Ericsson. The estimated cost savings could be as high as 20 %.

As per Wall Street Journal, the deal could be valued at around $ 2 billion and would also result in transfer of about 5,000-7,000 Sprint employees to Ericsson payrolls.