LM Ericsson will manage Sprint Nextel Corp.'s wireline and wireless communication network systems, provided through $5 billion agreement, signed between the two companies.

The third largest U.S. wireless carrier, Sprint Nextel Corp., will pay Ericsson $5 billion to manage its networks.

Under the seven-year deal, Sprint will manage ownership of the networks, while around six thousand Sprint employees will move over to Ericsson in the third quarter.

The current move of Sprint will help the company to trim down its operating costs that accounted for $8.7 billion in the first quarter.

Operating through a unit based in Overland Park, Stockholm-based Ericsson will retain the jobs in the U.S.

It should be noted that last month, Ericsson bagged a 5-year expansion of its contract with Hutchison Whampoa Ltd.’s 3 Italia units to manage their high-speed network.

In New York Stock Exchange composite trading, Sprint soared to $4.46, rising 17 cents.