Sprint Nextel, the struggling US mobile network operator, is to outsource the management and day-to-day running of its two nationwide networks to Sweden’s Ericsson in a seven-year deal worth between $4.5bn and $5bn.

The deal, believed to be the largest network management deal to date, represents a coup for Ericsson and the latest in a series of moves by Sprint to streamline its operations, stem customer defections and return to financial health.