(Reuters) - Sprint Corp (N:S) plans to save up to $1 billion in costs by relocating its radio towers to low-cost government-owned properties from space leased from private firms, Re/code reported, citing sources.
The U.S. telecom company plans to relocate towers from the more expensive space leased from Crown Castle International Corp (N:CCI) and American Tower Corp (N:AMT) as soon as June or July, Re/code said on Friday. (http://on.recode.net/1SmFRB4)
But the move, dubbed the Next Generation Network, would result in a wave of network hiccups, Re/code reported, citing a person familiar with the company's plan.
Sprint is expected to lease communications towers from cell-tower company Mobilitie, the technology website said.
Sprint, Mobilitie, American Tower and Crown Castle were not immediately available for comment.
Shares of Sprint, the fourth-largest U.S. telecom carrier, were down 8.1 percent at $2.93 in late afternoon trading.
In November, Sprint announced plans to slash expenses by as much as $2.5 billion in fiscal 2016, to end six straight years of losses. The company expects to report an operating loss in 2015.
Sprint said it was determined to "attack its cost base" and was looking at areas such as labor costs, network operating expenses, information technology and administrative expenses to reduce costs.
"We'll go after everything including snacks and yogurt cups" for employees, Chief Financial Officer Tarek Robbiati had told Reuters in an interview in November.