Nokia Wins GSM/GPRS/EDGE Network Expansion Contract with MegaFon

Nokia announced that it has won a major GSM/GPRS/EDGE network expansion contract from leading Russian operator MegaFon.

Under the contract, Nokia will deliver both radio and core equipment as well as a range of services, helping MegaFon to deliver advanced mobile solutions to its fast-growing subscriber base. The value of the agreement is over EUR 320 million, and equipment deliveries have already begun.

"The Russian mobile communications market is no longer driven by price competition but instead network quality. Mobile leadership will be taken by those who now take measures to create a solid foundation for maintaining high quality of services. Our cooperation with Nokia means that MegaFon prepares for the future and takes the required steps towards network development," said Sergey Soldatenkov, CEO, OAO MegaFon.

Nokia will supply radio and core network equipment including its mobile softswitching and IP Multimedia Subsystem solution (IMS) for fixed and mobile. The frame agreement also includes Nokia's multivendor, multi-technology NetAct solution, which provides operational efficiencies and OPEX savings for MegaFon's network. The very same platform also provides support for future technologies like WCDMA 3G.

Nokia is also supplying a range of services including project management, installation and relocation services for the fast ramp-up of the network, care services, and software maintenance and training services to keep the network running at peak performance. The contract, an extension of an existing agreement signed by the companies in 2003 and valid for supplies in 2006 - 2007, covers North-Western and Central Russia as well as Northern Caucasus.