MegaFon, Russia's third largest mobile operator, has selected the mobile communication group at Siemens AG (Siemens mobile) (NYSE:SI - News; FWB:SIE) as a supplier in expanding its GSM network. The framework agreement encompasses the delivery and installation of GSM switch and base station technology as well as intelligent Networks for the MegaFon subsidiaries in the country's Volga- and Ural regions. The contract is valued at 60 million Euros.
The implementation of the framework agreement will enable MegaFon to enhance its network capacities in its license territories of Ural and Volga. In addition, the installation of the intelligent Networks will create the foundation for attractive services and flexible charging systems for both prepaid and postpaid customers. By the end of 2004, MegaFon expects to cover more than eleven million subscribers under the GSM mobile communication standard.
"MegaFon attaches special importance to supporting a high standard of quality in its mobile network. The Siemens equipment delivered under the contract is designed to improve the MegaFon networks in the country's Volga- and Ural regions, in order to increase our subscribers' convenience" said MegaFon Vice Chief Executive Officer, Alexey Nichiporenko.
In 2003, alone, the number of mobile subscribers in Russia doubled from 18 to 36 million. "The dynamics and enormous growth of the Russian mobile communications market necessitate a highly capable and reliable infrastructure, along with innovative services for subscribers. We are pleased that MegaFon has again selected Siemens to partner with it in connection with this ambitious project," said Christoph Caselitz, President of the Networks Division at Siemens mobile. This contract marks the fifth year of collaboration between Siemens and MegaFon in the field of mobile technology.
Thus far, approximately 36 percent of Russia's 145 million inhabitants are registered mobile subscribers. Siemens is the country's number one supplier in mobile phones, digital cordless phones and mobile infrastructure. This new contract from MegaFon will enable Siemens to further strengthen its role as the leading provider of mobile technology in Russia.