MegaFon Extends Siemens Comms Order To EUR200 Million

MUNICH -(Dow Jones)- MegaFon, one of the top three mobile operators in Russia, has chosen the telecommunications group of Siemens AG, Siemens Communications, as supplier for the expansion of its GSM networks, Siemens said Wednesday.

The framework agreement that was signed in Aug. 2004 has now been extended from EUR60 million to EUR200 million. It covers delivery and installation of GSM switching and radio infrastructure for the MegaFon branches in the Volga and Ural regions.

The project will be implemented during the calendar year 2005. With Siemens' assistance, the federal mobile operator MegaFon can now significantly increase the network capacities of its companies MSS Povolghje, Ural GSM, Wolga GSM and Mobicom-Kirow in its licensed territories of Volga and Ural. "For MegaFon the quality of the network connection and services have a very high priority. The supply of mobile network infrastructure from Siemens in the scope of this agreement will enable MegaFon to maintain its high quality standards for its customers," says Alexey Nichiporenko, executive vice-president of MegaFon.

"The signing of this agreement is a further demonstration of our efficient collaboration with MegaFon," according to Christoph Caselitz, President of Mobile Networks at Siemens Communications. "This agreement marks the sixth year of successful cooperation between MegaFon and Siemens, and we are pleased to be able to continue supporting our partner in the development and modernization of its mobile networks in the Russian regions."

(END) Dow Jones Newswires"

Posted to the site on 16th March 2005