Euroset Stops Promoting Tele2 Contracts

MOSCOW, Dec 7 (Prime-Tass) -- Russia's largest mobile handset retailer Euroset has stopped promoting contracts of mobile operator Tele2 in its outlets, Euroset's President Eldar Razroyev said, Kommersant business daily reported Thursday.

Euroset will still provide Tele2 contracts but employees will no longer recommend them to customers, nor explain the details of Tele2's tariff plans, Razroyev said, the daily reported.

Razroyev attributed the break to Tele2's failure to conclude a dealership agreement with Euroset for sales in the Baltic states, the daily reported.

The retailer launched its first outlets in the Baltic states in November.

The conflict is unlikely to hurt Euroset, as sales of Tele2's contracts account for only about 1%-2% of the retailer's total contract sales, Razroyev said.

This is the second feud between the retailer and the operator. The first started in mid-2006 after Tele2 refused to fulfill its obligations to give Euroset access to its network in the Baltic States, allowing the retailer to become a mobile virtual network operator (MVNO), Razroyev said, the daily reported. In October, Euroset resumed promoting Tele2's contracts in its outlets, Razroyev said.

A spokesperson with Tele2's Russian representative office called Euroset's actions "blackmail," the daily reported.

Euroset has engaged in many conflicts with mobile operators and mobile handset producers. Among the largest conflicts is Euroset's feud with the world largest mobile handset producer, Nokia, and major producer Samsung. The feud with Nokia has not yet been resolved.

Euroset had 3,861 outlets as of July 1. The company's revenue in 2005 amounted to U.S. $2.574 billion. Euroset operates in Russia, Belarus, Ukraine, Kazakhstan and Kyrgyzstan.

Tele2 is a European alternative telecommunication operator. Tele2 provides services in 25 countries. It has a total subscriber base of almost 30 million users. In Russia, Tele2 is the fourth largest operator in terms of subscribers.

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Posted to the site on 7th December 2006