Mobile TeleSystems (MTS) could spark a wave of managed network deals in Russia, after becoming the first carrier in the country to outsource network operations.
MTS has penned a five-year managed services contract with Nokia Siemens Networks, covering its entire central Russia network, which accounts for around 10% of its 69 million subscribers in the country.
Some 250 MTS employees will transfer to NSN as part of the deal.
Aleksander Popovsky, director of MTS Russia, said the agreement would prove the benefits of outsourcing in the country.
“While managed services projects have already proved their efficiency worldwide, in Russia the experience of such project implementation will be unique and innovative,” he said, adding. “In the future this will allow us to make the decision on introducing this approach to other regions.”
The deal has caught the eye of rival VimpelCom, which told Reuters it is considering a similar network management deal, having already outsourced some licensing operations.