MegaFon inks ‘unprecedented’ seven-year network modernisation contract with Huawei

10 Jun 2014

Russian mobile giant MegaFon has hailed a seven-year infrastructure upgrade contract that it has awarded to Huawei as ‘unprecedented’, because it covers a period more than double that of regular contracts in Russia. The agreement will see Huawei construct and modernise MegaFon’s 2G, 3G and 4G LTE networks, and supply associated software and maintenance services. Although MegaFon has declined to attribute a value to the contract, Bloomberg has reported that it is worth around USD600 million.

MegaFon CEO Ivan Tavrin commented: ‘The seven-year contract is an unprecedented case for the Russian business environment, as similar agreements in the market are generally limited to three years.’ Several additional vendors have also been awarded smaller contracts by the cellco, but none have been named at this time.

Russia, Huawei Technologies, MegaFon