Vodafone and Mobile TeleSystems (MTS), the largest mobile phone operator in Russia and the CIS, have announce a strategic, non-equity partnership to provide customers with communications services and to collaborate jointly on future technological developments.

Under the agreement, MTS will have exclusive access to a range of products, services and devices from Vodafone for its markets of operation in Russia, Ukraine, Uzbekistan, Turkmenistan and Armenia. In addition, MTS will be able to draw on Vodafones expertise in building and developing 3G networks and mobile broadband products, working with leading global equipment providers.

The partnership with MTS will give Vodafone valuable insight into the opportunities of the important telecommunications markets of Russia and the CIS, which are among the fastest growing in the world. Vodafones products will be made available to MTSs 87 million subscribers, including more than 60 million customers in Russia.

Vodafones products and services will be marketed in Russia and the CIS under a co-branded approach. Vodafone will also open a representative office in Moscow to co-operate more closely with MTS on future offerings and customer services.

“A partnership with Vodafone will allow MTS to bring tangible benefits to both its customers and shareholders,” says MTS President and CEO, Mikhail Shamolin. “This groundbreaking agreement will give our customers the most innovative products and services from around the world. At the same time, Vodafones commercial insights and technical expertise will translate into significant operational efficiencies for MTS over the long-term as we transition our networks to 3G and beyond.

Vodafone CEO Vittorio Colao says: “Our agreement with MTS is an opportunity for Vodafone to build its presence and work with the leading operator in these important markets. By combining the geographical reach of the companys respective networks, we can give customers greater roaming capabilities and extended coverage. We are delighted that MTS has joined our successful Partner Markets community, which will be much stronger with the addition of Russia and the CIS.”