Nokia bags $70 m Russian deal

MOSCOW: Finnish telecoms equipment maker Nokia said that, Russia's number two mobile operator Vimpelcom would buy $70 million of gear to expand its networks and launch a new phase in data services. Delivery is to begin immediately, Nokia said.

"Under an extension of an existing framework agreement, Nokia will supply a complete GSM system with EDGE-capable base stations, GPRS, and GSM core network equipment. The agreement confirms Nokia as one of the strategic suppliers to Vimpelcom," Nokia said in a statement.

Vimpelcom is the first Russian operator to order EDGE, a tie-on to second-generation GSM voice networks that promises faster data transfer speeds at a lower cost than expensive, so-called 3G networks.

Russia has not issued commercial licenses for 3G networks.

Earlier this year, Nokia executives came to Russia and India to announce new low-cost equipment and handset lines for emerging markets.

Nokia says the bulk of global market growth would come from poorer countries, where operators have several years yet to exhaust demand for voice services, let alone dabble in 3G.

Vimpelcom's new Nokia equipment is bound for the regions surrounding Moscow and the "Black Earth" region to the south of the capital.

Alcatel has been Vimpelcom's main supplier for its Moscow network, while Ericsson has been the main supplier for the regions, along with Nokia and Alcatel.

(C)Reuters