Huawei Wins 7-Year Network Upgrade Contract in Russia

Russia’s MegaFon says that it has signed a 7 year tender contract with China’s Huawei, which it says is worth “dozens of billions of rubles”. As a billion rubles is about USD29 million, the contract is for at least USD350 million, up to whatever it might be.


MegaFon said that the contract covers the supply of equipment for the construction and modernization of 2G/3G/LTE networks, as well as necessary software and maintenance. This approach is common practice, as the installation of equipment is always followed by its integration into the operator’s existing infrastructure. An additional advantage is that Huawei’s equipment has already been widely used on MegaFon’s networks.

We are sincerely pleased to sign a contract with Huawei. During longtime partnership, this company proved itself as a reliable supplier of the most innovative technological developments. 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.”

-CEO of MegaFon, Ivan Tavrin

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