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LONDON (Alliance News) - Vodafone Group PLC Friday said it has expanded its strategic partnership with MTS Ukraine whereby the pair will roll-out a 3G network and develop a number of new services using the Vodafone brand.
The pair already have an agreement spanning back to 2008 which was due to expire later in 2015, but the new agreement allows MTS to use the Vodafone brand and name in Ukraine. The original agreement saw the pair share marketing and technological expertise, as well as jointly purchase equipment.
Last year, Russian firm MTS tried to secure a deal with Virgin so it could use its name in Ukraine, but negotiations fell through.
The extension on Friday signifies "a deeper relationship between the two companies" that will see the pair roll-out a 3G network and develop "a number of new services" in Ukraine through a new, non-equity partnership.
"Under this agreement, MTS has gained exclusive access to a range of products, services and devices from Vodafone for both consumer and corporate markets. It has also helped MTS leverage Vodafone's expertise in marketing and deployment of new technologies. The new agreement builds on and develops this long-standing partnership," said Vodafone.
MTS Ukraine is head-quartered in Kiev and has more than 20.0 million customers and 3,800 staff in the country.
The 3G network, under the Vodafone brand, will be launched "in the coming months" and will include the transition of MTS's retail outlets and the majority of its dealerships.
Importantly, the Vodafone brand will not be used in territories currently not under the direct control of the Ukrainian government. MTS also has operations in Russia.
"Under this new strategic partnership, Vodafone will introduce a number of its services to the Ukrainian market which have proved extremely popular in Europe, including bundled offers, competitive long-distance international calls and worry-free roaming when abroad," the company said.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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