Marrying the skills of two leading companies, the Sweden-based telecom operator Tele2 AB has awarded Siemens Information and Communication Mobile Group (Siemens mobile) the contract to build its GSM 1800 network throughout the Russian Federation. As per the agreement, Siemens mobile will provide the switching network, radio base stations and microwave transmission systems.

The initiative recognizes the enormous potential for the rapid growth of the Russian mobile radio market, which currently has a penetration rate of around 12 percent, with only about 17.8 million of the 144 million inhabitants currently using mobile telephones.

This new contract is the latest collaboration between the two companies that today cooperate in eight European countries, in the areas of GSM and GPRS technology and mobile services.

Acknowledging their close working relationship, Johnny Svedberg, executive vice president and market area director of Tele2 Eastern Europe and Russia, said, "Siemens is one of our long term strategic suppliers with a strong track record and excellent operational performance. We are confident that this extended partnership will allow Tele2 to successfully take the great mobile market opportunity in the Russian Federation."