16 October 2015

Vodafone and MTS have agreed to extend their strategic partner market agreement and expand the scope of it in Ukraine, signifying a deeper relationship between the two companies in the country. Under the new, non-equity partnership, the companies will roll out 3G and develop a number of new services in the market using the Vodafone brand in Ukraine.

Both companies have been working together since the original partner market agreement was signed in 2008. 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.

Headquartered in Kyiv, MTS Ukraine has more than 20 million customers and 3,800 employees.

The launch of 3G services under the Vodafone brand in Ukraine will commence in the coming months and will include the transition of MTS’s retail outlets and the majority of its dealerships. The Vodafone brand will not be used in territories currently not under the direct control of the Ukrainian government.

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.

Ukrainian customers will also benefit from Vodafone’s extensive 3G experience when it launches the new technology in the coming months. Vodafone, which has already rolled out 3G in 26 countries, will advise on network operation, network optimisation and the introduction of high quality 3G services, including music and games applications for consumers.

Vodafone’s global 3G expertise will help expand access to the internet for Ukrainian consumers and businesses alike, giving a boost to the internet economy and helping to drive the next stage in the development of Ukraine’s telecommunications market.

Vodafone Partner Markets Chief Executive Stefano Gastaut said: “The new, enhanced agreement with MTS enables us to bring the best of Vodafone’s products and services to the people of Ukraine. MTS Ukraine is building a high quality 3G network, which means Vodafone will launch in a strong position in the market. Our deeper co-operation in the business – signified by the introduction of the Vodafone brand – will bring additional benefits to consumers and businesses as we focus on a successful launch of 3G data services and greater adoption of the mobile internet.”

MTS Ukraine General Director Oleg Prozhyvalsky said: “Undoubtedly, the launch of the Vodafone brand in Ukraine is the most significant event in the market over recent years. Ukrainian customers will be able to get access to a wide range of 3G services already available in Europe and other Vodafone countries. The implementation of the company’s unique global technological and marketing expertise in Ukraine will have a positive impact for consumers, enterprises and the economy.”

About Vodafone Partner Markets

Vodafone’s Partner Markets team works to form strategic alliances with operators all over the world, partnering to offer a range of global products and services that extend Vodafone’s reach into local markets. Vodafone Partner Market agreements vary from roaming and service resale to full partner branding. Established in 2002, Vodafone Partner Markets now partners with 35 companies in 55 countries.

About MTS Group

Mobile TeleSystems PJSC ("MTS") is the leading telecommunications group in Russia, Сentral and Eastern Europe, offering mobile and fixed voice, broadband and pay TV in one of the world's fastest growing regions. Including its subsidiaries, the Group services over 100 million mobile subscribers. The Group operates in Russia, Ukraine, Armenia, Turkmenistan, Uzbekistan and Belarus, a region that boasts a total population of more than 230 million. Since June 2000, MTS's Level 3 ADRs have been listed on the New York Stock Exchange (ticker symbol MBT). Additional information about MTS Group can be found at www.mtsgsm.com

About MTS Ukraine

MTS Ukraine is one of the largest wireless providers in Ukraine. Its network covers 98% of the territory of Ukraine and 99% of its population. MTS Ukraine provides mobile services using the GSM-900/1800 and CDMA-450 standards, as well as fixed-line services, to 20.25 million subscribers. For more information, please visit: www.mts.ua.