MegaFon and Telefónica renew strategic partnership and continue to expand major international customer base

Madrid/Moscow, 8th October 2015- MegaFon, a leading Russian mobile operator, and Telefónica today announced the extension of their strategic partnership. Extending the agreement will make it possible for both companies to continue to benefit from their collaboration in a variety of areas, including procurement, expansion of their international customer base and exchange of best practices.

The companies started their strategic partnership in 2013. Since then, MegaFon and Telefónica have developed a strong collaboration in the areas originally agreed between them. For instance, the companies have collaborated on marketing and channel approaches, on new network technologies such as NFV, and on procurement of selected network equipment. The partnership also includes cooperation on international wholesale for selected parts of the world.

The companies have also completed a number of projects for major multinational companies (MNCs). They have expanded their customer base with new data and wireless projects for Russian and international companies, and new projects are currently being prepared for rollout. These MNC projects have generated significant incremental revenues. The companies will now also collaborate to provide fixed line and mobile services for Russian clients with a presence abroad.

“Extending our strategic partnership with this leading international telecommunications firm fully fits in with MegaFon’s business strategy. Implementing projects together with Telefónica is allowing MegaFon to have access to the experience of a large international operator and allow it to continue to expand its base of large international clients in Russia,” said Alexander Sobolev, Chief Strategy Officer, MegaFon.

For Telefónica, Mario Martin, Director of Industrial Alliances, said: “We are very pleased with the alliance we have established with MegaFon, a leading player in the important Russian market. We believe this type of relationship is crucial for the transformation of telcos in the new industry scenario. We are confident the benefits we are both accruing will be further expanded in the next stage of the collaboration, contributing to both growth and efficiency.”

Thanks to the extension of this partnership, MegaFon will continue its membership in the Telefónica Partner Program, which offers significant advantages given the scale of the business. In addition to MegaFon, program participants and other Telefonica strategic collaborations include international operators that cover 48 markets worldwide. For its part, Telefónica will continue to extend its reach to the Russian market and benefit from industry insights provided by MegaFon.