Nokia Siemens Networks (NSN) has won a three-year contract with MTS to build an LTE network in Moscow and central Russia, following the operator’s receipt of 4G spectrum licenses last year.
The Finnish vendor is to build out the system in the third quarter of this year, according to its statement, with the deal valued at approximately $200 million, according to an MTS (Moscow, Russia) spokesperson cited in a Bloomberg report.
In September, MTS launched an LTE network in Moscow based on time division duplex (TDD) technology, with NSN (Helsinki, Finland) providing all of the equipment for the rollout.
The new system, however, will use the frequency division duplex (FDD) preferred by most LTE service providers, and operate in the 800MHz and 2.6GHz bands.
“By adding FDD LTE, we will be able to take full advantage of our spectrum allocation, provide higher capacity, and deliver the superior data experience that our subscribers deserve,” said Andrey Ushatskiy, the vice president and chief technology officer of MTS.
MTS has already awarded an LTE contract to Ericsson (Stockholm, Sweden) that covers the south of Russia, the Volga region, Siberia and the Urals, reports Bloomberg, but has yet to issue contracts for northwestern and far-eastern Russia.
MTS won 4G concessions together with VimpelCom (Amsterdam, Netherlands), MegaFon (Moscow, Russia) and Rostelecom (Moscow, Russia) in July 2012 and is looking to the technology to provide higher-capacity services to its customers.
The operator has recently flagged rocketing demand for mobile data services, reporting a 37% increase in data traffic revenue for the first quarter of 2013, compared with the same period of 2012.
“We are totally committed to supporting MTS so it can deliver the most efficient LTE network possible and serve more subscribers with higher data rates,” said Kristina Tikhonova, the head of Region East at NSN.