Russia’s MTS will rebrand its Ukrainian mobile operations to Vodafone in areas of Ukraine under the direct control of the Ukrainian government as it rolls out 3G.
It marks an extension of a partner market agreement agreed between the two telcos in 2008, and is the first time MYS has licensed the Vodafone brand.
Russia’s MTS (MCX:MTSS) will rebrand its Ukrainian mobile operations to Vodafone (LSE:VOD) under its existing partner market agreement with the British telco.
The Vodafone brand will only be used in areas of Ukraine under the direct control of the Ukrainian government, and the MTS brand will continue to be used in the rest of the country.
The agreement coincides with MTS’s local roll-out of 3G and data services, on which Vodafone will provide advice.
In February, MTS agreed to pay UAH2.72bn (US$83.71m) for 3G spectrum in the 1950-1965 MHz and 2140-2155 MHz bands.
MTS’s relationship with Vodafone dates back to an initial partner market agreement in 2008 covering MTS’s operations in Russia, Ukraine, Uzbekistan, Turkmenistan and Armenia, but this is the first time MTS has licensed the Vodafone brand for one of its subsidiaries.
Headquartered in Kiev, MTS Ukraine has more than 20 million customers, making it the country’s second-largest operator behind Vimplecom-owned Kyivstar.