Vodafone has teamed up with Mobile TeleSystems (MTS), the largest mobile operator in Russia to form a strategic, non-equity partnership. Under the agreement, MTS will work with Vodafone in building and developing 3G networks and mobile broadband products to enhance economies of scale.

MTS also will have exclusive access to a range of products, services and devices from Vodafone for its markets of operation in Russia, Ukraine, Uzbekistan, Turkmenistan and Armenia. The partnership with MTS will give Vodafone valuable insights into telecommunications markets of Russia and the CIS.

Vodafone's products and services will be marketed in Russia and the CIS under a co-branded approach. Vodafone also will open a representative office in Moscow to work more closely with MTS on future offerings and customer services.