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Russia's MTS and Vodafone announced a strategic, non equity partnership to "provide customers with high quality communications services and to collaborate jointly on future technological developments."

Under the agreement, MTS will draw on Vodafone's expertise in building and developing 3G networks and mobile broadband products, working with leading global equipment providers and deploying innovative CRM practices to enhance quality and further improve the efficiency of its operations. In addition, MTS will have an access to a range of products, services and devices from Vodafone for its markets of operation in Russia, Ukraine, Uzbekistan, Turkmenistan and Armenia.

On the other hand, Vodafone will get insight into the opportunities of the telecommunications markets of Russia and the CIS, which are among the fastest growing in the world. The Big Red's products and services will be marketed in Russia and the CIS under a co-branded approach.

Vodafone will also open a representative office in Moscow to co-operate more closely with MTS on future offerings and customer services.