Mobile Telesystems (MTS) has become the first Russian mobile phone operator to outsource its core network operations to a specialist provider.

The company has chosen Nokia Siemens Networks (NSN) to handle the daily operation and maintenance of its entire mobile network across central Russia as part of a five-year managed services deal. Under the terms of the contract, MTS will transfer around 250 employees to NSN.

“Entering into a managed service agreement with Nokia Siemens Networks will allow MTS to substantially optimize network operations and increase efficiency while keeping service experience high for our customer base," commented Aleksander Popovsky, director of MTS Russia.

While the deal represents Russia's first full operation and maintenance managed services contract, it's an increasingly popular approach among mobile operators elsewhere in the world. NSN currently handles 240 managed services contracts in mobile and fixed networks, servicing more than 300 million subscribers. In March last year, it announced it would assume responsibility for Orange's mobile network operations in the UK, which serves 15.9 million customers.

“While managed services projects have already proved their efficiency worldwide, in Russia the experience of such project implementation will be unique and innovative," said Popovsky. "That is why we'll attentively follow up the progress in its development under local conditions. In the future, this will allow us to make the decision on introducing this approach to other regions.”