NEC and Transmode upgrade MegaFon’s mobile network

London, Moscow and Stockholm, 16 May 2013 – NEC Corporation today announced that CJSC NEC Neva Communications Systems (NEC), together with Transmode, has supplied MegaFon, one of Russia’s largest telecom operators, with optical networking equipment (Metro WDM*). The delivery has been made to six of the eight branches of MegaFon under a frame agreement of expanding the operator’s network capacity.

MegaFon aims to significantly increase its network transmission capacity in order to prepare networks for LTE and to optimize the company’s transmission costs. The networks are now live in the Stolichny, Kavkaz, Center, Volga, Ural and Far East branches of MegaFon.

“The development of 4G networks is a top priority for MegaFon as well as modernization of the existing network. We are making all efforts to ensure the stability and high quality of services by investing in infrastructure with maximum effectiveness,” said Igor Shirokov, Deputy CEO for Infrastructure, MegaFon.

* WDM: Wavelength Division Multiplexing

About NEC Corporation
NEC Corporation is a leader in the integration of IT and network technologies that benefit businesses and people around the world. By providing a combination of products and solutions that cross utilise the company’s experience and global resources, NEC’s advanced technologies meet the complex and ever-changing needs of its customers. NEC brings more than 100 years of expertise in technological innovation to empower people, businesses and society.  For more information, visit NEC at http://www.nec.com. NEC is a registered trademark of NEC Corporation. All Rights Reserved. Other product or service marks mentioned herein are the trademarks of their respective owners. ©2013 NEC Corporation.

About Transmode
Transmode is a global provider of packet-optical networking solutions that enable fixed line and mobile network operators to cost effectively address the capacity needs created by the rapid growth in video and data traffic. These solutions are important building blocks in next-generation high-speed optical networks that support services such as broadband backhaul, mobile data backhaul, video delivery services and cloud computing.

Transmode’s solutions are designed to increase the capacity, flexibility and functionality of metro and regional networks and are based on Wavelength Division Multiplexing (WDM) and transport technologies such as Ethernet. Transmode’s Native Packet Optical 2.0 architecture gives customers key advantages such as cost efficient Ethernet services, ultra-low latency, low power consumption and future proof network design.

Transmode is headquartered in Stockholm, Sweden and is listed on the NASDAQ OMX Stockholm Exchange (TRMO). Since 2000 the company has installed more than 40,000 systems for over 500 fixed and mobile network operators, service providers, large enterprises and public institutions in over 45 countries across the globe.

For additional information about Transmode, please visit www.transmode.com

About NEC Neva Communications Systems
CJSC “NEC Neva Communications Systems” was established in May 1997 as a local factory of NEC’s digital switching system and provides engineering, system integration and professional services. NEC has owned 100 percent of its shares since Autumn 2009. For detailed information, please, visit the website http://ru.nec.com

About MegaFon
MegaFon OJSC is a leading Russian universal telecommunication service provider, operating in all segments of the telecommunications markets in Russia. MegaFon was incorporated in June 1993 as CJSC “Northwest GSM” and renamed OJSC “MegaFon” in 2002. MegaFon was the first operator with a network covering all regions of Russia. The Company and its subsidiaries have licenses to operate in all of the Russian regions and in the Republics of Abkhazia, South Ossetia and Tajikistan. The Company was the first in Russia to launch 3G for commercial operations and is currently in the number one position among all operators in the provision of mobile Internet, and in the number two position as to the number of active subscribers in Russia.

In 2009, MegaFon was selected as the Mobile General Partner of the XXII Winter Olympic Games and XI Paralympic Games to be held in Sochi in 2014.

As a result of its acquisition of the Synterra Group, one of the leading Russian backbone operators, in June 2010, MegaFon substantially increased its fixed-line B2B and B2G businesses, as well as its provision of fixed broadband services. In July 2012 MegaFon was awarded one of four ten-year licenses for the provision of 4G/LTE services throughout the entire Russian Federation and, through its MVNO arrangement with Yota, had already started providing these services in 81 towns and cities in 29 different regions by the end of March 2013. In September 2012 the Company acquired the VAS Media group of companies, which are now being integrated with MegaLabs, its R&D subsidiary. In December 2012 the Company acquired a 25% interest in the Euroset retail chain, the largest chain in Russia providing telecommunications goods and services, and is committed to acquire a further 25% within the next three years.

In November 2012 MegaFon successfully completed an initial public offering on the Moscow Stock Exchange and the London Stock Exchange. As of 31 March 2013, MegaFon has two principal shareholders, companies in the AF Telecom group (approximately 50.01%) and the TeliaSonera group (approximately 25.17%). Additional shares are held by its CEO, Ivan Tavrin (1.25%) and by a wholly owned subsidiary of the Company (8.82%, of which Mr. Tavrin has the right to acquire up to 3.75% at various times prior to 2017), while the public float represents approximately 14.75% of the outstanding shares.