MegaFon has signed of a seven-year deal with Ericsson as it looks to upgrade its network infrastructure.

The agreement sees Ericsson supply equipment and software for MegaFon’s 2G, 3G and 4G/LTE radio and core networks.

The first stage of the agreement involves an upgrade of the Russian operator’s core network in the country’s North-Western region.

The two companies said the overall aim is to allow MegaFon to rapidly introduce new products and provide the highest level of customer service through increased network capacity and extended coverage.

According to MegaFon, the agreement includes the possibility of substituting Ericsson equipment for other vendors’ equipment in any region in Russia.

The operator’s Deputy CEO for Infrastructure, Evgeny Chermashentsev, said the deal “opened a new page” in the relations between the two companies.

It is the second seven-year deal MegaFon has signed in the last couple of months. In June, it announced a similar deal with Huawei.

The operator has increased capex by 75 percent in the first half of the year as it looks to upgrade its mobile network.

Ericsson’s Head of Northern Europe and Central Asia Charlotta Sund said: "The agreement with MegaFon reflects a new level of our cooperation. Our portfolio and global market knowledge allows us to be confident that we can solve problems of any complexity and scale in the shortest possible time and with maximum efficiency.”

Although financial details were not disclosed, the deal will boost the Sweden-based vendor’s falling sales.

It has been promising that revenues would return to growth in the second half of the year.

[Read more: Profits continue to rise at Ericsson as it wins Etisalat Egypt deal]

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