MTS Picks Moto's Softswitch

Motorola wins deals from MobileTeleSystems to upgrade its mobile data services

September 13, 2004

3 Min Read

MOSCOW -- Motorola (NYSE: MOT - News) today announced it has signed an agreement with MobileTeleSystems (NYSE: MBT - News), Russia's leading mobile phone operator, to deliver, install and commission the Motorola SoftSwitch for GSM (MSS-G).

The contract marks Motorola's first softswitch installation in Russia, although the company currently has MSS contracts with customers operating in six other countries and territories worldwide.

The MSS-G solution is considerably smaller and uses far less power than a typical legacy circuit switch alternative, which can significantly reduce the operator's operational expenditures (OPEX). As the Motorola SoftSwitch is a software-based platform, training and deployment costs are further reduced.

The decision to purchase the MSS-G was driven by MTS' need to optimize OPEX while keeping capital expenditure (CAPEX) to a minimum. The introduction of a new network element, the media gateway, allows operators to localize mobile-to-land traffic and thus to reduce customer payments to third party carriers significantly.

Yuri Gromakov, vice president of Mobile TeleSystems, said: "Motorola demonstrated a professional approach and offered the most advanced, tailored solution that fits with our regional expansion strategy at the lowest possible CAPEX."

Colin Bendall, director, sales, European key accounts for Motorola's network infrastructure division EMEA, said: "This is a significant step in our 10 year relationship with MTS in Russia. Our MSS solution provides the right foundation for the expansion of its cellular business in the region, due to the versatility of the platform, as well as reductions in expenditure. As the chosen supplier it is Motorola's responsibility to anticipate MTS' network requirements based on its growth strategy and ensure a seamless migration."

The MSS-G will cover the Yamalo-Nenetsky region of Russia and is expected to be launched commercially by Q4 of 2004.

In a separate release:

MOSCOW -- Motorola (NYSE:MOT) today announced it has signed a contract with Mobile TeleSystems (NYSE:MBT) , the largest mobile phone operator in Russia, to upgrade its GSM/GPRS network in Moscow and the surrounding region.

Under the terms of the contract Motorola is supplying a complete suite of its new range of Horizon II base stations and a GPRS core network.

Motorola's Horizon II portfolio will be deployed in Moscow and the surrounding region to provide a substantial capacity upgrade to the existing MTS GSM network. All Horizon II base stations are GSM, GPRS, EDGE and AMR capable. Due to the compact design of the Horizon II portfolio, with double density radios, they can be implemented with minimum or no increase to the existing footprint. In addition, the stackable nature of the Horizon II with Horizon 3G base stations means that UMTS capability can easily be added to the network when MTS is ready to evolve data service capability even further.

As part of the GPRS network upgrade Motorola's GPRS core network is scheduled to be deployed in Moscow and Yekaterinburg. This will increase capacity and throughput of MTS's GPRS network and allow the operator to offer a full suite of value added SMS and MMS services, plus other applications for both existing and roaming subscribers. The Motorola GPRS core network is 2.5G and 3G capable thus providing a fundamental cost advantage to MTS as it evolves its data services to EDGE and UMTS.

Motorola Inc.

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