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The $150 million USD agreement with Russia's largest mobile provider, OAO Mobile TeleSystems (MTS), expands its GSM capacity.

In a press release, part of the agreement will have Ericsson deliver switches and radio equipment capable of supporting GSM and GPRS services. And its contract will help MTS expand into six regions of Russia.

"Our latest solutions will also allow MTS to grow its subscriber base," says Bill Crocker, Vice President of Ericsson Eastern Europe and Central Asia.

The agreement comes in the wake of a widespread power outage in Moscow that extended well beyond the city yesterday. Cellular service was knocked out by the power disruption, which was caused by a fire and explosion at an aging power plant.

Ericsson's agreement includes supplying infrastructure for the six regions. The company will definitely have some unique challenges to overcome, as they seek to complete the agreement by the end of 2005.

David Utter is a staff writer for WebProNews covering technology and business. Email him here.