Russian mobile operator MegaFon has agreed to buy 320 million euros worth of equipment from Finland’s Nokia, Nokia’s press office said Friday.

Under the agreement, Nokia will supply radio and core network equipment, including equipment for IP Multimedia Subsystem (IMS) and mobile softswitching systems for fixed-line and mobile services, the company said.

Nokia also said it would supply project management services, installation and relocation services for the ramp-up of the network, and software maintenance and training services to keep the network running.

Nokia said the agreement was an extension of an existing contract signed by the companies in 2003 and is valid for supplies in 2006 and 2007.

Nokia is a global leader in mobile communications. The company provides business solutions and produces telecommunications equipment and consumer products.

MegaFon is Russia’s third largest mobile operator, with 28.719 million subscribers as of October 31, according to management consulting and research agency Advanced Communications & Media (AC&M). MegaFon is currently the only mobile operator licensed to provide services in all of Russia’s 88 regions.

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