MTS partners with Samsung in mobile retail

MTS, one of Russia’s largest mobile operators, and Samsung Electronics have shaken hands on a deal to develop retail sales jointly in Russia by the end of the year. The agreement – the first of its kind in Russia with a single manufacturer – calls for the opening of Samsung product stores in Russia’s ten largest cities and aggressive promotion of the Korean brand in 2,000 out of the operator’s 4,150 existing outlets across the country.

Integrated retail solutions and MTS-only telecom services are also part of the deal, the Russian firm announced. The proposed stores will offer Samsung handsets and smartphones with pre-installed MTS SIM-cards, and Korean laptops and tablets will come complete with 3G modems and Wi-Fi routers supplied exclusively by MTS.

No other terms have been disclosed. Based on what has been unofficially leaked to the media, however, industry portal ComNews.ru reports the ambitious single-brand network will cost the partners $2 million and  believes the network will be run jointly by MTS and Samsung.

The agreement is expected to further beef up the Korean maker’s already firm foothold in MTS’ retail network. The Russian company says its 2011 sales of Samsung smartphones and laptops grew 17% and 18%, respectively.

A leading operator with a client base of a 100 million in Russia and the CIS, MTS also has much to gain from the agreement, primarily through attracting more high-end customers.

Topics: International, Mobile & Telecom, Mobile devices, News, Operators & Networks, Retail
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