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MegaFon Selects NEC to Build High-Capacity Indoor Mobile Network in Volga, Ural and Far-East regions of Russia


February 16, 2011 - Barcelona & Tokyo

MWC: Stand No 8A125, Hall 8 - NEC Corporation (NEC; TSE: 6701) announced today that MegaFon (Headquarters: Moscow, Russia; Director General: Sergei Soldatenkov), a leading Russian mobile operator, has selected NEC's femtocell solution to enhance the indoor mobile experience of its residential and enterprise customers. MegaFon plans to launch the high-speed, high-quality indoor mobile service to its residential and enterprise customers later this year.

The NEC femtocell solution was successfully tested and trialled with MegaFon subscribers at the North-West branch of MegaFon in Saint-Petersburg in 2010.

The majority of mobile traffic (up to 70 per cent)(*) is generated indoors; however there is an inherent 3G mobile challenge of unreliable indoor coverage. Femtocells extend indoor mobile coverage and boost capacity ensuring high speeds and reliability.

"NEC's femtocell solution will allow MegaFon to differentiate by providing their customers with premium mobile services," said Vladimir Lobanov, Head of Project Management Division, CJSC NEC Neva Communications Systems, a subsidiary of NEC in Russia. "Our femtocell solution will ensure that their customers always have the five-bar coverage indoors that they expect and dedicated capacity to run data-intensive applications on their smartphones and tablets."

An NEC Femtocell is a small wireless cellular base station similar in size and appearance to a broadband router that connects over broadband to a mobile operator's core network. It provides dedicated mobile coverage and capacity for full personal use delivering excellent experience and increased customer loyalty.

NEC is providing MegaFon an end-to-end femtocell solution that includes NEC Femtocells, and femtocell gateway systems that connect to MegaFon's existing core systems. MegaFon's customers can install the NEC Femtocell with no intervention from MegaFon due to its "plug and play" capability.

NEC has 11 contracts worldwide with mobile operators for femtocell system deployments which make up nearly half a million femtocell devices. In addition, NEC has 24 femtocell system trials in progress or that have been completed with mobile operators around the world.

Furthermore, NEC's commercial accomplishments in the femtocell field include provision of the world's first femtocell IP Multimedia Subsystem (IMS) for Softbank Mobile Corp. in Japan, the deployment of France's first commercial femtocell services through SFR and in Norway through Network Norway. NEC is on target to deploy its first 100,000 Femtocell Access Point (FAP) network.

NEC is a board member of the Femtocell Forum, an industry association that was established in July 2007. NEC's activities and groundbreaking work in the femtocell field are well recognized through honors that include the Femtocell Forum's 2009 award for "Progress in Commercial Deployment" and the 2010 award for "Femtocell Network Design and Technology Innovation."

About MegaFon

OJSC MegaFon is the all-Russian universal communications operator running its business in all segments of the telecommunications market. MegaFon was established in May 2002. MegaFon became the first and the only operator with a network covering all regions of Russia. The Company and its subsidiaries have all the required licenses and operate in all the Russian regions and the Republic of Abkhazia, South Ossetia and Tajikistan. MegaFon was the first in Russia to launch 3G for commercial operations and is currently Top 1 in the segment of mobile Internet, and Top 2 as to the number of active subscribers in Russia.

Having acquired Synterra Group of Companies, one of the leading Russian backbone operators, in June 2010, MegaFon entered the market of fixed-line communication for government and corporate customers as well as fixed Broadband market. The combined infrastructure of MegaFon and Synterra is present in all the Russian regions, forming the basis for GSM 900/1800, 3G, VSAT, IP/MPLS, NLD/ILD networks, data and call centers connected to all players of telecommunication market.

In 2009, MegaFon became the General Partner of the XXII Winter Olympic Games and XI Paralympic Games in 2014 in Sochi.

As of September 30, 2010, the principal shareholders of MegaFon are companies of AF Telecom Holding group, the TeliaSonera group and Altimo telecommunications holding.

About NEC Neva Communication Systems

CJSC "NEC Neva Communications Systems" was established in May 1997 as a local factory of NEC's digital switching system and provides engineering, system integration and professional services. NEC has owned 100 per cent of its shares since Autumn 2009

About NEC Corporation

NEC Corporation (TSE: 6701) is a leader in the integration of IT and network technologies that benefit businesses and people around the world. By providing a combination of products and solutions that cross utilize the company's experience and global resources, NEC's advanced technologies meet the complex and ever-changing needs of its customers. NEC brings more than 100 years of expertise in technological innovation to empower people, businesses and society. For more information, visit NEC at http://www.nec.com.



Source: NEC Corporation

Contact:

Chris Shimizu
NEC Corporation
+81-3-3798-6511
E-Mail: yc-shimizu@cb.jp.nec.com

Rebecca Atherley
NEC Europe Ltd.
+44-(0)20-8752-2796
E-Mail: rebecca.atherley@eu.nec.com

Claire Williamson
NEC Europe Ltd.
+44-20-8752-3727
+44-(0)7720-415875
E-Mail: claire.williamson@eu.nec.com



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