By Olga Razumovskaya

MOSCOW--Russian telecoms operator MegaFon (MFON.MZ) and Spanish Telefonica S.A. (TEF.MC) have signed a strategic cooperation agreement aimed at cutting equipment costs through joint purchases, the companies announced Monday.

The agreement envisages a mutual roaming services that will lower roaming costs in the regions that MegaFon and Telefonica operate.

The two companies added that their subsidiaries, MegaLabs and Telefonica Digital, will work together in the near future in developing businesses such as cloud services and machine-to-machine (M2M) services.

MegaFon Chief Executive Ivan Tavrin said the two subsidiaries will make a presentation later Monday.

Write to Olga Razumovskaya at olga.razumovskaya@dowjones.com

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