By Olga Razumovskaya

MOSCOW--Russian state-controlled telecommunications operator Rostelecom (RTKM.RS) has begun negotiations with Tele2 Russia, which is owned by the country's second-biggest lender VTB (VTBR.RS), about using the mobile virtual network operator model, Interfax reports Monday, citing Rostelecom's chief executive Sergei Kalugin.

Tele2 Russia is the country's fourth-largest mobile operator on the market. An MVNO agreement would enable it to use Rostelecom's third-generation, or 3G, network to provide its services to more clients. The company currently has no 3G, or the even faster long-term-evolution licences, and operates in the GSM standard.

"I think the first [thing] that we will do now, we will try to agree with them on MVNO," Mr. Kalugin is quoted as saying. "This, I believe, can be done right away," he added.

He said the management of the two companies had already had two meetings on the subject, Interfax reports.

Agency website: www.interfax.ru

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