UPDATE 1-Russia's MTS raises Ericsson contract to over $1.5 bln

Fri Aug 22, 2014 5:26am EDT

(Adds details)

MOSCOW Aug 22 (Reuters) - Russia's biggest mobile phone operator MTS said on Friday it had increased its contract with Swedish telecom equipment supplier Ericsson to more than $1.5 billion.

MTS said it had signed an additional $286 million contract with Ericsson for the expansion and modernisation of its 2G, 3G and LTE (Long-Term Evolution) networks across Russia.

Ericsson also signed a seven-year partnership agreement with Russia's No. 2 mobile operator Megafon this month. (Reporting by Maria Kiselyova; editing by David Clarke)