Apple, MTS agree on iPhone sales in Russia: source

By Anastasia Teterevleva

MOSCOW (Reuters) - Apple Inc has agreed a distribution deal with carrier Mobile TeleSystems on the sale of iPhones in Russia, one of the world's fastest growing markets for mobile telephone handsets, a market source said.

"MTS has made an agreement with Apple on the sale of iPhones," the source said. "Sales are likely to begin in October."

Apple declined to comment as did a spokeswoman for Mobile TeleSystems (MTS), Russia's largest mobile phone operator which is controlled by Russian services conglomerate Sistema.

Apple's iPhones are not yet sold officially in Russia, but they have swiftly become a status symbol in Moscow with soaring unauthorized sales of phones brought into Russia in suitcases or sent into the country by courier.

Monthly sales of these phones in Russia are estimated at about 20,000 and industry experts say the number of iPhones operating in Russia could total 700,000 by the end of 2008.

MTS Chief Executive Officer Mikhail Shamolin recently said the company was interested in selling the iPhone in Russia and that talks with Apple did not concern sales in other former Soviet countries where the carrier operates.

Apple Chief Executive Steve Jobs has said the company will roll out the iPhone in Russia later this year. In July, the company rolled out a 3G iPhone, which offers faster Internet access and improved e-mail features, in more than 20 countries.

Russia's top three mobile carriers -- MTS, Vimpelcom and MegaFon -- have been trying to seal a deal with Apple but none of the operators had disclosed details about talks.