The news follows a statement from the Russian prime minister in March that it was unacceptable for sensitive information to be transmitted by foreign operators.
On March 16 this year, the electorate of the Autonomous Republic of Crimea voted to withdraw from Ukraine and join Russia.
Two days later, leaders of both Russia and Crimea signed a deal to officially incorporate Crimea into Russia.
The LTE network will be deployed on the 1800MHz band and base stations could go live by Russia Day (June 12) this year, a national holiday in the country.
The government selected Tele2 Russia over rivals, and the self-proclaimed Big Three mobile operators in Russia – MTS, MegaFon and VimpelCom.
Tele2’s selection is thought to be on account of its upcoming merger with Rostelecom’s mobile unit, which received Rostelecom shareholder approval in January.
The initial launch is expected to target Simferopol and Sevastopol.
