The company took the decision to consolidate the business into one agency in July and drew up a list of four networks that also included Carat, OMD, GroupM and Universal McCann. The shortlist was whittled down to Carat and Starcom.
Starcom will handle media duties in all European markets, including the UK, except Croatia, Russia and Latvia, where local agencies will continue to manage Tele2's media duties.
The pitch process was overseen by Anders Olsson, executive vice-president ofsales and marketing for Central Europe, UK and Benelux.
Olsson confirmed the appointment of Starcom and said the Publicis-owned agency would handle the business with immediate effect.
Starcom already handles media for Tele2 in selected European markets, with other markets overseen by local agencies. BLM Media was the previous incumbent on the UK portion of the account.
Tele2 sells mobile telephony and broadband services at competitive rates. It regards itself as a challenger brand and Europe's leading alternative telecoms operator.
It was launched in 1993 and is currently focused on emerging markets. The company, which is listed on the OMX Nordic Exchange, reported operating revenue for 2006 of 50.3bn Swedish Krona (£3.9bn) and operating profit Ebitda was 5.7bn Swedish Krona.
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