MTN readies for Iran mobile licence

TEHRAN – South Africa’s MTN has made 270 million euros (N$2 billion) available to pay for a mobile telephone network operating licence in Iran, Iranian officials said yesterday.

The contract to act as foreign operator in the Irancell consortium, a US$2-billion investment project that seeks to run Iran’s second private GSM standard network, was originally awarded to Turkcell last year. However, Iran’s telecommunications ministry and the domestic Irancell partners fell out with Turkcell over payment of a licence fee and started talks with MTN for the 49 per cent foreign shareholding.”MTN has put a frozen sum of 270 million euros in The Standard Bank of South Africa for Iran’s Bank Melli so the deal can be finalised,” Irancell board member Ebrahim Mahmoudzadeh told Iranian state television.An international source close to the deal confirmed MTN’s bankers had guaranteed to Iran’s Bank Melli that the money was available once negotiations were completed.He cautioned this did not mean the deal itself was finalised as MTN would still need to sort out technical details and the distribution of responsibilities before committing itself to the project.Although two Iranian deputy ministers and the head of a parliamentary commission have said Turkcell’s hopes of getting the stake are over, Turkcell says it is still in the race.It has also used a foreign bank, HSBC in London, to guarantee its willingness to pay the licence fee.It has appealed to a parliamentary commission over Iran’s decision to start negotiations with MTN, saying this is in breach of contract under the tendering it won last year.But MTN said it has received written permission from the ministry to negotiate for Turkcell’s stake.Sources close to the deal said Turkcell also believes Iranian officials have in the past expressed a preference for MTN to speed up its decision-making.Foreign investors will not pay their licence fee directly to Bank Melli because the Irancell consortium was registered without specifying the name of the foreign shareholder.Meanwhile, MTN has also submitted a prequalification application for a stake in Tunisie Telecom, the company said yesterday.Tunisian officials said last week 14 Arabic and European telecoms operators were lining up in an auction battle for a 35 per cent stake in Tunisie Telecom, the country’s largest telecoms company.MTN shares shot up last week amid speculation the cash-rich company was about to announce a major acquisition.The firm, Africa’s biggest mobile operator by revenue, is searching Africa and the Middle East for expansion opportunities.Tunisie Telecom competes against Tunisiana, a joint venture of Kuwait’s National Mobile Telecom (Wataniya) and Egypt’s Orascom Telecom, in the mobile market.As such, Wataniya is prohibited from bidding for the stake.-Nampa-ReutersHowever, Iran’s telecommunications ministry and the domestic Irancell partners fell out with Turkcell over payment of a licence fee and started talks with MTN for the 49 per cent foreign shareholding.”MTN has put a frozen sum of 270 million euros in The Standard Bank of South Africa for Iran’s Bank Melli so the deal can be finalised,” Irancell board member Ebrahim Mahmoudzadeh told Iranian state television.An international source close to the deal confirmed MTN’s bankers had guaranteed to Iran’s Bank Melli that the money was available once negotiations were completed.He cautioned this did not mean the deal itself was finalised as MTN would still need to sort out technical details and the distribution of responsibilities before committing itself to the project.Although two Iranian deputy ministers and the head of a parliamentary commission have said Turkcell’s hopes of getting the stake are over, Turkcell says it is still in the race.It has also used a foreign bank, HSBC in London, to guarantee its willingness to pay the licence fee.It has appealed to a parliamentary commission over Iran’s decision to start negotiations with MTN, saying this is in breach of contract under the tendering it won last year.But MTN said it has received written permission from the ministry to negotiate for Turkcell’s stake.Sources close to the deal said Turkcell also believes Iranian officials have in the past expressed a preference for MTN to speed up its decision-making.Foreign investors will not pay their licence fee directly to Bank Melli because the Irancell consortium was registered without specifying the name of the foreign shareholder.Meanwhile, MTN has also submitted a prequalification application for a stake in Tunisie Telecom, the company said yesterday.Tunisian officials said last week 14 Arabic and European telecoms operators were lining up in an auction battle for a 35 per cent stake in Tunisie Telecom, the country’s largest telecoms company.MTN shares shot up last week amid speculation the cash-rich company was about to announce a major acquisition.The firm, Africa’s biggest mobile operator by revenue, is searching Africa and the Middle East for expansion opportunities.Tunisie Telecom competes against Tunisiana, a joint venture of Kuwait’s National Mobile Telecom (Wataniya) and Egypt’s Orascom Telecom, in the mobile market.As such, Wataniya is prohibited from bidding for the stake.-Nampa-Reuters