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Iran: Mobile license will be retendered if Turkcell quits Print E-mail
Wednesday, 16 February 2005
Iran will retender the license for a second mobile network if Turkcell quits the deal currently in the works because lawmakers changed the terms of the license.

Masoum Fardis, from Iran's telecommunications ministry, said his ministry returned the bid bond of South Africa's MTN, which came second in the tender, after Turkcell paid its license fee.

"After Turkcell paid its 300 million euro licence fee, we gave back MTN's bid bond. If Turkcell withdraws, the only way remaining now is a tender," he said.

Iranian parliamentarians voted to grant Turkcell just 49% of the operator, although it bid based on the expectation of owning nearly 70%. Turkcell said it would probably reject the new terms, which include heavy surveillance of operations by the intelligence ministry. Analysts believe the government has a choice to either retender or open negotiations with MTN, which said it would be willing to accept the minority 49% stake.

The deal, whose original value was US$ 3 billion, promised to be one of the largest investments since the 1979 Islamic revolution and is viewed as a test of whether Iran is ready for inward investment.

Intelecon Research & Consultancy Ltd. 16/02/2005
Source: Reuters