MTN to roll out new network in Iran
MTN is about to begin rolling out its latest network after Iran’s communications and information technology minister formally issued a cellular licence to IranCell.
MTN has a 49% stake in the new Iranian operator, though it paid the €300m licence fee in full without contribution from its local partners.
MTN CEO Phuthuma Nhleko said on Tuesday that the company would build an extensive network infrastructure.
"We’re pleased to have been invited to take up the 49% stake in IranCell.
"We have nine months to launch and intend to embrace this opportunity," Nhleko said.
MTN has pledged another €150m towards infrastructure, and the firm’s finance director, Rob Nisbet, predicts a peak funding requirement of $1,5bn within three years.
This is the first private cellular licence to be issued in Iran, and it is renewable after 15 years.
The local partner in IranCell is the Iran Electronics Development Company, part-owned by the defence ministry. IranCell will compete with the current operator, state-owned TCI.
Nhleko was positive about MTN’s entry into Iran. With Iran’s cellular penetration standing at 10%, he believes there is significant growth potential and expects rapid subscriber growth.
Iran’s population is estimated at 69-million, with a per capita gross domestic product of $2,300.
Announcing MTN’s results last week, Nhleko said it was not ideal to hold only a minority interest in any operation, but it was a starting "creep up", and over time as other shareholders want to sell, hopefully we can buy".
Inet-Bridge
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