Telecommunications: South African telco set for Iran contract

Iran looks set to finalise a new contract with South African firm Mobile Telephones Network (MTN), to set up the country's second mobile network.

Ebrahim Mahmoudzadeh, the head of the Irancell consortium set up to manage the multi-billion dollar project, said MTN had deposited the 290 million euro license fee required to take the 49 percent stake originally awarded to Turkish company Turkcell, in February 2004.

The deposit is significant as depositing cash with an Iranian bank is a step to negotiating contract details and signing a deal.

Problems arose with Turkcell, when the firm's stake was cut from 70 to 49 percent after Iran's parliament objected to giving a foreign firm a majority stake in the venture.