Will any mobile-phone operator look at Iran the same way again? ‘Untapped potential’ is an expression it still brings to mind in the telecoms community. But after stripping Etisalat of its newly won mobile-phone licence, it is also building up a less favourable reputation as the scourge of the private-sector investor. Years earlier, of course, it had done the same thing to Turkcell.
In that instance, the suspicion was that Turkey’s close ties with Israel (then) incurred the displeasure of Iranian president and holocaust denier Mahmoud Ahmedinejad. The upshot was that Turkcell’s licence ended up in the hands of South African operator MTN.
This time round, Etisalat has been accused by the Iranian state of ‘not fulfilling its obligations’. Such a criticism is normally directed at telecoms companies when they’ve failed to meet coverage targets set by the government, or not introduced a new service they’ve been authorised to offer. Etisalat, however, has barely had time to celebrate its licence win, so that can’t be the explanation.
According to the AFP, Mohammad Soleymani, Iran’s telecoms minister, claims Etisalat still hasn’t coughed up the €300m it owes for its licence. That would certainly explain why Iranian authorities aren’t happy. Yet Etisalat insists otherwise.
This being Iran, the true story may never emerge. But Kuwait’s Zain has been the immediate beneficiary of Etisalat’s misfortune. Having come second during the original tender, it is now in talks with Iranian regulatory bodies about picking up where Etisalat was slung out. Zain shareholders will have to ask whether Iran’s huge promise is worth the risk.
