TEHRAN - Turkish telecom giant Turkcell has finally decided to go ahead with developing a second mobile phone network in Iran even though its stake in the deal has been cut by Iranian hardliners, Iranian state news reported Sunday.
"Turkcell has agreed to start its activity in this project under the new terms," project director Masoum Fardis was quoted as saying by IRNA.
Turkcell was initially awarded the contract in February 2004 subject to the payment of a 300-million-euro license fee, but Iran's hardline-controlled parliament objected to giving a foreign firm a majority stake in the venture.
The Turkish firm's stake was then cut from 70 to 49 percent, a move deputies said was necessary to protect the Islamic republic's national security.
At one point Turkcell reportedly threatened to pull out altogether, and in June Iran's Communications Minister Ahmad Motamedi said Iran was negotiating with other potential partners.
The problems surrounding the contract had stalled the development of a badly needed second mobile network, and also damaged relations with Turkey.
Iran's existing mobile network currently serves some six million users, and the second network should cover an additional 11 million subscribers within three years, Fardis said.
07/03/2005 09:31 GMT