MegaFon to invest €3bn in Iran rolloutRussian operator opens Tehran office; plans to bid for Iranian mobile licence.
Russian mobile operator MegaFon plans to invest around €3 billion ($4.6 billion) in the rollout of a mobile network Iran, should it win an operating licence in the country.
MegaFon made the announcement at the opening of its Tehran representative office on Monday, according to various local press reports.
The telco said in February that it planned to open an Iranian office as it saw “possibilities of long-term investments in Iran’s telecommunications sector.” At the same time the company set up a wholly-owned subsidiary, MegaFon International, to handle its overseas interests.
Quoting MegaFone director general Sergey Soldatenkov, Russia’s RBC reported that the €3 billion sum would be invested through MegaFon International.
MegaFon’s ambitions in Iran are, of course, contingent in its success in the upcoming licence awards.
Iran is expected to sell off a third mobile licence later this year. Foreign players will be allowed to own up to 49% of the new licensee. Various sources have predicted that the starting price for the new licence will be $600 million-$800 million.
Iran’s second mobile player, MTN Irancell, launched services in October 2006 and by mid-March 2008 said it had signed up close to 9.4 million customers. Incumbent operator Mobile Communications Company of Iran has well over 20 million subscribers.
