Etisalat enters Iran for US$402.1 million; launch by Q309

UAE’s Etisalat confirmed today its consortium with Iran’s Tamin Telecom was the successful bidder for Iran’s third mobile licence, at a price of US$402.1 million.

Etisalat will compete in Iran with state-backed TCI and MTN Irancell, and will spend US$1 billion in building its mobile network 

The consortium plans to launch operations by the third quarter of this year and possibly earlier, the operator’s chief executive of international investments Jamil Al-Jarwan, told UAE press.

Etisalat is targeting one million subscribers in Iran within the first year of operations and has vowed to invest US$1 billion in its network rollout.

The UAE operator owns 49 per cent of the consortium that outbid consortia led by Oman’s Omantel and Malaysia’s TM International.

Etisalat will compete with the state-backed Telecommunications Company of Iran (TCI), which operates both a fixed-line and mobile network and MTN Irancell. Mobile penetration is 60 per cent of the country’s 70 million inhabitants, with TCI holding a 70 per cent market share.

The Persian operation would be Etisalat’s 19^th operation across the Middle East, Africa and Asia, with Iraq considered to be the next market the operator is interested in.

Etisalat ‘s chief financial officer Salem Ali al-Sharhan stated the company was in advanced negotiations to acquire an existing Iraqi operator, with Korek Telecom the most likely target.

The two national networks in Iraq are operated by Bahrain-based Zain and Asiacell, in which  Qatar’s Qtel has a stake.