India’s Reliance considers bid for US$1 billion Iran mobile licence

India’s Reliance Communications (RCom) is contemplating a bid for Iran’s third mobile licence, estimated to cost US$1 billion, according to reports.

Reliance Communications is among several operators linked with the tender for Iran’s third mobile licence, which includes access to 3G spectrum

“Reliance has shown interest to bid for the tender and will compete with firms from Russia, Turkey and Malaysia for the tender, the bids for which will be called within a month,” an unidentified Iranian government official told Indian press.

Russia’s VimpelCom and MegaFon had previously signalled their interest, as had Bahrain-based regional operator Zain and Qatar Telecom.

An official from RCom declined to comment specifically on the licence, but noted that the company has “substantial international operations and continuously evaluates various growth opportunities globally, both organic and inorganic, on an ongoing basis”.

RCom is one of India’s leading integrated telecommunications companies with more than 60 million customers.

Among its several international alliances and subsidiaries, the company acquired a licence in Uganda in February that will allow it to offer mobile, fixed, Internet, national and international long distance services across the East African country. In April, RCom also acquired eWave World, a UK-based WiMAX operator.

Iran’s third mobile licence will give the winning bidder access to 3G spectrum for an exclusive period ahead of incumbents state-backed Telecommunications Company of Iran (TCI) and MTN Irancell, which is 49 per cent owned by Africa’s largest operator, MTN.

Mobile penetration in Iran stands at around 50 per cent, with TCI serving 24.6 million subscribers and MTN Irancell having been able to garner 11.5 million customers to end-June, since launching late in 2006, a market share in excess of 30 per cent.