JOHANNESBURG, South Africa—MTN Group, which provides cellular service in 14 African countries, said it expects to launch service in Iran by the third quarter.
MTN last year bought a 49 percent stake in Irancell for $350 million. Irancell is licensed to become Iran’s second cellular phone operator, and is expected to launch a commercial GSM network by September of this year.
“This is an exciting greenfield opportunity with Iran’s population estimated at 69 million and current mobile penetration at approximately 11 percent,” MTN noted in a statement announcing its quarterly results. Most Iranians currently have to wait several years before receiving a SIM card from the country’s only operator MCI.
However, the investment is not without its risks, with international concern over Iran’s nuclear program and the possibility of sanctions.
