A MTN official told Reuters, cited by presstv.ir, that Iran expansion plans were part of a wider 10-year strategy to cement the company’s position in what he described as risky but lucrative frontier markets. MTN, which is Africas biggest mobile phone company by sales, has already set aside about USD 700 million in capital expenditure that includes revamping its network in Iran, added the report. Nevertheless, it is also looking to expand its services to include rapidly expanding its e-commerce offering in the country.
With a young population and high levels of mobile ownership, Iran is seen as an opportunity for telecoms companies seeking to expand into frontier markets. Founded with the help of South African government, MTN is seen as one of South Africas biggest corporate successes of the post-apartheid era but in recent years it has been regarded as a stock with limited growth outlook, Reuters added. The company’s main current investment in Iran comprises a joint telecom venture named Irancell in which MTN has a share of 49%. Today, Irancell is the second-biggest mobile phone operator in Iran by the number of subscribers.
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