Turkish Telecom Deal in Iran Hits Another Snag

AFP, Turkish Press:

A hardline political watchdog has ordered that a contract with Turkish telecoms company Turkcell for Iran's second mobile telephone network must undergo more changes, a report said.

According to the student news agency ISNA, the Guardians Council is not convinced that new security provisions in the contract decided on by the conservative-held parliament did not go far enough in protecting Iranian interests. READ MORE

The decision was made while the council -- which screens all laws -- examined legislation that reduced Turkcell's stake in the operation from 70 percent to a minority 49 percent.

"We need to make some corrections in the presence of a Guardians Council representative," Ramezanali Sadeghzadeh, an MP who heads the parliament's telecommunications commission, told ISNA.

Turkcell was awarded the contract in February 2004 subject to the payment of a 300-million-euro (366-million-dollar) licence fee, but parliament then moved to revise the deal.

Deputies argued that having telecommunications provision in the hands of a foreign company was a danger to national security.

The problems surrounding the contract have stalled the development of a badly-needed second mobile network, and has also badly hit relations with Turkey.

Iran's reformist government has accused MPs of being bad for foreign investment. It also remains uncertain whether Turkcell will accept the revisions to the contract.