Iran ended mobile licence talks with Turkcell after the Turkish mobile operator insisted on a controlling stake, and started discussions with South Africa's MTN, an Iranian telecoms official said on Tuesday. Masoum Fardis, manager of Iran's second private mobile licence, said Iran had started negotiations with MTN to replace the Turkish firm in the potential $3 billion deal.
"Because Turkcell insisted on keeping the network management despite the parliamentary ratification, it will not take part in the second-operator project," he told Reuters.
MTN shares rose as much as 4.21 percent to 45.75 rand in Johannesburg as investors saw improved prospects for Africa's biggest mobile phone group. Turkcell shares closed down 0.71 percent at 6.95 new lira.
Iran's hard-line-controlled parliament altered the terms of the deal substantially, insisting that domestic companies have a 51 percent stake rather than the 30 percent shareholding that was originally agreed.
Turkcell General Manager Muzaffer Akpinar told Reuters that his firm could not accept Iranians' having a power of veto in the management of the network but were not giving up on Iran for good.
"We are maintaining our belief in the Iranian market," he said.
Parliamentarians said management of the network could not be passed to a foreign company, which might spy on communications within the Islamic Republic. Some lawmakers also accused Turkcell of links to Tehran's arch-foe Israel.
Fardis said the Telecommunications Ministry had obtained authorisation from the Economy Council, Iran's highest economic decision-making body, to enter negotiations on replacing Turkcell with runners-up in the original tender.