Wednesday, Mar 07, 2012
JOHANNESBURG (Dow Jones)--MTN Group Ltd. (MTN.JO) will only exit Iran if South Africa were to apply sanctions on the country, Chief Executive Sifiso Dabengwa said Wednesday.
The South African telecoms company is facing international pressure to pull out or scale down its operations in Iran, which has been accused by the U.S. and many European Union countries of seeking to develop nuclear weapons--a charge Tehran has denied.
Lobby group United Against Nuclear Iran has sent letters to the company and U.S. congressmen in an effort to get MTN out of the Middle Eastern country, accusing the mobile operator of aiding the Iranian government in tracking phone users.
MTN last week denied those claims.
"Business in Iran remains buoyant, but MTN continues to be sensitive to the international issues relating to Iran whilst retaining its firm commitment to its operations there," MTN said Wednesday.
MTN also last month appointed an external committee to investigate claims brought by Turkish operator Turkcell AS (TKC) that it engaged in bribery to secure its license in Iran.
The South African firm said it won't comment further until the investigation is concluded.
MTN reported Wednesday that its subscriber base in Iran rose 17% in its 2011 financial year to total 34.7 million. It also said revenue from the Iranian business--a joint venture with the government of Iran--rose 27%.
-By Devon Maylie, Dow Jones Newswires; +27 11 783 7848; devon.maylie@dowjones.com
(END) Dow Jones Newswires
07-03-12 0951GMT
