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Telecom Investments Up 20%

Following the privatization of the telecommunication sector, investments increased by 20 percent, announced managing director of Telecommunication Company of Iran ( TCI ).

Speaking in a ceremony to inaugurate 61 telecommunication projects, Saber Feyzi said investment to the tune of over 110,000 billion rials (approximately $1.1 billion) had been made in various fields of the sector in 19 months, IRNA reported.

A 50-percent block plus a single share of the Telecommunication Company of Iran valued at over 78 trillion rials (approximately $7.8 billion) was offered on the stock market in September 2009 as Iran's biggest-ever transaction. The share was bought by Etemad-e Mobin, a consortium of three Iranian firms.

Feyzi noted that privatization of the telecommunication industry, which is being carried out in accordance with Article 44 of the Constitution, can serve as a model for other sectors.

Privatization
In 2007, Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei urged state officials to expedite the implementation of the amendment to Article 44 and move rapidly toward privatization.

Article 44 of the Constitution requires 80 percent of the country's state-owned companies to be sold to private ownership.

Feyzi added despite obstacles, the target for the telecommunication sector has been achieved.

According to the Fourth Five-Year Economic Development Plan (2005-10), Privatization Organization of Iran affiliated to the Ministry of Economic Affairs and Finance is responsible for setting prices and ceding shares of state-owned companies to the general public on the stock market.

Feyzi noted that no TCI 's employee was dismissed as a result of privatization and the company will employ new personnel soon.

Customer-Orientation
Referring to TCI 's cooperation with other entities as reasonable, he noted that satisfying the needs of customers is also on the company's agenda.

"We are planning to set up marketing groups to attract more customers," he said.

The official said that the responsibility of developing communication facilities in rural area has been transferred to Fan Ava Company. Meanwhile, deputy head of TCI for planning and economic survey, Kazem Ebrahimi referred to the importance of telecommunication and communication industries noting that huge investment are made in this sector globally.

He added that Iran has acquired advanced technology and know-how in various fields of telecommunication, pointing out the country ranked first in telecommunications in the Middle East and North Africa (MENA) region.

MENA covers an extensive region, extending from Morocco to Iran, including the majority of both the Middle Eastern and Maghreb countries.

The official noted that some of the TCI 's shares were sold to its employees and the public.

All economic activities in the country should be geared towards generating value added, he stated.

"Experience shows that shares in the telecommunication sector do not drop in value anywhere in the world since the people need to communicate," Ebrahimi pointed out.

Deputy head of Iran's Privatization Organization, Mehdi Oqadayi said recently that the country aims to raise some $12.5 billion by privatizing more than 500 state-owned firms. He said 524 companies are due to be sold during the year.

Revenues from the sale of companies are projected at $12.5 billion, which will be used to repay government debts, he noted.

© Iran Daily 2011