MTN Group said it is still continuing to work closely with all the relevant authorities in managing US and EU sanctions against Iran, Syria and Sudan. International legal advisors have been appointed to assist the group in remaining compliant with all applicable sanctions.
It said Irancell Telecommunications Services Company (PJSC), its joint venture in Iran, entered into an arrangement on 04 August to upgrade its licence agreement with the Communications Regulatory Authority, to include 3G mobile broadband and higher standard, such as 4G, as well as obtain access to additional spectrum frequency for an amount of IRR 3 trillion, payable by March 2015 in four instalments, which will be funded by the local operation.
MTN Syria operates under a contractual service arrangement granted and controlled by the Syrian Telecommunications Establishment (STE). The contract, known as a Build, Operate and Transfer (BOT), provides for revenue sharing between MTN Syria and the STE, and involves handing over the network to the STE at the end of the licence period. Following the reporting period, the group has made significant progress in converting the current BOT to a freehold licence.
It is anticipated that this process will ultimately culminate in the award of the licence and termination of the related BOT contract. This process is expected to be concluded before the end of 2014 and it is estimated that the initial licence fee will be between SYP 18 billion and SYP 25 billion, which approximates to one year's revenue share. This will be funded through cash balances maintained within the local operation.
