
Turkcell files lawsuit against MTN over lost Iran licence

Turkcell filed a lawsuit against South Africa-based operator MTN under which it accuses MTN of being responsible for Turkcell losing a GSM licence awarded by Iran in 2004. Turkcell was awarded Iran's first private GSM licence through an international tender. Subsequently, Turkcell claims it was barred from concluding its licence arrangement, and Iran entered into a licence agreement with MTN, instead of Turkcell. Newly received information by Turkcell indicates that the signing of the licence agreement with MTN instead of Turkcell was a consequence of MTN's actions at that time. Turkcell claims that MTN won the Iranian licence in 2005 by lobbying South Africa to take a light stance on Tehran's nuclear programme. MTN has said the claim lacks legal merit, while Pretoria has said its foreign policy is independent. Turkcell has now gone ahead and filed a lawsuit against MTN seeking USD 4.2 billion in compensation. The lawsuit has been filed in the US District Court for the District of Columbia, Turkcell said, noting that both companies have extensive business dealings in the US and the allegations cover breaches in international law. MTN said it believes there is no legal merit to Turkcell's demands, and no basis for such a claim to be brought before a US court. It will oppose the suit. The South African operator has formed an independent committee to investigate Turkcell's allegations, and the committee has already begun its investigations. Turkcell was invited to participate in its investigation, but has to date decided not to do so.
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