November 01-2013
In a sign of Iran’s economic contraction, MTN, the South African firm that operates much of Iran’s cellphone service, has announced that its subscriber base has contracted 1.7 percent as Iranians facing financial problems have canceled their cellphone service.
The Johannesburg-based company owns 49 percent of Irancell, which contributed nearly a quarter of MTN’s 2012 revenue.
“With sanctions [against] Iran, the economy is under pressure. It’s going to put more and more pressure on the business,” MTN spokesman Nik Kershaw told Reuters.
The company, which operates in 22 countries in Africa and the Middle East, added subscribers in almost all of its major markets except Iran, where it saw subscribers fall 1.7 percent to 41.3 million.
Business in Iran was also hurt by the government’s cancellation of a SIM card promotion, Kershaw said.
MTN said last Tuesday it still has been unable to repatriate around $450 million from its Iranian unit because of the banking restrictions on Iran.