RCom may bid for Iran telecom licence

Reliance Communications (RCom), part of the Reliance-Anil Dhirubhai Ambani Group, is likely to bid for Iran's third mobile phone service licence, which is estimated to cost around $1 billion, according to unconfirmed reports.

The tender envisions addition of 5 million new customers in the first phase, followed by 10 million and 15 million in the second and third phases, respectively.

Rcom, which has been trying for a larger share of the global telecom market, said it was looking at tapping global growth opportunities, but declined to comment specifically on the potential bid.

While a foray into Iran market would entail outflow of funds, it was also not clear as to when the operation would start generating revenue.

State-owned Telecommunication Co of Iran, and MTN Irancell, which is 49 per cent owned by Africa's largest phone company MTN Group Ltd, are the two current operators in Iran.

RCom, through alliances and acquisitions, has a substantial data and voice presence globally, including a telecom licence in Uganda. Earlier this year, it acquired a UK-based Wimax operator, eWave World, which was planning to roll out fourth generation phone services in 50 countries by 2012. It also acquired Flag Telecom, through which it owns and operates the largest Internet protocol-enabled undersea cable infrastructure. Through its recent joint venture with Alcatel-Lucent, it offers network services to telecom companies worldwide.

With Iran's privatisation drive offering substantial stakes to overseas companies, Western companies and several Indian firms, including the country's largest power generation firm NTPC Ltd, are vying for a piece of the Iranian pie.