Business
MTN accuses rival Turkcell of extortion
MTN Group head quarters in Johannesburg. PHOTO/File
(Reuters) – South African mobile phone operator MTN Group on Monday accused rival Turkcell of using the threat of a U.S. lawsuit to extort money from it.
MTN also said in a statement that talks with Turkcell had broken down, saying the Turkish mobile operator had refused to cooperate with an independent panel set up by MTN.
“Talks between MTN and Turkcell have broken down as a result of Turkcell’s extortionate demands for damages and their threat to start a frivolous lawsuit in the U.S.,” MTN said in an e-mailed statement.
Turkcell confirmed in February it had launched lawsuits against MTN, seeking compensation over the award of an Iranian cellular licence to the Johannesburg-based company.
MTN, Africa’s largest mobile operator, has said 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.
MTN currently makes nearly 10 percent of its revenue from Iran.
Turkcell, which unsuccessfully bid for the same licence, said in February that the cases were at international arbitration courts.
MTN has set up a panel, led by UK-based legal scholar Lord Hoffmann to investigate the charges.
A spokesman for Turkcell said the company had no comment at this stage.
MTN’s shares were up 0.7 percent at 143 Rand (US$ 18.92) at 1353 GMT, compared with a 0.09 percent fall by Johannesburg’s blue-chip index.