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Turkcell tries its luck in SA

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 27 Nov 2013
Turkcell is claiming an unspecified amount of damages from MTN in the Johannesburg High Court.
Turkcell is claiming an unspecified amount of damages from MTN in the Johannesburg High Court.

Turkcell is now trying to fight MTN in SA's courts, six months after dropping a bid in the US to extract damages from the local cellular operator, Africa's largest.

The dispute hinges around Turkcell's bid for a GSM licence in Iran, which ultimately went to MTN. The Turkish company says it filed a lawsuit claiming an unspecified amount of damages against MTN in the South Gauteng High Court yesterday.

Turkcell and MTN have for some time been involved in a legal wrangle over Iran's first cellphone licence, after Turkcell claimed the Johannesburg-based company used bribery to win the licence, which was first awarded to Turkcell.

In May, Turkcell dropped the $4.5 billion lawsuit it filed last year March, citing a recent US Supreme Court ruling that hurt its case. Its latest filing is a continuation of the legal process it started in the US.

"A change in the jurisdiction of the United States resulted in Turkcell's withdrawal of its lawsuit without prejudice at that time, and the company maintains its position regarding the merit of the case," it says.

MTN, which was not immediately able to comment, has repeatedly held that the accusation has no merit, and a commission it set up, headed by Lord Leonard Hoffman, earlier this year dismissed allegations that MTN employed underhanded tactics to acquire the licence.

MTN owns a 49% stake in Iran's second cellphone operator, Irancell, and was awarded the licence in 2005. The country is now its second-largest operation, after Nigeria, with 41.3 million subscribers.

Since sanctions beset the country, it has been trying to repatriate about $450 million, a move that may be accelerated by a Sunday deal reached between six world powers and Iran to curb Tehran's nuclear programme in exchange for limited sanctions relief.

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