South Africa-based telecoms group MTN has said that Turkish mobile operator Turkcell is seeking US$4.2bn in damages in relation to a licence agreement between Iran and MTN in 2005.
The South African company added that it will oppose Turkcell’s…
South Africa-based telecoms group MTN has said that Turkish mobile operator Turkcell is seeking US$4.2bn in damages in relation to a licence agreement between Iran and MTN in 2005.
The South African company added that it will oppose Turkcell’s claim.
Yesterday, Turkcell announced that it was filing a lawsuit in the US against MTN, explaining that “newly received information by Turkcell indicates the signing of the licence agreement with MTN instead of our company was a consequence of MTN’s actions at that time.”
The Turkish operator did not provide more details about “MTN’s actions”. But in a statement dated 12 March, MTN had said that “Turkcell had threatened MTN with litigation in the United States alleging claims of corruption in relation to MTN’s bid to participate in the second mobile phone network in Iran.”
In a statement yesterday, MTN added that it “continues to believe that there is no legal merit to Turkcell’s claim and no basis for such claim to be brought before a US court.
“MTN further notes the South African government’s denial of the allegations that MTN exercised influence over it.”
As for the choice of the US to file the lawsuit, Turkcell justified it by saying that “both companies have extensive business dealings in the United States” and that the allegations are about MTN breaching “rules of international law”.
In early February, MTN set up an independent investigation to look into the allegations but claims that Turkcell has refused to cooperate.
Meanwhile, Turkcell said it had previously conducted settlement discussions with MTN but the latter terminated the discussions in March through a public announcement.