South Africa’s largest telecommunications company, MTN, has halted further cooperation with its partner in Iran, Iranian Net, Mehr News reported on July 20.

The two firms agreed last year to invest jointly in the development of fibre optic internet provision in Tehran and across Iran, but MTN, represented in the country by MTN-Irancell, of which it owns 49%, has struggled to repatriate funds from Iran since its market arrival more than a decade ago. MTN also has a 49% stake in Iran Internet Group (IIG) in partnership with Germany’s Rocket Internet. The venture runs the most successful ride-hailing app in Iran.   

Iranian Communications Regulatory Authority (CRA) director Hossein Fallah told reporters that MTN had failed to invest expected capital in the fibre optic project. He added that “a team from MTN was meant to visit Iran to advance the project” but cancelled the trip and, given certain pressures, the company was not willing to pursue the project.

Initially, the company said it would invest $350mn into the project, which was expected to trigger a $400mn loan from the Iranian government for its local operation. 

It is not known whether the government has reneged on its side of the agreement due to the mounting financial pressures being experienced by Iran because of the US decision to attempt to put it in an economic vice. 

China’s Huawei and Finland’s Nokia have also signed agreements to roll out fibre-to-the-home (FTTH) in several cities across Iran. The deals became available as part of a rush by the Rouhani administration to achieve super-fast home internet for the country after years of trailing nations more advanced in internet access.