Etisalat Deal to Earn $1.6b

EtisalatEtisalatLoading..., the United Arab Emirates' largest telephone company, will be able to earn as much as $1.6 billion in revenue from its Iranian mobile-phone operations in five years, Dutch financial-services company ING Groep NV said.

The price of $398 million paid by the company and the local partner "seems too good to be true", Dubai-based Sarwat Hassan wrote, Fars News Agency reported.

Assuming a minimum network investment of $4 billion, "EtisalatEtisalatLoading... can gain about 20 percent to 25 percent market share over five years of its operations."

Abu Dhabi-based EtisalatEtisalatLoading... and Tamin Telecom, the telecommunications investment arm of Iran's social security and pensions department, will gain exclusive rights for two years to offer second- and third-generation services in Iran.

The shares of EtisalatEtisalatLoading... rose 2.4 percent, the most since January 5, to 10.9 dirhams at the close in Dubai on Wednesday, giving the company a market value of 65.3 billion dirhams ($17.8 billion).