$4m bail for Tehran's telecommunications chief

An Iranian court has issued $4 million bail for the head of Tehran's state-owned telecommunications company over a case involving excessive internet fees.

In a letter to Iran's Tabnak website, Saba Net, the firm that filed suit against the Tehran Telecommunication Company (TCT), confirmed circulating reports about the large bail set for Mohammad Rouhollahi.

The Tuesday report posted on Tabnak comes days after a TCT spokesman bluntly denied that a $4 million bail had been set for the CEO.

“Reports of a $4 million bail issued for the TCT managing director over charges of collecting excessive fees from people are absolute lies,” Mohammad Khojasteh-Nia said on Thursday.

According to the report, prior to 2007, Iran Telecommunication Companies (TCI's) charged monthly subscription fees of around $3 for each high-speed internet user which is against standard regulation.

However, in 2007, when regulations prohibiting the excessive billing changed, allowing for $1 fees, most provincial TCI companies finally complied with the new rule by cutting to a third the amount they charged.

The TCT and Kermanshah telecommunication companies were the only branches that refused to comply.