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Etisalat will be Able to Earn $1.6b Revenue from Iran Deal, Says ING

DUBAI — Etisalat, 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, 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 in an e-mailed statement on Wednesday.

Assuming a minimum network investment of $4 billion, “Etisalat can gain about 20 per cent to 25 per cent market share over five years of its operations.” Abu Dhabi-based Etisalat 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 Etisalat rose 2.4 per cent, the most since January 5, to Dh10.9 at the close in Dubai on Wednesday, giving the company a market value of Dh65.3 billion ($17.8 billion).