MTN’s Iran troubles deepen with CEO ousted over shutdown delay

Africa’s largest telecom company has become embroiled in Iran’s decision to shut down communications during this month’s deadly crackdown on protests.

Authorities ousted state mobile operator MTN Irancell’s chief executive officer without informing MTN Group, the South African company that co-owns the mobile network, accusing him of taking too long to comply with shutdown orders, people familiar with the matter said.

Alireza Rafiei took about two hours to block phone calls after being ordered to join a nationwide communications shutdown on January 8, said the people, who asked not to be identified, discussing a sensitive business matter.

This led Irancell’s state-backed majority shareholders, who have direct ties to the country’s security forces, to replace him with military veteran Mohammad Hossein Soleimanian.

Johannesburg-based MTN, a 49% owner of the Iranian mobile company, was blindsided by the move and is writing to the Irancell board to dispute the decision, the people said.