The 27-day sale was the first for two years and will put further stress on Iran's already overloaded mobile network. Post offices and banks have seen high demand for the US$ 395 cards. On the open market, cards already issued retail for twice this price.

A lottery draw will be held on April 16 and according to the last two digits on the buyers receipts, the consumers will then be told when to pick up their functioning SIM cards. The first cards will be delivered in the second half of 2006. In the last sale in March 2004, Iran sold 5.6 million SIM cards worth US$ 2.93 billion. Some of these cards have still not been delivered.

Since the start of mobile services in Iran ten years ago, six million mobile lines have been introduced. The new lines will be confronting a network already overloaded and in need of investment. Public demand has put the government under pressure to open its state monopoly to private sector competition and investment.

Last year, South African operator MTN was awarded a 49% stake – the maximum allowed for foreign firms – to create the country's second mobile network. However, that deal has been slowed after a series of delays and disputes with Turkish firm Turkcell, which initially won the deal.

Source: Agence France-Presse - WDR/Intelecon Regulatory News