Iraq 's mobile telecoms put up for tender (20/07/05)

Telecoms companies are gathering in London this week to pitch for mobile contracts in Iraq at a conference that will play a key part in shaping the future of the country’s war-torn infrastructure.

The security of staff and equipment remains a pre-occupation for the country’s three incumbent mobile operators. But forecasts of massive growth mean that bidding for contracts to run Iraq’s mobile network will be closely watched.

"We are here to emphasise our commitment to Iraq, both on the ground in Iraq, where conditions remain very challenging, and in meetings such as this one in London," Ali Al Dahwi, the chief executive of MTC Atheer, which already operates in the country's southern region, told Times Online.

Combined, the three present operators have invested around £170 million in expanding their networks.

Lucy Norton, of Global Insight, the consultants, said: "All three firms are clearly aiming to make the most positive impression possible on the new Iraqi government, as well as Iraqi consumers, in a bid to secure long-term licence rights from the fledgling administration and recoup their capital investments."

Incumbents such as MTC have yet to turn a profit from their Iraqi operations but have drawn attention to large-scale investments.

In addition to investing in its network, MTC has spent more than £290 million on supporting education and health projects in the region.

Such commitments will be highlighted before the United States-founded body that will decide who is awarded the next round of contracts and which aims to open the market to increased competition.

Since the fall of Saddam Hussain, demand for mobile phones has soared, with an estimated three million subscribers signing up to Iraq’s three operators.

According to analysts, Iraq’s nascent mobile market is already half the size of Egypt’s, despite Iraq’s population being only one-third of the size and its operators giving Egypt’s a decade’s head start.

Only three per cent of Iraq’s population of 26 million have a fixed landline connection.

The original two-year contracts, which expire early next year, were awarded by the United States-led Coalition Provisional Authority (CPA).

Orascom, the Egyptian telecoms operator, was given control of Iraq’s central region. The licence for the southern region was awarded to MTC, while Asiacell, a consortium of Middle East firms, was given control of the north.

The Iraq National Communications and Media Commission (NCMC), which was formed by the CPA but describes itself as an independent body, has pledged to "enhance and increase the penetration rate of telecommunications in Iraq".

The body is embarking on a program of opening up the telecoms industry in Iraq to competition thrrough issuing lisenses for wired, wireless and mobile telecommunications services over the course of this year.

It has also promised to improve transparency in a country where several high-profile contracts have been linked with chronic cronyism and graft.

Rhys Blakeley

Source: Times Online