Communications

Demand for communications within Iraq varies greatly, with many opportunities for companies looking to help restore Iraq's telecommunications network. A variety of products and services are needed within the sector, from wired and fixed wireless networks for voice, data and Internet services to other equipment such as cables and connections, telecom masts and antennae, public networks and repair equipment.

There is a huge need for investment within the sector, with the Ministry of Communications looking to generate significant funds to implement its regeneration program. Set up by the former Coalition Provisional Authority in 2003, Iraq's National Communications & Media Commission (NCMC) is the independent media and telecommunications regional body in Iraq and is committed to opening up the industry to competition to generate funds to aid the sector's development.

Iraq suffers from low teledensity, with less than three in every 100 Iraqi citizens enjoying the use of fixed landlines. Priority has been given to the establishment of a fully functioning telecommunications system in Iraq in order to help foster economic development. The ubiquity of the need for communication networks, be it satellite systems to aid conventional banking practice, audio visual technology to help address security issues or general telephony for ensuring construction projects are undertaken in accordance with each other, has made it one of the key issues in Iraq's development drive.

Estimations from the World Bank have set the cost of developing the sector from 2005-2007 to around $2.3 billion. With so few people enjoying fixed landlines, Iraq's population of 27 million are increasingly dependent on mobile networks, with three regional licences awarded in 2003 to set up Iraq's first mobile networks. Since then, more than two million people have signed up, making Iraq one of the world's fastest-growing mobile markets.

Those licences expired in December 2005, upon which the NCMC hosted an auction for up to five new national licences, lasting for 15 years, with a possible five-year extension depending on performance.

The holders of the original three licences - Iraqna, owned by Egypt's Orascom, Asiacell and the Kuwaiti-backed MTC Atheer - have invested a total of around £170 million on expanding their networks, as well as supporting other projects in the region such as education and health initiatives. The incumbents hope that their record within the region will stand them in good stead with the commission, who expect to award between two and five licenses following the auction, organised to gain maximum revenue for the industry.

Elsewhere within the communications sector, post offices have been restored with the aid of the Iraq Telecommunications & Posts Company and are now functioning fully, with an high estimated daily mail volume at Iraq's central office. Radio frequencies have been established to aid Iraq's police forces.

Digital technology such as CDs, DVDs and video broadcast equipment has also entered the market in Iraq. The Iraqi Media Network Program has been set up by Harris Corporation, who have been awarded a contract to restore Iraq's media outlets.