Iraq Development Program - Iraq to invite telephone licence bids

Iraq to invite telephone licence bids (21/02/05)

Iraq's phone system is ramshackle, unreliable and in need of updating. Iraq is to invite bids for two telephone licences, saying it wants to significantly boost nationwide coverage over the next decade. Bids have been invited from local, Arab and foreign companies, Iraq's Ministry of Communications said.

The winner will work in partnership with the Iraqi Telecommunications and Post Company (ITPC). The firms will install and operate a fixed phone network, providing voice, fax and Internet services.

The ministry said that it wanted to increase Iraq's "very low telephone service penetration rate from about 4.5 per cent today to about 25 per cent within 10 years." It also hopes to develop a "highly visible and changeable telecommunication sector".

Details of the bidding and tender process were published on the ministry's website on 9 February. It is also planning a roadshow for investors in Amman, Jordan. The ministry said it would base its selection on criteria including the speed of implementation, tariff rates, coverage, and the firm's experience and financial strength.