Iraq Telecom News
etisalat likely to acquire company in Iraq
(October 7, 2008)
Abu
Dhabi (Reuters) - Emirates Telecommunications Corp (etisalat)
said on Tuesday that its planned Middle East acquisition will be in Iraq
and that it expected "very positive" results for the third
quarter.
"It is Iraq but it is not
yet finalized. We will shortly announce it," etisalat Chairman
Mohammad Omran told Reuters on the sidelines of a news conference, declining
to give details. An etisalat official said last month that the firm was in
final-stage talks to buy a majority stake worth up to $1 billion in a Middle East telecoms operator this year but did not
announce the country.
etisalat has been expanding
aggressively abroad, snapping up assets in countries such as Pakistan, Egypt
and India.
It operates in 16 countries.
Mobile penetration in the UAE,
which has a population of 4.5 million people, exceeds 150 per cent. Du
telecom broke etisalat's monopoly when it started operations in February 2007.
Omran said that the global
financial crisis had not impacted etisalat.
Asiacell to invest $300
million in Iraq (From
Gulf Daily News, August
20, 2007)
DUBAI - Asiacell
Communications Co., an affiliate of Qatar Telecommunications Co, could
spend as much as $300 million a year to expand its Iraq
network, a shareholder said yesterday. Asiacell paid $1.25 billion for one
of three mobile licenses sold last week and could consider a bid for the Iraq assets
of Egypt's
Orascom Telecom, which dropped out of the auction at the eleventh hour.
Orascom and two Kuwaiti operators, Mobile
Telecommunications Co (MTC) and National Mobile Telecommunications Co, set
up networks in Iraq
after the US-led invasion that toppled Saddam Hussein in 2003.
Qtel bought a majority stake this year in
National Mobile Telecommunications, which set up its Iraq
operations through a separate affiliate, Asiacell Cayman Islands.
MTC and Kurdish operator Korek won the other
two licences.
Asiacell Communications is looking to raise
conventional or Islamic debt to fund expansion in Iraq, said
Basil Al Rahim, managing partner of UK-based investment bank Merchant Bridge, which holds a 19pc stake in
Asiacell Communications.
"The rough ratios of what you spend per
subscriber per year is anywhere between $120 to $127 per
subscriber. Then you have the upgrade of old equipment and security,
so it could be $200 to $300m a year."
Rahim declined to comment on what the new
debt would mean for Qtel, which owns 30pc of Asiacell and is facing a surge
in financing costs for $3.7bn deal to buy into National Mobile, also known
as Wataniya.
"We looking to keep the facility as simple
as possible," he said.
"Possibly, a long-term loan or it could
be structured in a bond or sukuk," he said.
Wataniya owned 40pc of Asiacell Cayman
Islands, which is in liquidation at the behest of its majority shareholder.
Qtel said yesterday Asiacell Communications,
of which it owns just over 30pc, had bought the Iraq assets of Asiacell Cayman.
Rahim declined to say how much Asiacell paid
for the assets.
Asiacell will consider buying Orascom's
Iraqna subsidiary, which the Egyptian company said may be put up for sale.
"If the opportunity comes up, we will
look at it," Rahim said.
$300m needed for Iraq telecom sector (The
Peninsula, April 5, 2004)
DOHA - Investments to the tune of $300m
is required to develop the telecommunications infrastructure in Iraq, which
was destroyed during the US-led invasion of the country, a senior official
at the Arab Regional Office, Cairo,
of the Geneva-based International Telecommunications Union (ITU), said here
yesterday.
Speaking to The Peninsula, Ebrahim Al Haddad, the ARO's coordinator, said
several telecommunications companies in the Arab world were eager to invest
in Iraq's
telecom sector, alone or in joint venture projects with regional and international
firms. He pointed out that despite the security risks,
Iraq already has three
mobile telephony providers, including Al Watania Telecom of Kuwait
and Orascom. He said the 6th Arab Telecom and Internet Forum (ATIF), which
will be held at the Sheraton Doha from May 30 to April 1, would have a
session dedicated to the development of telecom infrastructure in Iraq,
during which issues such as the current situation in the country's telecom
sector, experiences of the various mobile services operators, projects for
investments, the right methods to penetrate the Iraqi market and
regulations and legislations specific to Iraq, would be discussed.
Ebrahim said at a press conference yesterday that the ITU could not force
countries in the Arab world to liberalize their policies regarding Internet
access by doing away with censorship. The ITU, which consists of some 108
member nations, can only make recommendations regarding the use and
proliferation of the Internet to various countries.
"The Article-1 of the ITU recognizes the sovereignty of every country
and hence, each one has the right to enforce local laws to govern the use
of the Internet," he added.
The ITU official conceded that the Digital Divide, or the disparity in IT
proliferation between the developed and the Arab states, was growing and
blamed the financial situation of people living in the region as the main
factor.
He said that due to lower incomes in several Arab countries, people were
unable to afford Personal Computers (PCs) for Internet access, use the
World Wide Web and other state-of-the-art telecommunications services.
High tariffs in some countries, he said, were also an impediment. In some
countries, telecom firms were forced to provide a slew of services
stipulated by the licensing authorities. Hence, such companies were forced
to target their products and services towards the affluent sections of the
society, often neglecting those with limited resources.
Iraq's
telecommunications sector set to be region's best (From The Daily
Star, March 20, 2004)
- The Iraqi telecommunications sector is quickly heading
from a destroyed and underdeveloped industry to a modern and liberalized
one, vying to become the best in the region, according to the Iraqi
Communication Minister Haydar al-Abadi.
Speaking during the Iraq Economic Forum held in the
Phoenicia Inter-Continental Hotel in Beirut,
Abadi said even though the economic revenues from this sector will remain
very low in the short-run, there has been much interest in operating mobile
licenses in the country because, "we all expect lucrative revenues in
the medium and long run."
Kamal Shehadi, the managing director of Connexus
Consulting - a Lebanese consulting firm that specializes in privatization -
told The Daily Star on the sidelines of the conference that no one can
speak of telecommunications' liberalization in Iraq today because there
isn't yet a government that has the legitimacy to give long term contracts
and licenses.
"The solution that was chosen for now was an interim one since there
are only three operators with two-year licenses. To speak of liberalization
you need a stable constitution, a stable legal system and a stable
regulatory framework. However, what is clear is that the minister (Abadi)
has a commitment to liberalize this sector in the near future, to have a
strong private sector participation, to use the latest available
technologies and services and they are definitely committed to creating a
regulatory framework following best international practices," said
Shehadi.
"We in Lebanon
should learn from the Iraqi experience. We need to give priority to
liberalizing telecommunications instead of only seeing it as a major
cash-cow for the government, which it is not when the benefits of
liberalization are taken into account," he added.
In October 2003, the Iraqi Communication Ministry awarded
three licenses to operate public GSM telecommunications networks. These
licenses were awarded as follows: Asiacell in Northern
Iraq, Orascom in Central Iraq
and MTC in Southern Iraq. The license bids
were underpinned by the decision of the Coalition Provisional Authority
(CPA) to delegate the issuing of mobile network licenses in June 2003 to
the Iraqi Communication Ministry, thereby bringing the bidding and award
process directly under the supervision of Iraqis experienced in managing
the country's unique and challenging environment.
"In the new Iraq
we are aiming for a telecommunications sector that is liberalized. But in
order to bring this project to fruition, we have been working on a clear
plan and policy that takes into consideration the status of the telecom at
the moment, the available human resources and the financial donations that
have been granted," said Abadi.
Iraq
had expected to receive some $1.2 billion in grants allocated to the
telecommunications sector. However, only $350 million was granted - an
amount "which is much less then we anticipated," said Abadi.
"This is one of the main reasons why we are very much looking forward
for the private sector's participation, especially in terms of
investments," the minister added.
General Manager of MTC, Saad al-Barrak, said the
Communications Ministry's policy is excellent and opens the way for a
competitive and state-of-the-art telecommunications industry.
"In my view, liberalization has already started in Iraq since
the interim government has been following the right track. And if
aspirations are met, then the telecommunications environment in Iraq will
become the best in the region," said Barrak.
MTC expects to achieve the 300,000 customer milestone within 24 months,
representing a 5.7 percent penetration rate in Southern
Iraq. The company will invest approximately $120 million over
the 24-month license period.
"The total subscribers in Iraq today only reaches 150,000,
but we see a 25-30 percent (6-9 million) market penetration within 5 years,
resulting in the need of $2.5 billion to $3.5 billion of investment in Iraq's
telecom industry within the next five years," said Barrak.
Cellphones set to outpace fixed lines in Iraq (From
Khaleej Times, March 18,
2004)
DUBAI - Asiacell, Iraq's
established GSM mobile network operator has predicted that the meteoric
growth in demand for GSM mobile services in Iraq will see the number of
mobile lines in Iraq
exceeding fixed lines by year-end.
"We are seeing all sorts of forecasts on telecommunications in Iraq and I
think many of these are speculative," said Asiacell board member Ahmad
Haleem. "However, based on Asiacell's solid experience of operating
the most advanced mobile network in Iraq, we believe that current growth
will see more GSM subscribers this year than there are lines in the fixed
line network."
The prediction comes as the company formally launched a White Paper
outlining the past, present and future of telecommunications in Iraq:
'Building GSM Network Operations in Iraq.'
The document outlines the history of telecommunications in Iraq,
quantifying the country's fixed line network and documenting the enormous
challenges that have been faced, many of which remain, in operating a
national telecommunications infrastructure that is intended to serve some
25 million people.
"There are currently something in the region
of 1.1 million subscriber lines in Iraq, although some of these
are not currently operable. Three licensed GSM networks are in existence
now, each with something like a third of the country as its initial area of
operations."
"According to the White Paper, while work is underway to rebuild and
modernize the ravaged fixed line network, the three mobile licenses have
paved the way to building out services much more quickly than could
possibly be achieved with a fixed line infrastructure."
Iraq
Telecom to build commercial foundation (From menareport.com, March 14, 2004)
- Middle East
telecommunication consultancy Technology Partners has won the $10 million
bid to build network management and subscriber services infrastructure for Iraq's
national telecommunications network.
Technology Partners leads a consortium of companies that will deploy
billing, network management and information systems connecting the 250
service and exchange sites across the country, allowing Iraq Telecom to
start functioning as a commercial entity and supporting the reconstruction
and development of the Iraqi national fixed line telecommunications
network.
"Iraq
currently has over one million subscribers to its landline network, a
number which is expected to grow very quickly in a population of more than
24 million," explained CEO of Technology Partners, Omar Barzanji.
"This contract supports a national telecommunications information
platform that will immediately and effectively leapfrog the 15 years of
technological development which has bypassed Iraq."
The project will equip each of Iraq's 250 telephone exchanges
centers with PC-based workstations and trained CRM operators linked through
to the central server farm in Baghdad
which will handle CRM, billing, network services, and fault reporting and
engineering resource management. Over 1,500 workstations will be installed
across the country to equip operator positions.
Iraq's
network is based on a heterogeneous mix of switching technologies,
including digital and analogue exchanges from a number of vendors. The task
of integrating the new system to such a complex mix of exchanges is being
undertaken by Lucent Technologies, which has also recently been involved in
a major project to rebuild damaged exchange facilities by installing
containerized switching in 12 locations, bringing Iraq's
switched network back up to its pre-war capacity by replacing some 260,000
lines of switching.
Technology Partners is an international telecommunication consultancy and
systems integrator with offices in Dubai,
United Arab Emirates (UAE) and Baghdad,
Iraq.
Founded in 1997, Technology Partners specializes in the development and
management of IP based telecommunications, broadband networks and other
infrastructure and IP services projects in the Middle
East.
Iraq's
GSM subscriber base to grow to 1.5mln by year-end (March 14, 2004)
(MENAFN) - Iraq's GSM subscriber base could grow to 1.5
million by the end of the year, as all three operators active in the
country keep signing on new clients, Gulf News daily reported.
In the past few weeks the three operators led by Orascom, MTC and Wataniya
have launched full GSM services in the market, something that was lacking
during the Saddam era.
In the immediate future, Iraq
and Saudi Arabia
will represent the biggest opportunities for GSM handset manufacturers.
Iraqi cellular operators currently enjoying a
period of rapid increase in subscribers (From the Daily Star, March 10, 2004)
- Mobile phone operators in Iraq are projecting the
number of subscribers this year to reach the one million mark and overtake
fixed landlines in 2005 as Iraqis buy up mobile phones that were once
banned during the era of Saddam Hussain's fallen regime
Officials from the three mobile phone companies who signed two-year license
agreements with the interim Iraqi authority at the end of last year told
participants at a telecommunications conference in Beirut on Tuesday that
the rapid growth in subscribers was only being hampered by security
concerns and uncertainty about the shape of the future Iraqi government.
"We will easily reach one million by 2004, but we
need visibility to understand how our operations will be next year,"
said Najib Sawiris, chairman of Egypt's Orascom Telecom, which is
co-running the mobile phone operations in Baghdad and central Iraq.
He was speaking at Iraq Telecom, a two-day conference held at the UN House
in Beirut.
The Coalition Provisional Authority (CPA) had delegated Iraqi
Telecommunications Minister Hayder al-Abadi to choose last year three
companies to run mobile phone operations in the north, center and south of Iraq.
Abadi picked three Arab companies: Iraqna, a joint venture between Egypt's
Orascom and Iraqi partners operating in Baghdad and central Iraq; Asiacell,
a joint venture between Kuwait's Watanyia, Bahrain-based United Gulf Bank
and Kurdish company Asiacell operating in northern Iraq; and Atheer, a
joint-venture between Kuwaiti telecommunications group MTC, Kharafi
National and Iraq's Dijla telecommunications operating in southern Iraq.
"Mobile phones will overtake land-lines in the next six months,"
said Ahmed Haleem, chief financial officer of Wataniya Telecom. "Iraq's
mobile phone penetration rate could reach 10 percent or 2.4 million by the
end of the two-year contracts."
But mobile operators say two years is too short a period to get a good
return on their investments. They said uncertainty about the future Iraqi
government and the lax security situation has impeded them from expanding
their networks and pooling more investments into their networks, which they
had to build from scratch.
"The only limitation is the two-year term, which hinders our
capability of installing a system that will overtake landlines," said
Saad al-Barak, director general of MTC group. "We should have had at
least five years and there is no reason for having just two years, it is
something that has to do with the US presidential
elections."
American occupation forces want to hand over power to the Iraqis by June 30
next year, but investors fear a new Iraqi government could change the terms
of the licenses when the contracts expire.
So far the three companies have a combined subscriber base of around
300,000: Orascom's Iraqna has 100,000 subscribers, Asiacell has 125,000 and
MTC's Atheer has 40,000.
All three companies are each investing about $120 million in the network
and have only paid an annual license fee to the telecommunications
ministry, which has not asked for any royalty fee.
Despite the uncertainty, the mobile companies are forging ahead in
expanding the network and expect to meet their contract obligations before
the end of this year and overtake the 1.1 million subscribers to fixed
land-lines. "We will complete the two-year commitment within six
months," Barrak said, adding that his company intends to have 300,000
subscribers by the end of this year.
The license agreement restricts all three companies to
offering services in their regions, but they can go national and offer
services outside their territories once they meet their obligations.
"We are already ahead of schedule and we expect to
have at least half a million subscribers by the end of this year,"
Sawiris said, adding that the company is expected to make $100 million in
revenue in 2004.
Asiacell, which has operated in northern Iraq inside
the no-fly zone since 1999, expects to have 400,000 subscribers by this
year's end and double that figure in the second year of operation. They are
also working on introducing GPRS (General Package Radio System) to
accommodate internet usage.
"We are already operating in Suleimaniya, Mosul and Kirkuk, and the only
reason we are not yet in Dahuk, Tikrit and Irbil is the security situation. I expect
we will offer our services in all three by June this year," said
Haleem.
Both Asiacell and Atheer say that they hope they will
break even by the end of the two-year contract and are counting on the new
government to renew their license. But not all telecommunications officials
feel the three companies are getting a bad deal.
"They are adding subscribers at a rate of 10,000 a
week, we are happy with that," said Arthur Bresnahan, deputy senior
advisor to the Telecommunications Ministry. He argued it was not up to the
CPA to extend the maturity of the licenses, which is ultimately an Iraqi
decision.
"It is a little bit of a wild west in terms of
regulatory authority," Bresnahan said. "We are working with the
ministry of telecommunications on setting up a regulatory authority within
a month.
Bresnahan defended the decision to grant short-term
contracts, but added the CPA was not setting up institutions that
"will shut down on June 30."
Basil al-Nakeeb, an Iraqi economist and member of the
Independent Iraqi Democrats, criticized the CPA's management of the mobile
phone network, accusing it of favoritism in handing out the licenses.
"The CPA awarded three companies the highly prized
rights to Iraq's
airwaves for negligible fees and without offering the Iraqi public the
opportunity to participate," Nakeeb said. "The few shareholders
were either non-Iraqis with powerful US business connections or
Iraqis with strong ties to certain members of the Governing Council that
were appointed by the US
…"
Atheer Telecommunications launches service in
southern Iraq
(From menareport.com, March
8, 2004)
- Atheer Telecommunications, appointed by the
US
led Coalition Provisional Authority (CPA) as the GSM telecom service provider
for the southern region of Iraq,
has announced that the service had now gone live and was already providing
communications for the people, and business community in the region.
Atheer's network coverage extends from Iraq's southern borders of Kuwait and Saudi Arabia
up to the border of the Central region and includes the cities of Al-Basra, Az
Zubyr, Umm Qasr, Safwan, Al-Nassiriyah, Al-Amarah, Al-Qurnah, Majar
Al-Kabair and Samawah. A network of authorized distributors and retailers
has been put together to support the distribution of eeZee, Atheer's
pre-paid service.
The Atheer Vision is one of fast and optimum deployment of a fully
independent GSM network with capacity for up to 300,000 customers by 2005.
A roll out of coverage of voice and other value added services with Atheer
are available now to approximately 40,000 customers.
Atheer's investment is estimated at little over $120 million across the
24-month license. Through deployment of, and subcontracting to, local
businesses and the local workforce, in coordination with local industry and
the ITPC, Atheer believes it will support the stimulation of engineering,
sales and merchandising sectors. The sale of handsets, eeZee scratch cards
and accessories would be managed through outsourcing to qualified Iraqi
distribution companies.
Atheer Telecommunications was selected to develop and operate the GSM
network and service in the Southern region of Iraq by the CPA last year.
Atheer is operated and managed by MTC, the leading mobile telecommunications
operator in Kuwait.
Japan promises to rebuild Iraqi telecom infrastructure (March 3, 2004)
TOKYO (AFP) - Japan pledged to help
rebuild Iraq's telecommunications system, linking the capital Baghdad with
the southern city of Basra and the city of Mosul in the north.
Japan's minister of public management,
home affairs, posts and telecommunications, Taro Aso made the pledge
Wednesday when he met with Haydar al-Abadi, the Iraqi minister of
communication, in the transitional governing council.
"Minister al-Abadi talked about
how the damage done to Iraq's
telecom infrastructure has disrupted police activities, medical services
and education in particular," said the Japanese official who attended
the meeting.
Aso and al-Abadi did not discuss details
such as how much Tokyo
was committed to spend to rebuild Iraq's telecommunications
systems, however.
News reports have said that Japan was
prepared to spend about 10 billion yen (91 million dollars) out of the 1.5
billion dollars that Tokyo
has promised for Iraqi reconstruction.
Japan has pledged to
give five billion dollars to Iraq over the next four years,
including 1.5 billion dollars in grant aid to be released in 2004.
Al-Abadi, who arrived in Tokyo
late Tuesday for a five-day visit, was due to pay a courtesy call on
Japanese foreign minister Yoriko Kawaguchi later in the day.
Nokia gets GSM network deal in Iraq (February 6, 2004)
(MENAFN) - Nokia has concluded a supply agreement with
Future Communications Company International (FCCI) to supply GSM core
network equipment to Atheer Telecom for its network in Iraq, Dow
Jones Newswires reported.
Atheer Telecom, a consortium led by the Kuwait-based mobile operator MTC,
won a license last autumn to provide GSM service in southern Iraq,
including Basra.
MTC awarded FCCI an exclusive contract for the supply of the Nokia GSM core
network equipment for the two-year period of Atheer Telecom's license.
The deal represents Nokia's first supply of GSM equipment to Iraq and
its first GSM core network deal with MTC.
Under the agreement, FCCI will be providing a full Nokia core network,
including the Nokia Connect MSC switch, part of the Nokia Connect GSM
solution for new growth markets.
LogicaCMG wins Iraq
contract – UAE (From Khaleej
Times, January 5, 2004)
DUBAI - LogicaCMG has
announced it has been chosen to provide an all-IP Next Generation Messaging
architecture, which includes the state-of-the-art Short Messaging Service
Centre (SMSC) to Asia Cell Telecommunications Company Ltd., one of the
three service providers to be awarded a GSM license in Iraq.
Asia Cell will deploy LogicaCMG's Next
Generation Messaging infrastructure enabling it to offer high quality
messaging services, starting with SMS, as it launches its GSM services.
LogicaCMG won the contract after being
selected by Siemens Mobile Networks.
The global leadership position of LogicaCMG in the messaging infrastructure
marketplace and its experience of developing and deploying advanced
messaging technologies for operators across the globe played a key part in
Siemens Mobile Networks and Asia Cell selecting the company.
Bhanu Sud, Director and General Manager, LogicaCMG Wireless Networks,
Middle East & North Africa, said: "With the current marketing
penetration of mobile phones at almost zero, Iraq
is set to be the fastest growing market in the Middle
East as it's infrastructure is
rebuilt. We are confident that Asia Cell and its subscribers will benefit
from the world class messaging solution being implemented. We welcome our
role working with Siemens Mobile Networks and Asia Cell to play a part in
providing mobile communications to Iraq."
Ziad Shatara, CEO of Asia Cell, said: "We are delighted to have been
awarded one of the three GSM licenses available in Iraq. By
working with leading service providers such as LogicaCMG and Siemens Mobile
Networks we are confident that we will be able to meet the Coalition
Provisional Authority's challenging deadlines and bring Iraq's
mobile infrastructure online. LogicaCMG has provided us with a cost effective
Next Generation Messaging solution and a focused approach to support our
ambitions in Iraq.
We now will be able to provide the best possible services for our
subscribers."
Iraq
denies corruption in cellphone deals (December 22,
2003)
BAGHDAD
(Reuters) - Iraqi authorities denied on Monday that there was corruption in
the bidding for national cellphone contracts, which are under investigation
by the Pentagon.
"There were sour losers in the
bidding process. Signing the license agreements today proves the falsehood
of these rumors," Telecom Minister Haidar al-Ebadi said after signing
license deals with three Arab consortia, allowing them to start operations
in Iraq.
Iraq's U.S.
administration awarded the three groups two-year tenders to operate in the
country in October. The winners were led by Egypt's Orascom Telecom, Kuwait's
National Mobile Telecommunications (NMTC.KW) and MTC (TELE.KW) of Kuwait.
The Pentagon said last week it had
launched an investigation into the award of the cellphone contracts and
this has cast a shadow over preparations to start cellphone service around
January 1.
Baghdad's main
landline telephone exchanges remain destroyed after U.S.
bombing during the invasion.
The U.S. Defense Department did not
reveal the focus of the investigation but a Western source in Baghdad, familiar
with the probe, told Reuters the Pentagon might investigate allegations
that Iraqi and Western officials involved in awarding the contracts had
taken bribes.
Ebadi said he knew of no Iraqi or U.S.
official in Iraq
that was being investigated. "I am not aware that anyone from the
ministry or the Coalition Provisional Authority is under
investigation," he said.
Naguib Sawiris, head of Orascom Telecom,
said his company's network had already gone on air in Baghdad and the first subscribers were
expected to be signed up in January.
"We did nothing wrong,"
Sawiris told Reuters. "Let them investigate. The person who takes a
bribe from me has not been born."
Siemens Mobile to build GSM network in Iraq by
year’s end (From
menareport.com, December
17, 2003)
- Siemens Mobile has won a
$8.6 million contract to provide equipment to mobile operator Asia-Cell to
expand its GSM network in northern Iraq and enhance the mobile
infrastructure with new installations.
The new partnership was introduced by Asia-Cell's partner Wataniya Telecom,
headquartered in Kuwait,
who has already teamed up with Siemens as its preferred vendor in Kuwait and Tunisia.
As well as the core network and radio equipment, the contract also includes
delivery of an Intelligent Network which will increase Asia Cell's
competitiveness in the voice and data convergence arena and enable delivery
of new value add services to its subscribers.
Asia Cell already operates a commercially running GSM network in North Iraq, enabled by its second partner Huawei.
Iraq mobile operators eye big bucks, insecurity a
double-edged sword (December 1, 2003)
BAGHDAD, (AFP) - Mobile phone operators
are expecting hefty profits from licenses awarded by Iraq, as it will be
the only cheap alternative to the damaged land-line system for some time,
but persistent insecurity promises risks as well as rewards.
The insurgency that has plagued Iraq ever
since the US-led spring invasion will have a double-edged effect, industry
experts say.
It heightens interest in reliable
communications from people who want to stay in continual touch with their
loved ones, but the relay installations are likely to become targets for the
insurgents.
"Commercially, it will be a
success," said Mohamed El-Roubi, managing partner of IandD Iraq Law
Alliance, which represents several telecommunication companies.
"The land-line network in Iraq was a
big system, it will take a long time to fix," he said.
The Thuraya mobile satellite system is
currently the only reliable way of being connected, but it has many
limitations. It is expensive for a population that mostly earns salaries
below 150 dollars a month.
The handset costs 600 dollars and the
communication charges average one dollar a minute. The user has to have a
line of sight to the satellite, which often means that he has to be
outdoors.
"Because it is cheaper, the GSM
system will spread far beyond the Thuraya," said El-Roubi, whose
clients include mobile operators and equipment suppliers.
He estimated the number of subscribers
to Thuraya in Iraq
at 60,000.
GSM subscriptions will be driven by
businesses as much as individuals and the availability of the
cost-effective short message service -- SMS -- will make it even more
attractive.
"It will be less of a headache
when my daughter goes to university," said ophthalmologist Abdullah
Abdul Sattar, who also counts on the new networks to put some order in his
appointment schedule.
But El-Roubi said the mobile phone
system "is also likely to draw unwanted interest from elements who
want to destroy the infrastructure and maintain the atmosphere of
insecurity."
The system in Baghdad will be launched in mid-December
with an installed capacity of 125,000 subscribers, to be boosted to about
400,000 after two months, industry sources said.
The licenses were given for 24 months,
and El-Roubi said the break-even point for the investment will be met
"way before expiry."
The three operators selected for the
licenses "have hopes of renewing their licenses after the initial
term," he added.
Orascom of Egypt has been chosen for
the central region which includes Baghdad,
AsiaCell for the north, and AtheerTel for the
south. The last two companies are partially owned by Kuwaiti mobile phone
operators.
Last week, Kuwait's Mobile
Telecommunications Co. (MTC-Vodafone) said its southern network has been
delayed for security reasons, but insisted the project will go ahead.
Orascom and MTC-Vodafone have said they
will invest at least 100 million dollars each in their Iraqi networks.
US company MCI has been running since
last July a mobile phone service around the capital restricted to about
10,000 civilian and military personnel of the US-led coalition, as well as
aid workers and selected Iraqi officials.
Until the new systems are up and
running, Iraq remains the only country in the Middle East and North Africa
not to have a mobile network.
The population has relied on high-range
cordless telephones operating on radio frequencies, known locally by the
most common brand name, Senao.
VHF radios, or walkie-talkies, became
common after the occupation, used mainly by contractors and the media.
The Iraqi telecommunications network is
the only infrastructure that the coalition has admitted to deliberately
targeting during the six-week invasion, because of its dual military and
civilian use.
Land connections have been restored
within provincial cities, but in Baghdad,
12 out of 38 exchange switches, serving 240,000 lines from a total 540,000,
are out of service, according to the US Agency for International
Development, which is supervising the reconstruction.
And even if re-established, the land-line
system will remain fragile and its capacity way below the needs of the
26-million-strong population.
interWAVE secures $1.4
mln GSM order in Kurdish Northern Iraq (From menareport.com, November 20, 2003)
- US-based interWAVE Communications has
received an initial order from Kurdish Sanatel totaling $1.4 million for a
GSM-based wireless infrastructure to link eight cities in northern Iraq.
Sanatel, owned by Halabja General Trading Company, is one of three wireless
operators officially licensed to provide cellular services in Kurdistan.
Prior to its ownership of Sanatel, Halabja General Trading had purchased an
existing GSM network in the city of Sulaimaniah,
Kurdistan. Since Halabja's purchase of
Sanatel, the firm has doubled the networks subscriber base, and is now
expanding the capacity of the network to include eight additional cities --
one of which being Halabja.
interWAVE Communications is a provider of compact
network solutions and services. The company’s highly portable mobile,
cellular networks and broadband wireless solutions provide communications
capabilities for customers in over 50 countries.
Motorola moving fast to set up Iraq mobile
network (October 24, 2003)
CAIRO (Dow Jones) - U.S.
telecommunications-equipment supplier Motorola Inc. is moving fast to set
up infrastructure for the central Iraq mobile-phone network, due
to start operation in less than two months.
Motorola Thursday
signed a two-year contract worth up to $40 million with Cairo-based Orascom
Telecom Holding, 63% owner of Orascom Telecom Iraq, which is preparing to
operate the network under the brand name "Iraqna."
Motorola will provide
Global System for Mobile communications,
or GSM, base stations and transmission equipment for the network, one of
three being set up in the country. Training for 23 Iraqi engineers began as
long as six weeks ago, even though Iraqi network licenses were awarded only
two-and-a-half weeks ago.
"You begin to do
the pre-work in advance," said Adrian Nemcek, president and chief
executive of Motorola's Global Telecommunications Solutions Sector.
Advance preparations
were possible, "since we have an ongoing working relationship with
networks," Nemcek told Dow Jones Newswires after a Thursday night
signing ceremony.
The Egyptian-led consortium
was rumored to be one of the license winners in Iraq for several weeks before
the official announcement, which came Oct. 6. But Motorola was confident of
landing supply orders with or without Orascom.
Motorola officials
said their company had been "well- placed" prior to the license
awards, without confirming links had been forged with more than one bidding
consortium.
Orascom Telecom
Chairman Naguib Sawiris said timing was a vital consideration in choosing
the technology supplier for the planned Iraqi network. "If we were ...
to set up this network, we knew the time allotted. It was 60 days,"
Sawiris said at the signing ceremony. "We haven't done that
beforehand."
In choosing Motorola,
"we were considering the fastest supplier in the market," he
said. "While we signed the contract today, the equipment is already
being shipped to Iraq."
Nemcek, too, stressed
Motorola was chosen because of its strength as a GSM technology supplier.
He denied the U.S.-based company had any political or social objectives in Iraq.
"Our commitment
in this affair is purely commercial, based on our agreement with
Orascom," he said.
Motorola supplied all
the base stations for Fastlink, an Orascom-owned network in Pakistan,
and nearly 60% of the stations for MobiNil, an Egyptian network owned
jointly by Orascom and Orange SA.
Originally, Motorola
owned 35.3% of MobiNil, but the U.S. firm sold its shares to
Orascom Telecom and Orange,
via France Telecom, at the end of 2000.
While the companies
maintain a close working relationship, Motorola will be subject to
penalties if it fails to meet deadlines stated in the Iraqi GSM contract,
Jeff Cherif, Motorola's general manager for the Middle
East and Africa, said.
Nemcek and Cherif
declined to comment on whether Motorola would also supply base stations or
other components for the northern or southern networks. Announcements on
those regions might be forthcoming another time, they said.
Sawiris conceded that
security concerns would add to the cost of project implementation. The
central network region covers the "Sunni triangle," where
anti-U.S. attacks have been heaviest.
Nemcek, however, was
reluctant to characterize the central area as more difficult in which to
set up a network than the other two regions.
"Each region has
its challenges," he said. "The first challenge is getting a
strong supplier agreement."
Iraq
awards three GSM mobile phone licenses (October 6, 2003)
BAGHDAD (Reuters) - Iraq said
on Monday it had awarded three GSM mobile phone network licenses to
consortia led by an Egyptian and two Kuwaiti companies, ending months of
speculation about which technology would be chosen.
The Iraqi
Communications Ministry said the three sought after contracts had been
awarded to a group including Egypt's Orascom
Telecommunications, another group including Kuwait's National Mobile
Telecommunications (NMTC.KW) and a consortium including Kuwait's
MTC (TELE.KW).
Egypt's OT will help
build and run a mobile phone network in Baghdad and central Iraq, while
MTC's consortium has won the contract for southern Iraq and
National Mobile Telecommunications, also known as Wataniya Telecom, has
clinched the deal for the north.
Industry experts have long expected new
Iraqi mobile phone networks to be based on GSM technology, which is already
used across the Middle East and would
therefore allow cell phone customers to travel across the region using just
one phone.
But the issue was clouded after one
U.S. lawmaker in March urged top politicians, including U.S. Defense
Secretary Donald Rumsfeld, to ensure that rival U.S-backed technology CDMA
be deployed to safeguard American jobs and profits.
The licenses are seen as among the most
lucrative contracts to be offered in post-war Iraq, especially since wireless
service was not available in the country during Saddam Hussein's rule.
Samsung denies Iraq project; KTF says
‘nothing concrete’ (October 1, 2003)
SEOUL (Dow Jones) - South Korea's
Samsung Electronics Co. denied Wednesday a report it is seeking
telecommunications projects in Iraq as part of a consortium
while KTF Co. said "nothing concrete" had been fixed on the
issue.
The local Maeil
Business newspaper reported Wednesday that Samsung Electronics was setting
up a partnership with South Korean mobile carrier KTF and U.S.-based
Qualcomm Inc. to bid for mobile telecommunication projects in Iraq.
"We haven't made any contacts to
vie for such projects," said James Chung, a Samsung spokesman.
"However, if we are approached, it can always be reviewed."
Meanwhile, Shin Heon Chul, vice
president of KTF's public relations office said, "nothing concrete has
been finalized and we cannot confirm anything at this stage."
The Maeil Business Newspaper cited
diplomatic and government sources as saying the consortium would likely
finalize a deal to export mobile technology based on code division multiple
access, this month.
Officials at South Korea's Foreign Ministry
couldn't immediately comment.
Samsung's exports to the Middle East are mainly home appliances. In 2002,
revenue from the region accounted for 5% of the company's revenue of
KRW40.5 trillion. KTF doesn't have any operations in the Middle
East region.
Iraqi mobile license contracts
delayed at least 1 week (September 18, 2003)
PARIS (Dow Jones) -
The awarding of mobile licenses in Iraq has been delayed by at
least another week because U.S.
administrators are checking the financial health of the operators bidding
for the coveted contracts, people familiar with the situation have told Dow
Jones Newswires.
The U.S.-led Coalition
Provision Authority, or CPA, was expected to release the names of the
winners for three regional, two-year mobile licenses Friday, the sources
said. That was already postponed from an initial date of Sept. 5.
Middle Eastern
analysts estimate the market to be worth $1 billion over the duration of
the license.
A source familiar with
the CPA said the winners could be unveiled at the end of this week. But a
person at an operator bidding for the license said he was told by the CPA
that the announcement could be delayed by another two weeks and could come
early next month.
Sources said the CPA
is conducting further due diligence into the financial health of operators.
One of the CPA's problem might be that most large
operators have decided against bidding because of security reasons or a
rule barring operators in which states have large stakes. That leaves only
small or regional operators.
The CPA didn't return
requests for comment.
Vodafone Group PLC of
the U.K.,
Telecom Italia Mobile SPA (TIM) of Italy, MobileCom of Jordan, and
MCI (X.WCM), a U.S.
telecommunications firm formerly known as MCI WorldCom, all sent delegates
to a CPA conference about the licenses in Amman, Jordan.
MobileCom is a 35%-owned affiliate of Orange SA (F.ORA) of France.
While Vodafone and
Telecom Italia Mobile considered bidding, they decided not go ahead with an
offer partly for security issues, according sources close to the companies.
TIM and Vodafone
declined to comment on the matter.
MobileCom has said it
won't apply because its 65% shareholder, Jordan Telecom, is owned by the Jordan
government while its second shareholder, Orange, is controlled by the French
government via France Telecom SA.
But one operator that
still appears to be interested is MCI, said sources close to the company,
even though the company is barred from bidding for any U.S.
government contract because of its bankruptcy status. Worldcom filed for
the largest bankruptcy in U.S.
history last year.
One source said the
CPA licenses weren't technically a U.S. state tender and MCI
should be allowed to participate.
The U.S.
operator already has a mobile contract with the U.S. military in Iraq but
its service isn't accessible to ordinary Iraqis.
A source familiar with
MCI said the company began to fill in forms for the tender, but it wasn't
clear whether it submitted a formal bid.
The source added the
company could also take a stake in a consortium with which it is
partnering, Zagil Wireless, if it wins a license. Zagil Wireless is
controlled by a group of Iraqi-American entrepreneurs from Silicon Valley.
A spokeswoman for MCI
declined to comment on that suggestion, adding it didn't take a stake in
the venture and would only be its long-distance telecommunications
provider.
Zagil Wireless has
awarded a suppliers contract to Swedish telecommunications equipment maker
Ericsson AB. Zagil Wireless declined to comment on this story.
A number of Middle
Eastern operators have said they are bidding for the licenses. They include
Orascom Telecom Holding (C.OTH) of Egypt and Bahrain
Telecommunications Co.
Iraq’s
mobile market rings loud (From itp.net, September 11, 2003)
- The US
Coalition Provisional Authority (CPA) will grant three regional
mobile operating licenses for Iraq later this week. Each
license is valid for an initial two-year period and interested parties are
being encouraged to bid for at least two of the three regions, which
encompass north, central and south Iraq.
Currently, IrakCell,
TurkCell and Zagil Wireless are among the favourites for the three licenses
and any company that wins will be able to roll their services our across Iraq after
an initial 12 months of operation.
IrakCell, which is a
consortium made up of LibanCell and the Amira, Maymana and Shamara Groups,
is bidding for all three regional licenses. Officials from the company
estimate 400,000 subscribers would sign up for their services and the
consortium plans to charge users 15 cents per minute.
6-month old Zagil
Wireless is also an international consortium with strong regional
connections. It is being led by a group of Iraqi telecommunications and
business leaders and is also bidding for a license to operate a wireless
network in Iraq.
Unlike Zagil and
IrakCell, Turkcell is not a consortium containing local representation and
is instead a NYSE listed GSM operator with 17 million customers. It had
revenues of Turkcell had revenues of over US$1.07 billion for the current
financial year and is listed on the NYSE.
Strongest among the
contenders seems Irakcell. Backed by three powerful local Iraqi business
groups, the consortium is also enlisted as a member of the Iraqi-American
Chamber of Commerce and has Motorola as a technology partner.
LibanCell bids for Iraqi
mobile license (From meareport.com,
September 7, 2003)
- IrakCell, a consortium of partners
including LibanCell and the Amira, Maymana and Shamara Groups, have
announced their submission of a bid to install and operate cellular phone
services to the Coalition Provisional Authority (CPA).
"What makes our bid more acceptable to the people of Iraq is the
investment support of three significant Iraqi business groups who hold the
long-term interest of the future of this country and its people," said
chairman of the Shamara Group, Ali Shamara. The consortium additionally
enjoys the support of the thousands in the Iraqi-American community as it
has enlisted as a shareholder the Amira Group, a member of the
Iraqi-American Chamber of Commerce.
IrakCell is partnering with LibanCell and other worldwide leaders in
cellular technology and services, some of which have already begun building
a strong presence in Iraq.
Turkcell enters Iraq mobile
tender (From menareport.com, August 23, 2003)
- Turkcell has announced that it will bid in
the tender for mobile phone licenses in Iraq as part of an unnamed
consortium. The decision was made at a management board meeting on
Wednesday, August 20, reported the Istanbul Stock Exchange.
Iraq's
mobile phone industry is set to trigger heated competition among telecom
infrastructure suppliers and service providers. International telecom
companies have submitted bids for three mobile licenses issued by the
US-led Coalition Provisional Authority (CPA) to operate networks in the
north, center, and south of the country. The results are forecasted to be
released in September.
Turkcell, Turkey 's first mobile operator, was formed in 1993 and
commenced operations in 1994 under a revenue sharing agreement with Türk
Telekom, the state-owned fixed-line network operator. Since the beginning
of operations, Turkcell has invested more than $3.5 billion including
license fee for network infrastructure.
Iraq's cellular market growth to resemble Lebanese model (From menareport.com, July 28, 2003)
- The Iraqi telecommunication market is
forecasted to have a similar resemblance to Lebanon’s the civil war
and right after its end for the next two years. Iraq will most likely have GSM
networks given the regional context as well as the frequency allocation for
the licensees.
The road to a stable, durable and democratic political future in Iraq will
be thorny. The future stability and security of Iraq will depend on a true
understanding of Iraq’s
problems and the regional context.
The political context strongly affects the economic context in which
telecom services are given. According to the Arab Advisors Group, at
least in the short term, what is needed in Iraq
is not just cellular services. Reliable data infrastructure and fixed
services is sourly needed in Iraq to enable the development
of a strong financial system to be a strong pillar in economic development.
It is still not decided whether the three new GSM licenses, whose RFPs will be issued shortly, will use CDMA or GSM
that is used throughout the rest of the Middle East.
The license tender requirements state that operators will be granted a
license to utilize frequencies in 900 MHz bandwidth.
The Arab Advisors Group believes that the cellular technology to be used
will be GSM since commercial CDMA technology typically utilizes frequencies
in the 800 MHz band. Theoretically, CDMA as a technology can work on any
frequency. However, it would cost a lot more if CDMA equipment is
specifically ordered to work in the 900 MHz band.
US authorities urge
cancellation of Batelco’s GSM service in Iraq (From menareport.com, July 27, 2003)
- The US-led Coalition Provisional
Authority (CPA) in Iraq
has asked the Bahrain Telecommunications Company (Batelco) to discontinue
the GSM roaming service it put into operation in the Baghdad area last week. Batelco’s
unlicensed service jeopardizes US plans to win an upcoming tender for three
mobile phone licenses in the country.
With the reconstruction work going on in full swing, Iraq's
mobile phone industry is set to trigger heated competition among telecom
infrastructure suppliers and service providers.
Telecom companies will soon submit bids for mobile licenses in Iraq at a
conference in Amman, Jordan. Batelco is expected to
participate in the tender, reported Reuters. Asked if Batelco would
be banned from the tender or treated adversely, a CPA spokeswoman said:
"It's an open competition".
Batelco’s network was meant to fill the void in communication in the
country by installing a network at a cost approaching five million dollars.
The system was to be expanded to a capacity of one billion phones from its
current capacity of 10,000 phones.
Regional and global players are watching the situation keenly, as Iraq
presents huge business prospects for telecom companies. Industry watches
say that it could be the biggest testing ground for the two competing
cellular data transmission technologies: the GSM (Global System for Mobile
Communications) and CDMA (Code-Division Multiple Access).
With the telecom network in shambles, the only mobile communication
currently available in Iraq
is via satellite through Thuraya handsets. There are estimated to be 20,000
Thuraya subscribers in Iraq.
These phones are also used by relief agencies like the Red Cross to keep
communications going.
In the next three years, Iraq's
mobile phone subscribers are expected to increase to five million. A
judicious selection of telecom infrastructure and cellular technology will
therefore be crucial to the success of the project of putting Iraq back
on the cellular map.
Tecore to establish distribution
center in Iraq
for GSM equipment (From menareport.com, June 23, 2003)
- Tecore Wireless Systems, a provider
of US made GSM network equipment, is establishing a distribution center to
deploy GSM systems throughout Iraq.
Tecore's local inventory will consist of GSM Mobile Switching Centers,
AirNet AdaptaCell Broadband Software-Defined Base Stations and AirSite
Backhaul Free Base Stations, Pre-Paid Systems, Short Messaging Service
Centers (SMSC), antennas, cables, towers, power equipment, generators, SIM
cards, top-up cards, VSAT terminals and handsets ready to ship in support
of the license winners. The distribution center will build relationships
with local contractors for civil works, tower erection, and supply of power
systems.
In addition, Tecore's operations center in Dubai is staffed with local
Arabic-speaking wireless personnel and management to provide installation,
commissioning, and training services, as well as operational assistance to
launch wireless services and international origination and termination
arrangements.
Tecore Wireless Systems supplies turn-key wireless mobility networks for
regional and country-wide deployments and solutions for migrating existing
networks to advanced digital wireless technologies while expanding coverage
and capacity.
Iraqi telecom
contracts awarded (From
itp.net, May 22s, 2003)
- US mobile
equipment supplier Motorola has been handed a sizeable contract to provide
a radio network to aid policing operations in Baghdad, while Kuwaiti
operator MTC has reportedly secured a deal to supply mobile services in the
south of the country.
Motorola’s deal, which could reach up to
US$25million, is geared towards restoring safety and security in the capital,
which the US government says is its “number one priority.”
“The Motorola contract [will] re-establish a
police radio network and is going to run between US$10million and
US$25million, depending on the options that are exercised," said Lt.
Col. Ken McClellan, an official spokesman for the US’ office of the
secretary of defense.
MTC’s six-month contract, according to a
report on AFP, is to supply services in southern areas, a move that was
largely expected after the operator readied networking equipment during the
conflict to extend coverage from its existing GSM network in Kuwait.
The deals will further short-term efforts to
restore Iraq’s telecoms networks - seen as a key element in
rebuilding the country, which has largely been left reliant on satellite
phones for communications since the conflict broke out.
Last week, it also emerged that the US telco
formerly known as Worldcom, MCI, was handed a US$45million deal to set up a
GSM network in Baghdad
to serve the interim government, humanitarian agencies, reconstruction
workers and the military.
“[The MCI network] is going to be a dual mode
system and they envisage servicing it to up to 10,000 phones. They’re
installing the first towers this week and then they’re expecting full
system capability by about July,” added McClellan.
US and Iraqi officials are also figuring out how to
install trunking networks to link Baghdad
with other areas and are working to restore Iraq’s fixed telephone
lines.
It is expected, however, that long-term arrangements
for telecoms services will be left up to the future Iraqi government, with
the market remaining open to local companies and non-US vendors.
Mirroring the company’s involvement in
providing mobile services in Afghanistan, MCI’s Baghdad network is
expected to be eventually handed over to the future Iraqi government and
then licensed to commercial service providers.
Spokespeople from MTC were unavailable to
immediately confirm its deal.
Thuraya
to step up services in Iraq
(From the gulf-news.com, April 21, 2003)
- Thuraya
Satellite Telecommunications Co (Thuraya) will step up its services through
its service providers in Iraq
following the lifting of the ban on Thuraya phones by the U.S. Central
Command, Mohammad Omran told Gulf News yesterday.
"There is an urgent need
for basic telecom services in Iraq and our objective is to
fulfill that need. Thuraya is setting up a network of distributors in Iraq,"
he said.
Thuraya has already signed two
agreements with its service providers to provide telecom services in Iraq and is
in talks with others for similar agreements. Plans are afoot to set up call
centers and payphones all over Iraq.
Thuraya has been receiving
hundreds of calls from Iraqis worldwide including from the U.S. asking
about the service, how to make calls, how to initiate the handset and such
details, said Sana Bagersh, Marketing Manager, Thuraya.
Usage of Thuraya has gone up
considerably, now touching over 100,000 minutes per day. Plans are underway
to reduce tariffs on calls from Iraq once Thuraya steps up its
distribution network in Iraq.
Chinese firm replaces another in Iraq mobile
phones project (October 17, 2001)
BAGHDAD (AFP) - Baghdad has awarded a
28-million-dollar project to introduce a mobile telephone network to China
National Technology Import Co. (CNTIC), Iraq's telecommunications firm
announced Tuesday.
"CNTIC will replace its Chinese counterpart, Hua
Wei Technology, after the latter pulled out of the project, which had been
cleared by the UN sanctions committee," the weekly Al Rafidain quoted
Hussein Al Ma'ini, director of Iraq's telecommunications firm, as saying.
Ma'ini said that under the contract, 25,000 mobile
telephone lines would be set up within nine months. He he did not say when
work would start.
Iraq last month
invited offers from international firms to set up the mobile telephone
network after Hua Wei Technology pulled out of the project.
The project was agreed in 1999 as part of Iraq's
"oil-for-food" arrangement with the UN, under which Baghdad is allowed to
sell oil to meet the humanitarian needs of its sanctions-stricken
population.
Hua Wei Technology, a major manufacturer of
telecommunications equipment, was cited when the United States accused China
earlier this year of helping Iraq upgrade its air defense
system by rebuilding a fiber-optic telecommunications station bombed by US
and British warplanes.
Beijing rejected the
charge, insisting that it was abiding by the UN sanctions regime imposed on
Iraq
since its August 1990 invasion of Kuwait.
Iraq's telephone network, which was largely built by
French telecom giant Alcatel in the 1980s, suffered heavy damage during the
1991 Gulf War in which a US-led international coalition evicted Iraqi
troops from Kuwait.
Baghdad said September
4 that Alcatel would implement a 76-million-dollar project to rehabilitate
its telephone network.
Baghdad invites bids
for mobile phones after Chinese pullout (September 10, 2001)
BAGHDAD (AFP) - Iraq said
Monday it had invited offers from international firms to set up a mobile
telephone network after a Chinese company pulled out of a 28-million-dollar
project to introduce mobile phones in the country.
"We have approached a number of international firms
for bids for the mobile telephone project after the Chinese company Hua Wei
Technology reneged on an agreement" concluded in 1999, the official
INA news agency quoted Hassan Al Ma'ini, director of Iraq's telecommunications
firm, as saying.
Iraq announced
earlier this month that the Chinese firm had given no reason for pulling
out of a project to set up 25,000 mobile telephone lines even though its
contract with Baghdad,
worth 28 million dollars, had been cleared by the UN sanctions committee.
Hua Wei Technology, a major manufacturer of
telecommunications equipment, was cited when the United States accused China
earlier this year of helping Iraq upgrade its air defense
system by rebuilding a fiber-optic telecommunications station bombed by US
and British warplanes.
Beijing rejected the
charge, insisting that it was abiding by the UN sanctions regime imposed on
Iraq
since its August 1990 invasion of Kuwait.
Iraq's telephone network, which was largely built by
French telecommunications giant Alcatel in the 1980s, suffered heavy damage
during the 1991 Gulf War in which a US-led international coalition evicted
Iraqi troops from Kuwait.
Ma'ini said Iraq's telephone services would
greatly improve after the UN sanctions committee approved contracts signed
with Alcatel, whose experts were now in contact with Iraqi counterparts to
set up new telephone exchanges.
Baghdad said September
4 that Alcatel would implement a 76-million-dollar project to rehabilitate
its telephone network.
Under its deal with Iraq, Alcatel will build a new
international telephone exchange with a capacity of 1,200 lines and a
microwave telephone network linking Baghdad
with central and southern provinces.
It will also link existing telephone exchanges in Baghdad and set up
new exchanges with a capacity of 280,000 lines.
Iraq has said the
new exchanges should become operational early next year.
The
contracts with Alcatel were signed in 1998 and 2000 as part of Iraq's
"oil-for-food" arrangement with the UN, under which Baghdad is allowed to
sell oil to meet the humanitarian needs of its sanctions-stricken
population.
US shift clears Iraq to buy
French phone equipment (September 6, 2001)
UNITED NATIONS (Reuters) - The United Nations has
cleared a long-stalled purchase by Iraq of nearly $75 million of
telecommunications equipment from French company Alcatel after the United
States lifted its objection to the sale, UN officials and diplomats said on
Wednesday.
Washington had blocked
the sale for more than two years in the UN Security Council's committee on
Iraqi sanctions, fearing the equipment would be used to bolster Baghdad's military
capabilities.
Washington relented and lifted its "hold" on
the contracts last month as part of a campaign to show it was doing all it
could to alleviate the suffering of ordinary Iraqis under UN sanctions
imposed after Baghdad's 1990 invasion of Kuwait. The Washington Post first
reported the new US
stance.
Alcatel spokesman Mark Burnworth said the bulk of the
equipment consisted of central office switching equipment needed to rebuild
Iraq's
local telephone network, which was badly damaged during the Gulf War, when
a US-led coalition drove Iraq
out of Kuwait.
The French firm had helped build Iraq's
phone network in the 1980s, and "it was only natural for them to ask
Alcatel to upgrade and help make repairs to that system," Burnworth
said.
Alcatel has worked with the United Nations and the
International Telecommunications Union to help assure the equipment would
be used to further humanitarian rather than military goals, he said.
The one aim of "smart sanctions" proposal is
to counter Iraqi claims that the sanctions create hardships for ordinary
Iraqis.
China agreed in June
to support the initiative after the United States lifted holds on
more than $80 million of contracts for Chinese telecommunications goods.
These included a contract to buy mobile telephone
equipment from Huawei Technologies Co., a Chinese firm said by US
intelligence officials in February to have helped Iraq
upgrade its air defenses with fiber-optic equipment.
The United States
dropped its holds on the Alcatel contracts after France asked for the same
treatment as Washington
had given China,
diplomats said. "The United
States put itself in a box when they turned
around and approved the Chinese contracts in June after rejecting them in
February on grounds they would bolster Iraq's air defenses," one
diplomat said, speaking on condition of anonymity.
Chinese firm pulls out of Iraq mobile
phone project (September 5, 2001)
BAGHDAD (AFP) - A
Chinese company alleged by Washington
to have aided Baghdad
to improve its air defenses has pulled out of an Iraqi 28-million-dollar
mobile telephone project which has UN approval, a weekly newspaper
reported.
"Hua Wei Technology corporation of China has
withdrawn from the project for unknown reasons, despite numerous contacts
undertaken by our company," a spokesman for Iraq's state telecommunication
operations told the latest edition of Al Rafidain.
"We are looking for an alternative solution to
allow mobile telephone lines to be installed in Iraq," he added.
Hua Wei Technology, a large telecom equipment
manufacturer based in Shenzen, southeast China, was alleged to have
installed fiber optic cables to help upgrade air Iraq’s defenses.
China denied the US
allegations and said Beijing
abided by UN sanctions imposed on Iraq since 1990 when it invaded
Kuwait.
Hua Wei and the Chinese information industry ministry
that oversees telecommunications refused to comment on the report.
Iraq announced on
August 19 it was to take delivery in early 2002 of a mobile telephone
exchange, ordered from a Chinese company but blocked for more than two
years by the UN sanctions committee.
Iraq had started
construction work on 60 base stations for its first mobile telephone
network after receiving a UN go-ahead in July for the 28-million dollar
contract.
In a first stage, 25,000 lines will be available
covering a 50-kilometre (30-mile) radius.
UN Secretary General Kofi Annan gave a green light last
May for the development of the telecommunications network in the
sanctions-hit state as a humanitarian measure.
In
1998, Iraq
signed a 60-million-dollar deal with French firm Alcatel to upgrade the
telephone network but the contract has yet to be approved by the United
Nations sanctions committee.
Alcatel to start rehabilitation of
Iraq's
phone network (September 4, 2001)
BAGHDAD (AFP) -
France's
Alcatel is to start work on a 76-million-dollar project to rehabilitate Iraq's
battered telephone network, an Iraqi telecom official said Tuesday.
But a Chinese firm has pulled out of a 28-million-dollar
plan to set up a mobile telephone network in Iraq, the weekly Al Rafidain
quoted the official as saying.
The deal with Alcatel was part of a series of contracts
recently approved by the UN sanctions committee, he said.
Under the deal, the French telecom giant will build a
new international telephone exchange with a capacity of 1,200 lines and a
microwave telephone network linking Baghdad
with central and southern provinces.
Alcatel will also link existing telephone exchanges in Baghdad and set up
new exchanges with a capacity of 280,000 lines.
The source said Alcatel experts were expected in Baghdad to start setting
up the exchanges, which should become operational early next year, but did
not specify their arrival date.
Iraq's telephone
network, which was largely built by Alcatel in the 1980s, suffered heavy
damage during the 1991 Gulf War.
The Iraqi official also said a Chinese firm had pulled
out of a project to set up 25,000 mobile telephone lines in Iraq even
though its contract with Baghdad,
worth 28 million dollars, had been cleared by the UN sanctions committee.
He
said the firm had given no reason for its decision and Baghdad was now searching for another
company to introduce mobile phones into the country.
Iraq to take delivery of Chinese mobile phone
exchange in 2002 (August 19, 2001)
BAGHDAD (AFP) - Iraq said
Sunday it will take delivery of a mobile telephone exchange, ordered from a
Chinese company but blocked for more than two years by the UN sanctions
committee, in early 2002.
Iraq has started
construction work on 60 base stations for its first mobile telephone
network after receiving a UN go-ahead in July for the 28-million dollar
contract, Takrit newspaper quoted telecom ministry undersecretary, Jamil
Ibrahim Al Takriti, as saying.
In a first stage, 25,000 lines will be available
covering a 50-kilometre (30-mile) radius.
UN Secretary General Kofi Annan gave a green light last
May for the development of the telecommunications network in the
sanctions-hit state as a humanitarian measure.
In
1998, Iraq
signed a 60-million-dollar deal with French firm Alcatel to upgrade the
telephone network but the contract has yet to be approved by the United
Nations sanctions committee.
Iraq begins work on mobile phone network (August
12, 2001)
BAGHDAD (AFP) -
Iraq
has started construction work on base stations for its first mobile
telephone network after receiving a UN go-ahead for a 28-million dollar
contract with a Chinese company, a newspaper reported Saturday.<p>
A telecommunications official told the Al Ittihad
weekly: "The firm has started installing 60 base stations for a mobile
network in Baghdad."
In a first stage 25,000 lines will be available covering
a 50-kilometre (30-mile) radius.
The United
States unfroze more than 80 million
dollars' worth of Chinese business deals with Iraq in June, as it sought Beijing's support in
the UN Security Council to reform Iraqi sanctions, the Washington Post said
on July 6.
The resolution failed because of a Russian veto threat,
but China
was persuaded to back a key element in the US-British effort to revamp the
10-year-old sanctions, a list of dual, purpose (military and civilian)
items that Iraq
could import with the council's approval, said the daily quoting diplomats
and UN documents.
UN Secretary General Kofi Annan gave a green light last
May for the development of the telecommunications network in the
sanctions-hit state as a humanitarian measure.
In
1998 Iraq
signed a 60-million-dollar deal with French firm Alcatel to upgrade the
telephone network but the contract has yet to be approved by the United
Nations sanctions committee.
Alcatel
to install telecom station in Iraq (from Bahrain
Tribune, December 11, 2000)
BAGHDAD
(AFP) – The French group Alcatel is to install a telecommunications
station in Iraq next year in a UN-approved contract worth seven million
dollars, an official newspaper said yesterday.
Al Ittihad said the 75-channel station would improve Iraq's
international lines. The contract is the first in a series of seven accords
with Alcatel and one signed with another French group, Sagem, costing a
total of $77 million.
A UN official, meanwhile, said 120 million dollars worth of telecoms
contracts had been approved under the eighth phase of the oil-for-food
programme, which allows sanctions-hit Iraq to export crude in return for
essential goods. The UN sanctions committee has put on hold other telecoms
projects worth $84 million in the same phase, which ended on December 5.
Iraq's telephone network, much of which was installed by Alcatel in the
1980s, was hit hard during the 1991 Gulf War over Kuwait, and it has yet to
be fully refurbished. Baghdad
has been under sanctions since its 1990 invasion of Kuwait.
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