MTC's Atheer Aims For 1 Million Customers In Iraq By Year End

BAGHDAD -(Dow Jones)- Atheer, the Iraqi affiliate of Kuwait-listed Mobile Telecommunication Co. (TELE.KW), said Tuesday it has gained 375,000 customers since it started operations in early 2004 and aims to reach 1 million by the end of 2005.

Atheer Chief Executive Ali Al-Dahwi told Dow Jones Newswires that the company has attracted new subscribers by introducing a service in Baghdad in March and expanding from its original base in the south of the country.

The company has also expanded its coverage in the southern Iraqi provinces of Basra, Nasiriya, Kerbala, Amara and Hilla.

"We have a large transmission coverage of 2,200 km and we are planning to expand that to reach the borders with Jordan and Syria, west of Baghdad," he said.

Iraqi investors own 50% of Atheer, with Kuwait's MTC holding 30% and other Kuwaiti investors the remaining 20%.

The Iraqi Ministry of Communications first licensed MTC in December 2003 to operate mobile phones in southern Iraq.

The ministry also issued licenses for Orascom (ORTE.CI) to operate in central Iraq, including Baghdad, and AsiaCell to operate in the northern region of the country.

There were no mobile phones during Saddam Hussein's regime.

The companies, whose licenses expire in December 2005, all operate with GSM technology, a system widely used in Europe and the Middle East.

Dahwi said Atheer is employing 500 Iraqi engineers, technicians and administrative staff.

He said Iraqi workers had received training in Kuwait, Jordan, Finland and Chicago.

The CEO said Atheer has spent $280 million on operational costs since the company was set up.

Despite difficulties due to the security situation in Iraq, he said the company is profitable, without revealing details.

MTC last week said revenue for the first quarter of 2005 was $310.23 million, up 22% on the same period in 2004. Net income for the same period was $141.37 million, the company said.

The MTC group has around 3.5 million subscribers in 18 countries, including Kuwait, Jordan, Lebanon, Bahrain and various African countries.

Under a 2002 alliance with Vodafone Group PLC (VOD), MTC markets Vodafone's international products.

Vodafone doesn't have a stake in MTC, but is paid a fixed fee for the use of its name.

-By Hassan Hafidh; Dow Jones Newswires; +964 7901 912 214; hafidh8@hotmail.com

(END) Dow Jones Newswires"

Posted to the site on 10th May 2005