Iraqi Telecom Market Awaits Liberalization in 2007.
The Iraqi communications market enters a whole new competitive era in 2007, with the expected launch of multiple wireless fixed service providers. The country also has competition between three national cellular operators and two regional ones.
On September 6, 2006, the Iraqi Communications & Media Commission (CMC) announced the successful conclusion of its fixed licenses tender. Hitherto, the state-owned Iraqi Telecommunications and Posts Company (ITPC) was the sole provider of telephone and postal services in Iraq. The CMC awarded licenses for the provision of local telecommunications services through the deployment of wireless local loop (WLL) technologies. The new operators are expected to launch their services during 2007.
On the cellular front, there are currently three national operators and two provincial operators (in the Kurdistan region). The CMC tender for long-term licenses, to provide mobile telecommunications services in Iraq, has experienced delays. The delays came mainly as a result of the deteriorating political and security situation in the country, which precluded the government from tendering the permanent cellular licenses in the country.
"By January 2006, the number of fixed lines amounted to around 1.2 million lines, with a penetration rate of 4.4%" Mr. Ahmad Al-Assad, Arab Advisors Senior Research Analyst wrote in the report. "The bulk of fixed lines subscribers are based in Iraq's Capital: Baghdad, which has close to 40% of the total lines in the country". In regards to the cellular market, Mr. Al-Assad noted that "The total number of subscribers in Iraq stands at around 8.7 million subscribers, by Q3 2006, when adding around 1.2 million subscribers from the two regional mobile operators: Korek Telecom and SanaTel. Consequently, on September 30, 2006, the cellular penetration rate in Iraq stood at around 31.4%."
Posted to the site on 27th February 2007