Wireless Federation

Iraq’s Ministry of Communications (MoC) reportedly to fine the country’s three main cellcos – Zain, Asiacell and Korek Telecom – for failing to meet the network rollout conditions specified under the terms of their operating licences. ‘Asiacell is bad and Zain is very bad,’ said Hayam al-Yasiri, an adviser to the MoC. ‘Korek is breaching the licence because of the coverage and the service. Korek up to this moment does not cover many cities, although according to the licence they should cover them,’ he added. It is believed that, Korek is lacking fund for expansion in the northern region of the country. Speculation is their in the market that Etisalat is in talks to obtain a stake in the company.
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Etisalat has reportedly named Kurdish operator Korek Telecom for possible stake. This came as a followup to the news that said, that Etisalat is in final talks for a possible stake worth up to USD1 billion in a Middle East telecoms operator, specifically Iraq.
Korek Telecom had won a mobile licence in Iraq last year in August.

To look at the previous related stories click to the following links:

http://wirelessfederation.com/news/etisalat-plans-to-enter-iraqs-mobile-market-uae/

http://wirelessfederation.com/news/etisalat-in-talks-for-possible-stake-in-middle-east-operator-uae/

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Mobile operator Orascom Telecom has concluded an agreement for the sale of Iraqi mobile operator Iraqna to MTC-Atheer. MTC-Atheer is an Iraqi subsidiary of Zain and has purchased Iraqna for a consideration of USD 1.2 billion. MTC-Atheer will pay 50 percent of the consideration on the first anniversary of completion of the transaction and after six months of the completion of the transaction, will deliver a promissory note for the remaining 50 percent due on the second anniversary. The payments are fully guaranteed by Zain. Completion of the transaction is expected before the end of the year. Iraqna finished June with arond 2.8 million customers. Orascom Telecom said its previously announced joint venture in Iraq with Korek Telecom had lapsed, as the companies were unable to reach a definitive agreement. The Korek deal had been key to extending Iraqna’s operating licence in Iraq.

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Iraqi cellco Korek Telecom, which was awarded a national mobile licence at the weekend, says it is in talks with Orascom subsidiary Iraqna for the purchase of the latter’s telecoms assets, including its infrastructure. Iraqna had been operating a cellular network in the central and Baghdad regions under a temporary licence since February 2004, but Egyptian parent Orascom dropped out of the contest for three new 15-year nationwide concessions saying that a cost of USD1.25 billion and an 18% revenue-sharing agreement with the government was too expensive. The other two licences went to Atheer, backed by Kuwait’s MTC, and Qatar Telecommunications’ Iraqi affiliate AsiaCell Communications. All three winners already have well-established operations in Iraq. Korek recently reported it had an estimated 1.5 million subscribers.

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Iraq has sold three mobile phone licences for USD 3.75 billion to Kuwait’s MTC, AsiaCell and Iraq’s Korek Telecom, according to the Iraqi Finance Minister Bayan Jabor quoted by Reuters. The three operators, which already run mobile networks in Iraq, made the highest bids in an auction in the Jordanian capital Amman that began on 16 August. TurkCell and Egypt-based mobile operator Orascom had also bid for licences but dropped out of the race.The 15-year licences replace three short-term contracts awarded soon after the invasion in 2003. To date, Orascom, which goes under the brand Iraqna in the country, has been present in Baghdad, and Korek in the Kurdish area city of Erbil. MTC trades under the brand name Atheer. Orascom issued a press release saying that that it dropped out of the auction process when the licence price reached USD 1.25 billion in addition to a revenue sharing agreement of 18 percent. For its part, Turkcell just said that based on its business plan, it decided to withdraw from the tender.

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Only five companies will take part in the auction of three Iraqi mobile phone licences, writes Dow Jones, citing the country’s finance minister, Bayan al-Zubaidi. They are the three main operators, Egyptian company Orascom Telecom’s Iraqna, Kuwait’s MTC-Atheer and Kuwait’s AsiaCell, part of Wataniya, plus Korek Telecom, which operates in the Kurdish city of Erbil, and one new candidate, Turkcell. A total of ten companies had originally expressed interest in the auction, but five withdrew due to security concerns, Al-Zubaidi said. The auction is being held in Amman, Jordan, on 16 August and could run into the following day, with the results to be announced on 20 August, according to Siyamend Othman, head of Iraq’s telecommunications and media regulator. PriceWaterhouseCoopers is advising on the auction.

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An auction for three new 15-year mobile network licences will be held by the Iraqi government this week in the Jordanian capital Amman. A fourth licence is expected to go to the Iraqi Ministry of Communications. The current temporary licences, held by Egypt’s Orascom Telecom (Iraqna), Kuwait’s MTC-Atheer and AsiaCell, owned by Kuwait’s Watanyia, have been extended several times, and are set to expire on 31 August. Of the ten firms said to have pre-qualified for the tender, five will compete in the auction: Atheer, Orascom, AsiaCell, Kurdish cellco Korek Telecom, and Turkey’s largest cellco by subscribers, Turkcell. The auction will take place over two days, with the winners to be announced on 18 August 2007.

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