Iraq hopes to raise some US$2bn in an auction for a fourth mobile licence by the end of the year, Communications Minister Mohammed Allawi has stated.
Speaking to Reuters, he said the licence would be split into three parts: 40% belonging to an operator,…
Iraq hopes to raise some US$2bn in an auction for a fourth mobile licence by the end of the year, Communications Minister Mohammed Allawi has stated.
Speaking to Reuters, he said the licence would be split into three parts: 40% belonging to an operator, 35% to the public, and 25% to the communications ministry.
He said the money would go towards rebuilding damaged infrastructure in the war torn country, and that the booming telecoms sector represented an important growth area. In that sense, a key goal of the ministry would be to boost fixed-line and internet penetration to 25% within five years, he said.
Allawi also said that the country would also invest some US$500 to repair and upgrade infrastructure.
Likely bidders could include Verizon, MTN, Turkcell, Etisalat, France Telecom and Vodafone.
However, many in the market suggest that an auction is unlikely to take place until after the partial sale of the number three player, Korek Telecom, which is looking to sell a minority stake. In that process, France Telecom is the frontrunner. Korek is looking to expand its presence beyond the Kurdish region in order to become a national player.
Overseas operators as well as institutions are interested in the Iraq market.
Earlier this month, The IFC has agreed to provide a US$400m seven-year debt facility to leading mobile operator Zain Iraq.
Speaking to TelecomFinance, IFC Principal Investment Officer Wiebke Schloemer and IFC Investment Officer Aisha Williams, highlighted the country’s 70% penetration rate, which is much lower than levels in GCC countries, for example. Zain Iraq, the leading operator, has some 21 million subscriptions today, and generates relatively stable pre-paid ARPUs of US$10-12.
AsiaCell, which is controlled by QTel, is the country’s number two player.
