France Telecom is on the verge of entering the Iraqi market, according to a number of reports.
The Financial Times claims that France Telecom is to buy a minority stake in Korek Telecom, Iraq’s third biggest mobile operator.
Korek is a private company…
France Telecom is on the verge of entering the Iraqi market, according to a number of reports.
The Financial Times claims that France Telecom is to buy a minority stake in Korek Telecom, Iraq’s third biggest mobile operator.
Korek is a private company that is based Ebril in the northern Kurdish region of the country. The company operates in the Kurdish regional capital, Ebril, and the province of Duhok.
However, one analyst told TelecomFinance that Korek might be able to expand out of the Kurdish heartlands into southern Iraq with the capital and operational backing of a large multinational behind it. The purchase of a stake in Korek – valued at US$1.5bn – would follow the modus operandi of France Telecom in its current expansion into developing markets. The French telco has highlighted the Middle East and Africa as its future growth markets and already has various operations in the MENA region including Jordan, Egypt, Tunisia and Morocco. Earlier this month, France Telecom was one of six confirmed bidders in the auction for Syria’s third mobile licence.
A spokesperson for France Telecom told TelecomFinance: “I can neither confirm nor deny that France Telecom is in negotiations with Korek Telecom about acquiring a stake in its business…However, we [at France Telecom] have stressed that the Middle East and Africa are regions of great interest to our business, and our usual way of entering a new market is either in minority partnership with a local player [Tunisia, Morocco] or buying outright a new licence [Syria].”
Korek Telecom was unavailable for comment at the time of going to press.
