Iraq’s council of ministers has agreed to auction 3G licences for a reported US$307m each, although an auction is unlikely to happen this year.
The Communications and Media Commission (CMC), the country’s telecoms regulator, had sought to grant the…
Iraq’s council of ministers has agreed to auction 3G licences for a reported US$307m each, although an auction is unlikely to happen this year.
The Communications and Media Commission (CMC), the country’s telecoms regulator, had sought to grant the licences to the country’s three operators automatically, two sources told Reuters.
However the ministers were reported to say that it would contravene the regulator’s statutes and favoured an open auction, which could allow newcomers in the industry.
The US$307m figure is said to have been floated to gauge the industry’s reaction and is not set in stone.
No timetable has been decided on, nor has an auction mechanism been chosen, and one source told Reuters that it was doubtful a tender would happen this year.
Operators Zain Iraq, Asiacell and Kurdistan-focused Korek Telecom each paid US$1.25bn in 2007 to acquire 2G licences and have argued that they should be able to rollout 3G services without paying more, the report said.
The telcos have come into existence following the downfall of Saddam Hussein’s regime in 2003.
Last year Ooredoo subsidiary Asiacell listed on the Iraqi stock exchange and Zain is considering floating its Iraqi operator this year, in conformity with their licence obligations.
