Zain Iraq plans to launch 3G services by January 2015 after securing government consent and paying the first instalment of the US$307m spectrum fee.
The Kuwait-based Zain Group said in a statement that its Iraqi unit has entered into an agreement with…
Zain Iraq plans to launch 3G services by January 2015 after securing government consent and paying the first instalment of the US$307m spectrum fee.
The Kuwait-based Zain Group said in a statement that its Iraqi unit has entered into an agreement with the Communications and Media Commission (CMC) to secure authorisation to use the 2,100 MHz nationwide spectrum.
This follows making a down payment of US$76.76m, 25% of the total fee.
Iraq’s two other mobile operators Asiacell, a subsidiary of Qatar’s Ooredoo, and Orange affiliate Korek have also agreed to pay US$307m each for 3G spectrum for the seven to eight years remaining on licences won in 2007, Reuters reported. Asiacell, Ooredoo and Korek were not immediately available for comment.
The three Iraqi operators each paid US$1.25bn in 2007 to acquire 2G licences and had reportedly previously argued that they should be able to roll out 3G services without paying more.
Zain Group CEO Scott Gegenheimer described the planned launch of 3G services in Iraq as “a complete game-changer” for the country, noting that broadband penetration currently stands at less than 25%.
“We have already invested heavily in making the network 3G ready and our target is to be commercially operational by January 2015, allowing Iraqi customers to benefit from widespread 3G coverage.”
Zain Iraq chairman Mohammed Charchafchi added: “Given Zain Iraq’s aggressive expansion and network upgrade plans (are) in motion, coupled with a concerted focus on attracting new corporate and individual customers based in the more affluent northern parts of the country through attractive marketing initiatives, we foresee significant growth in all our key financial metrics from the introduction of 3G in the country.”
Since acquiring a mobile licence to operate in Iraq in 2003, Zain claims to have invested about US$5bn in the development of its mobile network. Today, the Iraqi unit claims to have over 4,000 network sites serving 13.3 million customers.
Zain has contracted Ericsson, Huawei and Nokia Networks to expand and upgrade its networks for 3G.
