Iraq mobile network - let service decide

America-controlled Coalition Provisional Authority (CPA) in Iraq may have eased bidding conditions for the three mobile networks - but they still fall far short of the main plank of critics who say that the majority of Middle Eastern telecommunications operators are still restricted from competing in the tender.

Even major European telecommunication providers like Deutsche Telekom and France Telecom - with substantial government holding - are barred from bidding for the lucrative networks.

The CPA, in an invitation to bid for the three mobile phone networks in Iraq, had initially barred any firm that had more than 5 per cent government equity. CPA had also barred any joint bids in which one of the partners had more than 5 per cent government equity.

Following a July 31st global conference in the Jordanian capital Amman to discuss the tender, the CPA backtracked and raised the government equity permitted to 10 per cent in either case.

This still bars major telecommunications providers in neighbouring states who had expressed their intention to bid for the Iraqi tenders.

Bahrain Telecommunications Company (Batelco) had even started offering roaming services just after the war, but U.S. pressure forced it to abandon its USD5m network in Baghdad. Batelco had put aside USD50m to be invested in Iraqi telecommunications sector.

Critics say that the champion of free market, America, has created an uneven playing field, tilted - even before the bidding begins - in favour of U.S. and British firms.

The American thinking probably is that the Middle Eastern government-backed telecommunications monopolies are not free market entities and thus should be barred from competing with private sector providers.

Whatever the argument and ideology, nobody seems to consider the consumer.

It is the ordinary Iraqi who is going to use the mobile phone network services in his country. Would restricting regional operators help or not help the man on the streets in Baghdad, has, perhaps, not been given due weightage.

It is no secret that the Iraqi mobile phone contracts would be lucrative. It is also not beyond understanding that after leading the war in Iraq and still continuing to oversee Iraq's return to the comity of nations, the U.S. and UK would like to get the spoils of war.

But perhaps by considering what is best for the Iraqis would speed up efforts to meld them into the society of nations and reduce the antagonism that the U.S. forces face in the country.

It may be a good idea to let everyone who is capable of providing such services, bid for the contracts and let the best be chosen. The CPA could concentrate on regulation and making sure that quality of service is in no way compromised.

This is the first time Iraq would have a mobile phone network. It was disallowed under Sadaam Hussain's regime and journalists covering the war, had to use satellite phones. It is, therefore, important to get it right the first time.

Who owns a company could be irrelevant to an Iraqi using a mobile phone in Baghdad. What would be uppermost on his priority list is that the service is superior and that it is competitively priced and that he is happy with it.