Wataniya Telecom Consortium awarded Iraq northern region GSM license

The announcement was made at a press conference in Baghdad by Iraqi Minister of Communications Haider Al-Abadi.

Winning the Iraq license is a major step for Wataniya Telecom, part of Kuwait Projects Company (KIPCO), in its strategy to expand and develop its regional presence. Wataniya Telecom has a proven track record of quickly of deploying GSM networks and providing affordable mobile services. In addition to its operation in Kuwait, Wataniya Telecom owns 50% and jointly manages Tunisiana, the second mobile operator in Tunisia.

United Gulf Bank (UGB), KIPCO's investment banking arm and subsidiary, is acting as sole financial advisor to the Asia-Cell consortium, which now plans to rapidly develop its GSM network in northern Iraq, where it already caters to around 50,000 subscribers.

Faisal Al-Ayyar, KIPCO managing director and CEO, and chairman of Wataniya Telecom said: 'We are honored to have been chosen by the Iraqi Ministry of Communications and the Coalition Provisional Authority, which allows us the opportunity to participate in the reconstruction and development of Iraq.'

Asia-Cell is based in Iraq's Sulaymaniya city, where it currently operates a GSM network. Asia-Cell provides voice, SMS and voice-mail services, and also has an international gateway.

'Winning the license in the northern region reflects the Iraqi authorities' trust in our capabilities as an operator,' said Faruk Mustafa Rasool, Asia-Cell chairman. 'We intend to work relentlessly to provide affordable mobile services as quickly as possible to allow our people to talk freely in Iraq and to the rest of the world.'

The Asia-Cell network deployment programme will commence immediately after signing of the license. Within two months, the existing Asia-Cell network is planned to expand to provide coverage to other areas in the northern region.

UGB has total assets of some US$950 million supported shareholders' funds of more than US$230 million. Its main subsidiaries are Tunis International Bank, Tunisiana, KIPCO Asset Management Company of Kuwait, and Algeria Gulf Bank (under formation). UGB also has equity interests of 44% in Jordan Kuwait Bank, 34% in the United Real Estate Company of Kuwait, and 49% in United Industries Company of Kuwait. Its activities include private equity and fund investments, quoted equities, asset management, corporate finance, real estate, treasury and selective commercial banking services.

KIPCO, with assets of more than US$10 billion under management or control, is one of the leading diversified holding companies in the Middle East and North Africa, and a major regional force in financial services and media & technology, with further interests in real estate and finance. The largest private sector company in Kuwait, KIPCO employs more than 10,000 people internationally. Its shares are publicly traded on the Kuwait Stock Exchange.