'Iraq's mobile subscribers to reach 5 million in 3 years, and 8 million in 10 years', estimates industry expert

The decision, announced by the Iraqi Communications Minister Haider Jawad Al Aubadi, also brings an end to the lobbying between the supporters of the competing cellular technologies namely GSM and CDMA (Code-Division Multiple Access).

The selection of Kuwait's Wataniya Telecom for GSM services in Iraq's northern sector, Egypt's Orascom for the central sector and Kuwait's MTC for the south, has been largely hailed by industry analysts and mobile service providers as fair and not motivated by political or other considerations.

'This marks a major step in efforts towards creating a stable and world-class cellular network in Iraq and in integrating the country with the Middle East region and rest of the world,' said Bashar Dahabra, founder and CEO of Info2cell.com, the region's leading wireless information service provider. 'The choice of the three GSM operators was driven by technological considerations. All three operators have shown a strong commitment and the right expertise to serve the Iraqi market.'

'The victory of GSM over CDMA technology is also significant, because this will help Iraq integrate easily with the rest of the Middle East, as GSM offers advantages like international roaming, mature network, more innovative features and secure data encryption. It also offers a stable network with robust features and easy upgrades to 3G,' adds Dahabra.

Referring to the three GSM operators who have won the tenders, Dahabra said the selection was based on their proven capabilities in the respective regions and their strategic alliances with the right partners. He said that the clause allowing them to serve the whole of Iraq after 12 months would result in better quality, pricing and diversity of services.

'Kuwait has rightly taken the lion's share in the GSM tenders because it tied up with the right partners. MTC moved into southern Iraq just four months after the end of the war, and worked close with the coalition authorities. Wataniya Telecom partnered with Asia Cell, which already has 50,000 subscribers in northern Iraq, giving it a strong edge over competitors,' Dahabra remarked.

Info2cell.com is among the wireless service providers vying for a substantial share in the Iraqi mobile services market, especially due to its experience in the GCC and Levant markets and strong links with GSM operators active in Iraq.

'We have had a long-standing business relationship with all three GSM operators who have been awarded the contracts in Iraq,' said Dahabra. 'We have been working with Orascom since 2001, MTC since 2002 and Wataniya since 2003, through Acotel.'

Although around 80 per cent of subscribers are expected to use the GSM network for voice communication, companies like Info2cell.com are also expecting a substantial demand for wireless application services such as SMS Breaking News service.

'With order returning to the mobile phone market in Iraq, the stage is set for an accelerated momentum in cellular services. Iraq will witness fast-paced mobile phone penetration in the near future, with subscribers touching 5 million in three years, and 8 million in 10 years, according to conservative estimates,' Dahabra said.

Referring to the rates for mobile phone services, Dahabra said though the charge of 10 cents per minute may have seemed steep compared to rates in Jordan, Kuwait and Saudi Arabia, it had to be seen from the point of view of the investment made by the three GSM players and short life of the license that is being issued which will terminate in two years. He also said that special packages would be offered, such as one mobile phone and 200 minutes free time for consumer subscribers and one mobile phone free for 300 minutes free time for commercial users.

'The preconditions laid down by the Coalition Provisional Authority are aimed at ensuring that the GSM operators follow the time-frame and quality controls. They are not allowed to find another buyer for one year. They also have to provide a US$ 30 million bank guarantee to cover their role out for the first six months of operation. This condition was aimed at ensuring that a stable mobile service is rapidly rolled out and provided in a country that lacks a strong land communication infrastructure which is essential in the rebuilding of Iraq.' Dahabra said.