Zain's Iraqi subsidiary is reported to be expanding its network into the north of the country and plans to launch services in the Kurdistan region early next year. The expansion takes it into direct competition with Korek, which has been the dominant operator in the region.
"We will be entering Kurdistan. You will see us in there, a fully fledged network, by the beginning of 2011 ... We want to reach all the Iraqis everywhere," Emad Makiya, the new CEO of Zain Iraq told Reuters in his first interview since taking over at the helm in June.
Makiya replaced the Group's Chief Executive, Mr Nabeel Bin Salamah who took direct management of the subsidiary in April after the then CEO, Mr Ali Al Dahwi was removed from the post without explanation and made a special advisor on Iraq for the Zain Group.
Makiya added that the Iraq unit would invest 16-20 percent of its revenue every year into upgrading and expanding its network in the country for at least the next three years.
The country has three operators, Zain, Asiacell and Korek Telecom. Asiacell is actually a consortium is comprised of Asiacell Iraq - the earlier license holder, Qatar's Qtel and investment banking group, MerchantBridge. Orascom owned the Iraqna network, but failed to get an operating license in the last round of auctions and had tried to set up a joint venture with Korek Telecom but that fell apart. The break-down has left Korek with a national license, but coverage which is limited to mainly the Northern region of the country. An expansion to national coverage would need the financial muscle of an outside partner, and there are ongoing talks with Etisalat that seem to be dragging on for a long time. Iraqna was later sold to Zain.
The government has recently announced plans to award a fourth national mobile license, although the timeline for the license tender is not known.
On the web: Reuters
Article published on 24th August 2010
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