3G licensing in Iraq doubtful in 2014

Zain Group CEO, Scott Gegenheimer is doubtful that 3G will be licensed in Iraq during the course of this year, given the worsening security conditions in the country. Speaking to analysts on a conference call, Gegenheimer said, “I don’t expect 3G (in Iraq) this year. I am not that optimistic about it given that the government has already been involved in shutting down some value added services as part of the country’s security arrangements.”

Earlier this year Iraq’s government said it was seeking to sell 3G licences to the three incumbent mobile networks for at least US$307 million each.

The country’s national mobile networks are limited to GSM services, and while customer growth was initially considerable in a country that lacked reliable telecommunications, the lack of 3G services has been a drag in the past couple of years.

Zain Iraq’s revenues for the first six months of 2014 amounted to US$856 million, with EBITDA standing at US$336 million and net income of US$165 million. The operator witnessed 16 per cent growth in customer numbers year-on-year to reach 16.1 million.