France Telecom interested in Iraq investment

France Telecom has said it is considering purchasing a minority stake of an unidentified Iraqi mobile operator, as it looks to expand further into the Middle East and Africa.

"France Telecom is looking at the matter of a mobile operator in Iraq but there are no plans to take control in the short-term," a France Telecom spokesman told the Wall Street Journal.

The company said earlier it plans to double its revenues from emerging markets within the next five years.

Currently there are three operators in Iraq – Zain, Qtel subsidiary Asiacell and Korek. Korek holds a national licence, however its coverage is limited to mainly the northern part of the country and has long needed outside investment to fund network expansion.

Korek is the most obvious target for a cash injection, however, the UAE’s Etisalat announced in February that it was close to finalising a deal to secure a majority stake in the Iraqi operator with no further updates. Etisalat had been in discussions with Korek since September 2008.