With the current GSM market penetration of just over zero percent, Iraq is set to be one of the fastest growing markets in the region for the coming years.
The recent launch of GSM service in the country has kicked off market growth. Iraq’s rates are actually low by regional standards following the low rates of the United Arab Emirates (UAE), Egypt, Bahrain, Kuwait and Qatar. Iraqi SMS rates, however, are on the regional high side, lower than those in Lebanon and Syria only, according to an Arab Advisors Group report.
On February 5, 2004, Baghdad witnessed the commercial launch of Iraqna, a fully operational GSM network rolled out speedily after the award of the license. Iraqna operates under a two-year license agreement signed with the Iraqi Ministry of Telecommunications. Two other licensees covering the north and south regions, Asia-Cell and Atheer Telecom, respectively, signed identical agreements towards the end of 2003.
Asia-Cell uses an existing network in the north, setup over five years ago with major expansion plans already underway. The south region’s Atheer Telecom will be the last to operate; it presently offers limited coverage utilizing neighboring Kuwait’s MTC-Vodafone network.
“Services currently on offer are restricted to voice calls, SMS and a limited number of value added services such as free emergency numbers and voice mail on the Iraqna network. Iraqna offers International roaming in over 100 countries as well. MMS, Instant Messaging and TV voting are in the pipeline,” Arab Advisors Group’s research analyst Faisal Hakki wrote in the report. “Coverage is also still restricted, yet all operators are promising near blanket population coverage well before their two-year license agreements mature,” Hakki added.
All operators are relying on prepaid payment infrastructure. However, Iraqna charges a monthly subscription fee of $9.9 automatically deducted from the scratch card credit. In a sense, the Iraqna network is setting a precedence of charging a monthly access fee over prepaid infrastructure.
“The Arab Advisors Group has also conducted an analysis to compare Central Iraq’s cellular rates to the rest of the Arab World. We have compared the prevailing rates of Iraqna to average postpaid rates of other Arab countries. The comparison was made with postpaid rates because Iarqna charges a monthly access fee for its service, similar to postpaid norms across the region. Iraq’s rates are actually low by regional standards following the low rates of UAE, Egypt, Bahrain, Kuwait and Qatar. Iraqi SMS rates, however, are on the regional high side, lower than those in Lebanon and Syria only,” noted Hakki in the report. — (menareport.com)
© 2004 Mena Report (www.menareport.com)
