The mobile telecoms market in Iraq will become one of the largest mobile markets in the Middle East by the end of the year, according to Ali Al Dawhi, General Manager of MTC Atheer. The company, which currently operates the GSM network in southern Iraq and Baghdad, is rapidly expanding its infrastructure and increasing investment in the country to a total of $430 million, to meet this booming demand.
MTC Atheer launched services in southern Iraq in March 2004, and today has over 900,000 subscribers both in the South and Baghdad. As demand for mobile services in Iraq grows, MTC Atheer is increasing its investment in network infrastructure by 40% by the year-end, in order to be able to cater for an expected 1.5 million customers.
“The potential for development of the mobile services market in Iraq is much greater than initial studies suggested, and the growth so far has been huge. By the end of the year Iraq will have attracted four million mobile subscribers users in under two years, a phenomenal rate of growth,” said Al Dahwi. “Iraq has a great opportunity to surpass most of the developing Arab states, so long as security can be achieved and development continues at a good pace.”
Al Dawhi was speaking at the Middle East, Gulf and North Africa GSM Conference, being held in Dubai on 11-12th September. He discussed the challenges that MTC Atheer has had to overcome to build its network in Iraq, including the need for round-the-clock site security, a lack of suitable sites and site access, unreliable power supplies, and the need to import network equipment. Growth in Iraq has also been mostly demand-based rather than planned, due to a lack of market information and population data.
The company has managed to exceed its planned targets for Iraq however, reaching 500% greater subscriber numbers and 450% more capital investment that its original commitments. It has also been able to expand its network coverage with 360 base stations, more than 400% than planned, and has introduced voice mail and SMS services and full GPRS coverage. MTC Atheer is also investing heavily in the Iraqi people by creating almost 10,000 direct and indirect jobs for Iraqis, and committing itself to sponsorship of the Iraqi National Orchestra and Iraqi National Olympic Team, and other community programs.
“MTC Atheer’s strong growth in Iraq has enabled us to bring telephony to many more Iraqis than we had initially planned. We are now aiming to cover the entire Baghdad and Southern region by the end of the year and to expanding our services to the entire country in 2006. MTC Atheer is dedicated to continuing investment in Iraq, to building our infrastructure in the country, to the development of our 100% Iraqi workforce, and dedicated to the future of Iraq,” Al Dawhi said.
About MTC
Mobile Telecommunications Company (MTC) was founded in 1983 and is today one of the largest mobile operators in the Middle East and Africa, offering a comprehensive range of world-class voice and data mobile services to over 10 million customers spread across 18 countries – Kuwait, Bahrain, Jordan, Iraq, Lebanon in the Middle East and 13 countries in sub-Saharan Africa- Burkina Faso, Chad, Democratic Republic of the Congo, Republic of the Congo, Gabon, Kenya, Malawi, Niger, Sierra Leone, Sudan, Tanzania, Uganda and Zambia..
Listed on the Kuwait Stock Exchange, MTC’s market capitalization exceeded US$10 billion as at August 1, 2005. The shareholder base consists of 75.4% public and 24.6% by the Kuwaiti government. For the year ending December 31, 2004, consolidated revenues were KD 322.327 million (US$1.009 billion) and consolidated net income was KD 120.24 million (US$410 million).
MTC's corporate strategy can simply be summarized as "3x3x3", an ambitious, sustainable expansion strategy that will see MTC become a leading mobile and lifestyle services provider on the global stage by the end of the year 2011. Initiated in year 2002, it is this strategy that will make MTC a global player in three stages: regional, international and global, with each stage completed in three years, with an aim of reaching a subscriber base of 20 million. In essence, through acquisitions, partnerships and green-field opportunities, MTC aims to achieve in nine years what other companies have taken more than 27 years to achieve.
In addition to securing the best possible returns for shareholders cohesive with a high standard of corporate governance, MTC considers itself defined by a commitment to excellence in providing world-class mobile services and an ethos of corporate social responsibility in supporting communities, offering employment and creating business opportunities wherever it operates.
