Iraq’s three main mobile phone companies - Zain Iraq, Asiacell and Korek – appear unlikely to meet a month-end deadline to list on the local stock exchange, raising the chances of them being penalised, according to Reuters.

The companies are required by Iraqi law to launch initial public offerings on the Iraq Stock Exchange (ISX) by 31st August as part of the 15-year, $1.25 billion operating licences they secured in 2007.

None of the three limited companies has yet become a shareholding firm, a key requirement and the first main step towards going public on the local bourse.

“They must meet the requirement to be a shareholders’ company before anything,” ISX Chief Executive Taha Abdulsalam told Reuters. “After that, we will talk about listing.”

He said that after becoming shareholding companies, the firms would need approval from the ISX board and Iraq’s securities commission in order to be listed; the ISX board decision could take 24 hours, while the securities commission may take up to a week to give their consent. It would then take 2-3 weeks before the companies would be ready to trade.

He concluded that it was impossible for the companies to list on the bourse by the end of August.

“We still insist that they have to reach the licence conditions within the deadline of 31 August,” CMC Commissioner Ahmed Alomary told Reuters. “Otherwise they will receive penalties.”

Zain Iraq is a unit of Kuwait’s Zain, while Asiacell is an affiliate of Qatar Telecom (Qtel), and Korek is part-owned by France Telecom SA and Kuwait’s Agility.

There are now around 23 million mobile phone subscribers in the country, according to the Communications and Media Commission (CMC), which regulates telecommunications in Iraq.

(Source: Reuters)

The parliamentary hearing of an investigation into five million unlicensed mobile phone lines distributed by Iraqi telecom giant Zain Iraq has been postponed because of “political pressure”, alleged Ihsan al-Awwadi of the parliamentary communications and information commission.

Scheduled to be held on Monday, the hearing to confirm the allegations against Zain has been delayed until next week, according to AKnews.

If found guilty of the distribution of unlicensed lines – seen as a serious security risk in a country still rife with insurgency – Zain will have to pay a $262 million fine.

Mr al-Awwadi told AKnews that “Pressures from some political parties have caused the postponement of the reading of the report about the unlicensed lines.”

Zain, along with Korek and Asiacell are the three telecom companies currently licensed to operate in Iraq.

(Source: AKnews)

Iraqi operators Asiacell, Korek Telecom and Zain are facing a mandatory deadline for an initial public offering of stock, with reports stating that the companies have to sell-off a 25 percent holding on the local stock exchange within four years of acquiring their licences, according to Mobile Business Briefing.

This means that the companies must move toward a listing by the end of August 2011. According to Reuters, Asiacell, a Qtel affiliate, has expressed concerns about the timings, stating that it is worried that low liquidity on the bourse could stop it from raising enough cash. It notes that “the timing of an IPO may depend on clarifications on how to implement the requirements of the license, the stock market rules and Iraqi company law.”

Dow Jones Newswires said that an executive at Korek Telecom has stated that the company will “commit to the licence condition” that a stake has to be offered on the local market, and that its plans are “ready and maturing.”

As we reported last week, Zain is working towards a listing and says it will meet its commitments under the licence agreement. In addition to Reuters stating that the Iraq Stock Exchange has a market capitalisation of less than US$4 billion, with daily turnover averaging just US$1.6 million during May 2011, an unnamed analyst told Dow Jones that three telco IPOs in three months is “ambitious and aggressive.” The timings also mean the listings will coincide with summer and Ramadan, which may affect progress.

(Source: Mobile Business Briefing)

With 12 million subscribers in Iraq, Kuwait’s Zain is the market leader in the Iraq Telecoms industry, currently considering several tender offers to manage its telecoms network in Iraq. Zain is likely to award the contract in the next few weeks; the winner will be able to improve the network quality, while Zain will focus its efforts on marketing, sales and improving customer service.

Gold sponsors for Iraq Telecoms 2011 taking place between the 25-27 October 2011, Istanbul, Zain will host the welcome reception taking place on the 25 October, providing delegates with the opportunity to meet with key figures within the organization.

Zain has refused to name bidders for the managed service agreement, but have commented there are at least three, international players such as Nokia Siemens Network, Huawei Technologies and Ericsson to be likely candidates.

Iraq Telecoms 2011 presents a great opportunity to debate the latest industry updates with all the main players in this fast growing sector in Iraq. The event engages this year as every year, key government officials, service companies and operators within the Iraq Telecoms market.

Key industry support has already been confirmed for the Iraq Telecoms conference; sponsors to date include: Asiacell, CDN, Zain, Scopesky, Nokia Siemens Networks, Huawei, O3b, Korek, Arabsat, DragonWave, Ericsson, Silkroad Group, Zhone, PCCW Global, Kalimat, Eutelsat, Technology Partners and Alcatel-Lucent. Representatives from many of the sponsors will be delivering further insight into their plans for expansion.

For further information visit: http://www.iraqtelecoms.com/

Zain‘s Iraq subsidiary is preparing for an initial public offering (IPO) on the Iraq Stock Exchange that will raise an estimated $80 million [96 billion Iraqi dinars] for a 20% stake, the Kuwait Arabic daily al-Qabas reports.

As a condition of its operating licence, the company is required to list its shares on the Iraqi stock exchange within four years of receiving the license. Under that condition, the listing will have to take place by August.

“We are working on this process. The process for the listing is long. We hope that we can meet the deadline,” Emad Makiya, CEO of Zain Iraq, told Reuters. “This is a part of the licence requirement and we’re going to fulfil it.”

“Officials in Iraq will be informed about Zain’s readiness and (the firm will) enquire whether or not the current time is appropriate for the economy,” said Kuwait Arabic daily al-Qabas.

Zain Iraq recently raised US$400 million in a 7-year debt facility to help fund its network expansion in the country.

Zain Iraq provides a multitude of mobile voice and data services to 12 million customers, representing over 50 percent of the country’s mobile phone market.

(Sources: Reuters, al-Qabas)

Kuwait’s Zain is considering several tender offers to manage its telecoms network in Iraq and will likely award the contract in the next few weeks, a company spokesman has said.

According to Reuters, Zain refused to name bidders for the managed service agreement, but said there were at least three, with international players such as Nokia Siemens Networks, Huawei Technologies and Ericsson likely candidates.

As a specialist, the winner will be better able to improve network quality, the spokesman said, while Zain can focus on marketing, sales and improving customer service.

The Iraqi government has criticised Zain and other providers for patchy coverage, but Zain blames reception problems on military jamming as security forces try to prevent militants from detonating bombs. In some areas, Zain also relies on generators to power its infrastructure.

Zain’s 12 million subscribers in Iraq make it the market leader, but it faces stiffening competition from AsiaCell, part-owned by Qatar Telecom (Qtel), and Iraqi Kurdistan-based Korek Telecom.

(Source: Kipp Report)

According to a report from Iraq’s National Media Centre, the provincial government in Diwaniya will close the regional offices of mobile phone operator Zain Telecom on Saturday, in solidarity with the campaign to boycott the company to pressure it to improve its services.

The Chairman of the council’s Committee on Transport and Communications complained about poor service from the company, adding that he will address the Communications and Media Authority to inform them of the demands of the boycotters regarding quality of service.

(Source: National Media Centre)

Telecommunications should be one of the hottest growth industries in Iraq, but according to a report from Reuters, providers have yet to introduce 3G technology into a market where the military jams mobile phone networks to stop insurgents detonating bombs.

Poor infrastructure, high operating costs, conflicts between communications regulators and security problems are stunting development in a country slowly rebuilding eight years after the U.S.-led invasion that ousted Saddam Hussein.

Iraq holds a pivotal geographical position in the region and could be an important communications bridge joining the Middle East with Europe and Asia.

But security remains one of the country’s biggest concerns as Iraq’s army and police battle a weakened yet stubborn insurgency while U.S. troops prepare to withdraw by December 31.

Jamming of mobile phone frequencies and poor data services are frequent complaints of Iraqis since the 2003 invasion that toppled its autocratic government and paved the way for a cellular phone market and unrestricted access to the Internet.

Mobile phone firms say military jamming costs them millions of dollars in maintaining and upgrading spectrum. Infrastructure damaged by bombs often takes time to repair due to curfews imposed by authorities because of fears of more attacks.

Sometimes companies are forced to wait until security officials have investigated the attack.

Iraq’s mobile phone and internet providers also fret over the high cost of fiber optic cables, electricity and security. They say that feuding between Iraq’s Communications and Media Commission (CMC) and the Iraqi Telecommunications and Posts Company (ITPC) is hindering progress.