Developing Telecoms | Investment driving up subscriber numbers in Iraq

22 May 2012

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Investment driving up subscriber numbers in Iraq

Tuesday, 22 November 2011 12:57 | James Barton

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Boosted adoption rates have seen mobile subscriber numbers on the rise in Iraq, according to BMI.

Iraq had around 24mn mobile subscribers at the end of June 2011. This reflected a growth rate of 2.0% q-o-q and 10.4% y-o-y. Q211 continued the remarkable subscriber growth rates that were recorded in Q410 and Q111. The return to healthier rates of subscriber growth followed a lull in Q310. Stronger growth rates can be attributed to network expansion investments by the operators, and by an increase in competition among the operators. In the future, competition is likely to be main factor driving mobile subscriber growth in Iraq.

In addition to the arrival of France Télécom through the acquisition of a minority stake Korek Telecom, a fourth mobile licence may be awarded to boost competition. The end of 2011 should see around 25m users, equivalent to a penetration rate of 75.6%, while by the end of 2015, Iraq's mobile penetration rate is predicted to have risen to almost 93%.

As of early September 2011, it appeared increasingly likely that Iraq's three mobile operators would face legal action for failing to meet an August 31 deadline to sell off parts of their respective businesses through initial public offerings. Under the 15-year licences awarded to Iraq's mobile phone operators in August 2007, the cellcos were required to go public on the country's bourse within four years.

Meanwhile, having delayed a listing that had been scheduled for 2011, Iraqi national telecoms operator Kalimat Telecom has announced plans to launch an IPO in 2012. Kalimat, which is majority owned by Kuwait's royal family, planned to provide mobile, fixed and data services throughout Iraq by November 2011. The company currently operates in six major Iraqi cities and expects to grow its subscriber base to 3mn by the end of 2012.

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