WASHINGTON-The U.S.-led occupational force in Iraq today said it will seek bids for three regional mobile-phone licenses in a war-ravaged nation whose continued instability could undercut telecom reconstruction and economic development generally.
The Coalition Provisional Authority, led by Paul Bremer, said it will issue a request for proposals the week of July 28. Proposals will be due two weeks later.
The CPA will require each applicant to bid on at least two of the three regional licenses covering northern, central and southern regions that encompass primary population centers with a total of 17 million people. The RFP will outline conditions to enable regional licensees to eventually provide full national coverage.
Hundreds of millions of dollars in contracts are up for grabs. The CPA press release made no mention of a technology preference, though the CPA said license conditions and interconnection and technical requirements will be spelled out in the RFP.
Advocates of U.S.-originated CDMA technology and European-originated GSM technology have been sparring on the sidelines in recent months over the Iraq wireless issue.
One aspect of the mobile-phone tender is bound to get close attention and could even influence business interest in the wireless solicitation: The license term is limited to two years. That adds a level of uncertainty that could weigh heavy on prospective investors.
“This [the license term] is considerably shorter than is normal for a mobile telecommunications license but reflects the special circumstances in Iraq,” stated the CPA. “It is believed that this period will provide operators with sufficient opportunity to recover their investment while enabling a future with Iraqi Authority to take responsibility for key decisions in relation to the long-term development of the sector.”
Left unclear is the status of licenses once the CPA hands off the government to the Iraqi people.
The CPA said parties interested in applying for Iraqi mobile-phone permits should contact authorities at mobile_auction@orha.centcom.mil.
