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Iraq licenses to be awarded within 10 days

WASHINGTON-L. Paul Bremer, head of the U.S.-led occupational authority in Iraq, today told the Senate Foreign Relations Committee that mobile-phone licenses in the war-torn country are about to being issued.

Bremer’s remarks came in response to questioning by Sen. John Sununu (R-N.H.), who wanted to know why the three regional cellular licenses had yet to awarded in the September timetable set by the Coalition Provisional Authority.

Bremer replied that September was not over, then quickly added: “It will be [accomplished] in the next 10 days.”

Wireless firms and investors in the United States and overseas have grown increasingly anxious about the licensing delay and the relatively closed process used to evaluate mobile-phone applications in Iraq.

In addition to continued security challenges in Iraq-which has slowed rebuilding efforts-there appears to be an evolving power struggle between the CPA and Iraqi officials over future decision-making affecting telecom and other critical infrastructures. Such a dynamic-and possibly lingering foreign ownership concerns-may help explain why the mobile-phone licensing decision is taking longer than expected.

Later today, Bremer testifies before the House Appropriations Committee in support of President Bush’s request for $87 billion in supplemental funding for reconstruction and military operations in Iraq. Of that total, $20.3 billion is earmarked for Iraq reconstruction grants. Nearly $4 billion would be set aside for restoration and expansion of telecommunications, water resources, transportation, housing and construction, health care and private sector development.

Bremer assured lawmakers there would be no sweetheart deals. “Every contract of the $20 billion for Iraq will be competitively bid,” he stated.

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