CRYSTAL CITY, Va.-If the Coalition Provisional Authority had wanted Iraqis to have access to communications through three mobile-phone networks by now, this-like most everything else in Iraq these days-is not going according to plan.
The official licenses have yet to be awarded CPA officials acknowledged Wednesday, but the three licensees have all been given outlines of the contract details and the licenses will be issued perhaps by the end of the week, said David Sudnick, senior adviser to Ambassador Paul Bremer, at a CPA bidders conference.
The three mobile-phone networks, which have been awarded regionally but are able to expand nationwide after about a year, are to be integrated with the landline infrastructure to be run by the Iraqi Telecom and Post Commission. Additionally, a public-safety network is being developed, which will also be tied in to the other telecom networks.
When the mobile-phone licenses are awarded they will be valid for two years, but that timetable was based on original plans on how long it will take to form an independent government in Iraq. Earlier this month, the Bush administration said it wants to turn over the governing operations of Iraq much sooner, but Sudnick does not believe this will impact the mobile-phone licenses.
“I would assume that the new Iraqi government will honor the licenses that are being executed by CPA now and/or whatever entity brings that business arrangement into Iraq. I have to believe the new government wants all of those contracts to be completed-not just in communications but all sectors,” Sudnick told RCR Wireless News following the communications sector session.
The CPA and the Iraqi Minister of Communications Oct. 6 announced the winners of the mobile-phone licenses in Iraq. All three went to consortiums with strong Middle-Eastern ties and GSM expertise. Asia-Cell will continue service in the North. Atheer, which is reportedly associated with the Mobile Telecommunications Co. of Kuwait, was awarded the southern license. MTC is providing GSM service to the British military and other humanitarian efforts in the southern region. The winner for the central license, including Baghdad, was Orascom Telecom of Egypt.
The CPA received 35 bids to provide Iraqi mobile-phone service, and the winners had been expected to be announced in September. But the Iraqi Minister of Communications Haider Al-Abadi said that his appointment Sept. 4 delayed the process.
Motorola Inc. said it will supply GSM base stations and transmission equipment for Orascom Telecom Iraq Corp.’s new mobile network in Iraq’s central region. The value of the contract is worth up to $40 million. Motorola said it is the main supplier for the central region under Orascom’s two-year network license. The U.S.-based vendor also said it is financing a portion of the purchase price. Orascom will offer service under the “Iraqna” brand name.
The only company currently authorized to offer mobile-phone service is MCI Inc. MCI received authority from the Department of Defense to operate a mobile-phone network earlier this year.
Interest in obtaining the various contracts available to rebuild Iraq is strong. The session on the communications sector was standing room only.
There is approximately $200 million available to rebuild the communications infrastructure of Iraq, but if potential bidders thought they would get answers at a bidders’ conference to even basic questions Wednesday, they were wrong.
Even how much the communications contract will be worth is in doubt. Sudnick tried to explain that when the Bush administration sent the original request to Congress for the $87 billion in supplemental appropriations, the transportation and communications sectors were combined. Because they have since been separated, there is confusion as to exactly how the money-$500 million-should be allocated. Sudnick said that he has been meeting with appropriators to discuss how much money will be set aside for communications.
Once the dollar amount is determined, Sudnick said he has a “gentleman’s agreement” with Al-Abadi to peel off 5 percent for design planning of the communications infrastructure.
