After less than two years of operation, substantial infrastructure investments and with bullish expectations for the future, Iraq’s three mobile operators have embraced the recent news that the government will go ahead and terminate their licenses by December 2005. Moreover, Iraq’s Ministry of Communications (MOC) has reaffirmed its pledge to open a fully competitive bidding process in which the incumbents will participate on equal terms with other bidders. Despite the market risk, analysts from Research and Markets believe there will be substantial interest in the licenses, not least from the incumbents who are already producing handsome margins.
The relative success of Iraq’s current mobile operators will undoubtedly work to their disadvantage in the bidding process. It is likely that bids will exceed $100 million. Following the last three to four years licensing spree in the region, few markets now offer additional opportunities, adding to the attraction of Iraq and, arguably, to the price of the upcoming three licenses.
