The mobile telecoms market in Iraq will become one of the largest mobile markets in the Middle East by the end of the year, according to Ali Al-Dawhi, GM of MTC Atheer. The company, which currently operates the GSM network in southern Iraq and Baghdad, is rapidly expanding its infrastructure and increasing investment in the country to a total of $430 million, to meet this booming demand.
MTC Atheer launched services in southern Iraq in March 2004 and today has over 900,000 subscribers both in the South and Baghdad. As demand for mobile services in Iraq grows, MTC Atheer is increasing its investment in network infrastructure by 40 percent by the year-end, in order to be able to cater for an expected 1.5 million customers.
“The potential for development of the mobile services market in Iraq is much greater than initial studies suggested and the growth so far has been huge. By the end of the year Iraq will have attracted four million mobile subscribers users in under two years, a phenomenal rate of growth,” said Al-Dawhi. “Iraq has a great opportunity to surpass most of the developing Arab states, so long as security can be achieved and development continues at a good pace.”
Al-Dawhi stated that there were many challenges that MTC Atheer had to overcome to build its network in Iraq, including the need for round-the-clock site security, a lack of suitable sites and site access, unreliable power supplies and the need to import network equipment. Growth in Iraq has also been mostly demand-based rather than planned, due to a lack of market information and population data.
The company has managed to exceed its planned targets for Iraq however, reaching 500 percent greater subscriber numbers and 450 percent more capital investment than its original commitments. It has also been able to expand its network coverage with 360 base stations, more than 400 percent than planned, and has introduced voicemail and SMS services and full GPRS coverage. MTC Atheer is also investing heavily in the Iraqi people by creating almost 10,000 direct and indirect jobs for Iraqis, and committing itself to sponsorship of the Iraqi National Orchestra and Iraqi National Olympic Team, and other community programs.
“MTC Atheer’s strong growth in Iraq has enabled us to bring telephony to many more Iraqis than we had initially planned,” said Al-Dawhi. “We are now aiming to cover the entire Baghdad and Southern region by the end of the year and to expanding our services to the entire country in 2006.”
