Subject: [NEXTEL-1] CPA allows 10% government ownership for Iraq license bidders

From: [email-masked]
Date: Tue, 05 Aug 2003 14:22:15 -0400

CPA allows 10% government ownership for Iraq license bidders
By Heather Forsgren Weaver
August 05 12:48:00, 2003

WASHINGTON—As suspected due to last week’s Pentagon press conference, the
Coalition Provisional Authority has changed the rules regarding government
ownership of telecommunications companies wanting to offer mobile-phone service in
Iraq from 5 percent to 10 percent. “No government shall directly or indirectly own
more than 10 percent of any single bidding company or single company in a
consortia,” reads a section titled “Company Requirements” available on the
Internet at http://cpa-Iraq.org

The change in percentage may allow more participation but may not qualm the
criticism the CPA received at the bidders conference in Amman, Jordan, July 31
because the 10-percent amount would still eliminate some prominent players. For
example, the Bahrain Telecommunications Co. is 80-percent controlled by the
government of Bahrain. Batelco has established an Iraqi subsidiary, which has a
30-percent Iraqi investment, set up a network and briefly last month offered GSM
service. Batelco was ordered by the CPA to shut down its network because it was
operating without a license.

The CPA also extended by one week the deadline for mobile-phone license bids. Bids
are now due by 10 a.m. Aug. 21.
The CPA expects to award three regional licenses in September. According to
bidding information available at cpa-Iraq.org, licensees will have 20 days to turn
on initial service. Service is not considered on until 95 percent of the calls in
both directions go through. Bidders will outline how they will meet specific
benchmarks, which will become part of the conditions of the license. The licenses
cannot be sold or expanded nationwide until the 12-month benchmarks are met.

Bidders may apply to use GSM, CDMA or third-generation technology but must show
how they will facilitate roaming within Iraq with other regional licensees and
with other Middle Eastern carriers. Currently no carrier in the Middle East uses
CDMA technology.

The only company authorized to offer mobile-phone service is the MCI division of
bankrupt WorldCom Inc. MCI received authority from the Department of Defense to
operate a mobile-phone network. MTC-Vodafone is operating in Basra at the behest
of the British military, which controls that southern city. Kurdtel is operating a
holdover network in the Kurdish area in northern Iraq. Other areas of Iraq did not
previously have mobile-phone service.

http://rcrnews.com/cgi-bin/news.pl?newsId=14577

------------------------ Yahoo! Groups Sponsor ---------------------~-->
Buy Ink Cartridges or Refill Kits for Your HP, Epson, Canon or Lexmark
Printer at Myinks.com. Free s/h on orders $50 or more to the US & Canada. http://www.c1tracking.com/l.asp?cid=5511
http://us.click.yahoo.com/sO0ANB/LIdGAA/ySSFAA/61FxlB/TM
---------------------------------------------------------------------~->

Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/