Subject: [NEXTEL-1] And The Winner In Iraq Is ... GSM

From: [email-masked]
Date: Mon, 06 Oct 2003 14:22:11 -0400

And The Winner In Iraq Is ... GSM

OCTOBER 6, 2003

After a series of delays, the Iraqi Ministry of Communications today finally
announced it had cut three regional contracts that will form the foundation of a
national wireless network.
The Ministry announced in Baghdad that GSM providers AsiaCell, Orascom and
AtherTel each will be awarded one of three contracts serving the country. AsiaCell
was awarded the contract for the northern section of Iraq; Orascom was awarded the
central region contract, while AtherTel was given the southern region contract.

The winners run the gamut of sizes and experience, having been chosen from a field
of about 100 bids and 35 bidders. Orascom, for instance, is a GSM network operator
in the Middle East, Africa and India and manages GSM networks in Egypt, Algeria,
Jordan, Syria, Yemen, Pakistan, Congo, Chad and 12 additional countries in Africa.
AsiaCell and AtherTel apparently are smaller, in-country companies. The bidders
were allowed to have 10 percent to 50 percent local ownership.

The three companies are required to build out wireless networks in each of their
respective regions, then they're free to start building competitive networks in
adjacent regions, according to a statement by Iraq's Minister of Communications.
The companies are expected to offer service within weeks. Each contract will run
two years.

"The construction of the mobile telephone systems will provide a much needed
service to Iraqis, and will bring hundreds of millions of dollars in foreign
investment, a sign of confidence in the future business prospects in Iraq," said a
statement from the Iraqi Ministry of Communications.

The bidding process has been fraught with regional factionalism, according to some
network equipment vendors, which has complicated contract awards and bidding
coordination. Concerns about foreign ownership and possible control of the bidders
from Saddam Hussein's loyalists, as well as local tribal factionalism, contributed
to the delay of the contract award from September until now, say some close the
negotiations.

http://www.wirelessweek.com/index.asp?layout=newsat2direct&starting=2&pubdate=10/06/03

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