Three Middle Eastern groups secured bids to establish Iraq’s cellular telephone service Monday while Schaumburg-based Motorola Inc. emerged as the major contender to build much of the network’s electronic backbone.
In a country where it remains difficult to place a local call on shattered landlines, the rollout of the cellular network is an important step to restart reliable communications. It also marks a dramatic change from the past, when technology was tightly controlled by the regime of ex-President Saddam Hussein.
“Until now, we were denied mobile phones,” Communications Minister Haider Jawad al-Aubadi said. “Iraqis will welcome the chance to use mobile phones to talk to their families, friends and for business purposes.”
He said the phones would “enhance the security” of the country.
AsiaCell, already established in the Kurdish area that gained autonomy during Hussein’s reign, was given the contract to provide service in the northern third of the country. Egypt-based Orascom was given the central region, which includes Baghdad. AtheerTel, a joint venture that includes Kuwait-based MTC, was given the southern region, which includes Basra.
The three winning consortia are 10 percent to 50 percent locally owned, al-Aubadi said. Each bidder is putting up a refundable $30 million performance bond for the license, which is to last two years, the Associated Press reported.
The company that builds its network the fastest will be allowed to start building in the other two regions.
“The race has begun between the three winners to provide the best service for Iraq,” al-Abadi said.
All three systems will operate on the GSM standard commonly used in the Middle East and Europe.
Contractors familiar with the bidding said Motorola is likely to become the network equipment supplier for the southern and central regions. Motorola has worked with MTC in the past and has a substantial presence in the region.
“The specifics will continue to play out,” said Norm Sandler, Motorola’s director of global strategic issues.
Sandler said cell phone service in the country will “start up fairly soon, maybe in a matter of several weeks, or it may string out for a couple of months.”
Rolling out the system will cost the firms tens of millions of dollars.
“Handsets will cost around $50 or $60, al-Aubadi said.
