Middle East > Iraq > Iraq Communication Profile

Iraq: Iraq Communication Profile

2015/08/31

Iraq’s telecommunications sector began on a positive note in 2015 with the roll-out of 3G services by the three major mobile operators – Zain Iraq, Asiacell and Korek Telecom. In addition it was indicated by the Iraqi Commission for Media and Communications (CMC) that a proposition for 4G LTE license allocation would be put forward to the government in the near next. Prior to the current civil tension; 4G LTE had been deployed in some areas of Iraq by Fastlink (Regional Telecom) and there was as well a progressive fibre optic deployment occurring across parts of Iraq.

While the introduction of 3G was certainly a step forward for Iraq – this was offset by the introduction of new taxes which saw both the prices of Internet and mobile top-up cards increased by 20% as part of austerity measures by the Iraq government.

Iraq’s economy faces continued pressure from the costs of financing war inclunding the humanitarian costs related to the millions of displaced and destitute people. Iraq is as well heavily dependent on oil prices which have recently declined. These demands on Iraq’s economy does not bode well for significant investment in the telecoms sector - particularly at the same time as at some point there will need to be finances directed towards the rebuilding of infrastructure that has been destroyed or damaged.

In general, the ongoing civil conflict has created a challenging environment for operators in Iraq with the destruction of infrastructure, fluctuating subscriber bases and resulting revenue declines all adding significant pressure.

However in the longer term - the Iraq telecoms market offers a lot of opportunities once the civil unrest stabilises and the government and operators are able to focus again on telecoms and digital increase. It has a large people of mobile phone users which have not from presently on adopted mobile broadband at any significant levels – and it has recently launched 3G services with an intention to adopt 4G LTE someday. Iraq has as well traditionally supported the deployment or fibre infrastructure which will create a strong backbone for telecoms increase in Iraq. The younger and well educated people have demonstrated a keen interest in utilising video streaming, social media and potentially e-commerce and e-banking services someday.

 

Key telecom parameters – 2012; 2015

Sector 2012 2015
Subscribers to telecoms services (million): (e)
Fixed Broadband 0.15 0.25
Fixed-line telephony 1.87 1.98
Mobile phone 27.76 33.00

 

Notes: 1Data for 2015 is estimated only as ongoing civil conflict has reportedly caused damage to Iraq’s infrastructure and the extent is as yet unclear.

Internet country code: 

.iq

Communications note: