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Iraq Telecom Market Analysis

  • September 2014
  • 63 pages
  • Frost & Sullivan
Report ID: 2385677

Summary

Table of Contents

Rising Opportunities in Mobile Infrastructure

Telecom services is rising in Iraq through three telecom operators: Zain Iraq, Asia Cell and Korek Telecom. Zain caters to nearly 50% of telecom subscribers; Asia Cell, 32%; Korek, 18%. The Iraqi telecom industry is still in the 2G era; 3G services are to be launched through auctions in Q2, 2014. Political instability and lack of government support to invest in fibre cable has led to delays in the auction since 2011.The launch of 3G services is expected to boost service quality, increase revenue from data services and encourage private participants to invest in mobile broadband infrastructure.

Executive Summary
-In the last few years, telecom services have risen in Iraq through three telecom operators: Zain, Asiacell, and Korek Telecom.
-The telecom market has experienced a 10% growth rate in revenue and % growth rate in number of subscribers in the last three years. The market is expected to develop further at a compound annual growth rate (CAGR) of approximately % in revenue and % in number of subscribers between 2013 and 2020; revenue is likely to reach approximately $ billion by 2020.
-Zain is the largest telecom operator in Iraq withmillion (2013) mobile subscribers, followed by Asiacell with more than million subscribers. Korek Telecom has the highest growth rate in the market, more than doubling its size from million in 2010 to million in 2013.
-The telecom industry is still in the 2G era, and 3G service is expected to be launched through auctions in 2014. Political instability and lack of government support to invest in fibre cable has led to delays in auction since 2011.
-The launch of 3G service is likely to boost service quality, increase revenue from data services and help private participants to invest in mobile broadband infrastructure.
-Fixed landline service is still in the nascent stage, with million connections. There seem to be no signs of investment in fixed landline and fibre cable services, as economic stability and security are the priorities of the government and the prime areas of investment.

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