Revenue of Iraq telecom service industry to grow to $8 bn in 2020

The revenue of Iraqi telecom service provider industry will grow to $8.18 billion in 2020 from $3.75 billion in 2013, said Frost & Sullivan.

Lack of transformation – due to political instability and lack of government support leading to delays in the auction for 3G since 2011 – are impacting the telecom industry in Iraq.

Private telecoms are looking to transition directly from 2G to 4G and LTE services to combat the delay in 3G deployments.

Zain Iraq leads the industry with nearly 50 percent of telecom subscribers, Asiacell with 32 percent, and Korek with 18 percent. 

The use of the latest value-added products, along with efforts towards network modernization will differentiate operators. Exploiting the lack of fixed and high-speed broadband services to launch portable data service devices will also help operators strengthen their footprint in the Iraqi telecom market.

The imminent launch of 3G services is expected to boost service quality, increase revenue, and encourage private participation in the country’s telecom market, said the report.

The demand for Internet in the education and government verticals is fuelling the need for better bandwidth capacities, lending momentum to the telecom market in Iraq. The installation of high-speed cables for corporates and subsequently for households is a priority for the government.

The allocated spectrum for data services and broadband is very low, escalating costs and dissuading operators from investing in the market. The high prices also deter consumers from adopting data services.

The government plans to integrate WiMAX, GSM and LTE, improving the affordability of Internet services. The report said satellite terminal prices too will drop exponentially, and telecom service providers can gain expertise in implementing cost-effective networks.

editor@telecomlead.com