The State of Telecommunications in Iraq CMC's policy, in regard to the telecom sector, is based on a modern vision to organize the communications and broadcasting frequencies as natural resources to be invested for the benefit of the country's economy.

Out of this policy, the main objective of the Commission is working on the development and promotion of the infrastructure of the telecommunications sector by encouraging the private sector to contribute to this vital area via adopting a competitive and just framework that would encourage investors to enter the market.

This will put the communications sector in the growth engine of the Iraqi economy, as it is hoped for this sector to become an area of the growing employment opportunities in Iraq, unlike how it was in the era of the former regime, where the field of investment in this area was completely non-existent and employment opportunities were limited to these provided by the ITPC, the sole entity entrusted to manage and regulate the communication process in Iraq. That process was conducted through traditional visions lacked the modernity and the perception of the role of the telecommunications sector in the development and promotion of national economy, whether in terms of organization, management, investment or in terms of providing employment opportunities for national cadres in this field. Preliminary statistics indicate that the communications revenues in Iraq represent now about 5% of GDP. They indicate also that the teledensity in Iraq in 2005 amounted to more than 20% compared to that of 2004, at a rate of growth exceeded 100%.

The Iraqi law governing the telecommunications sector guarantees, either directly or through its provisions, the right to CMC to grant licenses for telecommunications operations, receive fees and tariffs, and manage resources such as spectrum frequencies, right of way, international communications in addition to the activities supporting the universal access.

CMC is committed, through its Spectrum Management Department, to establishing a clear and consistent approach to the regulation and management of radio spectrum in accordance with best international practices as determined by the multilateral sector developmental organizations, such as the UN-chartered International Telecommunications Union (ITU), and the European Conference of Postal and Telecommunications Administrations (CEPT).

The department is also responsible for outlining the future strategies of the radio spectrum through studying and analyzing the interferences of the frequencies to avert their occurrence subsequently.

CMC considers that optimizing both the technical and economic efficiency of spectrum management will be of critical importance to achieving the public policy goals of Iraq:

* Technical efficiency: in order to achieve the most intensive use of available spectrum within interference limits;

* Economic efficiency: to maximize spectrum allocation/use to derive the highest economic value for Iraq.

To this end, CMC is implementing a frequency monitoring and management network, which is a state-of-the-art system for the management of the radio spectrum and for policing the proper use of it by the licensed operator community. This is essential since the electromagnetic spectrum is a scarce national resource, which must be carefully managed. The system comprises of a central monitoring station at the CMC Headquarters in Baghdad. This system includes: four full-service operator stations with graphics user interfaces (including digitized maps for the entire Iraq); a frequency allocation and assignment system containing tools for accessing a large database; query management system; data entry forms.

The central monitoring station has the necessary equipment for the monitoring of the wide spectrum, including the bands for most commercial satellite communication systems. The frequency management system also includes three vehicle-borne spectrum monitoring units to complete the process of monitoring the frequencies. CMC plans to further enhance the network in the future to include regional monitoring stations and additional mobile units.

Iraq is one of the slowest countries that used cellular phones. The reason behind that lies in the nature of the former regime and the implications of its policies on the vitality of many of the life facilities in Iraq.

After the removal of the former regime, cellular phone service entered Iraq in a limited manner. It was dominated by poor management and organization derived from the absence of a professional entity to lead the process along with lack of sufficient expertise to manage the communications sector of critical importance, whether at the level of the national economy or the level of providing such services to the public.

The first commercial cellular mobile licenses in the post-Saddam era were issued in December 2003, one each for the North, Central (including the Capital) and South regions. These were fixed two-year term licenses, each of these licenses expires on midnight of December 21, 2005. It was clear that these licenses lack many regulatory aspects and conditions that determine the appropriate procedures for the cellular phone companies, because the licensing terms did not include the timely provision for extension, nor the right to refuse the extension after the expiration of the two-year period.

In June 2005, the CMC announced its intention to commence the process of granting long-term licenses (of 15 - 20 years) for cellular telephone services.

In this regard, The CMC developed lengthy studies and general consultations to outline the necessary conditions and regulatory framework to directly contain various details on the wages of companies, the roll-out coverage of highly populated areas in Iraq. The studies focused as well on the quality of service provided by the winning companies along with the technical and engineering specifications with respect to the establishment of the networks.

The wire line network had suffered severe damages due to the wars Iraq engaged in. The growth rate of the number of active lines remained extremely slow and the quality of the network deteriorated over the years.

The demand in the cities for basic telephone services was, in the difficult times immediately after the war, met by unlicensed operators who used a multitude of wireless technologies to provide the last mile, as well as internet access to the business and residential community in Iraq.

Cognizant of the fact that Iraq was ideally positioned to use the wireless technologies for servicing the fixed line market segment, CMC initiated the process of local service licensing to capture the existing operators under the licensing umbrella and introduce the sector to new world-class players.

On November 26, 2005, the Request for Proposals (RFP) was issued for the national licenses for the pre-qualified parties, provincial licensees, and other entities interested in providing voice and data services.

CMC’s strategic objectives in developing and executing the local licensing project are as follows:

• Enabling dramatic growth in teledensity within Iraq with a particular focus on increasing access to telecommunications and electronic information in rural and otherwise underserved telecommunications communities across the country.

• Enabling the Iraqi population to gain access to robust telecommunications services at affordable rates and under terms of service that reflect Iraq’s current economic and diverse socio-demographic characteristics.

• Issuing licenses for the provision of Local Telecommunications Services reflective of current market trends, and which have the flexibility to readily adapt to future market evolutions.

• Establishing a marketplace for telecommunications services in which fair competition drives innovation, functionality, affordable access and commercial success by committed, reputable, and sound telecommunications service providers.

• Managing Iraq’s spectrum and other scarce resources in a manner which is fair, transparent, consistent with international norms and commitments, and most amenable to serving Iraq’s larger strategic interests

The project provides for the allocation of the management rights to specified allocations of spectrum for the provision of wireless local telecommunications services, including both voice telephony and Internet services.

As is the case for mobile licenses, local licensees will also be allowed to deploy their own long-distance and international switching and transmission infrastructure for use in providing their services. One national license will be awarded to the national telco, ITPC, for use in the expansion of its services in the rural areas.

VSAT service is terrestrial receiving stations operated by special computer software used to transmit data and voice very efficiently via satellite.

The VSAT Service system allows to extend the Internet networks to the public (personal networks) and premises in remote areas and establish independent links. This system is being used currently by a large group of companies, industrial sectors, banking, energy services, financial services, hotel services and tourism, as well in the sectors of retail sales and transportation services.

There are many advantages of the use of VSAT communication system techniques via satellite. The system is characterized with:

• its universal service

• its ability to provide service around the clock

• providing reliable communications in remote areas

• providing independent links to remote areas

• its customized designs

VSAT system consists of a central terrestrial station -HUB- connected with small terrestrial sub-stations designated for satellite communication – receiving and transmitting-. These sub-stations are installed in geographically-separated locations. Small diameter antennas are used to establish contact between the central station and the sub-stations through satellites.

VSAT technology is considered to be a low-cost application presented to the users who prefer an independent communications network that links a large number of geographically-separated locations. VSAT system also provides value-added services through satellites capable of supporting Internet services, data transmission services, local area networks, voice and fax communications services.

Terrestrial sub-stations differ, for users, from the central terrestrial station in that they are simpler and cheaper.

Benefits of using VSAT system

• great flexibility to increase network capacity when required.
• the ability to collect and distribute information to and from remote locations.
• achieving far-reaching contacts as well as covering a wide geographical range.
• quick installation of devices in users'-owned premises without relying on terrestrial networks and infrastructure.
• high quality of service with 99,9 % reliability of communication quality.
• central control and monitoring.
• possession of a broadband frequencies allows fast and high traffic density.
• used as a backup system for strategic communications in emergencies.
• not affected by the natural and artificial barriers such as microwave relays.