Sunday, Apr 20, 2008

DUBAI (Zawya Dow Jones)--Kuwait-based Zain Group's capital expenditure in Iraq for the year will exceed $400 million, a top executive told Zawya Dow Jones Saturday.

"We have to invest in the network core and the network radio and we're going the change the data portion of the radio from GPRS to EDGE technology," Ali Al Dahwi, the chief executive officer for Zain's Iraq operations said Saturday on the sidelines of a conference.

Al Dahwi could not disclose the amount the company will spend on operations for the year.

Zain will also bring push email technology to Iraq which it will announce in the second quarter of this year, he added.

Since 2004, Zain has spent more than $4 billion in Iraq for its 15 year nationwide license, acquiring Iraqna Co. for Mobile Phone Services Ltd. and investing in infrastructure, Al Dahwi said.

Zain, earlier known as Mobile Telecommunications Co., in December bought Iraqna for $1.2 billion from Egypt's Orascom Telecom Holding and subsequently merged it with its Iraqi unit, MTC-Atheer.

The full integration of the two companies will be complete by the end of this year, Al Dahwi said.

Al Dahwi added that the company will reach its target of 10 million subscribers by the end of the year.

-By Maria Abi-Habib, Dow Jones Newswires; +9714 364 4962; maria.habib@dowjones.com

Copyright (c) 2008 Dow Jones & Company, Inc.

(END) Dow Jones Newswires

20-04-08 0526GMT