Monday, Jan 15, 2007
DUBAI (Zawya Dow Jones)--Chinese telecoms giant Huawei Technologies Co. has won a contract to build a telecoms network in southern Iraq for Telephone Al Iraq Co., or Iraqtel, a person aware of the matter told Zawya Dow Jones.
Huawei, China's largest telecommunications-equipment maker by revenue, is building southern Iraq's largest Internet Protocol-based CDMA network for commercial launch sometime "early this year", the person said.
CDMA, or Code Division Multiple Access, is a cellular technology that competes with GSM technology.
Iraq's telecoms regulator, the National Communications and Media Commission, last September awarded Iraqtel a provincial license to operate a WLL (Wireless Local Loop) license in the southern governorates of Iraq, offering fixed-line telephony and broadband internet access.
The license, one of three provincial and three national licenses, forms part of Baghdad's aim to deliver fixed-line and broadband internet to 92% of Iraqis over the next five years, as well as earn the government $500 million in telecoms revenue sharing and fees over the next ten years.
The person aware of the matter said Huawei is delivering a CDMA2000 1x/EV-DO network, without revealing a value for the contract.
Iraqtel, a unit of Al Emaar Holding Group - Iraq, is owned by Sheikh Fawzi Al Lami.
Huawei, citing figures from industry development body CDMA Development Group, says it is one of the top three players in the global CDMA market with a 14.5% market share - and the biggest emerging market network provider.
Huawei, whose CDMA products are used by more than 60 million subscribers worldwide, has also built CDMA networks in Algeria, Yemen, Egypt and Oman.
Huawei said in December it expects strong growth in overseas contract sales to continue with overseas contract sales forecast to rise 30%-40% in 2007. The unlisted firm's overseas operations accounted for around 65% of overall contract sales in 2006.
Other players in the regional CDMA market include Motorola, which has built networks in Yemen and Kuwait, and ZTE, which has built networks in Algeria and Saudi Arabia.
Canada's Redline Communications in November said it would build Iraq's first WiMAX network for Iraqtel to deliver advanced voice and broadband services.
-By Simeon Kerr, Dow Jones Newswires, +97142285225, simeon.kerr@dowjones.com
Copyright (c) 2007 Dow Jones & Company, Inc.
(END) Dow Jones Newswires
15-01-07 1249GMT
