Orascom Telecom Holding S.A.E. (“Orascom Telecom”) announced today that its 100% owned Iraqi GSM operation which uses the trade name Iraqna has been granted a three month extension to its current interim License. Iraqna is the leading telecommunications operator in Iraq in terms of subscribers, revenue, and network coverage and has been the leading force in the development of Iraq’s telecommunications market since its commercial launch in December 2003.
Orascom Telecom was first awarded the license to build and operate central Iraq’s first commercial mobile telecommunications network in October 2003. In December 2003, Iraqna agreed and signed this first license which had a term of two years and granted Iraqna the exclusive right to build and operate a mobile telecommunications network in Iraq’s central region. Roughly a year later, Iraqna’s license became a nationwide license and the company has since
expanded its network to offer services through out central Iraq as well as in parts of northern and southern Iraq. In December 2005, this first license expired and it was replaced with Iraqna’s current license, which had been due to expire at the end of June 2006.
Iraqna has invested over US$ 257 million in its GSM mobile network since its inception and the company served more than 2.2 million active subscribers as at March 31, 2006.
The new agreement to extend Iraqna’s License for a three-month period from the end of June until September 30, 2006 does not change the other terms of the interim License. During this period, Iraqna will continue to pay a “Revenue Sharing” fee of 13% of gross revenues less amounts paid to the Iraqi Telephone & Post Company and other licensed mobile operators for interconnection and access services.
