Asiacell Refutes the Role of Mobile Telecom Companies in Preventing the Reintroduction of the Landline Phone Service

October 2009 - In line with its adherence to principles of transparency and integrity in its dealings with the Iraqi citizen whom it gives first priority, and in confirmation of its dedication to presenting facts and information related to its operations as one of the telecom companies in Iraq, Asiacell – the largest private Iraqi company and the first and only mobile telecommunications company to provide coverage for all of Iraq – denied the allegations of the Iraqi Minister of Communications, Mr. Faruq Abd al-Qadir, which – with all due respect – merely reflect a personal opinion. The Minister's statements, which were recently made on the Aswat Al Iraq website, attributed the decline of the telecom sector in general and the prevention of reuse of the landline phones in particular to mobile telecom companies.

In response to these statements, Dr. Diar Ahmed, Asiacell's CEO, stressed that there was no truth behind these claims, stating: "Mobile telecom companies in Iraq do not, under any circumstances, interfere with the reintroduction of landlines. The real reason behind the decline of this service is the instability of the sector's operations and the lack of clear and coherent work strategies and guidelines, which was made evident in the Minster of Communications' statements that revealed poor management activities and unsound planning on behalf of the Ministry of Communications and the numerous problems it faces, as can be clearly seen from the fact that there have been 6 ministers in the last five years, and a high turnover of qualified employees at the ministry."

He added: "There are several contradictions in the Minister's statements, as despite his references to the various problems and challenges that the ministry faces he goes on to confirm the ministry's ability to make several of its major projects related to the use of landlines a success across Iraq. If the ministry had truly been able to take firm and confident steps then where is the problem? And how can mobile telecom companies stand in the way of these successes? If the Minister had based his claims on sound information and evidence, then why did he not take legal action instead of making groundless allegations?"

Dr. Ahmed also expressed his displeasure at the Minister of Communication's many promises and his belittling of mobile telecom companies in Iraq, saying: "The progress that the mobile telecom companies are making in Iraq should not be compared to the progress of the Ministry of Communications, as the number of mobile subscribers is considerably greater than the number of landline subscribers. In addition, comparing the national income of Kuwait gained from the revenues of the telecom sector and the revenues of Iraq in the same context is unreasonable, as the Iraqi citizen's income does not exceed 6% of that of the Kuwaiti citizen."

In addition, while commenting on the statements of the Iraqi Communications and Media Commission, Dr. Ahmed said: "The Iraqi Communications Commission, which according to the Minister has been formed by the American governor Bremer, indicated at a press conference focused on the communication problems in Iraq that the blame does not fall on the mobile telecom companies, and that there are several factors contributing to the declining quality of mobile services."

While clarifying that mobile telecom companies in Iraq are not interested in hindering the use of landlines, Asiacell highlighted that the use of mobile phones does not limit the use of landline phones, but on the contrary it increases the communications traffic and strengthens the telecom sector by making it more diversified and vigorous, and that the performance of landlines does not in any way affect the profits of mobile telecom companies as the uses and the type of services offered by both sides are tangibly different.Asiacell also denied that mobile telecom companies have any hand in the worn-out and damaged electricity cables and generators used in street utility poles.

Dr. Ahmed went on to say: "We at Asiacell are dedicating all our efforts to positively influencing the economic growth in Iraq through developing the telecom sector, which is considered to be one of the most vital sectors that directly affect Iraqi citizens. We are diligently working to provide a successful business model for national Iraqi companies that believe in their role towards building the new Iraq, and no type of challenges or obstacles will shake our determination to succeed."

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