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Sorry to just cut'n'paste here, but for some reason I can't cut'n paste the whole Times Online article, but...
as regards intentions in Iraq...
the fuckers don't have clean water right now, and we're already arguing about who sells them mobile phones?
July 31, 2003
Arab mobile operators barred from bidding for Iraq network
From Ben Smalley in Dubai and Dan Sabbagh in London
MOST Arab and European telecoms companies have been barred from bidding for lucrative contracts to provide mobile phone services in Iraq.
A clause in the bid document, limiting companies where a government has a big stake, effectively tilts the tender process in favour of US and British firms, including Vodafone and the recently disgraced WorldCom.
So far, it is US companies that have dominated the general contracts awarded as part of the postwar reconstruction of the Middle East country. In April the US construction giant Bechtel was named as the prime contractor in rebuilding Iraq. Halliburton, the oil services group once led by Dick Cheney, the Vice-President, won the job of reconstruction of the oil fields.
Despite once describing the tender process as an “open competition”, Iraq’s ruling Coalition Provisional Authority, which is conducting the auction, states in a bid clause: “No government shall directly or indirectly own more than 5 per cent of any single bidding company or single company in consortia.”
The mobile telephone licences are among the most profitable contracts to be offered. During Saddam Hussein’s rule, mobile phones were banned to all but senior officials who were hooked up to a special network.
The contract clause rules out the two companies keenest to win one of the three regional licences on offer. Last week Batelco, of Bahrain, and MTC, from Kuwait, opened up unlicensed services in Baghdad, only to close them after warnings from the provisional authority that they were in breach of the law.
Both companies have substantial state shareholdings, as does almost every main telecoms group in the region. Europe’s second and third biggest operators, T-Mobile and Orange, are also controlled by companies in which a government is the largest investor.
Rashid Al-Snan, regional operations manager of Batelco, said: “I don’t know what they are trying to do with this strange condition, but this is not an open competition.” The company is forming a bid consortium to get around the rule.
US and British phone companies do not have government shareholdings, although it is unclear if they will bid. Vodafone said yesterday it was “considering its position”.
A potential bidder is WorldCom, which now trades under the name MCI. It is currently providing a private mobile service to US military personnel in Iraq, even though it does not operate mobile networks anywhere else in the world.
Although the state of the Iraqi economy is very fragile, the falling cost of equipment makes it feasible to create a profitable mobile network with as little as 100,000 customers. Earnings could grow substantially over time if significant numbers of Iraq’s 17 million population sign up.
The licences are to be granted for an initial duration of two years, although there is the possibility of renewal and extension countrywide. Bidders for the licences are due to meet coalition officials at a conference in Jordan today.
That's fucked up. Not just that Arab operators are effectively barred, just that it's an issue at all. |
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