Telecoms in Iraq: improving fast

By Dejan Nikolin

As reported by the Iraq Directory, Iraq is concentrating its drive to quadruple its oil output on its six ‘super fields’, which analysts say have the potential to produce at least 10.5 million barrels a day by 2017. A huge undertaking to increase oil production, coupled with the lack of infrastructure and basic services, will require great mobilisation to bring Iraq into the 21st century. GSM subscribers increased from zero in 2003 to 23 million in 2010 – however, this growth has been coupled with low quality service and lacked basic technologies such as proper transmission, reliable connectivity, systems integration, modernised information and communications laws, and financial investment.

The Iraqi Ministry of Oil has already awarded international oil companies 20-year production contracts at the Super Six oil fields: Rumaila, West Qurna 1,

West Qurna 2, Majnoon, Zubair and Halfaya. In 2009, oil companies began deployment in the area and have found it somewhat difficult to obtain reliable telecom services in Iraq. Additionally, available telecom services in Iraq are one of the most expensive and inefficient in the world.

Some oil companies have gone the traditional route, utilising expensive VSAT services without understanding that direct access to protected fibre is available and that Iraq is already linked to the rest of the world via multiple fibre routes that are operated and managed by several private sector operators such as our company, Computer Data Networks (CDN).

Most recently in 2009 and 2010, Iraq has made great strides in its telecom sector. Iraq Telecom and Postal Company (ITPC), a wholly owned subsidiary of the Ministry of Communications, implemented a DWDM Fiber Optics Network that spans the entire country and connects all major cities and strategic areas. ITPC signed contracts with private sector companies to repair, operate, maintain and promote and sell capacities of the network.

Initial fibre links were connected to Kuwait and Turkey, and more recently ITPC has signed contracts to extend links to all of Iraq's neighbours. Long-term investment contracts have also been signed to bring Falcon to the country in quarter one of 2011. Gulf Bridge International (GBI) is expected to be deployed in the future.

Iraq's telecom sector has been liberalised and a number of telecom operators in the market have recently emerged with particular strategies and offerings. The process of telecom sector liberalisation included the establishment of CMC and opening business opportunities for international and local telecom operators to provide services in Iraq. CDN is providing a set of vertically and horizontally integrated services and is able to handle a wide spectrum of services such as provision of voice, data and video telecom services extending LANs, microwave systems, CCTV, access control and other physical security technologies. CDN also builds and operates advanced data centres, disaster recovery service, data security and a complete set of managed services.

CDN developed a unique capability in Iraq to accommodate the communications and technology requirements for the international oil companies (IOCs) developing Iraq's massive oil fields. The O&G industry is a heavy user of telecom services, from SCADA to processing massive amounts of reservoir and seismic data to process control systems, general office automation, quantification of oil and gas production and other advanced applications.

Throughout its 25 years of doing business in the region, CDN has successfully executed a number of major regional projects such as FDDI networks, Dubai Police CCTV and the Palm Island security network.

About

Dejan Nikolin is a Senior VP of Sales & Marketing for Computer Data Networks, a leading integrated telecom, ICT systems integrator and physical security licensed provider in Iraq, headquartered in Kuwait with offices in Iraq, Bahrain, Qatar and UAE.