Orascom Telecom: “Fantastically Good” Profits in Iraq

Telecoms has already proved a profitable business in Iraq - one of the few sectors where reconstruction has moved forward based on capitalist drive rather than foreign aid money. OT's network, Iraqna, covering the populous central swathe of the country, has proved the most financially successful of the current operators, despite repeated kidnapping of engineers and frequent grumbling from the public about unreliable service.

The company is earning impressive profits from its Iraqi territory,….

… Several months ago, OT bought out all of its original partners, boosting its own stake in Iraqna from 63 per cent to 100 per cent to gain “greater flexibility” in licence bidding, OT said. … However, based on Iraqna's “fantastically good” profit margins in 2005, OT would probably prefer to go it alone, Mr Ziyada said.

Neil McDonald, Steve Negus, “Iraq urged to extend telecom rights,” Financial Times UK, 1/12/06.