Zain on revoking the renewal of mobile phone companies license: Disastrous, and demands compensations

Shafaq News/ Zain Iraq, one of the mobile phone companies in Iraq, deemed on Sunday the Iraqi judiciary’s decision to revoke the renewal of the licenses of the mobile phones operating in Iraq as "unfair and catastrophic," demanding "compensations" for the losses they will sustain from the consequences of this decision.

The company said in a statement received by Shafaq News agency, "the decision issued by Al-Karkh court today is disastrous to the Iraqis and Iraqi economy. The company is surprised by this insistence on delaying the deployment of fourth-generation services, which hampers Iraq's endeavors to keep pace with technological development at a time the fifth generation is being deployed in some countries of the world and the region."

The company added, "the decision of the government to grant the fourth-generation license was a strategic decision and in the right direction. It will have a great impact on the fields of economy, education, health and security, and will prevent corruption through the application of electronic governance and other applications."

"Since the first day of the issuance of the decision to grant the fourth-generation license, Zain Iraq has invested hundreds of millions of dollars in developing and spreading the fourth-generation network. We are now 90% close to provide the best service to the Iraqi subscriber to keep pace with technological development," the company stated.

"The court's decision today to stop the procedures for establishing and launching the fourth-generation services will have a negative impact on Iraqis. It will also undermine the companies confidence regarding investing and working in Iraq," it continued. 

Zain Iraq affirmed, "its commitment to the Iraqi people," adding that, "it will pursue the case as it reserves its legal right to demand compensation for the damages it will suffer from this unfair and disastrous decision. At the same time, the company renews its  confidence in the Iraqi judicial system, which will have the final word on this matter."

Today, Sunday, MP Muhammad Shiaa al-Sudani announced that Al-Karkh court issued a ruling revoking the renewal of licenses for mobile phones operating in Iraq.

Al-Sudani said in a post on Facebook, "the Iraqi judiciary said its word and confirmed its independence and professionalism, when the judge decided to accept the case and rejected the renewal decision."

The Iraqi government decided to approve extending the contracts of the three mobile phone companies operating in Iraq (Zain, Asiacell, Korek Telecom) for five new years. The decision has raised parliamentary concerns since its issuance.