Nokia has secured a deal for the setting up of a GSM mobile telephone network in the south of Iraq

Iraq's interim administration has divided the country into northern, central, and southern areas, each of which are initially getting one mobile operator. The initial operating licences will be in force for just two years. Nokia will deliver the network to Atheer Telecom, which is owned by the Kuwaiti mobile operator MTC. The network will cover the city of Basra, and will extend to the outskirts of Baghdad. Power in Iraq is to be transferred to the Iraqis next summer, after which the number of licenced mobile operators is likely to increase. "We have to look at the issues on a time scale of 20 years. This is a very important foothold for us", says Jari Paakkarinen of Nokia Networks. In the initial stages Nokia will build the Atheer network in the largest cities in the area and along main roads. The building of mobile networks is part of the Iraqi reconstruction programme. When Saddam Hussein was in power Iraq's mobile telephone network was restricted to party members. Most Iraqi reconstruction projects were expected to go to companies from countries in the US-led coalition. However, this does not seem to be the case with the supply of mobile telephone networks. The companies that were given operating licences - two Kuwaiti operators and one Egyptian company - have chosen their suppliers on the basis of competitive bidding. Money for the investment has come from the United States.